EOR vs company setup in Russia
Compare Employer of Record with a representative office (представительство) and an LLC (ООО): time to first hire, setup, accounting, monthly cost and exit.
Figures reviewed by Görkem Tan, CPA, Gini Finance · Updated
Which path fits the first hires
EOR lets you have people employed in Russia without a local company. Registering an ООО or a representative office is a longer commitment: registration, a bank account, local accounting and reporting, and formation time.
Comparison
| Factor | EOR | Representative office | LLC (ООО) |
|---|---|---|---|
| Time to first hire | Business days after documents and review | Weeks to months of accreditation | Months, including banking and accounting |
| Local entity of your own | Not required | Yes, without commercial activity | Yes |
| Can sell and invoice in Russia | No | No | Yes |
| Accounting and payroll | Inside the EOR service | Your overhead | Your overhead |
| Monthly cost | Salary, contributions and the EOR fee (from USD 249) | Salary, contributions and office running costs | Salary, contributions, accounting, audit and office costs |
| Ending it | Per employee, under ТК РФ | Closing the office | Liquidating the company |
Formation rules and timelines depend on counsel and the authorities; the table is a decision aid, not legal advice.
Decision checklist
- Headcount. One to twenty people usually favours EOR; a larger team spreads the fixed cost of an entity.
- Time horizon. For a market test of a year or two, EOR keeps the exit simple.
- Local revenue. If you will sell to customers in Russia, you need your own company.
- Payment route. Each route is reviewed before a proposal; discuss it early.
Moving from EOR to your own company
When you open an ООО, employees move to it with new contracts and their leave balances are settled or carried over as agreed. We plan the date so pay continues without a gap.
Request a proposal, read Employer of Record in Russia or check the employment cost.
Questions companies ask
When is EOR a better start than a Russian company?
EOR usually fits the first hires, a pilot team or a market test: employment can start without registering an ООО or a representative office, opening a bank account or hiring an accountant. Your own entity fits a larger, long-term operation or local sales.
Can we move to our own company later?
Yes. When you open an ООО, employees can move to it with new contracts. We plan the date with you so pay continues without a gap.
Request an EOR proposal for your team in Russia
Tell us the role, headcount and start date. We review whether the engagement fits before we send a proposal.