IR Global

Doing Busines in Russia

Russia is located between Eastern Europe and Northern Asia ,Europe .İt is the largest country in the World with many natural resources. Russia is a challenging market to access.

The Civil Code of the Russian Federation provides different types of business structures for foreign investors. Currently, the following forms of commercial legal entities (for-profit) may be incorporated in Russia:

  • Full partnerships;
  • Limited partnerships (“kommandit” partnerships);
  • Limited Liability Company (OOO);
  • Joint-stock companies;
    • Closed Joint Stock Company, privately held (ZAO)
    • Open Joint Stock Company, publicly held (OAO)

The most common commercial organisations are a Limited Liability Company (LLC) and a Joint Stock Company (JSC)

Full partnerships main features:
  • It can be founded by at least 2 a participants to undertake commercial activities
  • the partners will be held jointly and separately liable for the business’ obligations
  • Law does not require a minimum capital for this form of entity
  • Any partner who retires from the partnership will remain liable for the partnership’s debts for 2 years.
Limited partnerships (“kommandit” partnerships) main features:
  • It can be founded at least two individuals or companies :general and limited .The general partner is fully debts and profits liable for the company’s ,while the limited partner is liable only up to the value of his/her subscribed registered capital.
  • It has no seperate legal personality from its founders
  • There is no miminum share capital requirement for the limited partnerships which has formed for economic reasons .
Limited Liability Company (OOO) main features:
  • It can be founded only one person.The number of shareholders can not exceed 50
  • The minimum sahre capital amount is 10,000 Roubles
  • The management bodies of LLC are general meeting of members and a board of directors
  • LLC is not liable for its members’ obligations.
  • The liability of the owners of the company is limited to the amount of capital invested
Joint-stock companies;
  • Closed Joint Stock Company, privately held (ZAO) main features :
    • The company may not issue shares to the public
    • The shares are transferable only between the shareholders in the Company
    • The requested minimum share capital is 10.000 rubles
    • No obligation to establish a board of directors;
  • Open Joint Stock Company, publicly held (OAO)
    • The shares are freely transferable to the public
    • There is no limits on the number of shareholders
    • The minimum share capital requested is 100.000 rubles
    • The company is managed by a board of directors
    • The liability of the members is limited to the amount of capital invested
    • The board delegates the board of management that deals with the everyday operations and activity of the business

Taxes and tax rates applied under the General system of taxation are;

Corporate income tax

Standard corporate tax rate is 18% in Croatia and for the companies whose annual income below 3 millions HRK is 12%

VAT Registration

  • Value Added Tax (VAT): General tax rate is 18%; for certain groups of goods 10%; export operations 0%.
  • Corporate Profit Tax: Tax rate is 20%.
  • Property Tax: The tax rate depends on the region of Russia, but cannot exceed 2.2%.
  • Personal Income Tax: This is the employee’s personal obligation; the tax rate is a flat 13% for residents and 30% for nonresidents.
  • Social Insurance Payments: This is the employer’s only obligation; the rate is approx 30%. There is also an additional 10% for employees that earn over a certain threshold.