Setting Up a Sole Trader in Russia
Setting Up a Sole Trader in RussiaUpdated on Saturday 15th December 2018
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There are several types of structures available for registration in Russia. From the simplest forms of sole trader and partnerships to the most complex - limited liability companies and joint stock corporations. Our Russian attorneys can provide legal assistance in setting up any types of business. Foreign investors must also know that their physical presence is not required for company registration, as a Russian law firm can handle the procedure through a power of attorney.
What are the requirements for establishing a sole trader in Russia?
The sole trader or ownership (individualny predprinimatel) is the simplest way of starting a business in Russia and has no minimum requirements for a share capital or management structure to function.
The sole trader is not considered a legal entity according to the Russian authorities, but it must be registered for taxation purposes. An individual entering in a sole ownership will be held accountable for his or her business’ debts with his or her personal assets. The Russian sole trader will entirely control the business and have the right to take all the profits and may also employ other individuals.
What documents must be submitted for the registration of a Russian sole trader?
In order to register a sole trader in Russia, the individual must submit a copy of their charter with the relevant authorities, register with the State Tax Inspectorate and with the Federal Tax Service and also verify if any licenses or permits are required before starting operating. Russian individual traders have to file their financial statements once a year.
What are the advantages of sole traders in Russia?
The first advantage of setting a sole trader in Russia is the registration procedure which is simple and fast. Russian sole traders will not deal with that much with the authorities. Even if they fall under the same regulations of the Civil Code, Russian individual entrepreneurs are rarely compelled to file tax reports and may conclude cash transactions that are not so severely verified by the authorities.
Our lawyers in Russia can help clients select the right type of business structure and can also inform you about the investment opportunities and incentives available for foreign enterprisers.