Incorporation of a company

Limited liability companies

A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnerships and corporate structures. Under the Civil Code, a limited liability company is established by one, or several people and the capital is divided into shares.

The company is taxed at the corporate level, and then, upon the distribution of dividends, shareholders pay INCOME tax (personal or corporate). A limited liability company is the most popular form of legal undertaking in Russia for simple shareholding structures.

The liability of each participant in LLC is limited to the value of his/her share in the charter capital. There cannot be more then 50 participants. The minimum charter capital of a limited liability company is 330 $.

Our fee — 2 100 € (2 300 $)

Joint-stock companies

According to the Civil Code of the Russian Federation, a joint-stock company is a company that has its’ capital divided into shares. The shareholders are not liable for the companies obligations and accept the risks of losses within the limit of their respective shares. Shareholders can sign any agreements that will regulate their rights.

JSC can issue stocks. There are «open» and «closed» joint-stock companies in Russia. Internationally they are known as «private» and «public» companies. Open joint-stock companies must disclose certain financial and other information annually.

The charter of the joint-stock company consists of 1,000 shares. Depending on the number of shareholders, there are different management bodies. In a company that consists of less than 50 shareholders the management body is the General Meeting of Shareholders. In a joint-stock company that has more then 50 shareholders, there is a board of directors.

The liquidation process might be:

• Voluntarily
• Court mandated

Fees:

• Registration of the JSC — 2 100 € (2 300 $)
• Registration of the issue of shares — 1 115 €