The adventures of foreigners in Russia or how to register a branch of foreign company
In order to register a branch or representative office of a foreign company on the territory of the Russian Federation was similar to the mad race and the chaotic ferment with a bunch of papers from one court to another, and an unpleasant aftertaste from apparent misunderstanding on the part of officials has not led to disappointment in your decision to start your business in Russia, entrust all actions related to the organization of its presence in this country, the professionals dealing with this issue for many years and having vast experience to solve all these issues quickly and efficiently.
Legal companySparta Consultingwill not only help you to open a branch or register a branch of foreign legal entity in Russia, but if necessary, can provide services of legal and organizational measures contributing to the rapid and competent integration of your business into the realities of the Russian validity.
Representation generally open to foreign investors, who previously want to study the market, conduct marketing research, to find partners, form a dealer network. Representation is not a resident of the Russian Federation, has no right to engage in commercial activities and is valid for advertising purposes.
Branch, in contrast to the representative office has the right to engage in economic activities, so open, as a rule, foreign investors who are willing to invest in specific projects. Accreditation of branches and representative offices is of unlimited duration. Branch, as representation, is not a resident of the Russian Federation.
What's new
From the first of January 2015, the legislation of the Russian Federation in the part regulating the procedure of accreditation of branches and representative offices of foreign legal entities entered into force a significant change (Federal law of the Russian Federation dated 05.05.2014 № 106-FZ "On amendments to certain legislative acts of the Russian Federation"), namely:
— the authority of the Registration chamber of the Ministry of justice, which previously was responsible for the registration of representative offices and branches in Russia have now moved to the Federal tax service of Russia (FTS RF), which is responsible for maintaining the register of accredited branches and representative offices;
functions for the implementation of the personal accreditation of foreign employees of branches and representative offices are now borne by Trade-industrial chamber of the Russian Federation (RF CCI);
— from 01.01.2015 accreditation of a representative office of a foreign company is of unlimited duration (previously accredited by the mission had the opportunity to be issued in terms 1, 2 or 3 years (depending on registration type), and accredited branch respectively for periods 1, 2, 3, 5 years).
— instead of disparate fees, the fee for branches and representative offices now stands at 120 000 rubles;
— created the state register of accredited branches, REP offices of foreign legal entities with the ability to provide information out of him.
Also changed the order of registration of the branch or representative office of a foreign legal entity in the Russian Federation, namely:
the accreditation period is not more than 25 working days;
— entered the threshold of validity of documents proving the intent to establish a branch, which is equal to 12 months;
— branch or representative office will not be registered if the purposes of creation of branch or representative office pose a threat to the sovereignty, political independence and national interests of the Russian Federation and many more.
It is separately necessary to tell that after the validation, you must register the representative office/branch in the tax authorities for subsequent accounting, payment of taxes to the Russian budget and accounting records.
Accredited mission receive visa support from the CCI of the Russian Federation for foreign employees and their families, but by hiring foreign employees, you need to remember that the office is obliged to put them on record and get them a work permit in the Federal Migration Service.
What are the benefits of having branch or representative office on the territory of the Russian Federation
Indisputable is the fact that the establishment of a branch or representative office in Russia creates a number of advantages to realizing that you can significantly strengthen its positions on the Russian market of goods, works and services that will allow to increase the capital intensity of the company and to develop your potential beyond the boundaries of the location of the parent company.
Here are some of them:
— legalization of the activities on the territory of the Russian Federation;
— exemptions of VAT on the rental of premises, as well as the ability to minimize maintenance of necessary accounting
— preferences in the recruitment of foreign employees;
— benefits on customs payments on the goods that are imported temporarily for the needs of the branch;
— the activity of the branch is not subject to currency legislation, which is a simplified procedure for withdrawal of money for the parent organization
So, as we see the presence of a branch or representative office on the territory of the Russian Federation can be the perfect opportunity to start a business on the territory of another country, while retaining all the inherent parent organization attributes: brand, experience, qualifications, level of competence etc.
However, due to poor awareness of the possibilities and nuances of work in this direction, some foreign companies do not pay attention to the capabilities of this tool and prefer to conduct your business through a Russian company, resulting in not only loss of the lion's share of profitability and volume of sales of goods, works or services, but also leads to a decrease in awareness of the company that negatively affects its internal and external ranking international companies.
If you decide to enter the Russian market and you have no reliable partner on the territory of the Russian Federation, which will be able to provide you a full range of services that allow you legally to feel comfortable and confident in our country, then please contact Sparta Consulting , and we guarantee you not only an individual, competent and professional approach to our tasks, but also help in many other matters of legal and organizational, common to all companies starting operations in a new environment and unusual conditions.