Registration of a Sole Proprietorship (IP) by a Foreign Citizen in Russia

Foreign citizens have the right to register as individual entrepreneurs (IP) in Russia under the same conditions as Russian citizens. However, certain requirements related to legal residence in the country must be met.

Requirements for Foreigners to Register an IP

To establish an IP in Russia, a foreign citizen must:

1. Be of legal age (18+).
2. Possess a Temporary Residence Permit (TRP/РВП) or Permanent Residence Permit (PRP/ВНЖ).
3. Have proof of registration at a place of residence (permanent or temporary).

How to Obtain an TRP or PRP?

• TRP is issued under an annual government quota. It can also be obtained through simplified procedures, such as:
  • Studying at a Russian university;
  • Marriage to a Russian citizen.
• PRP can be obtained after 8 months of residence under an TRP. Certain categories of foreigners (e.g., those who have parents or children – Russian citizens) may obtain a PRP without first obtaining an TRP.

A work permit or patent is not required for business activities, as entrepreneurship is not considered employment.

Permitted Business Activities for Foreigners

There are no restrictions on business activities for foreign IPs in Russia. However, some sectors require additional documentation:

• Prohibited for all IPs: Weapons production, private security services, banking.
• Certificate of no criminal record (in Russia and home country) required for businesses involving children, passenger transportation, etc.

Required Documents for IP Registration

Foreigners must submit the same documents as Russian citizens, with additional requirements:

Core Documents:

• Application form Р21001 (can be completed via online services).
• Copy of identity document (passport with notarized Russian translation).
• Copy of birth certificate (if passport lacks date/place of birth).
• Copy of TRP or PRP.
• Proof of Russian residence registration (permanent/temporary).
• Visa (for citizens of visa-required countries).

Additional Documents (if applicable):

• State duty payment receipt (800 RUB for in-person submission to tax office).
• Power of attorney (if applying through a representative).
• Certificate of no criminal record (for certain business types).
• Application for simplified taxation system (if selecting it).

Submission Methods

1. In-person at tax office (IFNS) – state duty required.
2. Via Multifunctional Center (MFC) – no state duty.
3. Through a notary – notary certifies and submits documents online.
4. Electronically via Federal Tax Service website – requires digital signature.

Processing Time and Document Collection

• Registration takes 3-5 business days.
• Completed documents can be received:
  • Electronically (entry sheet from unified state register of IP via email).
  • In paper form (if requested in application).

Taxation Systems for Foreign IPs

Foreign entrepreneurs may choose any taxation system:

Post-Registration Steps

• Open a business bank account (optional but recommended).
• Register with pension and social insurance funds (if hiring employees).
• Maintain tax compliance (online accounting services available).

If an TRP/PRP is revoked, the IP registration will be canceled.

Foreign citizens can register an IP in Russia with an TRP or PRP. The process is nearly identical to that for Russians but requires additional documentation (translated passport, proof of legal residence). After registration, entrepreneurs may conduct business under standard conditions while selecting their preferred taxation system.