Russia is a vast country, extending from Europe to the North Pacific Ocean. Russia has undergone substantial changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy to a more market-based and globally-integrated economy. Since 2007, the Russian government has embarked on an ambitious programme to reduce the country’s dependency on commodity exports (such as gas and coal) and build on high technology sectors. Russia is hosting the 2018 Football World Cup, the first time an Eastern European country has hosted. Many new arenas will be built for the occasion and there is much investment in this area. CompanyRegistrationsWorldwide.com can assist you in accessing this exciting new market, by supporting you in setting up a Russian company. Russian business activity is conducted under the Civil Code, which permits foreign companies to form Russian organisations, including Joint Stock Companies (JSC), Limited Liability Companies (LLC), or Partnerships.
Setting up a Russian Joint Stock Company – what are the main points?
- Joint stock companies (JSC) may be closed (private) or open (public)
- The shares of an open JSC are freely transferable
- In a closed JSC, share transfers are restricted and the other shareholders have pre-emption rights
- The minimum capital requirement for incorporation of a JSC is equivalent to 1,000 minimum monthly wages for an open JSC and 100 minimum monthly wages for a closed JSC
- The maximum number of shareholders is unlimited for an open JSC, but cannot exceed 50 for a closed JSC
- At least 50% of a company’s foundation capital must be paid up within three months from the company formation. The balance of outstanding stock must then be paid up within one year of the company formation
Setting up a Russian Partnership – what is involved?
- Partnerships formed under the Russian civil law possess a separate legal identity
- In partnerships, partners have unlimited liability for partnership obligations
- Less popular with Russian entrepreneurs and foreign investors as compared to companies.
- The tax treatment of partnerships under Russian tax law is exactly the same as that of companies.
Setting up a Russian Limited Liability Company – what is involved?
- Members of an LLC may exercise supplementary rights and bear supplementary obligations without regard to the size or value of such members’ participation interest, as determined by the company’s statutes, or as approved by unanimous vote of all company members
- The maximum number of members of an LLC is 50
- The statutory is equivalent to minimum capital 100 minimum monthly wages
- At least 50% of the equity capital must be paid up before the company documents are filed for state registration with the balance to be paid up within one year from the company formation
CompanyRegistrationsWorldwide.com can provide a professional company formation service, for incorporating your company in Russia.