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Business in Moscow

Moscow is not only the capital, but also the political, financial, economic, scientific and educational center of Russia. Leading business and financial organizations, and representative offices of the largest Russian and international companies are located in Moscow.

Moscow is among ten largest metropolitan areas in the world in terms of gross regional product (GRP). It accounts for one-fifth of gross value added of all Russian regions. Moscow’s economic structure is similar to the GRP structure of large urban agglomerations. The largest contribution to the city’s GRP is provided by the trade sector (31.3% of GRP) and the provision of business services (21.2% of GRP). Industry accounts for 18.6% of gross value added (including manufacturing – 14.9%).

Moscow is the biggest consumer market in Russia and Eastern Europe. The population of Moscow is over 16 million people, and if the Moscow region is included, the population reaches around 20 million people. That is 14% of the population of Russia. Moscow ranks third among European cities and 14th in the world in terms of consumer expenditure. Moscow accounts for 20% of the Russian retail trade turn over.

The budget of the city of Moscow for 2020 was executed with the following indicators: revenues - 2 trillion 869.0 billion rubles; expenses - 3 trillion 006.4 billion rubles; deficit - 137.4 billion rubles. The source of financing the deficit was its own funds, formed as a result of budget execution in previous years.

According to the strategic plan, revenues of the capital's budget in 2021 reach the amount of 2 trillion 642.74 billion rubles, expenses - 3 trillion 152.75 billion, deficit - 510 billion rubles. In 2022 and 2023, revenues will amount to 2 trillion 895 billion and 3 trillion 161.3 billion, respectively, expenses - 3 trillion 235.6 billion and 3 trillion 344.7 billion, and the deficit - 340.6 billion and 183.4 billion rubles.

Starting a business

If you want to start a business in Moscow, there are three legal ways to do so:

  1. Registering an individual enterprise
  2. Founding a Limited Liability Company (LLC)
  3. Buying a stake in an existing firm

In case A, you would need to submit a notarized translation of a passport, a document specifying place of residence (i.e., residence permit or temporary residence permit), and a receipt of a state fee payment (800 rubles or $14). The procedure takes three days. You will receive an excerpt from the Unified State Register of Individual Entrepreneurs and will be able to work in Russia.

In case B, the application should be submitted to the relevant tax body and will require a legal address (it might be a personal address), a charter, and a minimum starting capital of 10,000 rubles ($172). It should involve the name of the general director of the future firm (this might be a foreign national), and a bank account for the firm and manufacture a seal will be required.

In case C, the deal has to be registered with a notary and all necessary documents have to be provided to the relevant organization.

KEY BUSINESS ASSOCIATIONS

Moscow Chamber of Commerce and Industry, World Trade Center Moscow, Russian Union of Industrialists and Entrepreneurs (RSPP), Moscow Association of Entrepreneurs.

Useful link: Moscow Export Catalogue

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