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Establishing a Business in Russia |
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| Starting a Business in the Russian Federation | |
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Form of legal presence in Russia influences all aspects of activity including possibility for making deals and tax consequences of the deals, financial and tax accounting and reporting, possibilities under customs, currency control legislation, ability to employ foreign nationals, repatriation of income, application of international treaties and many others. Therefore, particular attention must be paid to Russian business modeling to be made PRIOR setting up legal presence in Russia.
There are several forms for a foreign investor to start business in the Russian Federation. Foreign investor may set up (or register) a Russian legal entity in the form of limited liability company, joint-stock company (which can be private or public) or partnership. The other way is to register a representative or branch office of a foreign company in Russia.
In order to get more information on the different types of entities that you can establish in Russia click to Comparison table
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Legislation compliance.
Formation of a Russian legal entity. General information.
Stages of registration of a Russian legal entity:
| Stage | Terms |
| 1. | Registration at the Tax authority 5-7 working days | | 2. | Registration at the State Committee for Statistics. 2-5 working days | | 3. | Making of the seal of the Company. 2-5 working days | | 4. | Registration at non-budgetary funds (Pension Fund, Social Security Fund, Obligatory Medical Security Fund) is done by tax inspectorate | | 5. | Opening of the bank account depends on the bank | | 6. | Registration of the shares issue with the Federal Services for Financial Markets* 24-30 working days |
*Is applicable only to Private and Public Joint Stock Companies.
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List of documents required from a company – non-resident:
1. Certificate of Incorporation or extract from the Trade Register of the country of origin.
2. Memorandum and Articles of Association.
3. Resolution of the Company’s executive (managing) body upon the appointing of the Head of the new company or Power of Attorney to the person authorized by the Company.
Documents mentioned above require Consulate legalization or apostille with notarized translation to the Russian language.
List of documents required from a foreign individual:
1. Passport
2. Russian visa (if any)
Representative and Branch office accreditation. General information.
Stages of accreditation:
| Stage | Terms |
| 1. Accreditation with the accreditation authority | 14-21 working days
| | 2. Producing the seal | 2-5 working days
| | 3. Registration at the State Committee for Statistics | 2-5 working days
| | 4. Registration at the State Tax Inspectorate | 5-7working days
| | 5. Registration at non-budgetary funds | is done by tax inspectorate
| | 6. Opening of a bank account | depends on the bank |
List of documents required from a foreign legal entity:
1. Memorandum and Articles of association of a foreign legal entity (charter, bylaw).
2. Certificate of Incorporation of a foreign legal entity or Extract from the Trade Register.
3. Letter of introduction provided by a Bank that serves for a foreign legal entity in the country of incorporation that proves its solvency.
4. Resolution of a foreign legal entity about opening of the Representative or Branch Office and appointing of the Head.
5. Power of Attorney given to the Head of the Representative or Branch Office.
6. Certificate of registration with Tax authorities with Tax Code of a foreign company (or its analogue in the country of its establishment).
Documents mentioned above require Consulate legalization or apostille with notarized translation to the Russian language.
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| Russian Financial and Tax Compliance Table |
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| Type of Reports | Representative Office* | Legal Entity and Branch** Office | | | Payment of tax | Filing | Payment | Filing | | | Financial Accounting Reports | | | | Balance Sheet with Annexes | N/A | N/A | N/A | Quarterly | | Income Statement | N/A | N/A | N/A | Quarterly | | Report on Change in Capital | N/A | N/A | N/A | Quarterly | | Cash Flow Report | N/A | N/A | N/A | Quarterly | | Report on Use of Funds (for Russian Budgetary Financing) | N/A | N/A | N/A | Quarterly | | Accounting Policy | N/A | N/A | N/A | Annually | | | General Tax Reports | | | | Corporate Income Tax Report (including Withholding Tax information) | N/A | Quarterly | Monthly | Monthly or Quarterly | | VAT Report (inclusive of special forms for import/export operations) | N/A | N/A | Monthly | Monthly | | Individual Income Tax reporting | Monthly | Annually | Monthly | Annually | | Unified Social Tax Report | Monthly | Quarterly | Monthly | Quarterly | | Pension Fund Contributions Computation | N/A | Quarterly | N/A | Quarterly | | Provision of employees' personal data to Pension Fund | N/A | Annually | N/A | Annually | | Pension Fund Report | N/A | Annually | N/A | Annually | | Social Insurance Fund Report | N/A | Quarterly | N/A | Quarterly | | Industrial Accident Insurance | Monthly | Quarterly | Monthly | Quarterly | | Property Tax Report | Quarterly | Quarterly | Quarterly | Quarterly | | Transport Tax Report | Annually | Annually | Annually | Annually | | | Special Taxes and Tax Regimes Reporting | | | | Land Tax Report | N/A | N/A | Quarterly | Quarterly | | Mineral Extraction Tax Report | N/A | N/A | Monthly | Monthly | | Excises | N/A | N/A | Monthly | Monthly | | Simplified Tax Regime reporting*** | N/A | N/A | Quarterly | Quarterly | | Gambling Tax reporting | N/A | N/A | Monthly | Monthly | | | Reports to Statistics Committee | | | | report on sold goods (P1) | N/A | N/A | N/A | Monthly | | report on investments (P2) | N/A | N/A | N/A | Quarterly | | report on financial statement (P3) | N/A | N/A | N/A | Monthly | | report on personnel number, salary and movement (P4) | N/A | N/A | N/A | Monthly | | report on company activity (P5) | N/A | N/A | N/A | Quarterly | |
* Representative office with auxiliary and representation function only, i.e. having no commercial activity
** For the purposes of Russian Financial and Tax Compliance a Repoffice that creates a permanent establishment is named a Branch
*** Inapplicable to Branches
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Need help in establishing your business in Russia?
After years of providing a full range of start-up services to our clients, VISTA Foreign Business Support realized that there was a better way: one-fee, full-service packages tailored to meet the needs of start-up businesses. These start-up service packages include all the legal, tax, accounting, and administrative support services a company needs to enter the Russian market. We offer three levels of start-up packages to meet your needs, whether you are at the idea stage or nearly ready to begin work.
Why purchase a start-up service package?
1. You get everything you need from one firm with years of successful experience. No running around to find ten different specialists, no multiple contracts, no problems with coordination.
2. You get one team of professional, flexible and committed top specialists – from legal experts to professional bookkeepers - working with you to meet your goals.
3. You get more for your money. With a VISTA start-up service package you get Moscow’s top professionals for a more competitive price than you could get by contracting with several different firms or consultants.
4. You know ahead of time how much it will cost to start your business – no unexpected expenses. And no costly delays. You choose the level of support with a fixed price – and get our guarantee of the results you want.
5. You get just what you need. Chose the level of support that’s right for you and your company. If you want something extra – VISTA can add on services to the basic packages.
VISTA Foreign Business Support provides consulting, law and accounting services for organizations and individuals.
Phone: +7 095 933 7822, Fax: +7 095 933 7823
E-mail: startuprussia@vfbs.ru
Web: www.vfbs.ru
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