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Russia

Russia

The Russian Federation has many resources and huge potential which in recent years has led to a significant increase in foreign investment. This has led to local authorities in many of the regions attempting to stimulate the investment environment and form a culture of investment.

There have been several initiatives in order to enhance the investment environment, some of which are outlined below:

  • The Development of Regional Investment Legislation – The Republics of Tatarstan and Komi areparticularly active along with the Yaroslavskaya Oblast Region.
  • Development of Benefits by Local Authorities – Investment is being supported by local authorities through the provision of benefits
  • Creating a Valuable Investment Environment – Increasing the transparency and attractiveness for investment opportunities.
  • Actively Increasing Foreign Investment Opportunities – There are certain regions within Russia that are leaders in attracting foreign investment and providing the right climate for foreign investors. The main regions which provide this are Nizhny Novgorod and Nizhny Novgorod Oblast, Orenburg Oblast and the Komi Republic. The regions of Central Chernozem and the Volga are also active in this respect as government support has increased leading to these regions becoming more attractive for foreign capital and investment.
  • Formation of Investment Infrastructure – Five regions have established mortgage funds which have increased the regions attractiveness to foreign investors. Mortgage funds are an opportunity to provide state guarantees on the part of the Federation. An example of this is the Reinsurance Company which operates in the Komi Republic. In addition to initiatives such as the mortgage fund other projects are being created such as the development of business centers and the improvement and upgrading of communication systems. There has also been additional emphasis on the improvement of economical justification for investment projects. To strengthen these ongoing programs, it is important to engage banks in this activity and in order to do this the implementation of regional passports has been proposed. These will contain the information necessary for potential investors as Russia’s regions differ strongly regarding investment potential and also risk investment.

The greatest investment potential is located in Moscow and St. Petersburg and in the donor regions due to the vast potential resources and raw materials available.

There are several possible forms of legal entity that a foreign investor can choose when incorporating a company in the Russian Federation. A legal entity may be registered in the form of a Limited Liability Company, Joint Stock Company (which may be open or closed) or a Partnership. Representative Offices or a branch of a Foreign Company may also be registered in Russia.

Legal entities in the Russian Federation:
a. Limited Liability Company (LLC) & b. JointStock Company (JSC)

  • Both LLC & JSC may exercise any form of commercial activity which is not prohibited by Russia Law. Licenses may however require to be obtained depending on the type of activity the company wishes to carry out.
  • The number of shareholders /participants should not exceed 50. For Public JCS there are no limits on the number of shareholders / participants.
  • The minimum number of share holders is one.
  • The founders / shareholders of a LLC and JSC can be Individuals, Russian or Foreign Companies.
  • The Annual General Meeting should be held annually. The company may be run by the Individual Executive(The General Director) or by the Collegiate Authority (The Board)
  • The Tax Authorities register companies the details of which are then registered in the United State Register
  • A LLC and PJSC must also be registered with the State Committee for Statistics, Pension Fund, Insurance Fund and Social Insurance Fund.
  • The authorised capital is divided into shares / units which represent the rights and obligations of a shareholder / member in accordance with their shareholding in the authorised capital
  • Quarterly reports must be submitted to the tax authorities.

Detailed Service Price List- Russia Company Incorporation

Service
Fees (EUR)
Consultation on company registration matters and structure in Russia
Free
Formation of a company in Russia
From €400
Obtaining Registration certificate for company in Russia
From €50
Provision of a legal address (for a rolling contract, renewed every 12  months)
From €70
Obtaining of a share certificate for a company in Russia
From €70
Obtaining of a company seal and registering  it in accordance with the laws of the Russian Federation
From €50
Affixed apostille certifying the authorised bodies in the Russian  Federation
From €30
Power of attorney
From €50
Bank account opening for a Russian company
From €900
Shelf company in Russia
Upon request

If you have any questions regarding incorporation in Russia, please contact our specialists: info@eltoma-global.com

* The Service fees placed on the website are intended for general information purposes only and may differ from the final quotation
**Some of the information stated may no longer reflect the most current legal developments 

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