Regulations Related to Pharma Industry in Russia

The pharmaceutical market is one of the most profitable in Russia. Moreover, the regulations related to pharma industry in Russia make this country a place open towards multinational investments. It represents a great option for a foreign investor intending to open a pharmaceutical company in Russia.

 

In order to set up a company in Russia in the pharmaceutical sector, you need to follow the general steps in company formation in Russia. This implies to choose a name for your business and, according to the type of company that you intend to form, to gather specific documentation, such as a certificate for good standing or the constitution agreement. You might need to pay the minimum capital for partnerships and open joint stock companies. According to the regulations related to pharma industry in Russia, there are as well some formation taxes which require payment prior to company approval for functioning.

 

There are also some specific demands that you must have in mind if you intend to open a company in Russia in the pharmaceutical sector. The medicine industry implies a great deal of responsibility; this is why there are some particular requirements regarding the space and equipment that you are going to employ. You will need as well to ensure yourself that the expertise of the personnel you hire is appropriate. 

 

Another very important aspect is to be careful to patent protection and patent regulations for the medicine you are going to develop and produce. 

 

You might also consider to buy a ready-made pharmaceutical company which has the advantage that it has already passed the tight regulations. However you still need to check that company in detail for any financial deficiencies or hidden risks. When you decide to open a company in Russia, it is advisable to employ legal counseling and due diligence services from local company formation experts.

 

The pharmaceutical companies in Russia are subject to special regulations. One example is the 10% rate of the VAT. As one of the most profitable industries in Russia, the pharmaceutical industry benefits as well from integration in drug reimbursement system. The regional budgets are covering payments for some of the most common diseases in Russia and they involve in supporting key branches, such as maternity and hospital infrastructure. This leads to the establishment of a stable financial relationship between the health authorities and the pharmaceutical manufacturers.

 

Don’t hesitate to contact our experts in company formation in Russia who can help you develop a well-constructed pharmaceutical business.