How to register a company in Russia: A guide for employers

Think of Russia as your bridge to global markets—without the complexity.

Russia’s vast resources, advanced infrastructure, and thriving economy offer a wealth of opportunities for businesses. With streamlined procedures through the Federal Tax Service, the registration process is more accessible than ever. Russia’s strong trade networks and supportive policies create an ideal environment for businesses to operate and flourish. Whether you’re aiming to tap into new markets or solidify a regional presence, Russia provides the tools for sustainable growth with minimal hurdles.

The business benefits of registering your company in Russia 

The Russian economy, rich resources, and clear business laws make it a top pick for companies. For HR leaders and decision-makers, it simplifies key tasks like compliance and managing teams efficiently. 

Here’s why Russia is a smart choice for company registration:

• Access a booming economy with vast growth potential across industries.
• Benefit from foreign investment incentives in key sectors.
• Leverage advanced infrastructure and trade networks to streamline operations.
• Register your company through straightforward processes via the Federal Tax Service.
• Operate with confidence under clear and well-defined business laws.
• Gain a competitive edge in global markets by establishing a regional presence.

Russia provides a dynamic environment that supports scalability, profitability, and long-term success. Next, we explore the available options—setting up a legal entity or leveraging an Employer of Record (EOR)—to help you choose the best approach for your business.

What is the difference between standard company registration and EOR in Russia?

When setting up a business in Russia, you can either register your own entity or partner with an EOR. Each option has its unique strengths and fits different needs. Here’s a breakdown:

Aspect	Standard Registration	Employer of Record (EOR)
Purpose	Establishes a legal entity for full operational control and financial independence.	Enables businesses to hire employees in Russia without creating a local entity.
Control	Grants complete decision-making authority across all operations.	Delegates legal and administrative responsibilities while retaining team management.
Compliance	Requires you to handle all local regulations, taxes, and reporting.	The EOR ensures adherence to labor laws, tax codes, and administrative protocols.
Setup Time	Lengthy process due to extensive paperwork and regulatory approvals.	Fast-track market entry with a setup that takes weeks, not months.
Cost	Includes upfront costs like legal fees, office setup, and ongoing maintenance.	Covers operational expenses through predictable monthly fees.
Scalability	Designed for companies with long-term growth plans in Russia.	Perfect for agile expansion without the burden of entity management.

For businesses planning to enter Russia, setting up a local entity might seem like the natural path. However, if speed, agility, and minimizing risk are critical to your strategy, partnering with an Employer of Record (EOR) offers a streamlined alternative.

In a rapidly evolving business landscape, an EOR allows you to bypass the complexities of entity registration, enabling you to focus on building your team and driving growth from day one.

Let’s dive deeper into how an EOR streamlines registration and hiring in Russia.

How EOR simplifies Russian company registration

Setting up operations in Russia doesn’t need to be complicated. Partnering with an Employer of Record (EOR) streamlines the process, enabling you to hire talent and ensure compliance without establishing a local entity. 

Here’s why an EOR is a game-changer for entering the Russian market:

1. Skip the time-consuming entity registration process and get operational in weeks, not months.
2. Say goodbye to managing payroll, taxes, and filings, as an EOR handles these complexities.
3. Ensure your operations align with local regulations, reducing compliance risks and legal penalties.
4. Avoid upfront costs of entity setup with predictable monthly fees that free up resources for growth.
5. Scale your team quickly and adapt to market needs without long-term commitments.
6. Recruit skilled professionals without navigating complex local hiring laws or geographical barriers.
7. Attract top talent with competitive, compliant benefits packages managed entirely by your EOR.
8. Operate confidently knowing your EOR mitigates risks and safeguards your business.

With an EOR, you can bypass the administrative hurdles of entering the Russian market and focus on what matters most—building your team and driving results. It’s the simplest way to start operations, stay compliant, and achieve your goals in Russia.

Step-by-step guide to registering a company in Russia

Navigating the process of registering a company in Russia can be straightforward if you follow these steps. Here’s how to set up your business efficiently.

Step 1: Choose the right legal structure

Establishing a local entity in Russia can be a daunting and resource-heavy process. A smarter, more efficient option is partnering with an Employer of Record (EOR). An EOR like Multiplier handles critical functions such as onboarding, payroll, compliance, and navigating local tax regulations, allowing you to scale quickly without the administrative burden of entity setup.

For businesses that need to set up a local entity for any specific reasons, selecting the right structure is crucial:

Selecting an appropriate business structure is essential as it determines your operational flexibility, tax obligations, and compliance requirements.

Common legal entities in Russia:

• Limited Liability Company (OOO): A popular option for both domestic and foreign entrepreneurs due to limited liability.
• Joint-Stock Company (AO): Suitable for businesses planning to issue shares or raise public capital.
• Representative Office: Ideal for market research or coordinating with local partners but restricted from revenue-generating activities.
• Branch Office: Allows revenue-generating activities but is legally dependent on the parent company.

Ensure your chosen structure aligns with Russia’s business laws and operational needs.

Step 2: Reserve your business name

Your business name must comply with Russian naming regulations and avoid duplication of existing names. Verify name availability through the Federal Tax Service’s (FTS) database and reserve it during the registration process.

Step 3: Prepare and submit required documents

Compile the necessary documentation for submission to the Federal Tax Service (FTS).

Required documents typically include:

• Charter documents (Articles of Association)
• Proof of legal address (lease agreement or ownership document)
• Founders’ and directors’ identification (passport copies)
• Appointment letters for directors and accountants
• Application for state registration (in Russian)

Ensure all documents for foreign applicants are notarized and translated into Russian as per local regulations.

Step 4: Open a corporate bank account

A corporate bank account is essential for handling financial transactions, including payroll and expenses.

Banking options:

• Traditional banks: Russia’s major banks, such as Sberbank or VTB, cater to business accounts.
• International banks: Some global banks operating in Russia also provide local banking solutions.

To open an account, you’ll need essential documents such as your company’s state registration certificate, tax identification number (INN), and identification of authorized representatives.

Alternatively, simplify payroll management with an Employer of Record (EOR). An EOR handles payroll comprehensively, ensuring full compliance with local regulations and removing the need for complex banking setups. It’s a smarter, faster way to manage operations while you focus on growing your business.

Step 5: Register for tax and compliance

Tax registration is mandatory for operating in Russia. Once your company is registered, obtain a Taxpayer Identification Number (INN) from the FTS.

Tax obligations include:

• Value Added Tax (VAT): Standard rate is 20%. Registration is required for most companies.
• Corporate Income Tax (CIT): Charged at 20% on profits.
• Payroll Taxes: Includes social contributions for employees.

Compliance requirements:

• Maintain accurate accounting records.
• File regular tax returns and financial statements.
• Comply with labor laws, including employee contracts and welfare provisions.

Navigating tax and compliance in Russia’s regulatory environment can be challenging. An Employer of Record (EOR) simplifies this process by ensuring your business adheres to local labor laws, tax regulations, and reporting requirements. With an EOR managing compliance, you can confidently eliminate the risks of administrative errors.

Next, we’ll explore the costs involved in company registration in Russia in 2025.

The real cost of registering a business in Russia

For business owners planning to establish a company in Russia, understanding the associated costs is essential. Here’s a breakdown of what to expect:

1. Registration costs

• State fee: Approximately ₽4,000 (around $50) for registering a Limited Liability Company (OOO).
• Charter capital: A minimum of ₽10,000 (approximately $130) is required for most companies. This can be paid in installments.
• Legal address services: Non-residents often need to lease a legal address, which typically costs between ₽15,000 and ₽50,000 annually.
• Notary fees: Certification of documents for foreign founders can range from ₽5,000 to ₽15,000, depending on the complexity.

2. Annual maintenance costs

• Accounting services: Basic packages start at ₽5,000 per month, increasing with the complexity of transactions.
• Tax reporting: Annual filings and audits may cost an additional ₽50,000 to ₽150,000, depending on business activity.
• Taxes: Corporate income tax is set at 20%, while VAT is charged at 20% on most goods and services. Social security contributions for employees can range between 22%-30% of salaries.

3. Additional considerations

• Translation and notarization fees: Required for all documents submitted by foreign applicants. Costs vary based on the number of documents.
• Banking services: Opening a corporate bank account may involve setup fees of ₽5,000 to ₽10,000, with ongoing maintenance fees depending on the bank.
• Federal Tax Service (FTS) fees: Any changes to company registration details may require additional fees ranging from ₽1,000 to ₽5,000.

Streamlining costs with an Employer of Record (EOR)

An Employer of Record (EOR) can simplify the process and reduce many of these costs. By managing compliance, payroll, and administrative tasks, an EOR eliminates the need for:

• Setting up a legal entity
• Hiring in-house accountants
• Handling tax registration and reporting

With an EOR, you gain predictable monthly fees that cover most of these responsibilities, allowing you to focus on business growth.

Next, we’ll compare the costs of traditional registration with the EOR model. 

Cost comparison: Standard registration vs. Employer of Record (EOR)

Understanding the financial implications of traditional company registration versus partnering with an Employer of Record (EOR) can help you make an informed decision. Here’s a side-by-side comparison for Russia:

Traditional registration involves higher upfront investment and ongoing administrative overhead, especially for foreign companies navigating Russia’s regulatory landscape. In contrast, an EOR simplifies operations with predictable costs, handling compliance and administrative responsibilities for you.

Next, let’s explore how partnering with an EOR like Multiplier can streamline your entry into the Russian market.

Take the stress out of your Russian expansion with Multiplier

Expanding your business to Russia doesn’t have to mean navigating complicated processes or heavy administrative workloads. With Multiplier’s Employer of Record (EOR) solution, you can focus on growth while we handle the complexities.

Why Multiplier is your trusted partner in Russia

• Seamless local hiring: Access Russia’s highly skilled workforce effortlessly. Our local experts handle employment contracts, onboarding, and other HR tasks, giving you a smooth start in the region.
• Simplified payroll management: From calculating taxes to managing payroll schedules, we ensure every payment complies with Russian laws, so you can avoid disruptions.
• Comprehensive HR tools: Manage approvals, expenses, and time-offs efficiently with our all-in-one HR platform, designed for distributed teams.
• Regulatory peace of mind: Stay compliant with Russia’s complex legal framework, including tax regulations and labor laws, with our proactive compliance support.
• Tailored employee benefits: Attract top talent with competitive, locally compliant benefits, while we manage the administration seamlessly.
• Dedicated support and security: Enjoy personalized 24/5 support for you and your team, with the assurance of SOC 2-certified systems and robust data security.

Expanding into Russia offers immense potential, but navigating its unique regulations, payroll processes, and compliance requirements can be complex. Multiplier makes your market entry seamless by handling every detail—ensuring compliance with Russian labor laws, managing payroll, and facilitating local hiring. Whether you’re drawn by Russia’s strategic market opportunities or its vast economic potential, Multiplier provides a streamlined, compliant solution to help your business grow smarter and faster in this dynamic region.

Book a Demo today and discover Multiplier’s EOR services.