Company registration in Russia
In general, company formation of any type in Russia consists of several common actions which must be done in order to register it. For example, it is necessary to draft the articles of association, the specimen signatures as well as the other forms provided by the company registration office in Russia. One must remember that all the documents should be translated in Russian language before their submission with the Russian Trade Register. Company registration in Russia is processed according to the Company Law in Russia and under the Companies Act 1995 and Companies Act 1998. One must obey the rules stated in these documents while carrying out company registration procedures. The second regulation that goes hand in hand with these two company acts is the Labor Law and the Labor Code.
Another few things which are required for company incorporation in this country are: a registered office, a local accountant and a bank account. If these activities are completed then one can successfully set up a company in Russia.
LLC registration step-by-step process description
LLC or Limited Liability Company is one of the most popular business forms in Russia according to the Civil Code of the Russian Federation. It is also is best suited for businesses with foreign capital. It can be established as soon as at least one shareholder has makes a decision of setting up a limited liability company, and maximum 50 shareholders (regardless of their residency or nationality) and have a share capital not less than 10.000 rubles (approx. 143.165 euros). When it comes to shareholders’ rights, they can have rights that exceed their own contribution, if the members of the company decide through unanimous vote. The minimum management structure of such company consists of one director.
Legalization of documents
When it comes to step-by-step procedure of company registration in Russia, the first step is to prepare its documents for incorporation. These documents then must be legalized by notarial verification of the signature made in the registration application. The whole process shouldn’t take more than 5-7 working days.
Making deposit of share capital to the bank account
Then one most deposit share capital in company’s corporate bank account and a proof of that deposit obtained by the bank. Businessman will need to pay a registration fee and receive a receipt given by the bank to the applicant. In order to do this, one must open a permanent corporate bank account registered as company’s bank account. Bank of Russia is supervising of all the national banking institutions in the country.
Tax number acquisition
Company registration in the country is seen compulsory before registering for VAT. Therefore, a LLC in Russia must apply for registration with the tax authorities, three non-budgetary funds and the State Committee for Statistics. The funds are the following: the pension fund, the social security fund and the obligatory medical security fund. There are also a mandatory VAT reports which must be completed monthly and tax reports which must be submitted every three months.
One must then deliver relevant documents to the unified register of the Federal Tax Service. This is needed in order to obtain the number of tax registration by receiving the single number of state registration proces as well as the identification number of taxpayer or INN. The whole process shouldn’t take more than 5-7 working days.
Notarization of documents
Then such document as the bank signature card must also be notarized. One can make a company seal in order to be able to sign the documents and carry out future transactions. When it comes to terms, about 18 working days are needed to complete the whole process of registration.
State costs and other fees
There are certain fees which can be applied to such services as:
- drafting and notarizing the articles of association of the company (depends on the company providing such services);
- company registration with the Federal Tax Service in order to obtain the identification number of taxpayer (INN) – 4000 rubles ( approx. 57.24 euros);
- notarizing the bank signature card(depends on the institution);
- receiving company’s seal (depends on the institution).
One must also have a license before starting to practice commercial activity in Russia. The type of the license depends on the type of a business. There are two types of tax system available in Russia: the traditional system made of the 20% profit tax, 18% VAT rate and the property tax that varies from region to region and the simplified taxation system made of 6% on all incomes or 15% on all incomes without the expenses and no VAT applied. For establishing a registered address in Russia, the documentation proving that one has a commercial (non-residential) address for the company on Russian territory must be submitted.