Eastern Europe is today very much open for business. The transitioning economies of Russia, Ukraine and Kazakhstan in particular have attractive long-term growth prospects which make this region an ideal international base. It is believed that Russia is the world’s 9th largest economy.
Nowadays, Russia presents a lot of opportunities for business because it’s a large economy with a well-educated workforce. It probably has the largest quantity of inexpensive college graduates in the world.
Moreover, foreign investors enjoy a guaranty that their property rights to their investments and to the profits they earn in Russia will be respected.
We can outline the following benefits for investors in Russia:
- Tax incentives that may include reductions in profits tax and property tax rates, as well as local tax incentives
- No increases in their tax burden, and, for certain regulations, guaranteed regulatory stability
- Warranty against adverse changes in Russian legislation
- Guarantee of use in the territory of Russia and transfer of revenues and profits outside Russia
- Simplified procedures for obtaining the status of “Russian manufacturer”
- Simplified procedures for receiving land plots for the investment project
- The possibility of obtaining subsidies from the Russian Government
Legal structures for starting a business in Russia could be:
- Distributorship contract businesses
- Representative offices or branches
- Russian subsidiaries
- Limited liability company ( the minimum charter capital for an LLC is RUB 10,000 (approximately USD161 or EUR 140 ), etc.
In addiction, Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan have created a single customs territory between them it means that in case of the export of goods from one state to another is subject to a zero-percent VAT rate.
Get in touch to find out how we can help you thrive in Central and Eastern Europe.
