The Russian market can be surprising, confusing, and highly profitable. The following information has been compiled to help you answer any questions you might have about doing business in Russia. If you don't find your answers here, or if you have a very specific question, you may always feel free to ask the expert at Alinga Consulting Group.
Alinga can assist you in navigating Russia's changing legal and regulatory environment with accounting, audit, legal, and HR services. If you are entering the Russian market, see the video and information below on how we can help. If you are already in on the ground, you can jump right to our Business Support Services to learn more about how Alinga can help your company grow in the Russian market.
1. Entering the Russian Market
We will begin by assuming that you have already defined the size and nature of your market. With this information, we can now begin to determine the structure best suited to your planned activities in Russia.
Alinga Consulting is a proud member of PrimeGlobal, an association of independent accounting firms.This guidefrom that association has information on how to read financial forms in Russian and more information on Russian company types.
The first question you will face is whether to establish a representative office or subsidiary of your company. Because the representative office is such a popular option with foreign companies, we address it in greater depth in the pages linked to below.
A subsidiary could be an "OOO" (Limited Liability Company) or a "ZAO" (Joint Stock Company or "Corporation"). Most common is to create a subsidiary of the "OOO" type (simpler) that is wholly owned by the parent company. In practice, subsidiaries are most commonly established either when a representative office becomes too large or starts local production. It may also play a role in tax planning. One of the main advantages of the subsidiary is that it bears its own liabilities, thus sheltering the parent company.
Once you have established a presence in Russia, you must maintain accounting records and be compliant with tax and other authorities. Outsourcing these functions at least initially can benefit you, freeing time and energy to focus on company strategy and your market. The benefits of outsourcing are outlined in greater detail in Business Support Services.
Of course, these are only the core components to establishing a legal presence in the Russian Federation and you probably have many other questions. The information provided below will help answer some of those questions. While we do not directly provide services in most of these areas, we appreciate that they are significant tasks when in a foreign market and so we will address them briefly.