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Open a Russian Startup

Open a Russian Startup

Our company formation agents in Russia can provide information and support for opening a startup in Russia. We assist local and international investors in starting a business in Russia by managing the procedures and formalities.

 Quick Facts  
 Legal structure  When initiating a startup in Russia, it’s advisable to opt for a limited liability company (LLC) as it limits the personal liability of each founder.

Registration process 

Navigate through registration procedures with the local Trade Register, Federal Tax Service and other relevant authorities. 

Intellectual property disputes 

Resolve disputes related to intellectual property infringement or violations with the help of our company formation agents in Russia.  

Work permit   Foreign directors and employees must have a work permit. 
Corporate tax rate 

20% 

Legal address required (Yes/No) 

Yes, to ensure that your company receives legal notices, service of process, lawsuit notifications, and other official correspondence. 

Minimum capital  

At least RUB 10,000 

Appointment of an accountant  

Required  

Commercial real estate 

We assist in leasing or purchasing commercial real estate for your startup operations in Russia.  

Confirmation of registration   After registration and inclusion in the State Register, founders receive documents for their legal entity. 
Market research 

Conduct market research to understand your target market, competitors, and industry trends in Russia.  

VAT registration  

Must register within 30 days of operation.  

Immigration and visas 

We assist with immigration and visa processes for employees. 

Expert representation 

We provide representation and counsel throughout the process of opening and running your startup in Russia.  

 Additional services  Our agents are also ready to assist you with obtaining a virtual office, purchasing a shelf company, or ensuring compliance with tax regulations in Russia. 

What type of companies can I open in Russia?

Startup companies can run under the rules of a limited liability company in Russia or OOO-Obshchestvo s ogranichennoy otvetstvennostyu as it is known, the most popular business structure available. RUB 10,000 is the minimum share capital for opening an OOO in Russia, mentioning that half of the capital must be deposited at the time of company registration, while the other half in approximately 3 months from the date of incorporation. Here are some details and information about the limited liability companies in Russia, excellent choices for startups established by foreigners in Russia:

  • The Articles of Association must comprise information about the owners, the activities of the firm, general rules, rights, and liabilities, etc.
  • The Russian Trade Register accepts the incorporation documents, mentioning that a name verification needs to be made in the first place.
  • A bank account must be opened for the company’s financial operations.
  • The registration for taxation and social contributions is then required.

The incorporation process of a company in Russia is not complex, but some formalities will rather be handled by a specialist. This is why the support of a company formation agent in Russia is required for foreign investors wanting to open startups in Russia. Here is an infographic with extra details:

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Joint stock companies in Russia

Joint stock companies are preferred business choices for foreigners in Russia, where a minimum share capital of RUB 100,000 for open joint stock companies and RUB 10,000 for closed entities is required. In most cases, joint stock companies are chosen by international investors owning large companies. Just like in the case of LLCs, joint stock companies are incorporated with the Trade Register in Russia, if the Articles of Association are accepted and if a name verification is made in the first place. Let one of our experts in company formation in Russia handle the requirements and formalities for opening a startup in Russia, regardless of the chosen business entity.

Can I open a travel agency in Russia?

Yes, a travel agency can be a great startup for foreigners in Russia. The registration of a travel agency in Russia is subject to specific company registration rules, plus the necessary licenses and permits. In most cases, the limited liability company is the proper business form for a travel agency in Russia, due to simple registration steps and other important advantages. Besides opening a bank account to deposit the minimum share capital of RUB 10,000, the owner of the travel agency in Russia will have to appoint at least one director and to observe the rules for licenses and permits in Russia. Registration for tax purposes, social contributions, and the pension fund is required for a travel agency in Russia. Also, for a travel agency to work in Russia, the registration with the Association of Tour Operations in Russia is mandatory.

Besides opening a travel agency by establishing a limited liability company, foreign entrepreneurs interested in startups in Russia can decide on sole proprietorships, another beneficial business structure. One of our company formation specialists can tell you more about the proper forms when opening a company in Russia.

Can I open a company in the agriculture field in Russia?

Yes, this is another great idea for a startup in Russia, as the agricultural sector is quite prolific and open to all sorts of investments. Just like in the case of travel agencies in Russia, international investors looking for startups will have to choose the proper business structure. Also, the limited liability company can be an ideal option for starting a farm or for opening firms that provide consulting services to agricultural companies in Russia, to give some examples. It is important to note that the State Program for the Development of Agriculture and Regulation of Agricultural Commodities Markets is an important project in Russia that aims to attract local and international investors in this field. If you would like to know more about the country’s agricultural programs, please feel free to get in touch with our specialists in company formation in Russia.

Open a startup in the tech sector in Russia

The tech sector in Russia continues to expand and to gain confidence among foreign investors. The strong innovation, the correct digital policies, and the infrastructure available are solid points for persons interested in opening a startup in the IT sector. The tech market potential is also verified by those interested in making investments in the IT field in Russia. The type of consumer, the customers’ needs, and the attraction of trying new digital products are important aspects that stand at the base of opening a startup in the tech sector in Russia. Our company formation agents in Russia can provide assistance and guidance for those interested in opening a startup in this country, by handling all the formalities involved in the registration of a firm. Comprehensive support is required, especially by investors from abroad who do not know all the aspects and regulations of the business environment in Russia.

What you have to do after registering a startup in Russia

When you register a startup in Russia, you must consider other post steps, as follows:

  • The formalities for obtaining a company seal can be drawn up.
  • If the bank account is approved and opened, the deposit of the minimum share capital follows.
  • You can sign the rental agreement for the already registered business address.
  • You can also opt for the services of our accountants in Russia and align yourself with the legislation in force.

Conditions for opening a bank account in Russia

When you set up a company in Russia, one of the conditions is the opening of a corporate bank account. Here’s what this entails:

  • Presentation of company formation documents. Certificate of Incorporation is one of them.
  • The certificate of tax registration in Russia must also be presented in this process.
  • Banks can request extraction from the Russian Trade Register with the company’s registration number.
  • The name and signatures of the person or persons who will be in charge of the corporate bank account.
  • It is also possible to present a power of attorney designating the person or persons who can authorize financial transactions in the company.
  • Passports and IDs are also requested.

Once such documents are presented and accepted, the corporate bank account in Russia can be used. We invite you to learn more about company incorporation in Russia and bank accounts for startups in this country.

Business strategies for foreign investors

A startup in Russia can be opened relatively easily if you know from the start the field in which you want to develop the activities. However, some recommendations could help you when you are looking for optimal strategies for the development of a startup in Russia. Here are some of them:

  • It is recommended to do a market analysis before implementing business ideas. Certain niches may be uncovered and thus you can introduce your goods and services.
  • A good business plan can help you establish the identity of a startup in Russia. You can even enter the possible risks that may appear during the respective business. Everything must be prepared before starting the activities.
  • Innovative ideas can be very successful if they are correctly implemented. It is important to know the market where you want to operate and to take advantage of any opportunity that arises.

The sectors of interest where Russia is focused

Even in the current political context, Russia is a world economic power, very much appreciated. Certain sectors are strongly supported and promoted to the extent. For example, the food and beverage sector is one of the most stable and developed in Russia. Next comes the manufacturing sector, imports and exports, automobiles, and transportation. It should also be mentioned that the real estate sector is quite solid and in continuous development, with support from the Russian government. On the other hand, the IT sector is not ignored either, it continues to hire great workforce from around the world. Agriculture and the services sector are also important in supporting GDP in Russia. A short market analysis can help you open a startup in Russia in one of the sectors of interest mentioned above.

Making investments in Russia

Russia is a solid business hub that has opened doors to a wide range of international investors who register interesting profits and enjoy the great business conditions offered in this country. The startup ecosystem is extremely appreciated, considering the large number of company owners in diverse areas. A wide range of online platforms and apps have been developed in recent years in Russia’s digital world. Having a business in Russia means entering competitive and prosperous marketing that provides many opportunities.

Economy facts in Russia

The following numbers and facts describe the startup sector and the business direction of Russia, helping foreign entrepreneurs invest in this country:

  1. There are 12 regional ecosystems for innovative entrepreneurship in Russia, among which, Novgorod, Vladivostok, Kaliningrad, Novosibirsk, etc.
  2. More than 700 tech startups are functioning in Russia at this moment.
  3. Around USD 1.862 trillion was the total GDP in Russia in 2023.
  4. Economic growth in Russia in 2023 was approximately 2.2%.
  5. Russia’s GDP was supported by the services sector in 2022, with a percentage of over 67%.

Entrepreneurs interested in opening a startup in Russia are invited to contact our team of company formation agents in Russia and ask for assistance and support. Feel free to talk to us about the company registration in Russia and the formalities involved.