Set up Company in Russia
Company formation in Russia consists of several standard actions, such as drafting the articles of association, the specimen signatures and some other special forms provided by the company registration office in Russia. Documents must be translated in Russian before submitted with the Russian Trade Register. Company formation in Russia also requires a registered office, a bank account and a local accountant. All these activities must be completed in order to set up a company in Russia.
TYPES OF COMPANIES
- Limited Liability Company in Russia – this type of company is specially designed for small and medium sized businesses and it can be set up by only one shareholder with the condition to provide at least 10,000 rubles or 350 EUR as an initial capital.
- Private Joint-Stock Company in Russia – this type of structure for a new company in Russia can have one founder who must provide a minimum share capital of 100,000 rubles or 3,500 EUR.
- Russian Branch or Subsidiary–a Russian subsidiary is considered as a limited liability company, while Russian branches are extensions of foreign companies that are set up in Russia.
INCORPORATION PROCEDURE IN RUSSIA
Company registration in Russia requires at least one person regardless of their nationality or residence. It is however recommended that at least one director of a company in Russia is a citizen of Russia. Before company registration in Russia, it is necessary to find an office and obtain an employment permit, as well as opening a bank account. All these actions can be performed by a shareholder or by a legal representative of the company appointed by power of attorney.
Company registration in Russia is followed by VAT registration. Companies fall under the rules stipulated in the tax code of Russia, therefore must apply for VAT registration. The procedure begins when an application form is submitted, together with the company charter and registration certificate of the company.
When company formation in Russia and company registration in Russia end, it is advisable to recruit personnel with the help of job websites or specialized agencies. These instruments will help the employer find the best suited candidates for the jobs in the company. Nevertheless, an employer must be aware of the average salary that an employee receives monthly. This amount reaches 1,400 EUR.
ECONOMY OVERVIEW IN RUSSIA
Russia is a powerful economy in Europe, but the crisis determined the foreign investments to drop here too. Anyhow, the Russian government encourages foreign investments and company formation in Russia. In 2008, the statistics of the Russian Economic Report from the World Bank showed that Russia received 18.9 billion EUR from foreign investments.
Things started to look up at the beginning of 2011, when the capital from foreign investors started to increase. Numerous projects and new companies began their activities and the gross domestic product is estimated to have been reached better numbers than the previous year. The main reason seems to be the increasing oil price.
Switzerland, Cyprus, UK and Netherlands used to be high investors in Russia during the past years. The main industries that are quite attractive in Russia are services and industry from oil, gas, timber, machinery, chemicals, metals and farming to food, textile, furniture and energy production. Overall, Russia is one of the most important trading partners for all countries in Europe.
As far as the jobs are concerned, foreign companies create on average 100-200 jobs per company. The employees are chosen among the Russian candidates or the foreign applicants. It is important to know that foreign employees must obtain a work permit before being hired in a Russian company.
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