COMPANY REGISTRATIONS

In Russia, as in most European countries, there are several legal forms of business entities. The most common is Limited Liability Company (hereinafter LLC), which is referred to as OOO in Russia. Currently the number of registered companies in Russia reaches 4 million, 90% of which are LLCs. Why is this legal form (LLC) so popular?

Benefits of the LLC

  • LLC registration with the tax authorities takes only 3-5 working days;
  • Minimum share capital of only RUB 10,000 (about EUR 150);
  • Foreign nationals do not need a work permit to be a company founder;
  • Opportunity to apply the simplified taxation system;
  • For foreign companies, this procedure is cheaper and faster than registering a branch or representative office (state fee for registering a LLC is RUB 4000, about EUR 60).

Who can be a company founder in Russia?

Individuals

Both Russian and foreign citizens can start an LLC. The basic requirement is the minimum age of 18 years old and legal capability.

Legal entities

Russian and foreign companies may also start an LLC. It is important to note that the combinations of participants may differ, i.e. Russian citizen and foreign company, or foreign citizen and Russian company (etc.) can jointly found LLC.

What permits are needed to found LLC?

Foreign citizens planning to start an LLC in Russia are not required to have a work permit, residence permit, or other permits. Moreover, foreign citizens (company owners) do not need to reside in Russia.

What are the limitations to start an LLC?

The main limitation is the number of participants in LLC that cannot exceed 50 persons. Also, a company that has only 1 member cannot be the only participant in an LLC.

Is it necessary to be present in Russia to register LLC?

To register LLC, it is required to have registration application be certified by a notary. The procedure of notarization obliges a personal presence of all the founders. In this regard, the founders may need to travel to Russia. The application can also be notarized abroad, but the rules regarding this vary for each country.

What documents are required to open an LLC?

The requirements for Russian and foreign nationals to register an LLC are almost identical:

  • Company documents (charter, Minutes, application from the founders, certified by a notary);
  • Documents confirming the legal address;
  • Notary translation of passport/s (for foreigners).

If the participant is a foreign company, the following is required:

  • Company documents (Charter, Minutes, application from the founders, certified by a notary);
  • Documents confirming the legal address;
  • Documents of the mother company with an apostille and a notarized translation into Russian.

Our services

VALEN provides a full range of services related to the establishing of LLCs. We provide support at all stages of the registration process:

  • Consultating on all matters related to registration;
  • Selection of legal address/office and preparation of documents to confirm the address;
  • Preparation of company documents;
  • Submission and receipt of documents from the tax authorities.