Russian Trade Register
The Russian Trade Register or State Registration Chamber deals with company registration in Russia. This procedure is mandatory for both Russian and foreign companies that are set up on the Russian territory. In some cases, an accreditation might be needed for starting the commercial activity. The State Registration Chamber in Russia actually has three headquarters.
The Administration and General Services Department manages the administrative issues of the Russian State Registration Chamber. The second sector is called the Organization and Supervision Department and it deals with personnel support in all matters regarding labour supervision and social security for employees of the Chamber.
This department is also responsible for registration and safekeeping of documents that are received at the State Registration Chamber. As far as the third sector is concerned, the Accreditation and Visa Support Department needs to take care of accepting and releasing necessary documents for company registration in Russia. It also deals with the visas for foreign employees who come to work in Russia.
The Trade Register in Russia is responsible for company registration in Russia, which can be done either in person, at the office, by a company’s shareholder or a legal representative appointed by power of attorney or through internet. Sending and receiving information on registration can be carried on via e-mail. The Russian State Registration Chamber must issue a certificate of registration in the Composite State Register within two or three weeks after application.
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Benefits of Russia company registration
- Russia today has the seventh largest economy in the world with a GDP of US$2.422 trillion. All the wealth rests with Moscow, which has Russia’s highest GRP (Gross Regional Product) of US$339,647m – almost double that of the next region;
- The paid up share capital is 10,000 roubles (approximately US$130) for a limited liability company;
- Russia is rich in natural resources, the revenues and jobs from which give the country’s middle class spending power;
- A diverse range of business opportunities in Russia due to its rapidly-growing middle class population;
- Russia is accessible by land and sea, meaning that businesses can select the most cost effective mode of transportation;
- Russia has the 8th largest workforce in the world. The mean monthly wage in the country is US$800 per month, which is affordable compared to EU countries where wages normally exceed US$2,000;
- Compared to western countries, the cost of living in Russia outside of Moscow and St. Petersburg is very cheap when it comes to food, transport, utilities, rent, wages etc.
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Problems with Russia company registration
- Each Russian company must have a resident director. Only the resident director may be the bank signatory;
- Russia’s economy is extremely dependent on the price of oil and has suffered significantly due to OPEC’s recent action to lower the price of the world’s biggest commodity;
- Sanctions related to the Russian occupation of Crimea increase the compliance burden for western businesses when doing business with Russia;
- After company registration in Russia, quarterly financial statements must be submitted to local authorities;
- Russia’s government plays a big role in daily business. Therefore, there exist administrative and legal barriers to business registration in the country. To start a Russian company, you will need professional help to navigate the legal and governmental obstacles;
- Russia is not a member of the EU and therefore does not share the business benefits the EU has to offer;
- Russia is a vast landmass, which makes good transportation within the country expensive. Entrepreneurs must carefully anticipate transportation costs;
- Registering a company in Russia can become very complicated in some industries, as the Government restricts, and even prohibits, foreign investment in various industries including aerospace, natural gas, insurance, electric power, defence, natural resources, and large-scale construction;
- Russia’s corporate tax rate is relatively high at 20%.
Download PDF : Russia Migration Policy from here
Best uses for a Russia company
Technology research firms find Russia attractive thanks to the high technical skills of the country’s workforce. In addition, the Russian government has tax incentives in place for science and technology-related activities, including accelerated amortization rates and greater deductibility of R&D expenses for tax purposes.