1. May a foreign citizen or foreign company open a company in Russia in 2023?
Yes, there are no restrictions on this. Foreign citizens and foreign companies from all the countries, including those countries which imposed sanctions against Russia, are allowed to register a company (LLC), representative or branch office in Russia.
2. Borders between Russia and many countries are closed now. Is it possible to register company in Russia remotely?
Yes, shareholders of a newly created company are not obliged to visit the Russian registering body personally. Our team may assist with company registration in Russia remotely, based on an apostilled (legalized) power of attorney. We will prepare all the needed documents, which foreign citizen or managing director of foreign company should sign at local notary office in their country, apostille (legalize) and ship to us*.
*Mail delivery from some countries to Russia is not possible now, please check this with delivery service providers in your country.
3. Is it possible to open bank account for a newly created company remotely?
When opening bank account, almost all the banks in Russia require personal visit of the bank office by the company director (not the shareholders).
In the meantime, director must be found and appointed by the newly created company at the moment of applying for state registration. Director may be either Russian citizen or foreign citizen with work permit. Since it will take some time to get the work permit for a foreign director, the most probable scenario is that the company will hire local director in Russia or outsource the interim management function* for the first months after company registration in Russia. So, in any way, it is highly likely that the company director will be present in Russia and will be able to visit the bank office personally.
*A.J.CONSULTING team may undertake interim management of a newly created company while work permit for a foreign director is being obtained. We may also undertake this role on a long-term basis, if your company does not need to hire a director in Russia at all.
4. Is it possible to make cross-border payments in Russia with foreign suppliers, customers, shareholders, partners etc. in 2023?
Most state-owned and some private banks in Russia are under sanctions and switched off the SWIFT system now. However, there are still some Russian private banks and foreign banks in Russia which are not under sanctions, fully operate and continue making cross-border payments.
In the meantime, in the countries which imposed sanctions against Russia, such as the US, European countries, Japan etc. banks do not accept any payments from Russia nor transfer any funds to Russia regardless of whether Russian banks are under sanctions or not. In order to settle payments in this case, it would be necessary to involve subsidiaries or partners from third countries unless this does not violate the sanctions legislation.
5. Are there any complications with obtaining of work visas and work permits by foreign employees in 2023?
General type of work visa and work permit is quite difficult to obtain because of employment quotas, and the raise in unemployment in Russia in 2023 will make it more difficult to get them.
With HQS* type of work visa and work permit there are no any complications and limitations. Employees from all the countries, including those countries which imposed sanctions against Russia, are able to get this type of work visa and work permit.
However, it should be kept in mind, that there are still some COVID-19 restrictions in Russia, and borders with some countries still remain closed due to the pandemic. In this case, our team will write an official letter to the Government to let the HQS from the closed country come to Russia, and the process of work permit and work visa obtaining will last appr. one month longer. For more details on this, please, contact our team.
For citizens from the other countries, which are not closed due to the pandemic now, there are currently no any other complications.
*HQS is a highly qualified specialist, whose annual salary must be at least 2 million rubles. There are no any other strict requirements to HQS, and the company may decide all alone whether the employee is highly qualified or not. HQS is a simplified procedure of work permit obtaining in Russia.
6. What are the Pros for company registration in Russia in 2023?
Some large companies have decided to leave the Russian market in 2023. So, the market niches which had been occupied for a long time by large market players will now become free.
In addition, it will be easier to find qualified employees in Russia among those who had worked for such large companies before their leave, and get their great work experience for your new business in Russia.
If you want to register a company in Russia, please do not hesitate to contact us and get free advice on company formation in Russia.
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