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Main Reasons for Doing Business in Russia

Updated on Wednesday 02nd June 2021

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Main reasons for doing business in Russia.jpgIf you are wondering why Russia is an excellent destination for foreign investors, well the answer is quite simple. The country offers vast opportunities for assertion and development in sectors such as oil and gas, tourism, agriculture, IT, renewable energy, and more. We present to you some of the reasons why Russia is the right destination for foreign investors and we remind you that our company formation agents in Russia can offer you the necessary support for Russia company registration.
 

1. Foreigners can easily register a company

 
Russia company incorporation is a fairly simple procedure, and the formalities are appropriate. Such an advantage is appreciated by foreign investors who want to start their operations as soon as possible, as soon as the firm is registered.
 
A limited liability company or OOO can be established with a minimum share capital of RUB 10,000, deposited in a Russian bank account. All formalities can be managed by our team of specialists who can explain every step of registering a company in Russia. We can help foreign investors who want to know more about Russia ease of doing business.
 

2. The tax system is advantageous

 
A foreign investor knows how important the tax regime is for his company. Thus, a series of decisions regarding the type of investment can be taken taking into account, to be aware of the taxes to be paid. Russia offers many advantages from this point of view, and among them, the corporate tax rate is set at 13%, but reduced rates can be considered. The standard VAT rate is set at 18% for most goods and services available for sale purposes in Russia. Even if the tax system in Russia may change, it is important to know that our team can provide you with all the necessary support in this direction. Find out from our team of experts how to register for taxation in Russia. They can also tell you more details about Russia ease of doing business.
 

3. An experienced and multilingual workforce

 
International investors can benefit from an experienced workforce in Russia. So, when you decide to set up a company in this country, you can also consider hiring local workers in sectors such as manufacturing, tourism, IT, automotive, or engineering, to give some examples. More about Russia company formation and the benefits of the available workforce can be discussed with our agents.
 

4. Russia’s free zones are quite advantageous

 
Foreign entrepreneurs looking for other benefits for their future business in Russia can turn their attention to the special free zones of this country. Such areas are established near the big cities and offer many advantages such as the absence of import taxes, a profit tax of only 5% rate for the first 5 years of the business activities, and many other benefits for the processing industry. Vladivostok Free Port, Tomsk Industrial Special Economic Zone, Saint Petersburg, Zelenograd, Dubna, Alabuga Special Economic Zone, Lipetsk, Kulibin Special Economic Zone are some of the most important areas of interest for local and international business.
 

5. Russia's economy provides stability

 
A stable economy is certainly an important criterion to consider before any kind of investment or business development. Russia is a force in this regard, along with the United States, and relies heavily on oil and gas exports around the world. Here are some important aspects that broadly describe Russia's economy:
  1. As I mentioned, the country's economy is highly dependent on oil and gas exports, with about 60% of resources reaching the country's borders.
  2. Russia's reserves amount to about USD 460 billion, but the level of indebtedness is about 29%.
  3. Russia is a major exporter of asbestos, this product reaching all over the world.
  4. More than 10% of Russia's territory is agricultural land.
  5. The metallurgical industry and the production of plastics and chemicals are well developed in Russia.
 
Here are some statistics about Russia's economy:
 
  1. Nearly USD 464 billion represented Russia’s total FDI for 2019.
  2. More than 22% of the total FDI in Russia in 2019 was absorbed by the mining and quarrying sector.
  3. In 2019, Cyprus was the main investor in Russia, with more than 30% of the total FDIs directed to this country.
  4. In matters of Russia ease of doing business, the country ranked 28th out of 190 worldwide economies, according to the 2020 Doing Business report.
 
Want more information about Russia ease of doing business? We invite you to talk to our team of company company formation agents in Russia and find out details about setting up a company. Contact us for assistance and personalized offers.
 

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