ADVATAGES OF DOING A BUSINESS IN RUSSIA
Did you know that running a business in Russia as a foreigner is likely easier than in your home country?
Here we’ll highlight the advantages of doing business in Russia:
Easy ways to get residency status
As the starting point, you’ll need a residency status to get the most advantages for doing business in Russia. There are numerous options for doing that.
The low tax rate
Once you become a Russian resident, you can apply the simplified tax system. Your company income must be less than 150 million roubles, and the number of employees - up to 100. In this case, you can apply for a flat 6% tax on gross revenue.
Alternatively, if you have high expenditures on office rent, equipment,materials, and employees, you can select to pay 15% on net profit.
For example, if you compare to other European countries, where the tax rate is 21 % and higher, there is a massive difference for your business.
Fast & easy loans
As an entrepreneur, you can find much more accessible bank loans in Russia than in other European countries, although the interest rate will be higher.
Russia is hugely Moscow-centred
This means you’ll find the life quality and prices here more or less like in any other big European city. But things are entirely different in the rest of Russia: the farther away from Moscow - the lower the expenses. So, again, if you want to cut the costs, you’ll have in Russia plenty of opportunities for that.
Access to resources
For example, you can hire an educated workforce at significantly lower costs than in other European countries.
Despite all the above-written advantages, you should consider learning the Russian language. If you don’t speak the language, you WILL need the support of a competent businessperson who knows how to delegate things effectively.