Some remarks about juridical considerations
A short summary about the most important matters.
Creation of companies
In Russia Limited companies are usual. A limited company can also be created by foreigners without Russian partners. As owner and founder also a single person can act. As a foreigner you also can act as Director of the company (frequently it is known, that Russian legal advisers tell otherwise. These advices are not correct.) The only condition is, without work-permit, you are not allowed to obtain a salary as Director. Since certainly you build up your company with own capital, this condition shouldn't be a problem for you.
Registered companies often are offered at low prices, however we warn about. Buying a company, you will not know about, which inherited problems you will acquire. It will be more advantageous to create a new company. In Moscow a new Limited company will cost not more than Euro 1 100 included fees for notary, initial capital, etc. If someone claims a higher price, you may consider it as abusing foreigners.
Also when you take over a farm, buy it as a new company. Otherwise you will take over the staff, all existing contracts and obligations of the former owner and some unpleasant surprises might wait for you. It is honourable to believe, but is safer to proceed in a secured way.
In Russia there is a so called unique agricultural tax. You are exempt of Value Added Tax and your tax will arise to a total of 6 percent. This is a tax, low just to dream about. The base for the tax is: yield minus expenses.
To be admitted for the unique agricultural tax, an application has to be introduced at the tax-administration. Therefore you must prove, that the provenience of 70 percent of the total turnover is originated of own agricultural production and the processing of agricultural products.
Depreciation on assets are strictly prescribed by the fiscal administration and have to be verified every year new again. Unfortunately modifications are appreciated. Many expenses cannot be accounted at the real value, but only at the rate admitted by the administration.
Expenses and yield have to be declared at the fiscal-administration each semester, the balance each year. Per each date of June 30th, the income tax has to be paid for the first semester. Accounting of depreciation on assets, etc. is forbidden for this declaration. Already paid taxes are compensated in the balance-sheet and can be reported, if after depreciation on assets no profits have to be declared. Already paid and reported tax will be considered.
The Value Added Tax (VAT) also has its own speciality. If you sell to VAT-obliged companies, these companies certainly won't be happy about, they cannot account (deduct former VAT) the VAT. The way out of this dilemma is by creating an own trading company, which is obliged to the VAT.
On your request, our office, together with www.russlandnetz.de may help you with accountancy, to establish companies, makes translations, helps with interpreters und general juridical advices.
You can obtain via us a translation of the fiscal law for the unique agricultural tax, as well as translations of the tax-sheet, about subsidies and depreciation on assets, etc. Just send us an e-mail to . On return, you get the requested documents as attachment to the e-mail.
For some translations we will account you a contribution to expenses of Euro 10 (fiscal-laws, contracts for employment, subsidies, etc.). Some of them are free of charges (e.g. balance-sheet). On special request, we also can translate for you Laws and decrees. The charges therefore will remain within reasonable limits.
Investments officially and legally can always be re-exported, as long as it is proven, that the investment is originated from abroad. How this is possible, we can explain by e-mail (just have a look at the link shown above).
On the base of honest and true advices, to become farmer in Russia is a worthy aim!
This page just contains suggestions but no legal advices.
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