A limited liability company (OOO) is a corporate construct that has its shareholder equity split into shares. Participants assume the possibility of potential decline up to the worth of their share capital but typically do not personally accept accountability for the company’s debts. A share’s capital requirement is 10,000 RUB. After the business is listed with the government, the basic investment must be provided within four months. Equity shares may be purchased with cash or other assets. One person or a group of people can form a company. There can be up to 50 people.
Although the filing procedure is not dragged out, several concerns must be resolved for a satisfactory outcome. Here, we’ll talk about some of the basic formalities.
Registration process
The following is a short list of documents that are required for certification in accordance with Russian law:
- Registration application;
- Founding decree;
- 2 copies of the constitution;
- Invoice for the RUB 4,000 statutory charge.
The registered office may demand extra papers, such as an Article on Organization and a certificate that verifies the business’s address, irrespective of the officially established list of paperwork.
An extract from the business registration of the candidate’s country with a notary stamp and a Russian translation of the same must be attached if the person is a foreign lawful person.
Papers may be delivered in person, via an agent, by certified mail with a stated value, or by email. It takes five business days to process a request, after which the company receives a registration document and tax id card (INN in Russian).
Basic formalities for registration
Identify the commercial range.
Before deciding the type of business operations, including the LLC under the “Russian Classification of Forms of Business Services”, is crucial.
This must be specified as a keyword in the registration process. This information may be updated at any moment by updating the information in the national public registration of business organizations.
Company name and legal address
In Russia, a registered corporation’s official name must include information about its organization as well as the real name of the government body. The title of the limited liability company must begin with the words “Russian Obshestvo s ogranichennoi otvetstvennost’yu”. In Russia, a formal corporation may have a shortened title but must have a complete business name. An LLC must have its CEO’s home address, owned land, or lease property to be registered.
Corporate bylaws and the foundational treaty
The creation of the firm’s constitution, which is the sole foundational instrument, is the most crucial step in creating a corporate structure. A well-written Charter enables the shareholders’ interests to be protected and reduces the likelihood of disputes. The Russian Legislature on Limited Liability Companies stipulates that the Constitution must include the title of the LLC, a legitimate address, and details about the directors that have been incorporated.
Taxation
The potential taxing structure should be taken into account before applying for registration. Typically, businesses utilize a standard tax structure or a reduced one. After the initial registration, you have 30 days to apply for the reduced taxation system.
The decision regarding a company’s structure
The resolution to create an LLC is an essential step in the formation of a company. It is published as a decision of the single creator or a resolution of the general assembly of multiple creators. Voting outcomes and judgments on the formation of the firm, endorsement of the constitution, and the governing board must be included in the decision. Details on shareholding, as well as the methods and conditions of its distribution, must be included in a sole founder’s decision.
Following the process, it is mandatory to disclose applications to the statistics body for confirmation of the company’s certification.
Note that every situation involving the development of a company is distinct and necessitates a customized strategy that looks for suitable answers. Documents that are poorly written, incomplete, or submitted with delay, might result in additional costs for revising entries in the State registry or possibly be a ground for rejected registration. Payment of the State charge is not returnable.
