3. Forms of companies
Before starting, it is necessary to define the type of company available in Russia, as they differ in terms of individual characteristics as well as legal structure.
A limited liability company is the most common form of business in Russia. It is a private business form with a maximum of 50 shareholders. They are liable for the company’s debts up to the amount of share capital. A foreign company or individual can be a shareholder, but not a company founder or a member of the management board unless they obtain a visa.
A joint stock company can be closed, private, public, or open. If a joint stock company is public, it can have more than 50 shareholders, and the shares are freely available to the public. Other obligations and permits are the same as they are for a limited liability company.
A partnership it is appropriate if you intend to set up a small business. On the one hand, the partnership might be general, which means that the partners participate in the management of the company and the agreement governs their rights and obligations. On the other hand, a limited partnership means that the partners share profits and debt obligations and use their assets to cover costs.
Branches are another type of company that is established in Russia and acts as a company’s representative. Commercial activity is not permitted in this case.