Russia

Russia

About Russia

Geographical position: Russia holds the distinction of being the world's largest country in terms of land area, encompassing both Eastern Europe and Northern Asia. It is bordered by several countries, including Norway, Finland, Estonia, Latvia, Lithuania, Poland, Belarus, Ukraine, Georgia, Azerbaijan,
Kazakhstan, China, Mongolia, and North Korea.

Population: Russia is home to a diverse population with the majority being ethnic Russians. It's a multi-ethnic and multicultural nation, characterized by a rich tapestry of traditions.

Economy: Russia is endowed with abundant natural resources, including oil, natural gas, minerals, and timber. It stands as one of the world's largest energy exporters. The economy heavily relies on the energy sector, but it also encompasses manufacturing, agriculture, and technology sectors.

Cultural Heritage: Russia has made significant contributions to literature, art, music, and science. It's known for its renowned writers like Leo Tolstoy and Fyodor Dostoevsky, as well as composers like Tchaikovsky and Rachmaninoff.

Legal System: Russia's legal system is based on civil law principles. The legal code is derived from Roman and Napoleonic legal traditions, and it underwent significant changes after the dissolution of the Soviet Union.

Banking System: Russia has a well-developed banking system with numerous commercial banks offering various financial services. The national currency is Russian ruble (RUB).

Taxation: Russia's tax system includes various taxes applicable to both residents and non-residents.

Standard corporate profit tax: 20%

Flat-tax regime "Income": ranges from 1-6% depending on the turnover and location

Flat-tax regime "Income – Expenses": ranges from 5-15% depending on the turnover and location

Value added tax (VAT): 20%

Dividend tax: 13% for residents, 15% for non-residents

Personal income tax: For residents, it ranges from 13% to 15%, and for non-residents, it's fixed at 30%.

Corporate services

Documents required for the process:

1) Company Name: Please provide the full company name in Russian, along with any abbreviated name (if applicable), and the name in a foreign language (if used).

2) Registration Address: A valid registration address is necessary. Additionally, a letter of guarantee from the owner of the premises will be required. You should also provide documentation confirming your right to use the premises, such as a certificate of ownership or a copy of the property registry extract.

3) Share Capital Details: Specify the amount of the share capital and the chosen payment method, whether it's cash or non-cash (property). If the capital involves property, an independent appraisal is required, along with an appraiser's report. The minimum required share capital is 10,000 Russian rubles. If the share capital is paid in cash, it must be paid within four months after registration.

4) Founder Information: Submit copies of the passports of all company founders. Include details regarding the size of the founders' shares in the share capital. For foreign individuals, a notarized copy of their passport, along with a translation into Russian, is necessary. Additionally, provide information on their place of registration (residence). If available, please include documentation such as a residence permit, temporary residence permit in the Russian Federation, place of stay, and Tax Identification

Number (TIN), as well as E-mail, telephone number of the founder.

5) General Director Information: Submit a copy of the Tax Identification Number (TIN) and passport of the General Director, including the main page and the page with the registration address.

6) Types of Activities: Specify the types of activities with an indication of one main activity code. The minimum number of code digits is four (e.g., 62.02)

Optional (if required):

7) Taxation system. If you are opting for the Simplified Taxation System, provide details regarding the type of income or income-expenses structure

8) Bank Account Requirement: Indicate whether a bank account is required. If yes, specify the bank and its address).

9) Company Seal: If applicable, provide details about the seal, including the tooling, quantity, and layout.

10) Incorporation acts: Notarized copies of incorporation acts (if necessary, number of sets).

Procedure:

All the above documents for the start-up should be provided in scan copies.

After preparing the documents, the founder needs to have his signature on the documents certified by a notary. This notarization can be done abroad by following these two options.

1. To complete this process, you can approach a Russian consulate that houses a Russian notary equipped with an electronic digital signature, allowing for the electronic submission of documents to the tax office.

2. Alternatively, you may opt to contact a notary abroad to certify the documents. In this case, it's essential to affix an apostille to the documents. Subsequently, the documents should be translated into Russian and then forwarded in paper form to a Russian notary. The Russian notary will facilitate the
electronic registration of these documents, and you will receive the registered documents via email.