Business Administration in Russia

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Open Joint Stock Company (AO)
 
 
1 000 times the minimum monthly wage.
No minimum.
 
 
Liability is limited to the amount of capital invested.
Documents Authentication: RUR 200 per copy; Registration to the Ministry of Finance's registry to obtain the unique registration number and taxpayer identification number (INN): RUR 2,000; Authentication of the registration certificate and tax identification number: RUR 400; Notary fees: RUR 800.
Closed Joint Stock Company (AOZT)
 
 
1 000 times the minimum monthly wage.
50 minimum.
 
 
Liability is limited to the amount of capital invested.
Documents Authentication: RUR 200 per copy; Registration to the Ministry of Finance's registry to obtain the unique registration number and taxpayer identification number (INN): RUR 2,000; Authentication of the registration certificate and tax identification number: RUR 400; Notary fees: RUR 800.
Limited Liability Company
 
 
1 000 times the minimum wage.
No minimum.
 
 
Liability is limited to the amount of capital invested.
Documents Authentication: RUR 200 per copy; Registration to the Ministry of Finance's registry to obtain the unique registration number and taxpayer identification number (INN): RUR 2,000; Authentication of the registration certificate and tax identification number: RUR 400; Notary fees: RUR 800.
Limited Partnership
 
 
10 times the minimum monthly wage.
No minimum.
 
 
At least one person has unlimited liability and the others have limited liability.
Documents Authentication: RUR 200 per copy; Registration to the Ministry of Finance's registry to obtain the unique registration number and taxpayer identification number (INN): RUR 2,000; Authentication of the registration certificate and tax identification number: RUR 400; Notary fees: RUR 800.
Full Partnership
 
 
No minimum capital.
No minimum.
 
 
Liability is unlimited.
Documents Authentication: RUR 200 per copy; Registration to the Ministry of Finance's registry to obtain the unique registration number and taxpayer identification number (INN): RUR 2,000; Authentication of the registration certificate and tax identification number: RUR 400; Notary fees: RUR 800.
 
Business Setup Procedures
Since 2002 and the State Registration of legal entities Act, companies must be registered.
The Competent Organization
The local tax office.
Search a Company or a Financial Report
Rustocks

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
.Retirement is possible from age 55 for women and age 60 for men (after 5 years' contributions in the private sector and 15 in the public sector).
Working Contracts
A work contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiation.
Contracts can be permanent or fixed-term. The use of a fixed-term contract must be justified.

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Cost of Labor

Minimum Wage
At the present time, 1 100 RUR (40 USD ) at the federal level. This went up to 2 000 RUR in September 2008.
The regions can also set their minimum wage.
Average Wage
Average monthly gross earnings in Russia is RUB 16,447 (USD 528).
Social contributions
Social Security Contributions Paid By Employers: 26% (unified social tax) but the rate is regressive.
Social Security Contributions Paid By Employees: No contributions.

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Social Partners

Social Dialogue and Involvement of Social Partners
The scope of the unions is seriously limited by government policy and the position of strength of the Federation of Russian independent unions (FSIR), which is close to the government and prevents other unions from developing freely.
In addition, the new law on NGOs also applies to unions and limits their activity considerably.
Unions
Federation of Russian independent unions
Unionization Rate
46% according to the FSIR (of which 95% are members of this). The trend is towards a drop.
Labor Regulation Bodies
Federal migrations Service (in Russian)
Ministry of Health and Social Development, Employment and Social Relations Service

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