A foreign citizen or a company can be a founder of a Russian limited liability company. When applying for registration it is necessary to provide notarised translation of the foreign citizen or the founding company application documents.
Among other documents the founding company has to provide extract from the chamber of commerce and confirmation of its registration with tax authorities in the country of origin.
A foreign citizen can be head of the Russian limited liability company provided that he/she has a work permit and residence permit in Russia.
LLC application documents:
- Application form P11001
- Declaration of the decision to register LLC by the founder
- Contract between the founding members and minutes of the meeting of the founding members if there are several founders
- Charter of the Russian limited liability company to be registered
Foreign citizen additionally presents the following documents:
- Passport or other official ID issued by the country of origin with notarised Russian translation
- Birth certificate in case there’s no birth date or birth place in the above mentioned ID with notarised Russian translation
- Document confirming the place of residence outside Russia with notarised Russian translation
Foreign founding company additionally presents the following documents:
- Establishing documents
- Registration confirmation of the founding company
- Extract from the chamber of commerce registry of the country of origin
- Confirmation of the registration with tax authorities in the country of origin
- Bank reference with bank account number
- Power of attorney from the founding company for the person applying for registration of the Russian LLC if this person is not the head of the founding company
All the application documents have to be translated into the Russian language
Russian companies with foreign founders are not allowed to perform the following activities:
- Land rental in ports or border areas
- Large-scale communication or publishing business
- Handling of radioactive waste
- Working at defence industry sector
- Insurance business with more than 50% share of the foreign founder
Tax restrictions on Russian companies with foreign founders:
- Tax on dividends is 15% (13% for companies without foreign founders)
- Special simplified tax payment procedure is not applied if foreign founder(s) own more than 25% share of the company provided that the founder(s) are foreign companies (not foreign citizens).
- Small business priviliges are not applicable if foreign founder(s) own more than 49% of the Russian company