Business in Russia
The 2 popular forms of Business are the Sole Trader and the LLC (OOO in Russian Language), Below we will compare this 2 systems.
Please be aware that we give you Free consultation on request to help you to setup a Business in Russia, just contact us by email and we will answer you.
1 - OOO , Limited Liability Company
The Minimum share capital for a LLC is 10 000 RUB, it must be at least released 50% of this amount of money when setup the company and bank account opening, the LLC can have 1 founder or more founders, founder can be of any nationality it can be a physical person or a company. This legal structure allow you to do Business in Russia and Worldwide with safety and trust of international and local partners. The Director of the LLC can be Russian or foreigner, if a foreigner he must have a work permit except if he has special status that allow him or her to work without permit in Russia (find the list below). The setup of the LLC is fast and easy if you use Russian consulting firm or Know Russian, you must also lease an office (virtual office are not accepted) and get guarantee letter from the Owner of the office or commercial premise, this can be done relatively cheap in Many Russian cities, also VAT registration is not compulsory and Tax on profit can be under simplified system 15% on profit or 6% on turnover, as well as normal tax regime available, accounting is compulsory and reports must be done monthly.
If you are Foreign Director or Russian Director you will need to Get a TIN Number and a SNILS number in order to start the Business.
Legal fee for register the LLC is 4 000 RUB
Persons that doesn't need a Work Permit to work in Russia :
https://www.visa-workpermit.ru/work-permit/foreign-citizens-exempt-from-work-permit/
Advantages of LLC :
1- Low Cost Setup 2- Any person or company can be owner 3- Separate your person and company responsability 4- Any Nationality can be Director 5- No Need a Resident Permit to Setup the Business or be Director.
Inconveniences of LLC :
1- Need to Rent an Office 2- Professional accounter highly recommanded 3- Need an electronic Signature to submit reports you or your accounter must have.
2 - Sole Trader, Individual Company
Any person with a RVP can setup an Individual Company in Russia, This form of entrepreneur is recommanded if you already have a resident permit in Russia because if you don't have you will not be able to setup this structure.
The legal fee is 800 RUB, you are liable on your personal assets and the accounting is minimal.
You don't need to rent an office you can register the sole trader at your place of residence if you rent a house or appartment you must have the approval of the owner.
Advantages of sole trader :
1- Easy to setup if you have a residence permit 2- very low maintenance fee 3- flexible management
Inconveniences of sole trader :
1- You must be resident to setup (own a residence permit)
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