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Buying a European shelf company with VAT number

Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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Partner Law Firms

We encourage you to contact our partner law firms in Bucharest: Rolegal and E&C, both part of our legal network.

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Tax Minimization Structures

BridgeWest is specialized in special corporate structures designed for tax minimization. No matter where you want to incorporate your company, you will need to consider how you can legally minimize costs.

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Setting up a Russian Company

June 21, 2010, 12:55 pm
BridgeWest

The procedure of setting up a company in Russia is similar for the two most common business forms, Limited Liability and Joint Stock companies. The main difference consists in an additional procedure in case of Joint Stock Companies, where the founders must register the issuance of share certificates.

Preliminary activities before registering Russian Limited liability (LLC) and Russian joint stock companies (JSC)

The first step required in order to set up a company in Russia consists in adopting a joint resolution of the founders, executed in form of minutes of the founding meeting, and also a charter or a foundation agreement. This document contains relevant information about the company’s activity and field of activity, identity information of the managing board, for example names and addresses of the members or shareholders and also the value of their contributions. In Russia, the company name can not contain the words “Russia” or “Russian federation” and the chosen name must be searched for uniqueness, case in which a certificate is issued.

Open a bank account

In order to set up a company in Russia, the founders must open a bank account and deposit the at least half of the minimum share capital before registration with the Tax Service. In this sense, the founders must provide certain documents: the application form, a notarized copy of the company’s charter, a notarized copy of the decision of establishment, a notarized copy of the articles of incorporation. The bank account will have a temporary status, until the entire incorporation procedure is accomplished. The company must then inform the Federal Tax Service of the company bank account number and obtain a letter of confirmation.

Make a company seal

The company needs a seal before opening the bank account, the cost may vary from each provider and an average cost rises to RUB 350.

Registration to the Tax Service in Russia

Companies in Russia are registered through the Russian Federation Tax Service, at the local Tax Service office where the company is located. This phase required to set up a company in Russia is accomplished submitting an application for registration to the local Tax Service office.

The founders must be aware that the application for registration must be completed either by the founder, either by the founder's director (in case of legal entity) and the application must be signed in front of a public notary and it should contain a list of the activities the company intends to perform.

While submitting the application, the founders must also provide the minutes of the meeting of the founders, expressing a decision on registration of the company, the company's foundation documents, the foundation agreement for the LLC and the charter for the JSC, and a receipt for the applicable state registration fee. The tax charged for this procedure is RUB 200 and do not include the notary’s and the lawyer’s (who draws up the articles of association) remuneration.

The procedure is completed with the issuance of the certificates for the main state registration number (OGRN) and a taxpayer identification number (INN).

Founding a Russian company from abroad

Russia can be considered an open place for foreign investors, which are attracted by the Russian natural resources, service sector and industrial fields. The same rules applicable for a domestic investor are also available for any foreign entrepreneur. However, foreign investors must be aware that in order to set up a company in Russia, the business’s office must be located in this country, allowing the tax authorities to have the control over the company’s activity. The foreign entrepreneur may found the company from abroad on the basis of a power of attorney signed in a lawyer’s (or other person’s) favor.  

How long does it take to found a Russian company?

The procedure of setting up a company in Russia requires a longer period of time, compared to other countries. However, the incorporation procedure can be easily accomplished by hiring a specialized firm in the legal field. Each phase of the procedure can be completed in a day or two, except registration with the Tax Service, which is completed in about twenty days. Thus, a company can be set up in Russia in about one month. 

 




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