The startup ecosystem in Russia hosts many entrepreneurs who enjoy successful growing businesses in this country. The IT sector is quite prolific, but so are the finances, manufacturing, services, and innovation. Both local and foreign investors can open companies in Russia and choose the right type of entity for their future activities. Our company formation agents in Russia can provide information and support for starting a company in Russia, so you can direct your questions to our specialists at any time.
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 deposit 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:
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 the 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 of the 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. The 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 in Russia can tell you more about the proper forms for startups in Russia.
Can I open a company in the agriculture field in Russia?
Yes, this is another great idea of 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.
Costs related to startups in Russia
Entrepreneurs need to observe the costs of opening a startup in Russia and solicit assistance and information from our team of agents. Among these costs, one should pay attention to the tax registration costs, the ones for notarizing the documents, the company seal, the registration services fee. The business startup costs in Russia are relatively low compared to the ones imposed in other European countries. This is a good reason to consider Russia for business as a foreign entrepreneur with a particular investment budget. Feel free to address your requests to our team of company formation agents in Russia and let us handle the registration of your Russian startup.
Short facts about the legislation related to investments in Russia
The legislation related to foreign investments in Russia is quite permissive and provide equal rights to all participants on the market, regardless of the operations they want to implement. There are 5 technology and innovation zones, 14 touristic and recreational zones, 6 industrial and production area, and 3 port zones, considered special economic zones (SEZ) in Russia. SEZ in Russia come with great business advantages, like low startup costs, reduced income tax rates, a special customs regime, and the possibility of registering a business in a fast manner. There are no land and property taxes and the financial authorities impose only a 5% profit tax for the first 5 years of business activity in the special economic zones in Russia. Those interested in more details about the legislation related to foreign investments in Russia are invited to talk to our team. Here are some key points that highlight the investment direction in Russia:
- • Great business possibilities in most of the sectors of interest.
- • Foreign investors can hire a local skilled workforce.
- • The special tax regime is appealing to overseas entrepreneurs.
- • The stable economy and the multitude of business incentives.
- • Great advantages for opening startups in Russia in a fast manner.
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. The following numbers and facts describe the startup sector and the business direction of Russia, helping foreign entrepreneurs invest in this country:
- there are 12 regional ecosystems for innovative entrepreneurship in Russia, among which, Novgorod, Vladivostok, Kaliningrad, Novosibirsk, etc.;
- more than 700 tech startups are functioning in Russia at this moment;
- more than 407,000 million represented the total FDI stock for Russia in 2018;
- Russia ranks 28th out of 190 economies in the world, according to the 2020 Doing business report provided by the World Bank.
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.