Create a Company in Agriculture in Russia

Last year, Russia was the largest wheat supplier in the world turning agriculture into one of the most important sectors of the economy. However, not only cereals can be cultivated in Russia, as the country has many land plots developed for different crops. Foreign investors interested in starting a business in the agriculture sector in Russia has plenty of choices provided that they comply with the laws and regulations imposed by the Ministry of Agriculture.

Our law firm in Russia can explain the main regulations covering the opening of an agricultural business in this country.

Registering an agricultural business in Russia

The Land Code which was issued in 2001 is the main law providing for the purchase of land plots for various reasons. The purchase or lease of land for agricultural or faming purposes is regulated by Federal Law No. 101-FZ of 2002 on the Turnover of Agricultural Land (foreigners and companies with more than 50% foreign capital may only lease, not own, farmland) which applies to both individuals and companies seeking to set up a business in this industry.

Foreign investors are also allowed to set up companies in the agriculture sector in Russia based on the laws mentioned above, but also in accordance with the provisions of the Civil Code which covers the entities used to set up the business. Among the structures used to open an agricultural business in Russia are the limited liability company and the sole proprietorship for small enterprises. The joint venture is another successful option for foreign entrepreneurs seeking to understand how a business works in Russia.

Types of agricultural businesses in Russia

The following types of businesses can be created in the Russian agricultural industry:

– agricultural enterprises;
– private farms;
– individual entrepreneurs;
– household farms;
– non-profit organizations for gardening and growing vegetables.

Our lawyers in Russia can guide you through the business registration process.

Agricultural licenses in Russia

Once the agricultural company is established, the owner must obtain special licenses or permits which will allow him or her to cultivate or sale or export the products. The agricultural goods must comply with various requirements and several laws, among which:

– the Law for the Wellbeing of the Population;
– the Veterinary Law;
– the Quality and Safety of Food Products.

For full information in the requirements to start an agricultural business, please contact our Russian attorneys.