Establishing a Russian Business Entity

Setting up a Limited Liability Company (LLC) in Russia can be a complex process requiring consideration of diverse requirements. In this article, we will outline the key requirements for setting up a Limited Liability Company in Russia.

To start, foreign investors or Russian citizens need to register their company at the state's State Unified Registry of Legal Entities of the Russian Federation. This includes obtaining a business registration certificate and providing required paperwork to the registration authorities, often a notary public.

One of the essential requirements for setting up an LLC in Russia is having a minimum authorized capital of 50,000 rubles. This amount can be either paid in full or deposited as a bank guarantee.

Another key requirement is to have a management structure for the LLC, consisting of a sole executive body or multiple management structures. The executive body is responsible for the day-to-day management of the business, while the supervisory body supervises the performance of the executive body and ensures compliance with the company's articles of association and any relevant laws.

In addition to these requirements, an LLC in Russia must maintain a register of its members, including their names, addresses, and percentage of ownership. It is also necessary to have a minimum of three members, but there is no maximum limit on the number of members.

Another crucial aspect is accounting and taxation. LLCs in Russia are required to keep precise financial ledgers and submit annual tax returns. They also need to pay a 15% corporate income tax on their profit, which can be offset by losses carried over from previous periods.

The language in which the documents must be prepared is usually in the official language, but an English top-10 translation agencies in Moscow is often required for global business operations.

A business license or permit, subject to industry regulations, is also required. The specific license or permit will depend on the nature of the business and should be obtained in advance of opening.

It is recommended that any foreign investor or entrepreneur consult with a qualified attorney who is familiar with Russian business law and regulations. They can provide guidance on specific requirements and minimize the risk of unexpected costs.