Russia Country Profile business trade issues

Russia

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

The current reorganisation of the legal environment does not facilitate the development of foreign investments in Russia. In spite of the opening of Russia to investments in 1987, investment flows is not very satisfactory. This handicap is closely linked to the political instability of the country. Besides, Russian aids to foreign investments remain low. The Ministry of Economic Development and Trade of Russia can provide assistance regarding investment matters.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
Open Joint Stock Company (AO)	No minimum.	1,000 times the monthly minimum wage.	Liability is limited to the amount contributed.	Fees are relatively low.	Yes
Close Joint Stock Company (AOZT)	Minimum 50.	1,000 times the monthly minimum wage.	Liability is limited to the amount contributed.	Fees are relatively low.	No
Limited Liability Company (OOO)	No minimum.	RUR 34,000	Liability is limited to the amount contributed.	Fees are relatively low.	No
Limited Partnership	No minimum.	10 times the monthly minimum wage.	At least one person has an unlimited liability and the other partners have a limited liability.	Fees are relatively low.	No
General Partnership.	No minimum.	No minimum capital.	Liability is unlimited.	Fees are relatively low.	No

Registration and licensing procedures
As for the current legislation, a company can carry on an activity in Russia with no legal registration. However, it is advised to register, at least, an representation office in order to benefit from the material advantages granted.

Foreign exchange control
The rouble is freely convertible for current international transactions. However, the Russian government can still restrict capital and profits repatriation.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Russia.

Foreign Direct Investment inflows in Russia

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	7 958	15 444	14 600	87/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update