Choosing a Legal Structure for Your Business in Russia

If you are toying with the idea of setting up a business in Russia, one of the foremost decisions that you must make as an investor is choosing the right legal structure for your business. Every legal structure is unique in terms of business transactions, business requirements and the respective taxes. Read on to find out more about the various forms and arrangements of doing business in Russia.

Any foreign legal entity can establish its presence in the country through one of the following means.

Direct Sales

Direct selling involves the importing of goods to Russia without any corporate representations within the country. This usually implies best for business to business transactions and it is the responsibility of the customer to pay the applied taxes before clearing the good from the customs. The investor however is required to pay the VAT and import duty charges which depend on the kind of goods imported and the country from which they come. It is best to hire Russia law firm to help you handle the process smoothly.

Distributorship

Foreign legal entities may also sign a vertical agreement with a Russian firm for selling its products to the Russian audience. Such agreements must comply with the antitrust regulations and the success of such a relationship vastly depends on choosing the most suitable distribution partner.

Representative Offices and Branch Offices (ROs and BOs)

Though physically, a representative or branch office of a foreign company may be present in Russia, it is still considered a foreign legal entity. Both representative offices and branch offices are in charge for carrying out pre-determined functions of the head office and the head office takes complete responsibility of all their actions. The company registration Russia for ROs and BOs are done through the accreditation process by the Federal Tax Service. Once accredited, the tax registration is done by the local tax authorities followed by registration with the Social Statistics Service and Social Security Funds. Most foreign firms hire Russia law firm to complete the process successfully.

Subsidiaries

The most common business structures practised in Russia are LLC (Limited Liability Corporation) and JSC (Joint Stock Companies). The provisions of law concerning both types of establishments are much similar. Foreign companies that operate as a wholly-owned business often opt for LLC. In an LLC structure, the shares owned by the participants are not considered as securities while this is not the case in a JSC. JSC firms can be public or non-public.

The key to operating successfully in Russia is to thoroughly understand the business environment of the country and position oneself suitably. Seeking expert legal help to understand the process of company registration Russia and to gather other relevant information regarding business structures is best recommended.

Harness the Power of Partnerships in Russia to Exponentially Grow your Business

Partnerships are a great way to build your business, especially in a foreign land. In a country like Russia, it takes a lot of courage and hard work to make your business successful and sometimes, it can get difficult for a new entrant for setting up a business in Russia and find the right means for company registration Russia. One of the best ways to combat this challenge is to use the power of partnerships to your advantage so that you can excel in your business and have the support you need, in terms of manpower, finances and intellect as well.

Here are few tips to consider while cultivating successful business partnerships:

• Build a strong network before the need arises – You don’t know when you might need a partner in business or need assistance to grow your business in another country. At the last minute, it might get difficult to find the right partner. Therefore, you must open yourself to new people, meet new and interesting professionals so that you can always tap a new opportunity.

• Partnerships take time–It takes a lot of time and effort to cultivate and nurture the right partnerships. Sometimes, you need to be patient and wait for some time before you can set off on the right foot with your partner.

• Partnerships can happen in the most unlikely places with different people – You never know with whom you can make the right partnerships for business. Open your mind and creatively look for answers. Sometimes, a partner can also be a strong competitor. If you are looking for company registration Russia and go out to hire Russia law firm, you might meet someone looking to join in your company and it might click instantly. Keep your options open, always!

• Don’t choose a similar partner – Pick a partner that adds value to your business and brings a different set of skills to the table. If you find someone just like you in terms of expertise, you might not get a different opinion and it may hamper the growth of your business.

• Be aligned in terms of goals – If you are entering a long term partnership, ensure that you and your partner are well-aligned in terms of goals and objectives to avoid clashes in the future.

Once you find a suitable partner, you can always hire Russia law firm to help you seal the deal in legal matters. All you need to do is make the right choice!

What you Need to Know about Establishing a Startup in Russia

Starting up a new enterprise in a different country can be an exciting prospect for enterprising entrepreneurs; however, it needs to be undertaken with a little bit of caution. Before moving to and establishing a corporation in a country you need to think about your investment chalk out a business plan and evaluate the risks.

Registration of a legal entity will be complicated in a new nation; which is why you need to hire a Russia law firm to better explain to you the peculiarities conducting trade in the region. Such firms offer you a lot of advice and information about the field you wish to operate in.

• Deciding on the Type of Concern

While many small time entrepreneurs prefer to register as a Sole Proprietor, there are others who opt for a limited liability company registration in Russia despite the many documents needed. The taxes are higher for LLC’s as well; however they are a much better option when you happen to be engaging in business with a Russian partner.

In case you are seeking to complete the incorporation you might want to turn to a firm offering legal services to foreigners. Sound legal council does wonder by helping entrepreneurs learn about raising the capital required to start their business.

• The Documents Required

One of the most important things to be mindful of is the kind of documents required to obtain company registration in Russia. In order to attain a Sole Proprietor License there needs to be a notarized translation of a foreigner’s passport. Along with this, a temporary or permanent residency permit needs to be submitted together with a receipt for the state duty of 800 rubles. Do remember that for any business to function in the country, entrepreneurs need to have a corresponding visa and residence permit.

Most of the times people who wish to engage in setting up a business in Russia have neither the knowledge nor the documents they need to build and register a new organization in the country.

• Dealing with Bureaucratic Obstacles

A with any country, there are sure to be certain corruption risks and bureaucratic policies or officials. The kind of political climate in the nation prevalent also has a big effect on the thriving industries. Undertaking a lease of premises requires undergoing lots of inspections by the fire department, sanitary and epidemiological division, etc.

However, all these types of hurdles are not always necessary; you can avoid a lot of hassles by taking sound advice from your lawyers who should preferable be residents of Russia. It would be wise to hire a Russia law firm specializing in offering help to startups so they can make a smooth transition to incorporation and smooth functioning.