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.

Formalities of opening an OOO 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:

Is a sole proprietorship the right choice for a startup in Russia?

Although in most cases the limited liability company is preferred for starting a business, there are also cases of entrepreneurs who prefer the sole proprietorship. All responsibilities linked to the business fall under the owner’s attention, including losses. An advantage of this structure is that there is no minimum share capital requirement, and the entrepreneur can invest according to the business plan for the startup he/she desires.

What you have to do after registering a startup in Russia

When you register a startup in Russia, you must consider other post-incorporation steps:

• 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 an extract 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.

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 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. You can also watch a video presentation we have prepared on this topic:

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.

About Russia’s startup ecosystem

If you want to carry out activities in Russia and want to open a startup, it is recommended to familiarize yourself with the business climate in this regard. There are entrepreneurs, especially those at the beginning of their journey, who are reluctant when it comes to business formalities in Russia. Some prefer to reconsider the business plans for Russia while others choose to develop their ideas in one of the most performing and solid startup ecosystems in the world. Let’s review some of the key points of this growing business environment:

• In terms of regional ranking, Russia is ranked 13th in Eastern Europe in terms of the quality and performance of its startup ecosystem.
• Globally, Russia ranks 35th for the same reasons.
• Despite the socio-political context of recent years, Russia continues to become a force in the startup market and align itself with the most appreciated international markets in this regard.
• Because it has a generous domestic market, Russia is home to a large number of startups that direct their services and attention to local consumers.
• As artificial intelligence advances all over the world in different sectors, Russia is no exception. The country’s government is focused on implementing this exceptional tool and is making efforts to expand in this regard, in order to attract as many foreign investments as possible.
• The extremely involved corporate accelerators found in the public sectors of Russia are also notable in competition with China.
• The Russian startup ecosystem depends largely on foreign capital, which is why the relevant authorities continue to simplify business policies to attract as many powerful investors as possible.
• Russia’s geostrategic position is another strong point that supports the startup ecosystem on the development path, with access to the most important and appreciated financial centers in the world.

We recommend specialized assistance for opening a startup in Russia to eliminate any complexities from the start. Our Russian agents can guide you step by step in company incorporation and related aspects.

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.