Russia is the world’s eleventh-largest economy and largest country by area. It extends across two continents — northern Asia and much of Eastern Europe. The key growth sectors are agriculture, industry, and service. While the agricultural sector accounts for about 5.6% of the GDP, industry and services comprise 26.6% and 67.8%, respectively.
Unlock growth opportunities in Russia with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Russia’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Russia, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Russia’s employment and tax laws, helping you scale confidently and compliantly.
Also known as limited liability company, it is the most common form of business entity for foreign investment in Russia. An OOO offers limited liability protection and operational flexibility. It can be established by one or more participants (maximum 50) with a minimum share capital of RUB 10,000. The liability of participants is limited to their capital contributions.
Also known as joint-stock company, this kind of an entity setup is suitable for larger operations, available in two forms:
Requires minimum share capital of RUB 100,000 and is governed by a board of directors and shareholders’ meetings.
Representative office allows limited presence allowing foreign companies to conduct market research, liaison activities, and represent the parent company’s interests. Cannot engage in commercial activities or generate revenue in Russia.
A branch office allows foreign companies to conduct business activities in Russia under the parent company’s name. Requires registration and compliance with local regulations for operational activities.
While not legally required, banks and tax authorities often prefer a Russian resident director, especially for OOO setups.
Must have a board of directors with at least 5 members for public companies and 3 members for non-public companies. The executive body is typically headed by a general director.
Must appoint a chief representative who is responsible for the office’s activities and compliance with Russian regulations.
Requires a head of branch office who manages operations and ensures compliance with local laws and regulations.
Russian bank account setup requires specific documentation and follows strict compliance procedures:
Bank Account Setup in Russia: Process and Requirements
Before Incorporation:
After Incorporation:
Note:
All banking activities must comply with Russian currency regulations and international sanctions requirement.
Required documents include the state registration certificate, charter documents, directors’ identification and authorization documents, proof of registered office address, and tax registration documents.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Employment in Russia is governed by the following primary legislation:
Employment contracts must be in written form in Russia.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Indefinite-Term Employment Contract
The standard form of employment providing maximum job security with no predetermined end date. These contracts can be terminated by either party with proper notice.
Fixed-Term Employment Contract
Used for temporary positions, seasonal work, or specific projects. Limited to a maximum of 5 years and subject to strict regulations regarding renewal and conversion to permanent employment.
Part-Time Employment
Contracts with reduced working hours compared to standard full-time employment, with proportional compensation and benefits.
In Russia, a probationary period typically ranges from 3 to 6 months.
The regular working hours in Russia are eight hours a day and 40 hours a week.
Overtime
Overtime cannot exceed a maximum of 4 hours per day and 120 hours per year.
The notice period in Russia is typically two weeks to two months.
Severance pay is usually one to two months’ average monthly earnings.
Foreign nationals require appropriate work authorization to work in Russia. The process involves obtaining both a work permit and a residence permit.
Work Visa & Permit Options in Russia
1. Work Permit (Разрешение на работу)
For citizens of countries without visa-free agreements with Russia.
2. Patent Work Authorization
For citizens of visa-free countries (CIS and certain others).
3. Highly Qualified Specialist (HQS) Permit
For skilled professionals with higher education or significant experience.
4. Startup Visa
For entrepreneurs and innovative business founders.
Key Requirements:
Employees in Russia are entitled to 28 days of paid annual leave per year, with at least one period of leave for 14 days.
Female employees are entitled to 140 days of maternity leave:
While there is no provision for paternity leave, employees can take five days of unpaid leave following the birth of a child.
Employees in Russia can take sick leave if they become unwell or injured at work.
The following statutory national holidays are observed in Russia:
Payroll frequency in Russia is usually bimonthly. Work regulations, collective agreements, or employment contracts require employees to be paid at least every half month, no later than 15 calendar days after the end of the payroll period.
The law does not require employers to pay a mandatory bonus or the 13th month salary, but some employers give it as part of their benefits package.
Employees in Russia and their employers must contribute to the national Social Insurance Fund (FSS), Pension Fund (PFR), and Mandatory Health Insurance (FOMS), which provide coverage for pensions, sick leave, maternity leave, and healthcare.
The mandatory and statutory benefits in Russia are:
Russian accounting follows Russian Accounting Standards (RAS), governed by the Ministry of Finance. Large companies may also need to comply with International Financial Reporting Standards (IFRS).
All Russian companies must file annual financial statements with the Federal Tax Service.
Mandatory audit is required for companies meeting certain criteria:
Audits must be performed by certified auditors and submitted with annual reports.
The standard corporate tax rate is 25% (with a reduced rate of 5% for IT companies until 2030).
The VAT rate in Russia is 20%.
There are also reduced rates of 0% and 10% for some goods and services. A new rate of 16.67% was introduced in 2019 for foreign e-service providers.
The filing deadline is typically the end of March of the following year.
The penalties include a 5% of unpaid tax for each month of delay, a minimum penalty of RUB 1,000 and a maximum penalty of 30% of unpaid tax.
Russia has comprehensive transfer pricing rules based on OECD guidelines:
Russia implements CbC reporting requirements:
Transfer pricing documentation is mandatory for Russian companies involved in controlled transactions exceeding specified thresholds.
Master File
Local File
Deadline: Transfer pricing documentation must be prepared by the corporate income tax return deadline (generally March 28–31 of the following year) and submitted within 30 days upon request by the Federal Tax Service (FTS).
Federal law No. 152 FZ of 27 July 2006, “On Personal Data”, the Data Protection Act (DPA) is the most comprehensive source for data protection rules and aims to protect individuals’ privacy and personal data in Russia.
Russia’s AML framework is governed by Federal Law No. 115-FZ “On Countering the Legalization of Proceeds from Crime and Financing of Terrorism.
Key requirements:
Obligated entities: Banks, insurance companies, securities firms, money transfer operators, and other financial institutions.
Penalties: Administrative fines and potential criminal liability for violations.
Reasons you should setup legal entity in Russia:
Cerity Global ensures your business expansion in Russia is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Russia business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Russia.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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