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At present Russia has become a very attractive business partner holding one of the leading positions in the world in terms of the speed of its economy development. Its investment opportunities attract many foreign companies searching for new markets. There has been an impressive growth of investments lately.

In our opinion, there are several reasons why it is reasonable and profitable to incorporate in Russia. First of all the presence at the market of Russia allows an effective and quick access to the markets of CIS countries. Besides, the country is exceptionally rich in natural resources and the work force generally possesses a high level of education and good command of technology. Russia is constantly improving its investment climate in order to achieve competitive advantage in international capital markets.

Russian legislation must be competitive in order to create favorable investment climate and encourage foreign economic transactions. The legislation in force protects the interests of foreign investors providing for the security of investments made. The law on foreign investments was passed in 1999 and in 2001 Russia underwent a significant tax reform aimed at decrease of tax obligations of individuals and companies along with simplification of obligatory social security payments. The general rate of company’s income tax is 24%. Among other laws relevant to improvement of investment climate and brought into force during the last two years there are the Land Code, the Law on circulation of farm lands and chapter 17 of the Civil Code stipulating the terms of transactions with land.

In the field of regulation of foreign economic relations, the most outstanding changes are those in the customs tariffs, in particular, the aggregation of groups of commodities subject to the same tax rate which means to reduce operational costs on tax agents and supervisory bodies. Another means taken by the Russian Government is striving for increased transparency of economic processes and their financial results. New legislation is being adopted every day resulting in Russia’s recent admission to FATF.

The past year was marked by a substantial growth of investment in internet-projects in Russia, an increased number of Russian web-users, and an increase of e-commerce. Potential for growth for e-commerce (and many other spheres of economy) in Russia is much bigger than in any other East-European country when we take into account the size of the population and the vast territory of Russia.

If you feel it necessary and expedient for your company to be present at the Russian market it is time now to make your decision and choose among the legal forms of companies which can be incorporated in Russia. There are three main possibilities to establish a company in Russia:
  • you can either choose to accredit a division of your company in the form of a representative office or a branch or
  • incorporate a legal entity with the rights to engage in any commercial activity or
  • set up a non-commercial organization.
The Civil Code puts legal entities into two categories: commercial and non-commercial organizations. Commercial enterprises, whose goal is to make a profit, can be established as business partnerships and companies, production cooperatives, and state and municipal enterprises. While non-commercial organizations, those that do not aim to make a profit, may not distribute any profits, they may engage in profit-making activities to reach their goals. Non-commercial organizations may take the form of consumer cooperatives, social and religious organizations and associations, and charitable and other funds.

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Contact info
Primary Moscow office
Ackermann Bellmer
42 Bolshaya Kalitnikovskaya street, office 213, 109029, Moscow, Russia
Tel. +7(495) 223-9170
Fax +7(495) 739-4303
ICQ: 418-984-651
Skype: Ackermann Bellmer
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