If your employee is from another country and has temporary or permanent resident status in Russia or has a regular visa (not a highly qualified specialist), your company will pay between 23.8% and 24.9% to social security funds in addition to the employee`s salary. Remember that these contributions are limited to about 1 million rubles ($13,291) per year, so the cost of employment begins to decrease after this period. However, this doesn`t change much for your lower- or mid-level employees. Other alternatives include buying part or all of the existing business. Acquire an existing business and obtain an HQS visa and work permit through the company you are buying. Again, consider the abundance of possibilities at a time when the ruble is at its lowest. There are literally businesses to be done. Another alternative is to work with someone who has an existing business in Russia if you are not interested in running your own business. It is certainly a buyer`s market in any case. The LLC form of enterprise is the easiest way to open a business in Russia for a foreigner. This organizational and legal form has the following advantages: foreigners who have done business in Russia comment on the difference between the way Russians do business and manage their teams compared to the approach taken by their Western counterparts. As already mentioned, negative incentives are not uncommon in Russian companies. Doing business with other Russian companies can sometimes be cumbersome and unreliable.
Although in recent years, more and more Russians are studying abroad and returning to Russia to take up leadership positions and follow a more Western leadership style. These companies are usually large and internationally oriented. A sole proprietor is a person (regardless of nationality) who runs a business without starting a business. As a rule, these forms are used for micro and small enterprises: retail, provision of services, independent execution of works, etc. If you are considering investing in Russia, here are some steps to consider when you start: If a company is established in Russia by an already existing foreign company, one of the options is to open a branch or representative office. Doing business in Russia can mean following new rules, registering in the Russian Commercial Register and working alongside or competing with Russian entrepreneurs. Understand the process of starting a business in Russia with this guide. Every small company in Russia, regardless of size, must officially appoint an accountant and a director residing in Russia. Fortunately, many companies outsource their accounting for 6,000-25,000 rubles ($80 – $332) per month, depending on the number of transactions and paperwork. With the above simplified tax systems, average monthly accounting costs for small businesses are usually between 10,000 and 20,000 rubles ($133 to $265).
This includes all reports and submissions to tax authorities. As your small business grows in Russia, you need to have more interaction with your accountant in the form of meetings, which would not be covered by these costs. For those of you who dream of the day you quit your job because, unlike the previous type of employee, you hate what you`re currently doing for the job, expect good news: solopreneurs, freelancers, consultants, and budding entrepreneurs. By moving and moving your side business to Russia, you can afford more of what you currently earn. The only other way to do this, where you are at this point, is: the first option in the simplified tax system in Russia is a flat tax of 6% on gross receipts. If your business has relatively low overhead costs, such as providing services, this tax regime will make your life much easier. Contact national organizations to support businesses, such as the American Chamber of Commerce in Russia or the U.S.-Russia Business Council. The last category we`re going to talk about here is more complicated, but certainly doable, especially if you have the funding.
You can take advantage of the low ruble and convert your US dollars or euros into rubles to take you far into Russia. You can invest in a local small business, an online business, real estate or your area of expertise. Starting a business as a foreigner is still quite simple and easy. You can outsource almost all reporting and accounting at a cost-effective price so you can focus on the business. You can hire an assistant who speaks English at a high level to guide you through the questions you`ll have along the way. Not speaking Russian is not a disruptive factor, especially if you do your due diligence in your market. But the opening of a business in Russia by a foreigner must also take into account the characteristics of the Russian economy and legal system. Here are some arguments for starting a business in the Russian Federation: There are a number of things to consider and go through the processes if you are an individual or a company that plans to start a business in Russia. You need to start with basic considerations, such as whether you can legally operate as a business in Russia.
This way, your company avoids trouble when it comes to Russian authorities requesting inspections. If you are not sure if Russia is the place of your permanent residence, you can always appoint yourself as a director, apply for a work visa, and later decide to appoint someone else.