In Russia you can do business in your own name, i.e. operating as an individual entrepreneur, as well as you can act in name of legal body being its proprietor or co-tenant.
One of the most popular methods of doing business in Russia is the registration of Limited Liability Company.
The authorized capital of Limited Liability Company is divided into shares.
Limited Liability Company is a full value legal body which can:
- own a solitary property,
- acquire and exercise in its name proprietary interests and personal non-property rights,
- bear responsibilities,
- sue at law and defend a suit,
- open bank accounts in the territory of the Russian Federation and abroad.
The shareholder of the company can be at the same time its General Director.
Open Joint-Stock Company (ОАО) has the right to carry through a public subscription for issued shares and to effect a free sale of them. The company may realize a private offering as well except for the cases when the possibility of carrying out this kind of subscription is limited by the company’s statute or legal acts’ requirements. It is not admissible in Open Joint-Stock Company to establish priority rights of the company or shareholders on acquisition of shares alienable by partners. The number of shareholders is not limited.
In Closed Joint-Stock Company (ЗАО) shares are divided only among its partners or other set of persons fixed in advance. The authorized capital is divided into shares. The company has no right to carry through a public subscription for issued shares or otherwise offer them for sale to unlimited set of persons. The number of its shareholders should not exceed 50 persons, if this limit is exceeded it is necessary to modify the enterprise into Open Joint-Stock Company. Shareholder can sell his shares observing herewith priority rights of other shareholders of the company on its acquisition.
