Starting a Business · Russia
Starting a Business - Russia
On paper, greenfield company formation in Russia is fast and open: a foreigner can own 100% of a limited liability company (OOO), minimum charter capital is just RUB 10,000, no residence or work permit is required, and the FNS registers a new entity within three business days. In practice, since 2022 investors from countries Russia designates 'unfriendly' (which includes the US, EU, UK and most Western states) face a special regime requiring case-by-case Government Commission approval for acquisitions and many corporate transactions, alongside strategic-sector ownership caps, capital controls, sanctions friction and documented forced seizures of foreign assets. The overall environment for most Western foreigners is therefore heavily restricted, even though formation mechanics for friendly-country nationals remain straightforward.
An OOO (LLC) may be wholly owned by foreign individuals or companies, with up to 50 participants; founders need no Russian residence or work permit. This is the default vehicle for foreign capital outside regulated sectors.
Minimum charter capital for an OOO is RUB 10,000; it can be paid up within four months of state registration rather than fully upfront, lowering the entry barrier.
The Federal Tax Service registers a new legal entity within three working days of a complete filing; foreign-issued documents must be notarized, apostilled/legalized and translated into Russian.
Since Presidential Decree No. 618 (effective 8 Sept 2022), transactions creating, changing or terminating ownership/management rights in Russian LLCs that involve persons from 'unfriendly' states require prior clearance from the Government Commission on Control over Foreign Investments, with no de minimis threshold.
Federal Law No. 57-FZ subjects strategic industries to FDI screening: foreign stakes are capped (e.g. mass media 20%, airlines 49%, banking up to 50%+1 share with Central Bank permission, subsoil/mineral deposits 25-50%), and acquiring control requires Government Commission approval.
Capital controls, restricted access to banking/payments, and documented forced seizures and nationalizations of foreign-owned businesses since 2022 make ongoing operation and eventual exit difficult for Western investors, beyond the formation step itself.
Machine-assisted translation · verified 5/23/2026 · orientation, not legal advice. English version →