Answers to Many Common Questions About Setting Up Business Operations in Russia
It is not unusual to have numerous questions about moving or expanding a business to Russia. Here, you will find answers to many common questions and information about how to get help with concerns that more specific to your unique business.
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What are the mandatory requirements for the content of employment contracts in Russia?
A written employment contract with terms of employment must be concluded with every employee in Russian. The Labour Code establishes mandatory requirements for the content of employment contracts. The following conditions must be included in an employment contract:
- place of employment;
- job function;
- employment commencement date;
- salary payment terms and conditions;
- work hours and vacation entitlement; etc.
What is the amount of the minimal monthly wage in Russia?
As of 1 January 2015, the statutory minimum monthly wage was RUB 5,965 per month (approximately USD 87). Russian Federation regions may set their own minimum wages at a higher level. For example, the City of Moscow’s minimum wage is periodically set by a relevant regional agreement, and effective 1 January 2015, it increased to RUB 14,500 per month (approximately USD 210).
What are the duties and taxes to be paid importation of goods into Russia?
Import duties are applicable for most goods. The majority of customs duty rates in Russia are ad valorem. There are also specific duties for certain types of imports, calculated by volume, weight or quantity. Some duties have a combined rate. The import VAT rate for most goods is 18% of their customs value, inclusive of customs duty. Food, certain types of children’s goods and some other goods may be subject to 10% or even 0% VAT.
What is the process of importing of goods into Russia?
If goods are imported into Russia under a transaction between a foreign company and a Russian company, the Russian party is usually responsible for the customs clearance. In order to import goods into Russia and clear them through customs, an importer should make all customs payments due under the chosen customs procedure and comply with other requirements in customs legislation. The import of certain goods requires permission/licenses.