Doing business in Russia means taking advantage of a stable and well-developed market that collaborates with international hubs. Benefits like enjoying a simple company formation process, a skilled workforce, or lower taxation are on the top of the list of any kind of entrepreneur in Russia, with no exception. Below we present you a few of the reasons for doing business in Russia, not before reminding you that our company formation agents in Russia can gladly help foreigners have a fast start on the market.
1. Simple business registration in Russia
Perhaps one of the most important considerations when it comes to business in Russia is the incorporation process. This needs to be straightforward in order to allow entrepreneurs to commence the activities as fast as possible. The limited liability company in Russia or the OOO is the most popular business form in Russia, a structure that can be registered with a minimum share capital of RUB 10,000 and no more than 50 shareholders. Here is, in large lines what to consider about doing business in Russia and registering an LLC:
- The minimum share capital needs to be deposited in a local bank account in Russia.
- At least one director can form the management structure of a OOO in Russia.
- Some activities might require special licenses and permits. Our agents can assist in this matter.
- The Trade Register in Russia accepts the Articles of Association, the main documents of the company.
- The registration for taxation and social contributions is mandatory in Russia.
Once following these simple steps for Russia company formation, you can enjoy the benefits of fast registration. Feel free to get in touch with our company formation specialists and discuss all the details about doing business in Russia.
2. An appealing tax structure
The tax structure in Russia is one of the lowest and extremely appealing from a business point of view. The 18% VAT rate, 20% corporate income tax rate, and 13% rate imposed on personal income, here are a few of the most important taxes in Russia that are quite advantageous. Plus, there is different taxation in Russia’s special economic zones, with reduced income tax, and even exemptions for lands and properties in Russia.
3. Protection of DDTs signed by Russia
Russia signed a series of double taxation treaties with countries worldwide with the purpose of protecting companies and persons from paying taxes twice. Protection against fiscal evasion for business in Russia, regardless of the activities and income. Being protected from a tax point of view is another great reason for doing business in Russia. Assistance in company formation in Russia can be offered by one of our agents.
4. Appealing sectors in Russia
Oil and gas, the tourism sector, agriculture, IT, manufacturing, mining and extraction, real estate, and construction represent a few of the main solid fields in Russia, where many international business owners enjoy a stable environment and huge profits. Business management and support are important for entrepreneurs who want to start activities in a foreign country. This is where the support of our specialists will prove helpful.
5. Access to international centers for business activities
Russia is seen as a powerful country from a financial and business point of view, found on two continents. Besides being involved in a large number of international conventions that aim the ease of doing business, Russia is an important hub that allows global business connection with any kind of country, especially because the country has a great geographic location where transportation and logistics play major roles. Here are a few interesting facts and figures that show the business and economy direction of Russia:
- In terms of total FDI for 2019, Russia registered nearly USD 464 billion.
- Most of the FDIs in Russia were directed to sectors like extraction, financial and insurance services, and manufacturing.
- The 2020 Doing Business report issued by the World Bank ranked Russia 28th out of 190 economies in the world, in terms of ease of doing business.
- Russia ranks 23rd out of 23rd countries in matters of emerging economies, as stated by the Institute of International Finance.
Interested in Russia company and business formation in this country? We gladly invite you to contact our team of company formation agents in Russia and seek more details. We can assist foreign entrepreneurs interested in doing business in Russia.