Joint stock companies and limited liability companies are the two most common types of legal corporate entities under the Russian corporation laws. Under the current legislation, joint stock companies can be further divided into two kinds – public and non-public. Our company formation representatives in Russia are at your service if you would like to set up a joint stock company in Russia.
The key characteristics of a public joint stock company incorporated in Russia are as follows:
The key characteristics of a non-public joint stock company incorporated in Russia are as follows:
To set up a joint stock company in Russia, the following steps are required:
The entire process of company formation in Russia for a joint stock company could take up to two months. In some cases, approval of the Federal Antimonopoly Service may be required depending on the size and significance of the assets or revenue of the founders. Our specialists in company formation in Russia are available to assist you through the registration procedure.
There are no harsh requirements for joint stock company incorporation in Russia, however, it is recommended to pay attention to the initial capital of RUB 100,000 for which half of it can be paid within 3 months, in the case of open ones. The same thing is available for closed joint stock companies with the mention that such entities can be registered with a minimum share capital of RUB 10,000.
As for the management board of joint stock companies in Russia, at least 5 members are needed and at least one general meeting is necessary each year. It is important to know that a joint stock company can be represented jointly or separately by a few “one-person” executive bodies, as stipulated by the Company Act in Russia. This kind of body is in charge of daily management operations in the firm, mentioning that reporting is needed. You can talk to our team of consultants for additional information about the general rules for opening a joint stock company in Russia.
As mentioned earlier in this article, joint stock companies in Russia are a popular structure among international and local entrepreneurs, due to their flexibility and more. Here are some of the most important aspects in this regard:
Considering the above, you can decide what kind of joint stock company you can establish in Russia. In this regard, we remind you that our company formation agents in Russia will be able to assist you with the formalities involved, so do not hesitate to contact us.
Auditing the annual accounts for a joint stock company in Russia requires an external auditor. In this sense, the following information is important if you are thinking of setting up a joint stock company in Russia:
It is good to know that the shares of private and public joint stock companies in Russia are treated like securities and must be registered in compliance with the Securities Market Law. As such, issuing new shares means carrying out requires filings with the Central Bank of Russia, as the legislation stipulates. As such, the decision of issuing shares, alongside the prospectus for issued shares are the documents requested in this endeavor.
On the other hand, once the share transfer is registered in the company’s documents it will then take effect. Public joint stock companies in Russia can make closed and public offerings of shares in Russia, without restrictions on transferability to third parties. In the case that 30% of shares are acquired by a third party or existing shareholder, a buyout offer is required to be backed by a bank guarantee.
Even in the social context, Russia is still a solid business destination and on the list of international investors with perspectives. You might want to read the following facts about Russia’s economy:
If you believe that Russia is your next destination for business, you may discuss the legal formalities with one of our local specialists. We can help you with the procedures of company formation in Russia.
In case an entrepreneur wants to close a joint stock company in Russia, this can be made in respect with the Commercial Code, if a court of law issues a decision in this sense. There is also the possibility of voluntary company liquidation, meaning that the owners must agree in this sense, under specific conditions. There are no complex formalities in closing a joint stock company, if all the conditions are respected and if you decide for support from our team of consultants in Russia.
There are many reasons to believe that a joint stock company can be the ideal business entity for a foreigner in Russia. Here are a few examples:
We remind that our local specialists can help you register a company in Russia by handling the formalities of the selected structure.
1. Is there a limit in case of the number of shareholders of JSCs in Russia?
No, there is no limitation referring to the number of stockholders of a joint stock company in Russia.
2. Can a joint stock company in Russia be listed on the stock exchange?
Yes, joint stock companies in Russia can be listed on the stock exchange in Russia or outside the country. Specific rules are imposed, but you can solicit assistance from our consultants.
3. What is the capital for joint stock companies in Russia?
RUB 10,000 are necessary for opening closed JSCs and RUB 100, 000 for an open joint stock company in Russia. Feel free to ask any questions about how to open a joint stock company in Russia.
4. Is the general meeting necessary for JSCs established in Russia?
Yes, it is a mandatory condition to have a general meeting as owners of joint stock companies in Russia. This needs to take place once in the year, whether in Russia or in another country.
5. Who can form joint stock companies in Russia?
Any domestic or foreign investor looking for business in Russia at a large scale can decide on registering a joint stock company, respecting the applicable legislation in this country. Although it is not a complex registration procedure, it is recommended to ask for the support of our team of company formation specialists if you want to open a company in Russia.
The incorporation and operation of a joint stock company in Russia are governed by the Civil Code of the Russian Federation, Federal Law No. 208-FZ of December 26, 1995 (as amended) on joint stock companies and Federal Law No. 39-FZ of April 22, 1996 on the securities market, if shares are issued. Although not mandatory, joint stock companies are recommended to observe Code on Corporate Governance adopted by the Central Bank of Russia.
For more information on setting up a joint stock company in Russia and on the relevant legislations and corporate governance, please contact our Russian experts on company formation in Russia.