25. The main steps of starting a new business in Russia.

Let us have a look at the various steps involved in the process for setting up a new business in Russia: 

 

1. Notarize your foundation documents such as registration application, copy of charter and foundation agreement.

2. Make a bank deposit of your capital and get a proof of that. You have to pay half the charter capital before your business starts and the other half in the first year of the company’s operation. Opening a bank account will not cost you any money and you can do it in one day.

3. After this, you need to pay the registration fee to a legal body of the State Tax Inspectorate. The registration fee is approximately $70.

4. Next, you have to register at the Federal Tax Service locally in order to obtain your tax registration number and state registration number. This registration can take up to 18 days and you are required to submit a number of documents with your application such as registration fee payment receipt, notarized registration application, charter, foundation agreement and others. Failure to fulfill all requirements laid down by tax authorities can lead to rejection of your registration application.

5. You need to notarize you bank Signature Card, Taxpayer Identification Number Certificate and Registration Certificate. All this will cost your about $40 to $45.

6. Set up a company bank account. The opening of the bank account can take anywhere from 1 to 5 days and you will have to submit documents related to your company.

7. You have to submit your company bank account number to the Federal Tax Service and get a special letter of confirmation from them. Doing this will take you an average of 5 days and you have to do this within 10 days of setting up the company bank account.

8. Lastly, you should find out if you need to register your business with any local body.

25. Barriers and challenges for someone starting a new business in Russia.

For many people permanent costs that you need to pay when you are in business become some kind of a barrier. That’s why people afraid of their own business. Also if you want to expand your business, you need to have a special license and more costs.

Another problem is chargeable mediation (посредничество) between government and entrepreneur. And of course it is not formal. It means that somebody make dictated services for entrepreneurs. So that we can’t understand whether we can do without these services or not. So red tape is a big problem in starting your own business. Unfortunately we can see collective irresponsibility.

Certificated institutions give the licenses but don’t control it. Many people think that this decrease effectiveness and competitiveness, also it infringes consumer rights.

25. What are some of the problems and risks that small businesses face in Russia.

For many people permanent costs that you need to pay when you are in business become some kind of a barrier. That’s why people afraid of their own business. Also if you want to expand your business, you need to have a special license and more costs.

Another problem is chargeable mediation (посредничество) between government and entrepreneur. And of course it is not formal. It means that somebody make dictated services for entrepreneurs. So that we can’t understand whether we can do without these services or not. So red tape is a big problem in starting your own business. Unfortunately we can see collective irresponsibility.

Certificated institutions give the licenses but don’t control it. Many people think that this decrease effectiveness and competitiveness, also it infringes consumer rights.