Russian legal entities

Russian legal entity is a separate company having its own property and operating in its own name. Russian legal entity is entitled to perform all types of activity unless they are directly restricted or prohibited by the effective Russian legislation. Russian legal entities have no direct restrictions on importing goods. Generally, Russian legal entity shall be established for an indefinite term.

Generally, the following types (forms) of commercial legal entities may be incorporated in Russia:

• Full partnerships
• Limited partnerships (so called “kommandit” partnerships)
• Limited liability companies
• Additional liability companies
• Production cooperatives
• Joint-stock companies (private and public)
• Unitary enterprises (state-owned legal entities not open to foreign investors)

In practice, foreign investors usually choose limited liability company form (for incorporating wholly owned subsidiary in Russia) or joint-stock company (in cases of joint-ventures with Russian partners or cooperation with governmental structures and state corporations). Therefore, all information set forth in this section shall refer to these two forms of Russian legal entities.