Russia

Operating a business

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
Open Joint Stock Company (AO)	No minimum.	1 000 times the minimum monthly wage.	Liability is limited to the amount of capital invested.	Fees are relatively low.
Closed Joint Stock Company (AOZT)	50 minimum.	1 000 times the minimum monthly wage.	Liability is limited to the amount of capital invested.	Fees are relatively low.
Limited Liability Company	No minimum.	1 000 times the minimum wage.	Liability is limited to the amount of capital invested.	Fees are relatively low.
Limited Partnership	No minimum.	10 times the minimum monthly wage.	At least one person has unlimited liability and the others have limited liability.	Fees are relatively low.
Full Partnership	No minimum.	No minimum capital.	Liability is unlimited.	Fees are relatively low.

Business setup procedures: Since 2002 and the State Registration of legal entities Act, companies must be registered.
The competent organization: The local tax office

Legal weekly duration: 40 hours
Retirement age: .Retirement is possible from age 55 for women and age 60 for men (after 5 years' contributions in the private sector and 15 in the public sector).
Working contracts: A work contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiation.
Contracts can be permanent or fixed-term. The use of a fixed-term contract must be justified.

Minimum wage: At the present time, 1 100 RUR (40 USD ) at the federal level. This will go up to 2 000 RUR in September 2008.
The regions can also set their minimum wage.
Average wage: 13 810 RUR (500 USD) in June 2007.
Social contributions: Social security contributions paid by employers: 26% (unified social tax) but the rate is regressive.
Social security contributions paid by employees: No contributions.

Bargaining power: The scope of the unions is seriously limited by government policy and the position of strength of the Federation of Russian independent unions (FSIR), which is close to the government and prevents other unions from developing freely.
In addition, the new law on NGOs also applies to unions and limits their activity considerably.
Unions: Federation of Russian independent unions
Unionization rate: 46% according to the FSIR (of which 95% are members of this). The trend is towards a drop.
Labor regulation bodies: Federal migrations Service
Ministry of Health and Social Development, Employment and Social Relations Service