News, Culture & Society

How to start a business in Russia

If all you know about Russia is the politics you hear on CNN, then your scorecard for Russia is hardly going to be a favorable one. These information mongers almost give you the impression you cannot start a business in Russia as a foreigner. Well, that information is not completely true, because Russia is just like most other friendly environments.

If you plan on starting a business in Russia, you just have to meet their requirements, and you are good to go. Here are some of the things you should know regarding the process.

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Who is eligible?

First, you must understand that nobody is ineligible to do this. As long as you are from this world, you are qualified to set up a business in Russia. In other words, they don’t have something like a blacklist of nations where people cannot come and open businesses on their soil.

The only known restriction, however, has to do with the kind of business you intend to operate. Foreigners who run businesses like credit organizations, gas supply, air transport, and insurance companies do experience one form of restriction or another.

The possible business structures

If you hope on starting a business in Russia, ready your mind on having it set up in the following structure. The existing business structures in Russia are;

  • Limited liability company
  • Joint stock company
  • Representative or branch offices of any foreign company
  • Individual entrepreneurs

The legal procedures

There are certain legal requirements that one ought to meet when they are opening a business anywhere. It doesn’t matter whether you are a native of that place or not. These are the legal requirements for getting a business started in a place like Russia. You are to do so by going through these authorities:

  • Notary
  • Tax authority
  • Statistics committee
  • Social funds
  • Federal service concerned with financial markets
  • Registration chamber for state

Document requirements

This section will be separated into two, for easy understanding. While there might be others, this short piece will cover as much documents as possible. First, for limited liability as well as joint stock companies, you will need the following:

  • Company’s charter to be founded
  • State application registration
  • Founder’s resolution to incorporate
  • Trade register extract and charter extract
  • A passport photograph to verify the applicant

For branch or representative offices, you will be the following:

  • Trade register extract and foreign company charter extract
  • Representative office’s resolution
  • A reference letter from the bank handling the financial transactions of the said foreign company
  • Recommendation letters to any Russian partners.
  • Power of attorney meant for head of representative

Conclusion

Put everything you have heard aside, opening a business as a foreigner could even be easier in Russia than what is obtainable with other countries. The process is quite straightforward and simple. Meet the criteria, and nobody will prevent you from starting your business. There are some other information you may need to have in this regard. Get to know them if you are bent on starting a business in Russia.


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