How to register a business in Russia

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Business russia
Types of companies by organizational and legal forms

The organizational and legal form is not just a way of legal registration of a company, but also its specific legal status.

According to this criterion, the following main types of companies are distinguished.

  • Limited Liability Company
  • Joint Stock Company

All companies, regardless of the form of their organization, have equal rights with other companies.

Your choice should be determined by the rights and obligations of the founder of each type of company: what you will have to face, what responsibility you will have to bear.

To get your bearings, you need to compare their advantages and disadvantages according to the following important criteria:

  • Responsibility. In limited liability companies, liability is limited only to the amount of the share you have contributed or the block of shares you own.
  • The minimum size of the authorized capital. The finances at your disposal at the initial stage are perhaps the most important factor. The minimum amount of the authorized capital of a limited liability company is at least 10,000 rubles, for joint-stock companies – 100,000 rubles.
  • Ease of organization. It is relatively simple and inexpensive to register a limited liability company. To open a joint-stock company, you will need to register shares. If you are interested in the simplest registration procedure – register as an individual entrepreneur.
  • Taxation. A joint-stock company has a double taxation system (with profits and dividends). In most cases, a limited liability company can apply a simplified taxation system and pay a tax of 6% on income.

Folow us on Youtube channel – Opening company in Russia

Open company in Russia
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