Doing Business with Russia

A comprehensive guide to doing business, exporting, investing, and manufacturing in Russia.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Russian Direct Investment Fund

Tel: +7 495 644 34 14
Web: www.rdif.ru

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Federal Customs Service

Tel: +7 495 956 20 00
Email: info@customs.ru
Web: www.customs.ru

National Chamber of Commerce

Chamber of Commerce and Industry of the Russian Federation

Tel: +7 495 620 00 09
Email: tpprf@tpprf.ru

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance and Economy, Albania

Tel: +7 495 870 29 21
Email: mineconomy@economy.gov.ru
Web: www.economy.gov.ru

  • Type of Government: Federal semi-presidential republic
  • Population: Approximately 146 million
  • GDP: Around $1.7 trillion USD
  • Corporate Tax Rate: 20%
  • Personal Income Tax Rate: 13% (flat rate)
  • Major Exports: Oil, natural gas, coal, metals, machinery
  • Major Imports: Machinery, vehicles, pharmaceuticals, plastics, electronics

 

Exporting goods to Russia involves several key steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Russia’s import regulations and product standards.
  2. Identify Your Product’s HS Code

    • Determine the Harmonized System (HS) code to understand tariffs and regulations.
  3. Prepare Documentation
    • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.
  4. Check Tariff and Non-Tariff Barriers

    • Verify any tariffs and ensure compliance with Russia’s non-tariff measures.
  5. Select a Reliable Freight Forwarder

    • Choose a logistics provider experienced in shipping to Russia.
  6. Comply with Labeling and Packaging Regulations

    • Ensure your products meet local labeling and packaging standards.
  7. Arrange for Insurance

    • Secure insurance to cover potential shipping risks.
  8. Submit Customs Declaration

    • Work with your freight forwarder to submit the necessary customs declaration.
  9. Pay Applicable Duties and Taxes

    • Calculate and pay any required import duties and taxes.
  10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

Importing goods into Russia involves several key steps. Here’s a detailed guide:

  1. Research Import Regulations

    • Familiarize yourself with Russia’s import laws and product-specific regulations.
  2. Obtain Necessary Licenses

    • Determine if your products require special import licenses or permits.
  3. Classify Your Goods

    • Identify the Harmonized System (HS) code for your products to understand tariffs and duties.
  4. Prepare Documentation

    • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.
  5. Choose a Customs Broker

    • Hire a licensed customs broker to assist with the import process.
  6. Comply with Labeling and Packaging Standards

    • Ensure products meet local labeling and packaging requirements.
  7. Submit Customs Declaration

    • File a customs declaration with the Federal Customs Service of Russia.
  8. Pay Duties and Taxes

    • Calculate and pay any applicable import duties and taxes.
  9. Arrange for Transportation and Delivery

    • Coordinate with a logistics provider to transport goods to their final destination.
  10. Track and Confirm Receipt

    • Monitor shipment progress and confirm delivery upon arrival.

Key Contacts

Incorporating a company in Russia involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the type of company, such as a Limited Liability Company (LLC).
  2. Reserve a Company Name

    • Ensure the company name is unique and not already registered.
  3. Prepare Incorporation Documents

    • Draft the Articles of Association and other necessary documents.
  4. Open a Bank Account

    • Deposit the required share capital in a Russian bank account.
  5. Register the Company
    • Submit incorporation documents to the Federal Tax Service.
  6. Obtain a Tax Identification Number

    • Register for taxation with the Federal Tax Service.
  7. Register for VAT (if applicable)

    • Apply for VAT registration if your business activities require it.
  8. Obtain Necessary Licenses

    • Apply for any industry-specific licenses required for your business.

Costs

  • Registration Fee: Approximately 4,000 RUB.
  • Notary Fees: Additional fees for document notarization.

Key Contacts

Setting up a manufacturing plant in Russia involves several key steps. Here’s a detailed guide:

  1. Conduct a Feasibility Study

    • Analyze market demand, location, and resource availability.
  2. Choose a Business Structure

    • Decide on the type of business entity, such as a Limited Liability Company (LLC).
  3. Register the Company

    • Register your business with the Federal Tax Service.
  4. Secure Financing

    • Arrange funding through loans or investors.
  5. Select a Location

    • Choose an industrial area with access to infrastructure and resources.
  6. Obtain Necessary Permits and Licenses

    • Apply for construction permits, environmental clearances, and industry-specific licenses.
  7. Design and Construct the Facility

    • Hire architects and contractors to design and build the plant.
  8. Purchase and Install Equipment

    • Acquire machinery and ensure it meets safety and operational standards.
  9. Hire and Train Employees

    • Recruit skilled workers and provide necessary training.
  10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

Registering a trademark in Russia involves several key steps. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique by searching existing trademarks in Russia.
  2. Prepare Your Application

    • Gather necessary details, including the trademark design and the list of goods/services.
  3. Submit the Application

    • File your application with Rospatent (the Russian Federal Service for Intellectual Property).
  4. Pay the Application Fee

    • Pay the required fees for trademark registration.
  5. Application Examination

    • Rospatent will examine the application for compliance and potential conflicts.
  6. Publication for Opposition

    • If approved, the trademark is published for a period during which others can oppose it.
  7. Receive Registration Certificate

    • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

  • Application Fee: Varies depending on the number of classes and specifics of the trademark.

Key Contacts

  • Rospatent (Russian Federal Service for Intellectual Property)

Resolving commercial disputes in Russia involves several key steps. Here’s a detailed guide:

  1. Consult Legal Counsel

    • Engage a lawyer experienced in Russian commercial law for guidance.
  2. Attempt Negotiation

    • Try to resolve the dispute amicably through direct negotiation with the other party.
  3. Mediation

    • Consider mediation with a neutral third party to facilitate a resolution.
  4. Arbitration

    • Use arbitration for a binding resolution if both parties agree. Russia recognizes both domestic and international arbitration.
  5. Litigation

    • If other methods fail, file a lawsuit in the Russian commercial court system. Prepare for a formal legal process.
  6. Enforcement of Judgments

    • Ensure the decision is enforced through the relevant authorities.

Costs

  • Legal Fees: Vary depending on the complexity and length of the dispute.
  • Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

When considering business in Russia, it’s important to understand various factors:

Social and Cultural Factors

  • Language: Russian is the official language; knowledge of Russian is beneficial in business.
  • Business Etiquette: Building personal relationships is crucial. Formality is often observed in meetings.

Political Factors

  • Government: Federal semi-presidential republic.
  • Stability: Political environment can be complex; staying informed is important.

Economic Factors

  • Currency: Russian Ruble (RUB).
  • Key Industries: Energy, mining, manufacturing, agriculture, and IT.

Foreign Exchange

  • Exchange Rate: The Ruble can be volatile; currency risk management is advisable.
  • Regulations: Foreign exchange controls exist; compliance with local regulations is necessary.

Rule of Law

  • Legal System: Based on civil law; enforcement can be challenging.
  • Intellectual Property: Protections are in place, but enforcement can vary.

Infrastructure

  • Transport: Extensive network of roads, railways, and ports.
  • Utilities: Reliable energy supply, though improvements are ongoing.

Key Contacts

Our Members Include Leading Organizations in Russia

Ask our Experts on Doing Business in/with Russia

If you’re looking to do business or invest in Russia, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.