Premiot

7 Whitechapel Road, office 410, E1 1DU London info@zenron.cz Mon - Fri 8:30 - 17:00

cs HU RO RU

Services

Russia

Locations

Recently, a number of large investors have started doing business on the territory of the Russian Federation. Undoubtedly, the Russian Federation is a country of great opportunities, but at the same time it hides a number of surprises that are not always a walk in the park. One of the fundamental questions that an investor usually has to answer is choosing the optimal form of business. It is this first choice that will save a lot of time spent at the authorities, money, and at the same time will bring a greater chance of success in business in the Russian environment in the future.

Basic information about Russia

  • The Russian Federation is the largest country in the world, stretching from Eastern Europe to Northern Asia.
  • Its area is an incredible 17.1 million km2. The population of Russia is 141 million people.
  • Russia is divided into nine time zones and shares its land border with twelve neighboring states.
  • The Russian Federation is the successor state of the Soviet Union, which collapsed in 1991.
  • Russia has large natural resources and mineral wealth, which makes it an energy self-sufficient country.
  • Russia is an associate member of the association of the world's most economically advanced states – G8.

Russia and the world of business

There are many prejudices in the world and most of the inhabitants of the planet are afraid of doing business in Russia. But if you think about it soberly, you will find that they are making a mistake, because in Russia many new doors are opening for you and your business.

Russia is one of the most interesting jurisdictions in the world, offering enormous business potential. Currently, Russia is recovering from the global crisis. There is currently an increased interest of foreign investors in Russia. Due to lower price ranges and cheap labor, the possibility of significant cost reduction for your business is offered.

The most common legal form of enterprises in Russia is Obshchestvo with OGRANICHENNOI OTVETSTVENNOSTYU (OOO), equivalent to our limited liability company, and ZAKRYTOE aktionernoye OBSHCHESTVO (ZAO). In the case of an OOO-type company, at least one natural or legal person is required for its establishment (the maximum number is then 50).

You cannot avoid paperwork. The company must keep accounts, file tax returns and is subject to audit under certain conditions. The company is obliged to have its registered office on the territory of Russia.

Mandatory share capital is 10,000 rubles. At least half of the deposit must be paid when the company is founded, and the rest must be paid within one year.

  • The basic corporate income tax rate is 24 %. All entities must pay taxes. Companies whose turnover is less than 2 million rubles can apply for an exemption from VAT.
  • The basic VAT rate is 18 %, the reduced rates are then 10 % and 0 %.
  • The withholding tax for the payment of dividends to foreign entities is 15 %.
  • Russia is a signatory to many international treaties on the avoidance of double taxation. This also applies to the Czech Republic.

Discuss your options for setting up a company and doing business in Russia.

Basic information

  • Type of legal entity: private limited liability company (OOO)
  • Establishment time: 7 working days
  • Number of shareholders: at least 1
  • Shareholders: they can be FO or business entities
  • Initial capital: 10,000 RUB (approx. 200 EUR) minimum, maximum not defined
  • Shares on bearer: not allowed
  • A registered address in Russia is required
  • Local registered agent is not required
  • Directors: the minimum is 1, a natural person
  • Resident function of the director: the director must be a citizen or obtain a work permit in Russia

Taxation

  • Corporate income tax rate is 15.5 %-20 % (depends on the region)
  • Affiliate rate is 15.5%-20% (depends on region)
  • The capital gains tax rate is 15.5 %-20 % (depends on the region)
  • Dividend allowance is 15 %
  • Interest, royalties 20 %
  • Net operating losses can be carried forward against income for 10 years
  • The standard VAT rate for most goods and services is 18 %. Also applicable is a reduced rate of 10 % on certain food and baby goods and a zero rate of 0% on exports of goods and certain services
  • VAT registration is mandatory if the company's taxable turnover in Russia for the last 3 months is more than RUB 2 million (approx. EUR 28,000)
  • Double taxation agreements with more than 80 countries were applied, determining tax rates on dividends, interest and royalties. Treaty rates do not apply if domestic tax rates are lower
  • Accounting. Accounting and preparation of accounts is necessary, filing of tax return is necessary
  • The audit is not mandatory
  • Anonymity and privacy. Information about administrators and shareholders is published in the company register

Ke stažení

Back to the previous page

Latest blog posts

Contact us

By submitting the form I consent to the processing of personal data.

I consent to the use of my personal and contact information for the purposes of telemarketing and the company's services.

Form fields marked * are required.

© ZENRON Service LTD 2014-2022.

Privacy and Cookies Policy Website Terms of Use

This website does not provide legal or tax advice and should not be construed as either. Information may not be accurate or up to date. You rely on it at your own risk and we do not accept legal responsibility for it.