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Why Invest in Russia?

Why Invest in Russia?

Updated on Monday 18th April 2016

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Why-Invest-in-RussiaRussia offers many and diverse investment opportunities for foreign companies. Any foreign individual or company is allowed to open a business in Russia. They can choose between the four types of companies available for registration:

  • - limited liability companies,
  • - closed and open joint stock companies,
  • - branch or representative offices,
  • sole traders.

Each type of company is subject to certain requirements and that is why it is best to ask the advice of a Russian law firm in order to find out what type of business suits you best.

Special economic zones in Russia

Russia provides 28 special economic zones divided into four classes for foreign investors wanting to set up a company. The 28 Russian special economic zones (SEZ) are divided into:

  • - six industrial and production zones,
  • - 14 touristic and recreational zones,
  • - five technology and innovation zones,
  • - three port zones.

The Russian special economic zones are situated in the most developed regions of the country and many hi-tech and research companies are established there. Many large international companies have already opened subsidiaries in these zones that have also attracted a large number of workers.

What are the benefits of the special economic zones in Russia?

One of the greatest advantages of the Russian special economic zones is that foreign investors deciding to open companies there will reduce start-up costs with approximately 30% compared to other areas in the country. Russian residents of SEZ will also benefit from reduced income tax rates that range between 0 and 13.5% compared to the normal rate of 20%. Those buying a property in any of the 28 special zones will benefit from 10 to 15 years of tax exemption. Foreign investors will be benefit from 5 to 10 years exemptions from the land tax applied at federal level.

The special custom regime is another great advantage for businessmen who are not required to pay customs duty and VAT for foreign goods. Investors also have the possibility to reduce the time spent with the first stages of their projects by submitting all documents with the Russian system “single window”. Specialized foreign workforce will also benefit from a simplified migration system if moving to one of the special economic zones in Russia.

For information about investment incentives available for foreign enterprisers, you can contact our Russian lawyers.

 

 

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