Articles
3 Ways You Can Start a Business in Russia
by APSense News Release Admin
Have you been thinking of starting a business in Russia?
Then you may be wondering where to begin.
The first step is to determine what your options are concerning the kind of business that you start. Here are 3 main ways you can establish your business in the country:
1.You can start a representative office
If you already have a business in North America then it makes sense to expand it rather than start a new business from scratch. In this case, Russia is one of the international markets you can explore. The best way for you to establish a business in the country is to open a new branch.
By opening a business branch, you do not have to create an entirely new entity for your business. But you must ensure that your Russian business branch has its bank account and balance sheet for dealing with customers and suppliers in the country. You should also have a business address for your new branch in Russia. This could simply be the location from which you will be operating.
However, you can maintain your account books based on the North American rules so long as it adheres to the International Financial Reporting Standards (IFRS). But your taxation standards must be based on Russian rules and regulations.
Also, ensure that your Russian business branch is accredited. And if you intend to hire foreigners to work in your Russian business branch, you must also get the authorization required.
2.Establish And Register A Sole Proprietorship Business
The second option that you have is to establish a Russian business as a sole proprietor. This option is the best one for anyone who does not have a huge amount of capital but wants to do business in Russia.
According to Russian business regulations, a sole proprietor is not a legal entity. Nonetheless, you must register with the authorities for tax accountability.
One major advantage of being a sole proprietor is that you control and manage the entire business on your own. And you can hire employees when you need to. Also, you can enjoy all the profits that your business generates. However, you are also responsible for all the liabilities and debts that your sole proprietorship business accrues while in operation.
3.Create A Legal Business Entity
You have the option of creating a new legal business entity in Russia. This could be in the form of a limited liability company or a joint-stock company.
A limited liability company (LLC) is a company whose shareholders do not assume legal responsibilities for its liabilities. If you want to start a service company or become a general trader, this is the best option for you. You would need a capital of at least 10,000 rubles to start this kind of company. And every year, you must submit your audited financial statement to the relevant government authorities.
A joint-stock company (JSC), on the other hand, is one whose capital must be divided into shares that the shareholders will then hold. It must have at least one shareholder and one resident director of any nationality. However, it can also issue bonds and securities. In addition to having to submit audited financial statements, this kind of company must also publish them.
Some joint-stock companies are public, which means that can be publicly traded. Others are private, which means they are not publicly traded.
The kind of business structure that you choose depends on your needs and the way you want to operate. But remember you need to have a business visa to start a business in Russia. And one of the important documents for visa application is the Russian invitation letter. If you need one, we can help you with that.
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Created on Jan 29th 2021 10:18. Viewed 142 times.
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