Can a foreign citizen or a foreign company register an LLC in the Russian Federation

The opening
of an LLC in Russia has always been possible for foreigners, they can act as
founders in Russian companies without any problems. However, restrictions have
recently begun to apply to foreign individuals and legal entities from “unfriendly
countries”. We have prepared a brief summary of the most important issues.

1) Can a
foreign citizen or a foreign company register an LLC in the Russian Federation
in 2023?

Yes,
registration of a company in Russia by foreigners is possible without any
restrictions.

2) Are
there any restrictions for foreign citizens and companies from “unfriendly
countries”?

Currently,
there are no restrictions for foreigners to open companies in Russia, including
from “unfriendly countries”.

3) What is
the procedure for opening an LLC by a foreigner in the Russian Federation and
what documents do I need to provide?

When
submitting, in addition to the standard package of documents – an application
for registration, a charter, a resolution on set up, a document on payment of
state duty, documents for a legal address – a notarized translation of the
passport of the founder – a foreign citizen or an extract from the commercial
register containing information about the founder – a foreign company is also
provided.

4) Can a
foreigner be the CEO of an LLC?

In order
for a foreign citizen to be appointed CEO of a company, he needs to obtain a
work permit.

5) What
taxes does an LLC established by a foreigner pay?

The main
types of taxes include income tax, property tax and social fees.

Companies
established by individuals can use a simplified taxation system in the amount
of 6% on income or 15% on income minus expenses.

6) Is it
possible to open a company in the Russian Federation while being abroad?

It is
possible to register a company without a visit to Russia, for this, the
documents on the establishment of the company will need to be notarized and
apostilled. Also, the company registration documents can be certified at the
Russian consulate.

The opening
of an LLC by a foreign founder is a complex process, accompanied by some
legislative nuances. A number of restrictions that have come into effect for
foreigners require special attention to details that can become critical in
doing business.

Valen Group
will be glad to provide you with full legal support when opening an LLC: we
will prepare all the necessary documents and accompany the entire turnkey process.