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:
- 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.
- Determination of the entity’s sphere of activities;
- 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.
- Determination of the legal address in Russia
- 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.