There are different forms for a foreign investor to set up a new business in Russian Federation. It may be either a Russian legal entity in the form of limited liability company (LLC), joint-stock company (JSC).
LLC and JSC (which can be private or public) may conduct any form of commercial activity if it is not prohibited by the Russian legislation. License is required for any licensed type of activity (banking, financial. Alcohol-trading and others).
Registration should be done by the Tax Authority in 5 workdays after submitting the documents
Minimum registered capital for LLC is 160$.
At least 50% of the statutory capital shall be paid-up prior to the company’s registration.
The following can be contributed to the capital:
- other things or intangibles;
- property rights with monetary value.
Statutory capital can be divided into shares/units. Both shares and units represent rights and obligations of a shareholder/participant in accordance with their participations.
The units can be sold to anyone, but parts should observe right of priority for the unit purchase.
The shares allotment should be registered with the relevant State body.
Accounting and Taxation
Accounting and tax reports are required by Tax Authorities for any company on a quarterly basis.
List of documents required from a non-resident company:
- Certificate of Incorporation/ extract from the Trade Register of the country of origin.
- Memorandum and Articles of Association.
- Resolution of the Company’s executive (managing) body upon the appointing of the Head of the new company.
Documents mentioned above require Consulate legalization or apostille with notarized translation to the Russian language.
Subdivisions of foreign company can be both Branch and RO (Representative Office). They are considered as Russian non-resident entities for currency control purposes. The difference between types of subdivisions of a foreign legal entity is that Branch may conduct commercial activity and RO are not allowed to undertake commercial activity in Russia. RO can only represent the foreign company’s interest.
- consulting on accreditation/registration;
- preparing a set of documents for accreditation/registration;
- accompanying the applicant to the Notary Public to verify a signature;
- accompanying the applicant to the Registrar;
- acquiring statistical codes from the States Statistics Service;