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Russian Company Formation: Doing Business in Russia

Updated:2018-3-21 18:32:25    Source:www.tannet-group.comViews:193

Russian company formation is conducive to those who want to invest in the world’s largest country in terms of land area. As a business person or entrepreneur, you may be very familiar with the advantages and disadvantages of the various types of corporations you can form in your home country, but are unaware of how these structures work in Russia. Tannet's associates in Russia are experienced corporate attorneys who can be with you from step one or can come in whenever you hit a roadblock as you build your business.

How to incorporate a company in Russia?
The process of a company incorporation is relatively simple in Russia. Any foreign national or corporation can be a sole shareholder of a Russian company. The most common form of incorporation is a limited liability company (LLC) or an “OOO” in Russian. The minimum charter capital of the company is RUB 10 000 (appro. USD 170). The founding-shareholder has to certify an application for the LLC’s incorporation before a notary public either in Russia or in the country of his residency. 

What are the tax rates for corporations in Russia?
There are two tax regimes in Russia: the general tax regime and the simplified tax regime.

The following rates are applicable under the general tax regime: the corporate profit tax 20% flat rate, 18% VAT, and the assets tax 2,2%.

The company which turnover does not exceed RUB 150 000 000 (apr USD 2,5 mn) per year and meets certain other criteria may use the simplified tax regime. The companies under the simplified tax regime do not charge the VAT. The simplified tax regime companies may choose how to pay the corporate profit tax: either to pay 6% of the turnover, however, expenses are not deductible; or 15% of the net profit, expenses are deductible.

A company is free to switch the tax regime once a year, unlimited number of times during its operation.

How does a foreigner obtain a work permit in Russia?
There are 2 options: a regular 1 year working visa and a 3 year working visa for a highly qualified specialist. The majority of foreign employees obtain the 3 year working visa. The minimum monthly gross salary for the 3 year working visa is RUB 167 000 (appro. USD 2800). We also provide visa support for the employee’s family members.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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