Setting up enterprises in Russia: LLC, JSC, Joint Ventures - from $500 to $1,000
The Civil code of Russian Federation provides different forms of enterprises: additional or unlimited liability companies, general or limited partnerships, joint stock companies (JSC), limited liability companies (LLC). The most widespread commercial organizations are - limited liability companies and joint stock companies.
Joint stock company
Joint stock company has shareholders and may have any kind of commercial activity stipulated by its charter if such activity is not forbidden by Russian laws. Joint stock company may be either Open joint stock company or Closed joint stock company. Both types may issue ordinary and preference shares and obligations. The requirements for public disclosure are less precise for Closed joint stock companies. For Open joint stock company minimum authorized capital stock should be 100,000 rubles ($3,000), for Closed joint stock company - 10,000 rubles ($300).
Limited liability company
Limited liability company form is often used by foreign companies for owning the business in the Russian Federation. The minimum authorized capital stock should be 10,000 rubles ($300). Capital of limited liability company is divided in shares but they are not considered securities as opposed to shares in joint stock companies. Shareholder of limited liability company may leave the company any time taking from LLC his share of the net assets.
One shareholder is enough for LLC and CJSC. LLC with more than 50 shareholders should be converted into Open joint stock company or production cooperative.
Joint Venture
Joint venture it is a legal entity (LLC, OJSC or CJSC) with foreign investments, where share of each participant (shareholder) is at least 10% of chartered capital. Foreign individual persons or companies can be incorporators of the joint venture. Company has to have joint property which operates in one of the countries represented by the shareholders. Most typical form of the joint venture is limited liability company.
Company registration takes from 3 to 6 weeks, this period includes 1-2 weeks when tax authorities check provided documents and forward it for the further registration with State Statistics Federal Service and Social funds.
Some documents need to be translated, apostilled and notarized it also influences on the duration of the registration process.
Individuals from other countries may not work in Russia without work permit. It should be obtained by company or representative office from migration authorities for each foreign worker. Except that it is necessary to have a visa.
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