Russia, or the Russian Federation, is a country in Eastern Europe and North Asia. It is the largest country in the world, spanning eleven time zones and sharing land borders with fourteen countries. With a population of over 140 million, Russia is the most populous country in Europe and the ninth-most populous in the world. It is a highly urbanised country, with sixteen of its urban areas having more than 1 million inhabitants. Moscow, the most populous metropolitan area in Europe, is the capital and largest city of Russia, while Saint Petersburg is its second-largest city and a major cultural centre. Russia is generally considered a great power and wields significant regional influence in Europe, possessing the largest stockpile of nuclear weapons and having the third-highest military expenditure in the world. Its advanced economy ranks among the largest in the world, relying on its vast mineral and energy resources, mainly oil and natural gas. Russia continues to rank very low in measurements of democracy, human rights and media freedom, while having high levels of corruption
. As the successor state of the Soviet Union, it retains its seat as a permanent member of the United Nations Security Council and is a member state of several international organisations. Russia is also home to 32 UNESCO World Heritage Sites.
Russia has a high-income, industrialised, mixed market-oriented economy. According to the International Monetary Fund, it has the ninth-largest economy by nominal GDP and the fourth-largest economy by GDP (PPP). As of 2023, the service sector accounts for roughly 57% of total GDP, followed by the industrial sector (30%), while the agricultural sector is the smallest, at 3% of total GDP. It has a labour force of about 73 million, which is the eighth-largest in the world. Russia’s largest trading partner is China.
Large Market & Strategic Location:
Access to a population of over 146 million with growing demand, bridging Europe and Asia, and access to the Eurasian Economic Union.
Skilled & Cost-Effective Workforce: High-quality labour in technical fields (IT, engineering) available at competitive wages.
Government Incentives & Support:
Special Economic Zones (SEZs) offer tax, land, and property tax incentives. Reduced profit tax rates (5% for certain tech/IT) are available.
Robust Natural Resources:
Abundant natural resources, including oil, gas, minerals, and arable land, offer significant investment potential.
Import Substitution Opportunities:
Government encouragement of local production in sectors like pharmaceuticals, electronics, and medical equipment.
Well-developed Infrastructure:
Improvements in transportation and logistical networks.
Digital Transformation:
Significant potential in digital technology and AI adoption.
Personal Income Tax (PIT) (Resident):
As of January 2025, a progressive system applies to tax residents (those in Russia >183 days/year):
Personal Income Tax (Non-Resident):
30% on Russian-sourced income, although some exceptions exist for highly qualified specialists.
Corporate Income Tax (CIT):
The standard rate is 25%, up from 20%. Foreign companies with a permanent establishment pay the standard rate, while others may face withholding taxes on Russian-source income.
Value Added Tax (VAT):
A standard rate of 20% applies to most goods and services. A reduced rate of 10% applies to specific essential goods like food, medicine, and children’s items.
Special Tax Regimes (Small Business/Self-Employed):
Property and Other Taxes:
Property tax is regulated at regional and local levels. There are no inheritance, gift, or wealth taxes, although income from asset sales is taxed.
Limited Liability Company (Obshestvo s ogranichennoy otvetstvennostyu – OOO):
Joint Stock Company (Aktsionernoye obshchestvo – AO):
Sole Proprietorship (Individualny Predprinimatel – IP):
Foreign Company Structure:
Other Entities:
Chandrawat & Partners is a prominent full-service firm dedicated to delivering top-tier professional services to clients both within the domestic and international spheres.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
ASIA
AFRICA
EUROPE
NORTH AMERICA
SOUTH AMERICA
OCEANIA