Guide to Company Incorporation in Russia

1. What is the minimum share capital of a Russian Limited Liability Company?
In Russia the minimum share capital of a Limited Liability Company is 10,000 rubles (approx. 350 Euros).

2. What is the minimum share capital for a Russian Joint Stock Company?
The minimum capital of the Russian Joint Stock Company is 100,000 rubles (approx. 3,500 Euros).

3. Are there any special requirements for establishing a Limited Liability Company?
The most common business form in Russia is the Limited Liability Company as it is best suited for small to medium sized business. It can be set up by a single person or more, or by a legal entity, citizens of the Russian Federation or not. There is no requirement as to the residence of the director, but it is advisable for at least one decision maker person to reside in Russia. However a registered office is required for the purpose of registration and also for tax purposes. If the company hires employees it must obtain an employment permit. Each foreign employee must also apply for work permits. The incorporation procedure does not require presence of the founders, but a legal representative must be authorized through power of attorney to carry out all the procedures. However in order to set up the company the minimum capital must be deposited in a bank account. Some banks may require the presence of the company founders to ensure of their presence. It is possible to find a branch of a Russian bank and open a bank account in your country, transferring the information to the central bank in Russia. It is advisable for the manager to document themselves as to this possibility.

4. How can I register for VAT in Russia?
According to the Tax Code of Russia, legal entities pay tax, including businesses with foreign investments, entities fully owned by foreign entrepreneurs. In order to register for VAT the founders of the company or the company legal representative must submit an application for registration. Along with the application form available at the institution, the applicants must also submit specific company documents, as company charter and registration certificate.

5. How can I open a bank account in Russia?
Prior to applying for registration, the Russian company has to open a bank account in which to deposit the initial capital which is temporary blocked. After registration the managers may proceed to open the permanent bank account. In order to open the bank account certain documents are required. These include the company charter an extract from the Trade Register, or another document that certifies the state registration of the company, a document of registration with the Russian tax authority, the power of attorney given by the management to a company representative and a copy of the passport of the person who signed the application for opening the bank account.

6. How can I recruit personnel in Russia?
A newly established company that wishes to hire personnel in Russia benefits from highly qualified workforce. The company may create user accounts on various job websites or hire a recruitment agency which will provide suitable candidates for their work posts.

7. What is the average salary in Russia?
With a flourishing economy and a well based social security system, employees in Russia benefit from a good quality of life. The average salary of a Russian employee reaches 1.400 EUR.

8. What is the overall economical situation in Russia?
Russia has maintained its position as a powerful country economically speaking, due to a developed industrial base and productive workforce. Also natural resources and exports play an important role in the country's economy. However the state has experienced difficulties due to the economical crisis, but the government has taken measures to improve the business sectors that suffered the most. In terms of foreign investment, the government encourages business formation and new business relationships establishment.

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