What is a limited liability company under the Russian law?

Under the Russian Civil Code, a limited liability company may be established by one or several persons whose charter capital is divided into shares. The liability of each participant in this type of company is limited to the value of their share in the charter capital. The participants may conclude a participants’ agreement to regulate how their rights are exercised. The number of participants in a limited liability company cannot exceed 50. The charter capital of a limited liability company determines the minimum size of the company’s property, thereby guaranteeing the interests of its creditors. The minimum charter capital of a limited liability company should come to at least RUB 10,000.

A limited liability company’s management structure is similar to that of a joint-stock company. Limited liability companies are considered to be non-public and, thus, may enjoy more flexible options in regards to organizing their management structure, relations between shareholders, and other aspects of their activity.