Registering a business in Russia for Chinese partners: procedure and potential risks

Registering a business in Russia for Chinese partners: procedure and potential risks.

The Russian market attracts a large number of friendly foreign investors, including investors from China. Starting a business in Russia is a unique opportunity to expand your geographical reach and gain access to a new market. However, it is important to remember that there is a specific procedure and a number of important nuances to consider when establishing a legal entity.

Procedure for registering a legal entity:

1. Determine the type of activity and business direction.

Comment: some types of activities require additional permits (construction, medical services, etc.).

Partner mistake: they don't get the necessary documents ready and submit them on time to the authorities that issue certificates and licences.

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2. Find a legal address for the company.

Note: the cost of a legal address depends on where the office is located.

We recommend approaching this issue thoroughly.

All correspondence will be sent to this address, and this address will be verified by the tax authority.

Partner error: many use mass legal addresses, which entails not only administrative responsibility, but can also lead to exclusion from the register, and sometimes even the liquidation of the legal entity.

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3. We prepare the documentation for opening an LLC: Articles of Association, IIN, etc., and appoint a CEO.

Comment: The Articles of Association must specify the entire business structure and all details.

We also recommend that you approach the selection of the CEO and the company team as consciously as possible. We cooperate with recruitment agencies and can help you find people. Another essential component of the business is well-developed and properly executed HR documentation (employment contracts, staffing table, internal regulations, etc.).

Partner mistake: ignoring the formalisation of employees in accordance with all the requirements of the labour legislation of the Russian Federation.

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4. Open a bank account for the company.

Comment: it is necessary to choose a reliable bank.

Partner mistake: they turn to a little-known and untested bank. Often, it is these banks that attract customers with bright advertising and very favourable terms.

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5. Prepare the company seal.

Comment: We have a qualified designer on staff who can develop a unique style for your seal.

We can also help with website development, brand book and corporate identity, and social media promotion.

Partner mistake: Not paying attention to checking the uniqueness of the design. Using an existing logo and name may result in copyright infringement.

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6. Registering the company with the tax authority.

Comment: Once we have decided on a legal address, we prepare and send all the necessary documents to the local tax authority.

Partner mistake: submitting documents with errors in the text, which significantly slows down the business registration process.

The Legis Group team is open to cooperation with partners from any friendly countries.

The team includes simultaneous interpreters who help establish open and clear dialogue from the very beginning of the cooperation. Our team includes competent accountants and HR specialists who can set up and streamline the work of a newly opened business.

Only careful planning and knowledge of all the nuances allow Chinese partners and partners from other friendly countries not only to successfully register a business, but also to run, develop and scale a business in Russia.

Alexander Zakharov, Head of the Corporate Department