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One thing you will notice about Russian partners is that they prefer to meet in person to discuss any type of partnership. This is more common and actually more of a chance to get an idea as an entrepreneur to assess how compatible you are as a partner. You see, there are many practices that Russian companies still use to minimize obligations such as taxes or social security contributions to the Russian government. Some companies officially declare minimum wages and then pay the rest in cash to an employee, to give a simple example. These are called “grey patterns” and a potential partner wants to understand if you are following the rules or crossing the line, and under what circumstances. Full name of the company (plus abbreviations it will use in business transactions) Download business plan templates and review sample business plans from different industries from a website like this. You can also visit a website like this that represents companies in Russia. You can search the site by business category or name. Individuals who are self-employed or self-employed can establish themselves as sole proprietors. This is common for those who have small businesses in Russia. There is no minimum capital share requirement in this type of Russian business, and the sole proprietor makes all the decisions and can use the profits at will once the income tax payments have been made. As with partnerships, personal assets can cover debts. After these steps, you will receive the enterprise license and the formal registration process is complete.

In reality, however, you need to follow other steps in the process of setting up a business, such as opening a bank account, choosing a corporate tax system, appointing the company`s chief executive, etc. If you do something often enough, hire internally. If it`s a one-time hurdle, work with another company to save time and nerves. With this in mind, most small businesses offering a service or even retail will face few insurmountable obstacles to doing business in Russia. If you want to start a business in Russia and do not have a place of residence, you can apply for a Russian work visa to work independently if you receive an invitation from the Russian Directorate General of Migration Affairs (GUVM). If you want to start a business in Russia that could generate income and create jobs, you can apply for a Russian business visa. The government offers many incentives to new businesses. In fact, various bodies such as the Foreign Investment Advisory Council provide the relationship between the government and the business market. A number of organizations have been established to support the creation of new businesses, including the Investment Fund of Russia, the Development Bank of Russia (Vnesheconombank) and the Russian Agricultural Bank.

Special economic zones have been established to encourage investors to settle there. Once you have all the official FTS documents, you can open a Russian company bank account. You will need a notarized copy of the signatures (cost R200 per person) for the account. To open a business account in Russia, you need the following: However, this is not always the case in Russia, especially for small businesses. Russian businessmen accuse the bloated bureaucracy of justifying their actions, and frankly, their views are understandable. Nevertheless, we do not recommend the creation of a small business in Russia that relies on such practices because it is not sustainable. Frankly, there is no reason for this, because today small businesses in Russia have access to resources that they did not have in the past. You should also understand that as a foreigner, you must abide by the rules. Russian courts are not favorable to foreign companies that persist in shady Russian business practices, however widespread they may be. If you`ve made it this far, you`re still wondering about day-to-day operations.

“How on earth am I supposed to run a business in Russia if I don`t speak Russian?” This thought crosses the minds of many people, but let`s take a step back and think about a truly functional and sustainable business. What do they all have in common? Growing companies have an idea with processes in place to implement that idea. A company in your home country can`t rely solely on you. It has employees, contractors and partners. The same applies to small businesses in Russia. The secret to overcoming the language barrier is delegation. Every small company in Russia, regardless of size, must officially appoint an accountant and a director residing in Russia. Fortunately, many companies outsource their accounting for 6,000-25,000 rubles ($80 – $332) per month, depending on the number of transactions and paperwork.

With the above simplified tax systems, average monthly accounting costs for small businesses are usually between 10,000 and 20,000 rubles ($133 to $265). This includes all reports and submissions to tax authorities. As your small business grows in Russia, you need to have more interaction with your accountant in the form of meetings, which would not be covered by these costs. Since 2014 and for the foreseeable future, the undervalued Russian ruble has been a huge advantage if your small business brings foreign currency into Russia. With considerable capital, there are many opportunities with little or no competition in Russia. Tired of the endless cycle of job search just to complete your resume? Maybe it`s time to start your own business and start your own business. Appointing a local person as the general manager of your company is an option and, in some cases, the best way to proceed. Your director reports to you as a shareholder and all other employees, contractors or partners report to your director.

There is no language problem, as long as the director speaks your language. Finding the right fit can be a bit tricky, but your foreign-owned business has two major advantages: Alternatively, if you have high overhead costs in your small business, such as: Large monthly expenses for office rent, equipment, materials, and staff, you can choose to pay 15% on the net profit. Contact national organizations to support businesses, such as the American Chamber of Commerce in Russia or the U.S.-Russia Business Council. If you can start a business in Russia and you are sure that your business idea will work, the next step is to decide on your corporate legal structure. For more information about the available options, see the next section on Russian business types. You`ll also need a business idea that is likely to work before moving on to practical considerations, such as choosing a legal form, creating documents, registering in the Russian Companies Register, and opening a Russian bank account for your business. Finally, you should not rule out the option of running a business remotely from Russia, especially if you are already a small business owner. This applies to consultants, freelancers, solopreneurs, entrepreneurs, and any other small business that can conduct a significant portion of its business remotely.

Any USD or Euro income goes a long way with today`s heavily devalued Russian ruble. You will find that living on a Western salary from outside Russia ensures you a very comfortable standard of living in Russia. For more information, see Expatriant`s article on the cost of living in Moscow. Income tax stands at 13%, which is lower than in any other Western country, while rents, utilities, local services, local food and restaurants are relatively cheap in Russia thanks to economic sanctions, historically low oil prices, and the recent COVID-19 pandemic. To benefit from the 13% tax rate, you must be a tax resident in Russia by residing in Russia for 183 days. There are also no regional or municipal taxes in Russia, only a flat-rate federal income tax of 13%. This is very low compared to the United States and, of course, Europe. For U.S. citizens who are worried about taxing their income abroad, there is an incentive to earn a salary from your Russian company. You can take advantage of the Foreign Earned Income Exclusion (WEIP), which allows you to exclude $107,000 per year from your taxable income in the U.S.

starting in 2020. Almost all other countries do not tax income earned abroad because they have a territorial tax system instead of a global tax system. In addition to reducing your income tax, there is a way to minimize employer contributions to the state for foreign workers with highly skilled specialist status, so your business expenses also decrease. Let`s Russia has a great guide on how to do this.

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