Setting Up an LLC in Russia

Setting up a Limited Liability Company (LLC) in Russia involves numerous regulations requiring consideration of diverse requirements. In this article, we will outline the key requirements for creating a Russian business entity in Russia.

To start, foreign investors or Russian citizens need to register their company at the state's Unified State Register of Legal Entities of the Russian Federation. This includes filling out a registration application and submitting the necessary documents 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 transferred as a credit.

Another key requirement is to have a management structure for the LLC, consisting of a sole executive body or two separate bodies. The executive body is responsible for the day-to-day management of the business, while the supervisory body oversees the activities 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 submit precise financial reports and submit annual tax returns. They also need to pay a 20% 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 typically Russian, but an English passport translation services is often required for global business operations.

A business license or permit, depending on the industry, 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 advice on local procedures and minimize the risk of unexpected costs.