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Establishing a Business in Russia
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Starting a Business in the Russian Federation
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
Legislation compliance.

Formation of a Russian legal entity. General information.

Stages of registration of a Russian legal entity:

StageTerms
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.
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:

StageTerms
1. Accreditation with the accreditation authority14-21 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 Inspectorate5-7working days
5. Registration at non-budgetary fundsis done by tax inspectorate
6. Opening of a bank accountdepends 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.
Russian Financial and Tax Compliance Table
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
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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