Looking to relocate in Russia: Businesses that succeed
by Mashum Mollah Small Business 21 August 2017
Russia is a member of the World Bank and international monetary fund and welcomes investors to grow the global economy. The international business community is beginning to warm to Russia by allowing co-operation with external developers to fight fuel shortages, unemployment, and food shortages. When establishing a firm in Russia, consider coming up with a plan that adheres to the complicated tax and business laws of the land.
Use these steps to put up a business in Russia.
1. Understand Various Business Types
As an entrepreneur, you should familiarize with different corporation types in both your country and Russia. Start by identifying the type of business that will work for you in this foreign land. Hire a lawyer to guide you during the startup procedures especially when selecting the ideal form of structure that fits your plan and skills. Advocates will provide requirements for partnership, limited liability, Joint Stock Company, unitary enterprise, and production cooperative business types.
2. Preliminary Actions for Incorporation
The business laws governing Russian traders are unique to this region, and one must complete the legal procedures for them to run a legitimate entity. Make sure you carry out the following preliminary actions during the initial stages:
Selecting Company Name
The law demands all entrepreneurs to adhere to the particular naming norm. Ensure that the descriptive name you choose includes foreign abbreviations and has the name Russia. Go for a name that shows the kind of products you stock.
Add a Registered Address
You must submit the relevant documentations to confirm that you have a non-residential address for the firm in Russia. The legal entity will assist in locating and registering a location in the area. They also provide virtual office address with a mail forwarding service for the online firms.
List Company Activities
The law requires you to outline all business proposals that your enterprise will be carrying out. Talk to a business advocate to acquire ideas of the right activities to add to the manuscript. Use simple terms and define technical terminologies.
Establish Financial Basis of your Entity
Any foreign developer must deposit a minimum share capital in a Russian bank as security for their operations. For this activity, you need a bank account with a local bank where you will be depositing and withdrawing finances. The account shows the existence of the enterprise.
If your director is a foreign citizen, they should have a valid Russian visa or work permit. Directors are criminally and administratively responsible for the company actions. The lawyers will work with you to obtain the right work documents.
Other things that you must provide include a management structure, local bank account, and a tax structure. Your advocate will complete the paperwork and file them with the right agencies. Attorneys are conversant with these procedures, and they will make sure they expedite it for you.
3. Preparing and Filing Required Documents
The language barrier is a major challenge experienced by external developers. Only a local lawyer can translate the unique business language and prepare the necessary documents for the involved nations. Ascertain that the registration certificate, incorporation certificates, company charter, and passports copies are in both your native language and Russian.
4. Final Steps
After completing the above processes, think of developing your company seal and registering with the local pension. Legal consultants will take you through the process and offer translations services. Make certain that the documents have signatures from the relevant organization to authorize them. Go ahead and establish a business in Russia as the success rate for new companies is high. The country is moving towards free economy hence lowering the chances of any business collapsing.