Open a company in Forestry in Russia
Russia is home to one of the world’s largest wood reserves. Its forest land totaled around 1,185 million hectares in 2017, with 67% of it covered with growing stock.
Despite its vast reserves, Russia ranks only fifth globally in timber harvesting.
Factors behind low timber harvesting volumes include extensive forest exploitation practices that result in the depletion of forest resources.
Currently, Russia is seeing a gradual shift to intensive forest exploitation practices as resource scarcity has become an industry-wide concern.
According to the Russian Export Center, forest sector exports are projected to in crease most to
CIS countries(Kazakhstan, Azerbaijan, Uzbekistan and Belarus),
Germany,
Italy,
Saudi Arabia
India.
The woodworking industry ranks first with forecast exports of up to US$4.5 billion, followed by the paper industry with US$1.1 billion to USD$3.6 billion and the chemical pulp industrywith US$0.6 billion to US$1.7 billion, which can be largely attributed to strongdemand from China.
Our lawyers in Russia can assist foreign investors interested in starting a forestry business here.
Russia Forest Code
The Forest Code is the main law governing the management and exploitation of woods in Russia.
Those interested in opening a Russian company in the forestry industry must comply with the regulations imposed by the Code.
The Russian Forest Law provides for the following type of woods:
- reserve forests;
- protection forests;
- production forests.
The law also provides three types of ownership of forests in the Russian Federation:
- the right to use a land plot for a definite period of time, which is called easement;
- the right to permanently use a forest land plot;
- the right to use a parcel during certain periods of the year.
Our Russian lawyers can offer more information on the Forest Law.
Registering a forestry company in Russia
The registration procedure for a forestry business in Russia will be the same as for other types of companies.
Following that, the company will need to obtain a procurement order to engage in activities related to the cutting of trees and production of timber or other wood products.
Russian companies are also allowed to build facilities used for the processing of wood.
However, these are not the only activities a forestry company can carry out in Russia.
We will describe some of them:
- agricultural operations;
- cultivating certain species of medicinal plants;
- game hunting;
- exploitation of mineral resources;
- produce wood-based goods for export activities.
Russian tax laws
Russian tax laws
Tax Code introducing the following federal payments:
- Environmental tax;
- Recycling fee;
- Federal road fee;
- Tax on public communication network operators;
- plus one local tax: Hotel fee
The forestry industry offers many investment opportunities and if you want to create a company in this sector we invite you to contact our law firm in Russia for assistance.
Folow us on Youtube channel – Opening company in Russia
The best way for a foreigner to start a business in Russia is to register a company.
The procedure for setting up a business in Russia has been actively simplified by the government.
Today the process usually takes just three days and is not significantly different for a foreigner compared to a Russian citizen.
Founding a Limited Liability Company (LLC) is considered the most convenient form of business activity.
You need to fill the application form. Foreign nationals need to provide a notarized passport translation.
The validity of your signature on the application form should be notarized, after that it should be submitted to the relevant tax body.
You will require a legal address, a charter, and a minimum starting capital of 10,000 rubles (120 EURO).
You should also specify a general director of the LLC (this might be a foreign national with work permit) and be ready to regularly prepare and submit monthly accounting reports. Then it is possible to set up a bank account for the company.
There are many advantages of this type of business:
- easier to borrow large amounts from banks;
- easier to work with contractors;
- private investors can enter the business;
- LLC can be subject to 6 (six) percent tax.
Folow us on Youtube channel – Opening company in Russia
Related: Open a llc company in Russia
Get help starting your business.
The best way for a foreigner to start a business in Russia is to register a company.
The procedure for setting up a business in Russia has been actively simplified by the government.
Today the process usually takes just three days and is not significantly different for a foreigner compared to a Russian citizen.
Founding a Limited Liability Company (LLC) is considered the most convenient form of business activity.
You need to fill the application form. Foreign nationals need to provide a notarized passport translation.
The validity of your signature on the application form should be notarized, after that it should be submitted to the relevant tax body.
You will require a legal address, a charter, and a minimum starting capital of 10,000 rubles (120 EURO).
You should also specify a general director of the LLC (this might be a foreign national with work permit) and be ready to regularly prepare and submit monthly accounting reports. Then it is possible to set up a bank account for the company.
There are many advantages of this type of business:
- easier to borrow large amounts from banks;
- easier to work with contractors;
- private investors can enter the business;
- LLC can be subject to 6 (six) percent tax.
Folow us on Youtube channel – Opening company in Russia
Related: Open a llc company in Russia
Get help starting your business.
