Business Start-up Costs in Russia

Starting up a company in Russia requires both time and money. An entrepreneur should analyze well the market and its requirements before proceeding with the registration.

1. What is the minimum share capital?

The minimum share capital for establishing a Russian limited liability company is 10,000 rubles, which is the equivalent of approximately 350 EUR. On the other hand, setting up a joint stock corporation in Russia is ten times more expensive, since the minimum share capital required is 100,000 rubles or 3,500 EUR.

2. What are the Company Registration fees? 

Company incorporation in Russia depends on registration first of all. That is why company registration fees must be paid along with the procedure, the costs rising up to approx. 3,000 EUR. BridgeWest provides support in the process of company registration for fees of below 2,000 Euros (including all related costs).

3. What are the costs to rent an office space?

Renting an office space in Russia can be quite expensive, depending on location and the level of renovation. Prices can begin at about 22 EUR per square meter per month and rise up to over 50 EUR per square meter per month. 

4. What are the costs for a virtual office if the client will not rent a location?

For those who want to save up some money and not rent a location in Russia, they can choose to have a virtual office, since it is the cheapest solution for having a business address, as well as high-quality services of phone answering and mail directing. Prices vary between 150-200 EUR per month for a virtual office in Russia.

5. What is the cost of hiring an employee?

A Russian employee has to be paid an average monthly salary of about 1,400 EUR. In addition to that, the employer also has to pay social security contributions, also known as unified social tax for each employee. The amount is calculated at a rate of 26% of the salary if the annual salary is less than 280,000 rubles. If it is more, the employer has to contribute with 72,800 rubles plus 10% of the amount exceeding 280,000 rubles.

6. What are the costs of hiring a local accountant?

Local accountants are needed for dealing with accounting issues in Russia. Their experience and efficiency are requirements set by any company in Russia. For hiring a local accountant in Russia, one must pay 200-300 EUR per month, depending on the activities provided.

7. What is the yearly corporate tax?

Any company in Russia must pay an annual corporate tax at the standard rate of 20%. This amount is divided into 2% for the central government in Russia and the rest for the regional government.

8. What is the yearly dividend tax?

Dividends paid to Russian companies are subject to a 9% dividend tax rate, while dividends paid to a nonresident entity are supposed to pay tax at a 15% rate.

BridgeWest offers assistance for setting up a company in Russia, including virtual office and other related services.