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07Nov

Questions to Consider When Financing a Russian Company (Business Operation)

This article discusses issues which should be taken into consideration when planning the financing of a Russian business. In the long-run, the financing would certainly have to happen through profitable operations, but here we present other options until that point is reached. LIST OF CONTENTS: Financing through share capital injections Contributions to assets Interest on […]
05Nov

Russia has risen 4 places in the ranking of Doing Business

In the World Bank’s Doing Business 2019 ranking, Russia is rated 31 out of 190, which is 4 places higher than last year. Russia did not succeed in achieving the goal set by Vladimir Putin in 2012 to enter the top 20 countries by 2018; nevertheless our country is showing a positive trend every year: […]
07Dec

Branch VS LLC. What Form is Better for Your Business in Russia

Branch of a Foreign Company and Limited Liability Company (Subsidiary Founded by а Foreign Company) in Russia: Pros and Cons. Main Differences. The two most common methods for foreign legal entities to operate in the Russian Federation are branches and limited liability companies. Representative offices are less common, as their main goal is to ensure […]
24Jul

Doing Business in Russia: Russian Financial System

Who Controls the Currency? According to Russian currency control legislation, residents are generally not allowed to buy or sell goods or services in any other currency than the Ruble. Transactions between a Russian resident and a non-Russian resident may be done in any world currency, as long as Russian currency control legislation is followed. When […]
30Jun

Doing Business in Russia: Company Law

Registration and the Worst Case Scenarios: Liquidation / Insolvency / BANKRUPTCY!? Who is liable? According to Russian company law, there are two different sorts of liabilities – parent liabilities and controller liabilities. Although the company’s capital is usually the shareholder’s sole liability (including amounts to be paid), should the company go bankrupt, the shareholders may […]
12May

How to Set Up a Branch Office in Russia

A branch (”filial” in Russian) is a company’s separate subdivision located outside the company’s place of residence. A branch does not constitute a separate legal entity, but it may represent the company and carry on business on behalf of the company. As a rule, a branch has an individual balance sheet and bank account for […]
12Apr

How to Register a Limited Liability Company in Russia (LLC, OOO)

A limited liability company (in Russian OOO) is a legal entity with its share capital divided into shares; participants do not, as a rule, bear personal responsibility for the company’s liabilities but take on the risk of possible loss up to the value of their equity shares. The minimum share capital is RUB 10,000. The […]
21Mar

Doing Business in Russia: Special Protection for Certain Social Groups — Labor Law

According to the Russian labor code, certain groups of workers enjoy special protection. These are: The different cases are outlined below. Women Certain conditions of employment of women are regulated by special provisions (Chapter 41 Labor Code). Below is an overview. Women enjoy special protection against dismissal (Art 261 Labor Code). We refer to the […]
14Mar

Doing Business in Russia: Remote Work

On April 8, 2013, the president of Russia signed into law amendments to the Labor Code introducing a new Chapter No. 49.1 “On Remote Work”. This new law represents a significant change and modernization of the Russian labor laws, for it will now for the first time be legal to arrange work on a remote […]
06Mar

Doing Business in Russia: Different Forms of Employment

Employee or Civil Contractor The services or work of an individual in Russia can be legally hired either by entering into a labor contract according to the labor law or a contract under the civil law, referred to as a civil law contract. A labor contract is regulated by the Labor Code. Civil law contracts […]