How can I incorporate a company in Russia?
The process of a company incorporation is relatively simple in Russia. Any foreign national or corporation can be a sole shareholder of a Russian company. The most common form of incorporation is a limited liability company (LLC) or an “OOO” in Russian. The minimum charter capital of the company is RUB 10 000 (apr USD 170). The founding-shareholder has to certify an application for the LLC’s incorporation before a notary public either in Russia or in the country of his residency. The registration of an LLC takes three business days.
What are the tax rates for corporations in Russia?
There are two tax regimes in Russia: the general tax regime and the simplified tax regime.
The following rates are applicable under the general tax regime: the corporate profit tax 20% flat rate, 18% VAT, and the assets tax 2,2%.
The company which turnover does not exceed RUB 150 000 000 (apr USD 2,5 mn) per year and meets certain other criteria may use the simplified tax regime. The companies under the simplified tax regime do not charge the VAT. The simplified tax regime companies may choose how to pay the corporate profit tax: either to pay 6% of the turnover, however, expenses are not deductible; or 15% of the net profit, expenses are deductible.
A company is free to switch the tax regime once a year, unlimited number of times during its operation.
Can a foreign national be a CEO (director general) of the company?
Yes, but only when a work permit has been obtained by that company. We can provide an interim director service while your work permit is being processed. It takes from 4 to 6 weeks to process the work permit.
How a foreigner can obtain a work permit in Russia?
There are 2 options: a regular 1 year working visa and a 3 year working visa for a highly qualified specialist (HQS). The majority of foreign employees obtain the 3 year working visa. The minimum monthly gross salary for the 3 year working visa is RUB 167 000 (apr. USD 2800). We also provide visa support for the employee’s family members.
What is the personal income tax rate in Russia?
The personnel income tax for a tax resident is 13% flat rate and 30% for a non-resident. The HQS foreign employee pays the 13% flat rate personal income tax from the very first day of his engagement in Russia.
What social charges I have to pay in Russia?
The social charges in Russia are paid by the employer only at the following rates: 30,2% up to RUB 755 000 (gross remuneration per calendar year including bonuses starting as of 1 January each year), 27,3% for the remuneration in the range of RUB 755 000-RUB 876 000, and then 15,3% for the remuneration exceeding RUB 876 000 until the end of the calendar year. The higher salary you pay the less social charges are.
A company employing a foreign national under a 3 year HQS working visa pays only 0,2% social charges regardless of the expat annual remuneration.