Open a Franchise business

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10.000 rubles

To register a company in Russia, it is essential to have the amount of at least 10000 rubles to be contributed to the bank account as being the charter capital. Record setting forth the level of allocation of capital shares between all the founders of the LLC.

Company Formation in Russia

Any Russian or foreign individual (or party) can be a creator or shareholder of any number of Russian OOOs, although to be a board member or director you will have to have the required visa and/or residence permit to live in the country if you are a foreigner.

Open a company in Russia with Russianlawyers.eu

Corporate Tax Rate20.0020.00percentDec 2021
Personal Income Tax Rate13.0013.00percentDec 2021
Sales Tax Rate20.0020.00percentDec 2021
Social Security Rate30.0030.00percentDec 2021
Social Security Rate For Companies30.0030.00percentDec 2021
Social Security Rate For Employees0.000.00percentDec 2021

10 Steps to Open a Company in Russia – read more in Articles

List of documents required for registrating LLC company in Russia:

  • Passports of the founders and general director (copies);
  • Application filled in according to form P11001;
  • Decision of the founder or minutes of the meeting of founders of the LLC company;
  • Articles of Association of the LLC company in Russia;
  • Receipt for payment of state fee for registrating llc company;
  • Documents that confirm the existence of a legal address for LLC company in Russia;
  • Notification of the choice of a specific taxation system for newley opened LLC company in Russia.

How to start a business in Russia – read more in Articles

  1. Russian traditional marketing is starting to be replaced with digital marketing and influencers using the social networks to hype sale
  2. In Russia Z generation are not brand-loyal. They are fickle, surfing the internet, following social media recommendations that reflect fashions and opinion-makers, making a disproportionate number of purchases online.
  3. they’re easily led by graphics and generally avoid text. So they are steered by Tik Tok, Instagram, YouTube, Facebook. Thus content must be well-adapted for tablets and smartphones. Accordingly shops, restaurants and service providers able to communicate with consumers via mobile apps are winning the large share of customers. This Z generation of customers only visit high-street stores and malls to physically handle the goods. Then they actually buy from cheaper suppliers online.
  4. Multi-brand franchisees are on the rise because their strategy mostly follows new type of consumers demand in Russian market.
  5. Franchises in Russia which are most popular  are those requiring an initial investment of up two million rubles, Royalties, when requested, in general, do not exceed 5%. Either this or they are generally replaced by the obligation of minimum purchases pre-established in the contract.

    Foreign and local investors are allowed to create Franchise Business in Russia.

    Possible options are:
  1. setting up new business ventures;
  2. entering into franchise agreements;
  3. purchase an existing business or a shelf company through which they can start operating as soon as possible.

Franchise business legislation – Open a company

Franchises are primarily governed by the Russian Civil Code in which these types of ventures are known as concessions. Secondly, franchises are governed by the Commercial Code as a Russian or foreign entrepreneur must carry out the franchise business’ activities through a commercial entity.
Russia has several types of franchise business which can be set up:

  1. development franchise;
  2. direct or single -unite franchise;
  3. multi- unite franchises;
  4. joint venture franchises business.

In all Franchise business types concession agreement must be signed by the parties.

Registration of Franchise business in Russia – Open a company

  1. register the company;
  2. concession agreement must be signed from franchisor (company owner of brand) and the franchisee(company selling or distributing the goods or service of the brand)
  3. With Intellectual Property office of Russian the franchisee must make registration in order to be able to use name of franchisor

Most common problem is the lack of an appropriate legal framework in the field of commercial concession.
Possibility that one of the parties can terminate the agreement by simply notifying the counterparty six months before the termination of the contract.
The need to register a franchise agreement by the body that registered the right holder, which is the franchisor.
The preservation of the contract of commercial concession in effect in that case if one of the parties changes.

Our experts are ready to provide comprehensive support for foreign entrepreneurs and businesses, they will help you at all stages, from a preliminary assessment of the situation and choosing the best solution to obtaining all the necessary registration documents and getting started.

By seeking legal advice, you will receive the following guarantees: the result will be achieved within a certain period, and any issue will be resolved as quickly and efficiently as possible, and all this for reasonable money. Besides, you will protect yourself from possible risks and mistakes, which can turn out to negative consequences.

Valen Group – Youtube channel

Common questions on Franchise business in Russia

  • How do I start a franchise business?
  • How much money do you need to open a franchise?
  • What is the easiest franchise to open
  • Which franchise is best to open?
  • What are 3 disadvantages of franchising?

Pleas contact us to have all details on Franchise business

 

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