95 years Saint-Petersburg: new dimension of business cooperation Ekaterina Lebedeva Vice-President Saint-Petersburg Chamber of Commerce and Industry
95 years AGENDA I. About Saint-Petersburg II. Doing business in Russia /introduction/ III. Saint-Petersburg CCI: one-stop service for starting business with Russia
95 years I. Saint-Petersburg: Geographical location DATE OF FOUNDATION: May 27, 1703 TOTAL AREA:1439 km² POPULATION: 5 225.7 people (as of January 1, 2016) DISTANCE TO TAIPEI: 7 783 km DISTANCE TO MOSCOW: 706 km (approximately 4 hours by speed train SAPSAN) DISTANCE TO HELSINKI (FINLAND): 378 km (approximately 4 hours by speed train Allegro)
95 years Saint-Petersburg: quick facts the largest Sea port in Russia "World s Leading Cultural City Destination 2016. One of the most visited city in Europe the second city in Europe in the area, fourth in population a link between Russia and Europe
95 years I. Saint-Petersburg as industrial center Industry is a key sector of Saint-Petersburg Economy. contribution of Industry to economy (2015): about 39 % of tax revenues comes to consolidate budget of the Russian Federation industry provides 24 % of GRP 341 thousand people are employed in the St. Petersburg industry more than 740 big industrial plants GRP (2015)- 3178, 6 mln roubles (56, 7 mln USD) more than 24 thousands SMEs involved in Industry industrial production index (January-April 2017): 102,3% (Russia 100,7%). unemployment rate (December 2016-February 2017): 1,7 % (North-West region 4,3 %, Russia -5,5%)
Saint-Petersburg: leading economy clusters Pharmaceuticals & healthcare Automobile Shipbuilding Power mechanical engeneering IT Radio electronics
Saint-Petersburg: foreign trade Foreign trade turnover:16, 9 bln. USD (six month 2016) Import: 7, 3 bln. USD (six month 2016) Export: 9,6 bln. USD (six month 2016) MAIN TRADE Partners top 10: China 14,8 % Netherlands 10,5% Germany 9,2 % USA 6, 9 % Republic of Belarus 4,9 % France 4, 3 % Republic of Korea 3,6 % Italy 3, 4 % UK 2, 5% Japan 2,5 %
Saint-Petersburg for Investors 4,8 bln. USD of foreign investment (nine month 2016) Why Saint-Petersburg: Government provides one-stop service for investor benefits for investors, including tax benefits well developed transport infrastructure Saint Petersburg is a largest scientific and education centre of Russia, qualified labor foreign Investors success stories SPECIAL ECONOMIC ZONE: Noidorf and Novoorlovskaya Industrial zones
Saint-Petersburg as educational and scientific center St. Petersburg professional education system includes: 45 state civil higher educational establishments, including 6 subsidiaries of state civil higher educational establishments; 37 private higher educational establishments; 57 state professional educational establishments; 27 state civil higher educational establishments with programs for middle-level specialists; 6 private civil higher educational establishments with programs for middle-level specialists; 4 private professional educational establishments. More 300 thousands of students More than 250 R&D Institutes and Organizations
Saint-Petersburg as cultural and tourist center Museums - 147 Libraries 271 Theatres - 124 Concert halls - 14 Cultural and recreational facilities - 53 Parks - 5 Zoo 1 Cinemas - 62
Saint-Petersburg as cultural and tourist center World's Leading Cultural City Destination 2016 by World travel Awards 2015: 6 500 000 visitors Saint-Petersburg sport events SPIEF Saint-Petersburg International Economic Forum
II. Doing business in Russia Materials provided by the experts of Russian consulting company BA group
II. Doing bussiness in Russia: Trends IMPORT SUBSTITUTION RUSSIAN EXPORT PROMOTION EURASIAN ECONOMIC UNION of the Republic Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation
1. WAYS OF DOING BUSSINESS IN RUSSIA establish a subsidiary in any legal form provided by Russian law: -separate legal entity, which is fully subject to Russian legislation -should be registered for business and tax purposes with local tax authorities -subject to taxation in the Russian Federation establish a representative office of foreign parent company. -does not have separate status of legal entity in Russia, and should be registered by the Moscow Inspection at Financial Tax Authority # 47 -the activities of branch or representative office due to tax treaties may constitute a permanent establishment -hence incomes derived by permanent establishment from their activities will be subject to Russian taxes
2. LEGAL ENTITY A step-by-step guide to forming a legal entity Whether you are a foreign citizen, a person without citizenship, or a representative of a foreign company you can register a legal entity. The steps to register a legal entity are follows. 1. Deciding on a business legal structure. 2. Forming the foundation documents. 3. Preparing the set of the required documents for registering. 4. Filing the required documents to the register office. 5. Receiving the incorporation documents. 6. Manufacturing the seal. 7. Opening a bank account. Starting a business!
2. LEGAL ENTITY Popular legal structures: Limited Liability Company (LLC): minimal requirements to participants no issue and registration of shares no published information about financial activity Joint Stock Company (JSC) requires more legal administration 3. GENERAL DIRECTOR Director General is elected by General meeting of shareholders for the period defined by Statute. He/She manages a legal entity activity. Russian Federation citizen or foreign citizen can be a Director General. Foreign citizen should have a working visa and work permit from the Migration authorities.
4. TAXATION SYSTEM According to the General taxation system all corporate taxpayers pay full scope of federal and regional taxes above listed (i.e. corporate income tax, VAT, property tax, etc.). This form of taxation system is mostly applied by manufacturers, constructing and engineering companies. Small business may apply Imputed taxation, if they run activities like trading with general public in cash: small retail and food service outlets, hotels, taxi companies etc. Imputed tax, at rates set by local authorities (per square meter of shop space, per vehicle etc.) replaces regular taxes. Using Simplified taxation system small businesses have opportunity to reduce the tax burden and simplify their taxation. These small companies pay only a single tax according to the simplified system. There are two options to choose from: Taxation of total revenue (cash method). The tax rate is 6%. Taxation of net receipts. In this case the tax rate is maximum15% (established by regional law).
4. TAXATION SYSTEM The Russian Federation Tax Code, Regional and Local Law establish different taxes. Federal taxes: Value-Added Tax (VAT) - 0, 10, 18% (depending on type of goods and operations) (e.g. export) Excises depending on type of goods Personal Income Tax 13 % Corporate Profit Tax 20% Tax on Mineral Extraction Tax - is established as the value of extracted minerals or as a multiple of the quantity of extracted minerals and a certain solid tax rate subject to a coefficient. Water Tax - is determined separately for each water body depending on watershed of rivers, lakes and seas Charges for use of wildlife objects or for use of biological objects - Duty amounts are established separately for each object of fauna or each biological water resource. State Duty established by Law.
4. TAXATION SYSTEM Regional Taxes: Corporate Property Tax - cannot exceed 2,2% of taxable value Gambling Tax - identified by the laws of the subjects of the Russian Federation Transport Tax - I identified by the laws of the subjects of the Russian Federation Local taxes and levies: Individual Property Tax - determined by the legislative acts of representative bodies of municipal government and depends on integrated inventory value of the object Land Tax - established by local legislative acts and can not exceed the rates specified by Russian Tax and depends on types of land use
5. LICENSING AND PERMITS Self-regulated organizations. Being a member is obligatory by Law while running some kinds of activity Licensing is established by Law Obtaining of certificates for goods and equipment
95 years Russian Chambers of Commerce and Industry system Source: Russian CCI www.tpprf.ru
95 years SPb CCI in brief founded in 1921,oldest Chamber of Commerce integral part of the Russian Chambers system, which includes Russian CCI and 180 regional CCI one of the largest Chambers of Commerce acting under the Federal law of the RF "On Chambers of Commerce and Industry in the Russian Federation" non-governmental, non profit organization more than 3500 members, including Russian and foreign companies 14 departments, 100 employees more then 150 cooperation agreements
95 years SPB CCI is voice of your business!
SPb CCI: What we do business matching and partners search organization of business visits to Russia and international business events (conferences, workshops, forums, congresses etc.) translation and interpretation (consecutive and simultaneous) business and Investor s activity support and consultancy other services
SPb CCI: Cooperation with Taiwan Highlights: 1999: signed cooperation Agreement with Taiwan External Trade Development Council (TAITRA) 2012: opening of TAITRA office in Saint-Petersburg 2013: visit of SPb CCI delegation headed by. Mr. Vladimir Katenev, president of SPb CCI to Taipei 2016: visit of Mr. Shih Chao Cho, Deputy Minister of Economic Affairs 2017: Memorandum of Understanding with Chinese International Economic Cooperation Association (planned) More than 30 joint b2b meetings and other events organized and more come
IT and software solutions Proposals from Saint-Petersburg companies one Russia's leading higher education and research institutions, specializing in Information Technology, Optical Design and Engineering. Shipbuilding Finance/ Accounting/ Law
production of laser electronics manufacturing laboratory and industrial analytical equipment and instruments manufacture of the high performance heat exchangers for gaseous and other mediums and other primarily heat-exchange equipment. design, manufacture, sale and service of hovercraft under the own brand
Company «Steel-Export» exports of steel and products made of ferrous and non-ferrous metals OOO «NPO «Nauchfanplitprom» plywoods products manufacture, sales, logistics and service of heating and water heating equipment Colorit (ITMO University) innovative technology of metal coloration
Useful links Government: Eurasian Economic Commission http://www.eurasiancommission.org/ Federal Tax Services https://www.nalog.ru/eng/ Russian Federal Customs Service http://eng.customs.ru/index.php Saint-Petersburg Government: Committee for the External Relations http://kvs.gov.spb.ru/ Committee for the Industrial Policy http://cppi.gov.spb.ru/en/ Committee for the Investment http://spbinvestment.ru/en Tourisme: Visit Saint-Petersburg http://www.visit-petersburg.ru/en/ Chambers of Commerce: Russian Chamber of Commerce and Industry http://tpprf.ru/en/ Saint-Petersburg Chamber of Commerce and Industry http://spbtpp.ru/en/ Exhibitions: Saint-Petersburg Convention https://saintpetersburgcb.com/en/ Expoforum http://www.expoforum.ru/ Restec http://restec.ru/ Farexpo http://farexpo.ru/ Primexpo http://www.primexpo.ru/ Roscongress http://roscongress.org
THANK YOU FOR YOU ATTENTION and WELCOME TO SAINT-PETERBURG!
95 years Find more information about our services and events on our website: www.spbtpp.ru/en/ Contact details: FACEBOOK.com/spb.tpp VK.com/spb_cci INSTAGRAM.com/spb_tpp