How to open an IT business in Russia, all the options.
How to Start IT Business in Russia and Succeed? If you plan to start an IT business in Russia,take a look at critical points of each form to make the right choice.
Register an Individual if:
you work alone, without partners;
you do not plan to attract investors, or you know that they will give money on a loan agreement, rather than for a share in the business;
you earn less than 60 million a year, that is on average about 5 million a month; you will be able to work on the patent system of taxation – the most favorable in Russia.
Choose a limited liability company if you:
start a business with partners or plan to attract venture capital investors;
plan to take out a loan for the company's needs;
want to register intellectual property or sell a franchise;
want to open branches or representative offices in other cities or countries in the near future.
An Individual cannot register a branch or representative office in another region or abroad; only a legal entity has this option.
What is the most profitable system of taxation in software development?
An individual entrepreneur can apply the simplified taxation system and combine it with the patent system. As for OOO, both the general system of taxation and the STS (USN) can be applied here. The general system of taxation (OSNO) is profitable if a company develops a product for a foreign company; in this case, the services will not be subject to VAT.
The simplified taxation system: essential points
When the simplified tax system is applied without a patent, the following limits should be observed:
income of no more than 150 million rubles per year;
not more than 100 employees.
If the limit is exceeded by up to 50 million rubles, the rate will increase to 8%. If the limit is exceeded by more than 50 million rubles, the taxpayer transfers to OSNO.
Advantages of the patent taxation system
If you have an IE and apply the patent, you will pay only a fixed amount per year. In this case, you are exempt from personal income tax, VAT, and profit tax.
You can calculate the cost of a patent at: https://patent.nalog.ru/