Russia’s strength is that it has many energy sources. Since the regime has been changed, the state has played a major role in the economy. In recent years the economy has been severely affected by the low oil prices and Western sanctions imposed by the conflict with Ukraine. Russia however found out how to neutralize the sanctions that are imposed against it.

In Russia one can choose from the following forms of companies:

  1. Private enterprise
  2. Limited Liability Company
  3. Open joint stock company
  4. Private limited company
  5. Branch office/Representative office

Russian companies should always make VAT returns monthly, but tax returns and accounting reports should be made only quarterly.

There are plenty of examples which show when people chose the option to buy an already established company rather than setting a new one, which is more expensive normally, but there is a case that it is more expensive to create a new company by acquiring different licenses than a new one. The foundation of a new one is 2-3 weeks, while the takeover takes only a couple of days. The foundation fee is 10 000 rubels, while the company’s sales start at 40 000 rubels.

Branches and representative offices are not considered as legal person. The branch can carry out commercial activities while the representative office represents the interest of the parent company, promotes it, so it is created only from a marketing point of view. The minimum capital value is not determined. In both cases a certain flat fee should be paid annually, and in the case of branches other taxes should be paid also.

The role of the state is also strong concerning economy which slows down or often alarms the foreign investments. The state will not let its strategic companies out of control.

The Visegrád countries are increasingly lobbying to lift the sanctions against Russia, as there is no EU member state that would not be negatively affected by the loss of the Russian market.