Company Setup in Russia
As a foreign investor in Russia you are allowed to buy, found and own Russian companies. The Russian Law permits foreign investors to hold up to 100% of a Russian company, so the participation of Russian shareholders is not mandatory. Our professional support during the establishment of a company in Russia starts with the consultation on the most suitable legal form for your Russian venture and covers the entire process of incorporation.
In Russia a limited liability company (Ltd or LLC) is called OOO. Those three Os stand for Obshchestvo s Ogranichennoy Otvetstvennostyu (Общество с ограниченной ответственностью) which translates to “company with limited liability”. The OOO is the prevalent form for legal entities in Russia . Foreign investors and entrepreneurs also most commonly choose this type of corporation.
We help you with the formation of a company. Contact us now to start your business in Russia!
How to found a company in Russia
The establishment of a company in Russia needs thorough preparation. If you want to establish an OOO, first of all, you need to have the following:
- legal address in Russia,
- Russian bank account,
- CEO/General Director with a work permit or Russian nationality and a
- Chief Accountant and a working bookkeeping department.
Firstly, in order to set up a company in Russia, you need to have a legal address, where the head office will be registered. Russian authorities use this address for the communication with the company. To prevent any issues with the founding of your company, make sure that the legal address you use is of high quality.
Secondly, you need a Russian bank account with the minimum share capital already deposited. In Russia, the minimum share capital is set at RUB 10,000 (approx. EUR 145) and therefore significantly lower than in other countries. However, the opening of corporate bank accounts can be quite a bureaucratic hassle. A functioning business bank account is essential to execute or receive transactions.
The third step is the entry in the Russian Commercial Register, which is the decisive factor for the successful establishment of the OOO. Unlike in other countries, the conclusion of a shareholders’ agreement does not have legal implications. As a precondition for the registration in the Russian Commercial Register, the Russian law requires a general director to be nominated in advance.
This is where it can get tricky: If you intend to nominate a general director with a non-Russian citizenship, he will need a valid Russian work permit. However, the work permit can only be applied for, once the company has been founded.
In order to resolve this issue, you can temporarily appoint our lawyer as the Interim Manager for your OOO. Our lawyer with Russian citizenship thereby temporarily takes over the function of the General Director until the working permit has been obtained.
Last, but not least, every company in Russia has to pay its taxes – and you are obliged by law to maintain accurate accounting records. Errors in the reports or significant delays in the filing of tax returns can lead to serious consequences such as fines or penalties, tax inefficiencies or even the freezing of the bank account. The russian Chief Accountant carries the responsibility for the correct bookkeeping and the communication with the bureaucratic tax authorities.
Why it is so important to make sure that the set-up of your company is in good hands?
In general, the process of the set-up of a company, representative office or a branch in Russia can be compared to the company formation in the United Kingdom or the USA. However, there are a few differences that are specific to Russia and that need to be taken into account to ensure a successful market entry without delays or even worse consequences.
For example, it needs to be kept in mind that a valid working permit is necessary for every foreign employee. If there have been made severe mistakes during the application or important documents have been handed in too late, it can happen that shareholders of an OOO will be liable with their private capital as well. Therefore, we suggest to handover the process of a company formation to our experienced lawyers who speak your language. This makes the set-up much safer and all in all cheaper as well.
Our clients of Company Set-up in Russia often ask us to perform the following services of our portfolio as well
10 Reasons to work with Rufil Russia Consulting
- Quality: Our tax consultants and all other employees maintain a client, service and quality oriented approach.
- Loyalty: Our loyalty is always to our clients.
- Transparency: We ensure that our clients always maintain an overview of their business in Russia.
- German Work Ethic: Our company has a German business culture. In our work, we place great emphasis on German virtues.
- Highly qualified staff: In our office work professional Russian tax consultants, accountants, auditors, lawyers and corporate consultants. Our working languages are English, German and Russian.
- Experience: We have been supporting our clients in Russia since 2007.
- Security, Responsibility, Reliability: When our clients receive our services, we assume responsibility and liability for the services provided by our employees.
- The price of Quality in Russia: The outsourcing of services to Rufil Russia Consulting will save you the costs of recruiting, wages and quality control.
- Long term Approach and Continuity: We believe in long term relationships with our employees, clients and investors.
- Network: We are integrated into an expert and competence network of international consultants and partners in Russia and would be delighted to make these contacts available to you.
Our quality promise:
“Your contact person will be a lawyer proficient in English, Russian and German as well as a qualified Russian senior specialist with a good command of English who regularly participates in professional training, is permanently employed at Rufil Russia Consulting and based at our office in the very center of Moscow. Don’t settle for less!”
In our office in Moscow work highly qualified accountants, auditors, finance experts (IFRS, US-GAAP, HGB, Russian GAAP), tax consultants, experts and programmers for automation, accounting software and IT solutions as well as international management consultants. Our working languages are English, Russian and German.
Important information regarding the Company Set-up in Russia (free downloads)
Who are we?
We are a German-international medium-sized and owner managed Business Strategy Consulting Company in Moscow. With about 20 employees – most of us are financial experts, business consultants, accountants, tax advisors and consultants – we support international companies in their business in Russia. How we work and what are our corporate principles are you can find out at: about us.
Successful business in Russia means taking action.