Formation / Incorporation of LLC (limited liability company) in Russia
The Russian limited liability company (LLC) shall be recognized as the company, established by one or by several persons, whose charter capital is divided into the shares, the size of which is stipulated by the foundation documents; the participants of the limited liability company shall not be answerable by its obligations and shall bear the risk of the losses in connection with the company’s activity within the cost of the contributions they have made (Civil Code of Russian Federation, article 87).
Benefits of Russian LLC:
- a simple registration procedure which does not require registration of issuance of shares with Federal Financial Markets Service;
- simplified procedure to increase (decrease) authorized capital;
- ability to request an expulsion of a participant who grossly violates his obligations by judicial procedure;
- ability to limit or prohibit third parties from affiliation;
- more efficient company protection from takeover.
Documents Required for LLC Registration :
- from natural persons – a copy of each participant’s passport, a copy of ITN (if assigned);
- from legal entities – a copy of Primary State Registration Number (PSRN) certificate; a copy of ITN certificate; a copy of current version of Charter and Foundation agreement (if available); minutes (decision) confirming power of the director.
Information Required for LLC Registration:
- information on the name of the newly established company;
- information on the location of the newly established company;
- information on the amount of charter capital of the registered company and order of its payment;
- information on percentage of participants’ shares (if more than one founder);
- information on use (non-use) of simplified tax system;
- information on Director/General Director and Chief Accountant (if on the payroll);
- information on types of operations of the newly established company: all Russian companies have classification of types of economic activity (OKVED codes).