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Russian Legal Entities


Indicators Individual entrepreneur LLC JSC
Cost for registration,
Registration fee RUB 800. Registration fee RUB 4,000. Registration fee RUB4000 + fee for capital stock RUB1000+ RUB10000 (for CJSC).
Founders The citizen Citizens and other juridical persons
Number of Founders 1 person One person or more, but not more than 50 persons
Constitutive documents no Charter of LLC Charter of JSC
Minimum capital fund no RUB 10,000 For CJSC RUB 10,000
For OJSC RUB 100,000
Types of activity There are several types of activities, which are prohibited for IE All types of activity, warranted by the Law
Responsibility  IE risks by his property Participants risk by their deposits   Shareholders risk by the amount of their stock 
Administrative and criminal responsibility  Personally Founder doesn’t bear responsible for obligations of the company
Director or Chief Accountant bears a responsibility according to Administrative and Criminal Legislation.

The company and its executives bear the administrative responsibility (penalty for legal persons are higher than for IE)
 Address of registration  The place of residence  Any place
 Availability of information about the founders Free access (all information is available in the title of the company)  Free access (anyone can require the information in the State Tax Inspection)  The information is available in the register of the shareholders of the company
 The impact on the image of the company  Proves a small size of a company  No impact  Proves that the company is reputable
 The cash money  All cash money belong to IE  All money  are on a bank account
 Income distribution  No taxes Tax – 9%
Withdraw from the company Discontinuation of entrepreneurship The founder, who is withdrawing from the company has a right to payment for the part of amount of asset value, proportional to his share in capital fund There is no withdrawn from the company in CJSC. One must sell his stocks
 Law Federal Law On State Registration of Legal Entities The  Law on LLC The Law on JSC
Sale of shares There is one way to sell stocks only – to sell the company as a property complex Sale of shares requires notarized form of agreement of purchase and sale. Sale of JSC shares is the selling of stocks to buyer of business, and it’s legally rather simple operation to conduct.
Characteristics  IE reports in Federal Services of Statistics and in Tax Inspection only (tax declarations)  

 CJSC should issue stocks during one month after it’s registration, without it transactions on carry out of stocks are illegal