There are a number of things to consider and processes to go through if you are an individual or company thinking of starting a business in Russia. You need to start off with basic considerations such as whether you can legally operate as a business in Russia.

1. Immigration status The first thing to do if you are a foreigner wanting to start a business in Russia is to make sure your immigration status allows you to trade in the country.
2. 2. Business plan for conducting business in Russia, you should have a feasible idea and research the market to assess whether your business is likely to be successful in Russia. Before launching into any business venture, it’s a good idea to draw up a business plan to answer all of the questions about whether your business idea is likely to not only get off the ground but sustain itself in the long-term.
3. Legal structure If you can start a business in Russia and are confident that your business idea works, the next step is to decide on your business legal structure.
4. Choosing company name and address You need to choose an appropriate trading name for your Russian business (ensuring that you don’t choose a name that someone else has already registered) along with an address to register your Russian business at.
5. Foundation documents

In accordance with Russian legislation, the founders of the business need to draw up the foundation documents (charter and founding agreement). The process for this will vary according to which legal structure you choose, but should include the following:

• full company name (plus any abbreviation it will use in business transactions)
• names and signatures of the company founders
• the amount and nature of shareholder contributions (cash or in-kind)
• rules for the running of the company
• legal responsibilities
• details of any directors, if applicable

For Limited Liability Companies and Private Joint-Stock Companies, the minimum legal capital requirement is R10,000 per individual, with 50% at the point of registration and the remainder paid within the first 12 months.

6. Joining the Russian company register

Once the company documents are drawn up, incorporate your Russian business by sending the following documents to the registration office of the Federal Tax Service (FTS):
• registration application form including notarized signatures (cost of R200)
• copies of foundation documents
• proof of legal status of business founder(s)
• receipt of the state registration fee (which costs R4000)
• A copy of the registration application form is available on the FTS website.

Once these documents have been sent, the FTS makes a decision within five working days. They either approve your business to the State Register or refuse the registration. A list of grounds for refusal is available in article 23 of the Federal Law no. 129-FZ.

If your business in Russia is accepted, this process also registers the business for tax purposes. You will receive the following documents within 7 days of the submission of your application:
• the Incorporation Certificate (or Certificate of State Registration) for your business
• Tax Certificate
• Tax Identification Number for the business
• copy of your foundation documents with the mark of registering authority
• Extract from the Common State Register of Legal Entities

7. Making a company seal. This is the official mark of the business and is produced by a professional company. Company seals are no longer a legal requirement in Russia following a change in the law in 2015, however many Russian businesses still have seals.

8. Opening a bank account for conducting business in Russia Once you have all the official documents from the FTS, you can open a Russian business bank account. You need a notarized copy of the signatures (cost of R200 per person) for the account. To open a business account in Russia, you will need the following:
• Incorporation Certificate and Tax Certificate from the FTS
• Founding documents of your business
• Your Russian business license (if applicable for your business)
• Notarized signatures
• Documents confirming the identity and authority of the signatories of the account

My name is Sergey Konon, I am a certified tax lawyer, a member of the chamber of tax consultants of Russia and a partner of Vita Liberta Limited, a Russian consulting company in the field of corporate and tax law.

Get in touch with us: konon@vitaliberta.com

Our website: www.vliberta.com
Our Instagram: www.instagram.com/vitaliberta_russia/
Our telegram channel: t.me/vitalibertalimited
What's up: +79269205551

Disclaimer: This video is not the equivalent of professional legal advice. Konon Sergey is not liable for any actions taken by anybody. For any professional advice regarding particular case, please contact our office (What's up): +79269205551

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