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It is not unusual to have numerous questions about moving or expanding a business to Russia. Here, you will find answers to many common questions and information about how to get help with concerns that more specific to your unique business.
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What is the amount of state duty for representative of branch office accreditation?
The state duty for representative office or branch accreditation is currently RUB 120,000 (approx. USD 1,750). In addition, the Chamber of Commerce and Industry may charge a certain insignificant fee for a review of the documents required in order to agree on the number of expatriate employees for accreditation purposes.
What is the registration authority for branches / representative offices of foreign companies?
At the moment, most branches / representative offices should be accredited with the tax authorities except for the branches / representative offices of banks and organisations operating in the aviation industry. Branches / representative offices established before 1 January 2015 with accreditation that shall not expire before 1 April 2015 must report information about themselves to the tax authorities before this date, so that this information may be introduced into the new state register. Failure to observe this requirement may result in cancellation of the accreditation of a branch / representative office.
What is the difference between a Representative office and a Branch office of a foreign company?
An accredited representative office is not a Russian legal entity, but an officially recognised subdivision of a foreign legal entity. Representative offices of foreign entities are strictly limited to liaison and support functions. A branch’s legal status differs substantially from that of a representative office. Under Russian law, a foreign legal entity’s registered branch is treated as “an enterprise with foreign investment”. Therefore, while a registered branch can hold certain types of licences to conduct regulated activities, a representative office or unregistered branch may not. Branch offices are free to perform all of a foreign entity’s activities. Many investors opt for branch offices at the outset because these entities are able to engage in any kind of commercial activity. Furthermore, they are subject to less onerous reporting requirements than those in place for Russian companies.