Doing Business in Russia for Foreigners: Key Rules and Nuances

What do you need to register a business?
1. Package of documents and legalization
• For individuals: A copy of your passport with a notarized translation into Russian. If your passport does not indicate your date or place of birth, you will also need a birth certificate (also with a translation).
• For legal entities (foreign companies): Extract from the trade register of the country of registration with translation.
• Rules for document legalization:
o Translation only : For countries with which Russia has concluded a treaty on legal assistance.
o Apostille : For countries participating in the Hague Convention.
o Consular legalization: In all other cases (through the Russian consulate).
2. Appointment of the director
If a foreigner plans to become a company director, he or she will need a document authorizing work in the Russian Federation (temporary residence permit, residence permit, patent, or work permit).
• Exception: Citizens of the EAEU countries (Belarus, Kazakhstan, Armenia, Kyrgyzstan) do not require a work permit .
3. Bank account
After successfully registering a business, a bank account must be opened in a Russian bank for settlements with counterparties and tax payments.
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Taxation: Residency Matters
The choice of tax regime directly depends on commercial indicators and your tax status (resident/non-resident).
• For non-resident individual entrepreneurs: The Simplified Tax System (STS) is often the optimal taxation system: 6% of income or 15% of "income minus expenses." However, please note: if you change your status to non-resident, the tax on certain types of income from activities in the Russian Federation may increase to 30% . The Patent Tax System (PSN) is not available to non-residents .
• For LLCs with foreign participation : If the share of a foreign company in the authorized capital exceeds 25% , such LLC does not have the right to apply the simplified tax system (STS).
• Dividends : When paying dividends to a non-resident foreign individual, the rate is 15% (instead of 13% for residents). A double taxation agreement (DTA) may reduce this rate.
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Restrictions and Prohibitions
Foreign citizens and companies with foreign participation are prohibited or significantly restricted from conducting business in the following areas:
• Production of weapons and military equipment;
• Mining;
• Creation of media and publishing activities;
• Security and detective activities;
• Working with radioactive waste;
• Lease and purchase of land near ports and state borders;
• Telecommunications.
⚠️ Important : If a company's founders include a representative of an unfriendly country , official permission from the Russian Government Commission may be required to open and run the business.
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Additional checklists to get you started
1. Hiring: If you plan to hire other foreign nationals, research regional quotas and limits on foreign labor in advance.
2. Criminal Record Certificate: Required for certain types of activities (e.g. passenger transportation or working with children).
3. Remote Management : If you manage processes from abroad, be sure to engage a specialized lawyer and tax consultant to thoroughly review double taxation agreements.