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flag Russia Russia: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Open Joint Stock Company (AO)
Number of partners: No minimum.
Capital (max/min): 100,000 RUR
Shareholders and liability: Liability is limited to the amount of capital invested.
Closed Joint Stock Company (AOZT)
Number of partners: From 1 to 50 participants maximum.
Capital (max/min): 10,000 RUR
Shareholders and liability: Liability is limited to the amount of capital invested.
Limited Liability Company
Number of partners: From 1 to 50 participants maximum.
Capital (max/min): 10,000 RUR
Shareholders and liability: Liability is limited to the amount of capital invested.
Limited Partnership
Number of partners: No minimum.
Capital (max/min): 10,000 RUR
Shareholders and liability: At least one person has unlimited liability and the others have limited liability.
Full Partnership
Number of partners: No minimum.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is unlimited.
The Competent Organization
The local tax office.
Search a Company or a Financial Report
Rustocks
 
Setting Up a Company Russia Eastern Europe & Central Asia
Procedures (number) 8.0 6.0
Time (days) 18.0 14.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Russia.
Registration Chamber

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The Active Population in Figures

201120122013
Labor force 75,330,00075,600,00075,290,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -62.80%63.00%
Men activity rate 69.20%70.70%71.00%
Women activity rate 57.50%56.10%56.30%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 16.4%
Transport and Storage 9.2%
Education 9.1%
Agriculture, Hunting and Forestry 8.4%
Construction 7.6%
Health and Social Work 7.4%
Real Estate, Renting and Business Activities 6.3%
Electricity, Gas and Water Supply 3.0%
Hotels and Restaurants 2.1%
Mining and Quarrying 1.9%

Source: International Labor Organization (ILO)

 
For Further Statistics
World Bank
Russian census 2002
Regional statistics (in Russian)
Federal education portal
For Further Information About the Labor Market
ILO, International Labour Organization
Russian union of industrialists and businessmen

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
.Retirement is possible from age 55 for women and age 60 for men (after 5 years' contributions in the private sector and 15 in the public sector).
Working Contracts
A work contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiation.
Contracts can be permanent or fixed-term. The use of a fixed-term contract must be justified.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
RUB 4,611 per month (source: ILO, 2011).
Average Wage
Average monthly gross earnings in Russia is RUB 16,447 (USD 528).
Social contributions
Social Security Contributions Paid By Employers: The aggregate rate is 34% and it is payable as follows: 26% to the State Pension Fund, 2.9% to Social Security Fund, 2.1% to Federal Medical Insurance Fund and 3% to the Territorial Medical Insurance Fund.
Some sectors benefit of reductions in their social security rates: 27.1 in 2013-2014 in agricultural sector, 14% in 2011-2017 in software and high technologies sector and 14% for special innovation projects.
Social Security Contributions Paid By Employees: No contributions.

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Social Partners

Social Dialogue and Involvement of Social Partners
The scope of the unions is seriously limited by government policy and the position of strength of the Federation of Russian independent unions (FSIR), which is close to the government and prevents other unions from developing freely.
In addition, the new law on NGOs also applies to unions and limits their activity considerably.
Unions
Federation of Russian independent unions
Unionization Rate
46% according to the FSIR (of which 95% are members of this). The trend is towards a drop.
Labor Regulation Bodies
Federal migrations Service (in Russian)
Ministry of Health and Social Development, Employment and Social Relations Service

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Last Updates: January 2015