COMPANY REGISTRATIONS

In Russia, as in most European countries, there are several legal forms of business entities. The most common is Limited Liability Company (hereinafter LLC), which is referred to as OOO in Russia. Currently there are more than 4 million registered companies. Of this number, 90% are LLCs. Why is this legal form (LLC) so popular?

Benefits of the LLC

  • LLC registration with the tax authorities takes only 3-5 working days;
  • Minimum share capital of only RUB 10,000 (about EUR 150);
  • Foreign nationals do not need a work permit to be a company founder;
  • Opportunity to apply the simplified taxation system;
  • For foreign companies, this procedure is cheaper and faster than registering a branch or representative office (state fee for registering a LLC is RUB 4000, about EUR 60).

Who can be a company founder?

Individuals

Both Russian and foreign citizens can found an LLC. The basic requirement is that the founders should be of age (18 years and older) and legally capable.

Legal entities

Russian and foreign companies may also found an LLC. It is important to note that the combinations of participants may differ, i.e. Russian citizen and foreign company, or foreign citizen and Russian company (etc.) can jointly found LLC.

What permits are needed to found LLC?

Foreign citizens planning to open an LLC in Russia do not need to have a work permit, residence permit, or other permits. Moreover, foreign citizens (company owners) do not need to reside in Russia.

Are there any limitations?

The main limitation is that an LLC should have not more than 50 participants. Also, a company that has only 1 member cannot be the only participant in an LLC.

Is it necessary to go to Russia to register LLC?

To register LLC, a registration application is required, certified by a notary. The application is notarized only in the personal presence of all the founders. In this regard, the founders may need to travel to Russia. The application can also be notarized abroad, but the rules regarding this vary for each country.

What documents are required to open an LLC?

The requirements for Russian and foreign nationals to register an LLC are almost identical:

  • Company documents (charter, Minutes, application from the founders, certified by a notary);
  • Documents confirming the legal address;
  • Notary translation of passport/s (for foreigners).

If the participant is a foreign company, the following is required:

  • Company documents (Charter, Minutes, application from the founders, certified by a notary);
  • Documents confirming the legal address;
  • Documents of the mother company with an apostille and a notarized translation into Russian.

Our services

VALEN provides a full range of services related to the establishing of LLCs. We provide support at all stages of the registration process:

  • Consultation on all matters related to registration;
  • Selection of legal address/office and preparation of documents to confirm the address;
  • Preparation of company documents;
  • Submission and receipt of documents from the tax authorities.