Russia is located between Eastern Europe and Northern Asia. It 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.
Contact Information
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- info@ozbekcpa.com
- Levent Mah. Güllü Sokak No:11 Beşiktaş İSTANBUL / TÜRKİYE