If a foreign investor decides to set up a company in Russia, he must choose a type of structure that is proper for his business and for his interests. According to the Russian Company Law, there are several options when it comes to the available types of companies that can be set up in Russia.
At least one individual or legal entity must contribute to this type of company formation in Russia. If there are more than 50 shareholders, the Russian limited liability company must be transformed into an open joint stock company or a production cooperative. The minimum share capital needed for setting up a limited liability company is 10,000 rubles. The capital is divided into participation interests that are not registered with the Russian Federal Securities Service.
One or more persons can form this type of company. The liability is divided between the participants who bear in common the responsibility for the company’s obligations. When a shareholder is suspect of bankruptcy, his liability is distributed among the other members to the extent of their own contributions.
In order to set up this type of company, it is necessary that the founders provide a minimum share capital of 100,000 rubles. This capital is divided into shares. Open joint stock companies allow the shares to be transferred freely and can have unlimited number of shareholders, while closed joint stock companies can only have their shares distributed among the members of the company.
When two or more partners decide to set up a company that is co-owned, they shall form a partnership. General partnerships have general partners who can be involved in the management of the company. They are all equally liable for the company’s obligations and are bound by the actions of all the other partners.
As opposed to the general partnership, this type of company must have at least one general partner with the right to manage the company and with full liability to the extent of his contribution. There must also be at least one limited partner who is not liable for the company’s obligations. Both types of partnerships are set up on the basis of a signed agreement, where all rights and obligations of the partners are stipulated.