Starting a Business in Russia: FAQ
Most foreign investors enter Russia through a limited liability company (OOO). The tax office registers a new company within a few working days once it receives a complete set of documents. After that come bank accounts, a tax regime and, for some activities, licences. Attorney Elena Petrova answers fifteen practical questions.
Company Forms
Which form suits a foreign investor?
The OOO is the usual choice. It limits the owners' liability to their contributions and is flexible in governance.
Can I open a branch instead?
Yes, a foreign company may accredit a branch or a representative office. A representative office cannot conduct commercial activity.
Founders and Management
Can a foreigner be the sole founder?
Yes. A foreign individual or company may hold the entire share capital of an OOO.
Must the director be a Russian citizen?
No. A foreign director needs the right to work in Russia, which usually requires a work permit.
What if a founder comes from an unfriendly country?
Transactions with shares in such companies may require government approval, and dividend payments may face restrictions.
Charter Capital
What is the minimum capital?
Ten thousand rubles for an OOO. It must be paid within four months of registration.
Can it be paid in property?
Yes, but non-cash contributions require valuation by an independent appraiser.
Registration Steps
| Step | Who handles it | Result |
|---|---|---|
| Charter and founders' decision | Founders or attorney | Founding documents |
| Filing with the tax office | Applicant or notary | Entry in the state register |
| Legal address | Company | Confirmed location |
| Bank account | Company and bank | Ability to pay and receive funds |
How long does registration take?
Three working days from filing complete documents with the tax office.
Taxes
Which tax regime can a company choose?
The general regime with profit tax and VAT, or the simplified system with tax on income or on income less expenses. A company more than a quarter owned by other legal entities, including foreign ones, cannot use the simplified system, and revenue limits also apply.
When must a regime be chosen?
The simplified system is chosen within thirty days of registration, otherwise the general regime applies.
Banking and Currency Control
Will a bank open an account for a foreign-owned company?
Yes, but banks check the owners and the business closely. Expect questions about beneficiaries, the source of funds and planned counterparties. Prepare apostilled documents on foreign founders and a short description of the business model in advance.
Are there currency restrictions?
Yes. Currency control rules govern foreign trade payments and cross-border transfers.
Licences and Permits
Which activities need a licence?
Those listed in the federal law on licensing, such as medical, educational and security activities. Alcohol and banking have separate regimes.
Can a company start work before getting a licence?
No. Operating without a required licence leads to fines and suspension. Some activities instead require only a notice to the regulator before starting.
What reporting follows registration?
Annual financial statements, tax returns under the chosen regime, and payroll reports for employees. Founders should also keep the register data current, since an outdated address or director may lead to fines and exclusion from the register.
The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.