Setting up a business in Russia.
How can we be useful for your business?
Regions of Russia have diverse industrial structures and every foreign investor needs to investigate certain aspects of doing business in particular area. For example, certain types of business activities can be conducted only on the basis of a special license issued by an authorized licensing agency.
In our days Russia has begun active work on improving the country’s business climate by reforming its legislation and simplifying official procedures. Now the decision to start a new business in Russia, where profits are really high, is a great business opportunity for foreign investors.
Who can set up a business in Russia?
There are some restrictions on foreigners operating businesses in some sectors, such as strategic sectors, air transport, gas supply, insurance companies and etc. Other than that, there are no limitations: any foreigner or foreign company can start a business in Russia. The Labour code is the main document that regulates labour relations between employees and employers.
The form of legal presence.
A foreign investor may choose one of several legal forms:
- Registering a representative or a branch office of foreign legal entity if you are already doing a main business abroad.
- Forming a legal entity with participation of the foreign capital.
In Russia, the most common legal entities with foreign capital are limited liability companies and joint-stock companies. In all three cases, the liability of their shareholders for the company debts is limited to the amount of their contributions to the nominal capital of the company. But actually, thanks to the latest changes in Russian law (since 2017), shareholders response for the debts of their property.
The charter capital of a limited liability company is divided into shares the size of which is determined with the founding documents and determines a minimum size of the company’s property guaranteeing the interests of its creditors.
Charter capital contributions can be made in monetary form or in-kind. In-kind contributions require an independent appraisal.
The minimum amount of charter capital for a LLC is RUR 10,000.
- Registering as an individual entrepreneur (sole trader), who is running a business without formation of the legal entity (a foreign citizen can register with this status only if they have a temporary or permanent residence permit).
Taxation of Russian Companies.
Particular activities in Russia can be subject to different tax regimes. Also different taxes can be applied to the company depending on activities they carry on.
Most Russian regions have adopted regulations establishing tax concessions for certain investment activities.
There are two systems: the traditional (profit tax of 20 percent, VAT of 18 percent, property tax varies by region of registration of the entity but is approximately 2.2 percent) and the simplified system of taxation (no VAT, two types of unified taxation). Companies with less than 60 million RUB in turnover and corporate entities can only use the simplified system where foreigners own not more than 25 percent of the company.
Sale of goods, works, services, transfer of property rights, construction conducted by the company in Russia are subject to Russian VAT. Residents are subject to PIT on worldwide income, while non-residents are liable only with regard to Russian source income. A compulsory audit shall be carried out every year.
We help our clients make necessary steps to register a legal entity. They are:
- Deciding on a business legal structure.
- Forming the foundation documents.
- Preparing the set of the required documents for registering.
- Filing the required documents to the register office.
- Receiving the incorporation documents.
- Opening a bank account.
Mednikov & Partners Legal bureau has an experience in supporting foreign companies starting their business in Russia. We support our clients in all spheres of Russian law throughout Russia. We provide our clients considering doing their business in Russia with full range of legal services ensuring successful start and further operations.
Mednikov & Partners Legal bureau provides legal services in the following spheres:
1) Legal representation Services in Court
4) Support of transactions
5) Support of foreign economic activities in Russia
6) Due Diligence
7) Antimonopoly regulation
8) Registration services
If you have any further queries, please do not hesitate to leave your message in the Contact Us section. We will be honoured to assist foreign investors with structuring their presence in our country.
How do we interact with the Client?
The Client should file a request containing a certain task for the Bureau in any form he finds the most convenient at the appropriate time – e-mail, telephone, Skype, in person, business trip. The Bureau provides the Client with the result of task accomplishment in time constraints that can be agreed in advance.
Why you should work with us.
а) We are specialists having successful legal experience from 10 to 25 years. These are hundreds of legal cases in courts of different regions and levels of authorities. These are thousands of hearings and days in court.
b) Different regional Mass Media, informational resources consider us as experts.
c) We offer only working decisions which permit you to do business safely and to remain it profitable.
d) Our bureau – is a safe for your information. Under Russian law, every information given to attorneys is an attorney-client privilege. Attorney can`t be called and be interrogated as a witness about circumstances, which he knew in connection with providing of legal services to the Client. And any given documents can`t be used as the evidence of the prosecution.
e) Professional responsibility of Roman Mednikov as an attorney is insured for 10 000 000 rubles.
f) Attorney Roman Mednikov conducts legal training seminars for business owners and managers not only in Russia, but also in some other countries.
d) Attorney Roman Mednikov is a member of Smolensk Chamber of Commerce and Industry.
e) Attorney Roman Mednikov is the chairman of Union of young attorneys in Smolensk region.
Price.
On additional request.
Service rendering terms.
Under agreement.
We also offer our Clients the following legal services:
If you are going to enter the Russian market: reliability check of contractors, composing of contracts, setting up a business in Russia, assistance in requiring land plots and real estates.
If you have been doing business in Russia: consultations, mediation, out-of-court dispute resolution, contract law, litigation support (representation in courts), the legal defence of persons and enterprises committed an administrative offence, assistance in acquiring land plots and real estates, bank law.
Arbitration Practice. Representation in arbitration courts and courts of general jurisdiction: consultations, mediation, out-of-court dispute resolution, litigation support (representation in court), bankruptcy, supporting Clients in enforcement proceedings, customs disputes, recovery of damage and harm.
