Doing Business in Russia – Chandrawat & Partners

Russia

We have a team of professionals to help you with all your business needs. So, that you can focus on business expansion in Russia.

WHY RUSSIA?

The largest country in the world, Russia occupies one tenth of all the land on Earth. It covers twice the territory of Canada, which is the second largest country in the world, spans 11 time zones across two continents, “Europe and Asia” and has coasts on three oceans. The country is a federation of 86 republics, provinces, territories, and districts.

Basically, the Russian economy is based on a vast supply of natural resources, such as; oil, coal, iron ore, gold, and aluminum. Russia’s memberships of the Eurasian Economic Union have opened up doors for foreigners to do business. As the Asian continent has fast growing economy and huge population, this access can help investors in Russia to boost their business growth even more.

ADVANTAGES

In Russia, business opportunities can be found in many sectors and strong support from both the government and the Foreign Investment Advisory Council (FIAC) attracts foreign investors to invest in Russia. Russia offers the following key benefits of doing business:

A strategic location

Geography plays an important role in strategic culture, by placing enduring objective constraints on military and defense policy and influencing the way that political and military elites view the world.Russia shares a maritime boundary with North America via the Pacific Ocean. It also borders 16 countries across 11 time zones. The vast size of the country gives investors access to these 16 countries. A person could use Russia as his company headquarters in Europe and can venture into the neighboring countries subsequently.

The stable and growing Russian economy

It is well known that Russia boasts one of the most dynamically developing and attractive economies in the world. Since 1999, Russian GDP growth has averaged 6.8% per year.

Attractive incentives to do business

Being a member of BRIC countries, Russia has fair tax rules for its residents, and also the country is doing a great job of providing incentives for foreigners to do business in Russia. Russia has one of the lowest corporation tax rates in the European continent which attracts foreign investors who want to save money on taxes.

Investment prospects

New investment programs initiated by Russia have encouraged foreign investment, which can be proved beneficial for businesses looking to find funds and continue the expansion process.

Strong logistics and supply chains

Even though, Russia’s vast ranging borders can make logistics and supply chains a challenge, the recent developments in transport links and infrastructure have greatly improved the logistical efficiency of doing business in Russia. Moreover, the international expansion of Russia is also opening up opportunities for export to other commonwealth countries.

Double taxation treaties

Russia has signed a number of double taxation treaties with countries such as; France, Germany, Spain, Greece, Hungary, Iceland, etc. to avoid double taxation and reduce the tax barriers.