A limited liability company in Russia is actually defined as an OOO. It is the type of Russian company that is best suited for businesses with foreign capital. Foreign investors can choose to set up a limited liability company in Russia regardless of their activity. They must however be aware of the fact that some fields may require a license before starting to practice commercial activity.
In order to establish a limited liability company in Russia or an OOO, a minimum share capital of 10,000 rubles has to be provided, out of which 50% should be deposited in a temporary bank account prior to the company’s registration in Russia. After the procedure of company registration in Russia is completed, the sum can be transferred into a permanent bank account. The capital of an OOO is divided into units which can be sold to anyone.
At least one shareholder has to decide upon setting up a limited liability company in Russia. It is not allowed for a Russian OOO to have more than 50 founders, regardless of their residency or nationality. If the members of the company decide through unanimous vote, company shareholders can have rights that exceed their own contribution.
A Russian OOO must have a management structure formed of a general meeting, a board of directors and an executive body. The minimum management structure consists of one director. General meetings must be organized at least one time every year. The executive body of the limited liability company must follow all instructions specified in the charter document of the company.
The board of directors of a limited liability company in Russia or a Russian OOO is also responsible for verifying and evaluating the company’s activity. In fact, the board of directors also represents the Supervisory Board. All issues that are not discussed in the general meeting fall under the responsibility of the supervisory board.
Company registration in Russia is compulsory before registering for VAT. A limited liability company in Russia must apply for registration with the tax authorities, the State Committee for Statistics and three non-budgetary funds. These funds are the pension fund, the obligatory medical security fund and the social security fund. VAT reports from a Russian OOO are mandatory every month. Tax reports must be submitted every three months.