Foreign investors are allowed by the Russian law to own 100% of a Russian company and the participation of a Russian shareholder is not mandatory. Because of double taxation treaties, it might be wise to tailor the share capital of a subsidiary company according to the relevant treaty’s minimum to reduce dividend and withholding tax.

Guideline for a Company Registration in Russia:

1. Determination of the name Determination of the name of the entity; According to current Russian legislation, the company name must include the legal form (e.g. – LLC) and the actual name of the legal entity.
2. Determination of the entity’s sphere of activities;
3. Determination of the amount of the share capital (important note: check the double taxation treaty). According to the law, the share capital must be defined in rubles, with a minimum of 10,000 rub.
4. Determination of the legal address in Russia
5. Appointment of the general director of the entity and the chief accountant

Immediately after founding an entity, it is obligatory to keep accounts and to do tax declarations. . A fast and convenient solution may be accounting outsourcing. If you outsource payroll services, you should still be aware that all other reports of the entity need to be done – therefore a full accounting outsourcing may be simple a good solution. To reduce cost for office rent, renting just a single co-working space or a legal address for your entity may significantly simplify your company structure in Russia as you get a full service package and you may reduce costs.

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