Starting a business in Russia
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Loading... - jaxon isabella
- 15 Jul 2022
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Tired of the endless loop of finding work only to bolster your CV? Maybe the time is right to set out on your own and start a business. If you are a foreign individual or company looking to start actively doing business in Russia, what do you need to know and what do you need to do to get started? What options do you have in terms of how to structure your business?
How to start a business in Russia
There are a number of things to consider and processes to go through if you are an individual or company thinking of starting a business in Russia. You need to start off with basic considerations such as whether you can legally operate as a business in Russia.
You also need a business idea that is likely to work, before moving onto practical considerations such as choosing a legal structure, drawing up documents, joining the Russian company register, and opening up a Russian bank account for your business.
1. Immigration status
The first thing to do if you are a foreigner wanting to start a business in Russia is to make sure your immigration status allows you to trade in the country. Will you need a business or work visa or a residency permit? See the below section on business visas in Russia for more information.
2. Business plan for conducting business in Russia
Secondly, do you have a feasible idea and have you researched the market to assess whether your business is likely to be successful in Russia? Before launching into any business venture, it’s a good idea to draw up a business plan to answer all of the questions about whether your business idea is likely to not only get off the ground but sustain itself in the long-term. Successful Russian entrepreneurs know that it’s all well and good having an inovative idea, but not all business ideas succeed in practice so it pays to plan properly.
Download business plan templates and look at sample business plans from various different industries from a website such as this one. You can also check a website such as this one which maps businesses in Russia. You can search the site by business category or name.
3. Legal structure
If you can start a business in Russia and are confident that your business idea works, the next step is to decide on your business legal structure. Information on options available is in the section below on Russian company types.
4. Choosing company name and address
You need to choose an appropriate trading name for your Russian business (ensuring that you don’t choose a name that someone else has already registered) along with an address to register your Russian business at.
5. Foundation documents
In accordance with Russian legislation, the founders of the business need to draw up the foundation documents (charter and founding agreement). The process for this will vary according to which legal structure you choose, but should include the following:
· full company name (plus any abbreviation it will use in business transactions)
· names and signatures of the company founders
· the amount and nature of shareholder contributions (cash or in-kind)
· rules for the running of the company
· legal responsibilities
· details of any directors, if applicable
For Limited Liability Companies and Private Joint-Stock Companies, the minimum legal capital requirement is R10,000 per individual, with 50% at the point of registration and the remainder paid within the first 12 months. Read More…
