Russia: Types of Company
Partnerships formed under the Russian civil law possess a separate legal identity; therefore, the principal difference between partnerships and companies in Russia lies with the rules governing shareholders' and partners' liability. In partnerships, partners have unlimited liability for partnership obligations, whereas in companies shareholders' liability is obviously limited to the value of their shares, although some other types of liability are possible under the Civil Code.
Although there are only very few cases where the law or subordinate legislation requires that a certain type of business must be operated through a company, the combination of the unlimited liability rule and the immature professional liability insurance system results in partnerships being significantly less popular with Russian entrepreneurs and foreign investors as compared to companies. Besides, the tax treatment of partnerships under Russian tax law is exactly the same as that of companies.