Open a branch in Russia

Services
About

+74991108055

Open a branch office of a foreign company in Russia in 5 easy steps and have full access to Russian market and banks

Email *

Telephone *

Форма захвата

Нажимая на кнопку, вы даете согласие на обработку персональных данных

Branch office in Russia

Branches office in Russia is essentially a form of presence on the Russian market, popular with medium and large foreign businesses. Turning to these branches and representative offices, Russian customers understand that they are contacting representatives of a well-known brand, whose reputation and reliability are well known. For a foreign company, the presence of a branch office in Russia clearly increases the efficiency when interacting with Russian and foreign clients working in the Russian Federation.

Branches and representative offices are essentially a form of presence on the Russian market, popular with medium and large foreign businesses. Turning to these branches and representative offices, Russian customers understand that they are contacting representatives of a well-known brand, whose reputation and reliability are well known. For a foreign company, the presence of a branch / representative office in Russia clearly increases the efficiency when interacting with Russian and foreign clients working in the Russian Federation.

Advantages to open a branch in Russia

Bank accounts in Russia

Branch of a foreign company in Russia can open accounts in Russian and foreign banks, enter into transactions with local and foreign companies. Russian banks or foreign banks present in Russia will welcome a legally established branch of a foreign company and will provide the full support in banking services under the standard tariffs.

Easy bank transfers with a parent company

Bank transfers between a parent company and a branch happens much easier than, for example, in the case of the transfer of funds between a Russian subsidiary and a foreign parent company. Because branch is considered as a whole with the parent company, but subsidiary is a separate unit.

0% dividend tax distribution

Foreign branch's profit earned after tax is not subject to tax. When dividends are paid out of subsidiary to participants from the profit remaining after tax, the dividends are taxed at the rates of 9 or 15%, unless otherwise provided by the agreement on avoidance of double taxation

Area of profit tax is only Russia

Branches registered in Russia pay taxes only for the incomes generated in the country of establishment - Russia.

0% VAT for office lease

When an office is leased by a branch office of a foreign company in Russia, VAT is not included in the rent, in accordance with the Tax Code of the Russian Federation.

Double tax treaties

A branch office in Russia is protected by the provisions of the double taxation treaties signed by Russia with a large number of states.

Director of a branch office

If you want to enter the Russian market and conduct a fully-fledged business activity, then you may establish a presence in Russia by incorporating a Russian subsidiary. The most common legal forms for companies in Russia are the Limited Liability Company (LLC/ООО) and Joint Stock Company (JSC).

No VAT for office lease

When an office is leased by a branch / representative office in Russia, VAT is not included in the rent, in accordance with the Tax Code of the Russian Federation.

Construction site advantages

When registering a construction site with the Russian tax authorities, the branches do not pay advance payments on income tax and do not calculate the amount of income tax for the duration of the construction site (usually 12 months)

Issuing a work permit for employees

It is not required to apply for a work permit for foreign employees. Provided that: (1) such employees have been personally accredited by the accrediting body, (2) within the number agreed by the accrediting body, (3) the application of this procedure is possible only for foreign workers in countries in which a similar norm applies.

Leave your contact details and get the offer to open a branch office of a foreign company in Russia with an exclusive bonus

Steps to open a branch of a foreign company in Russia

1. Preparation of documents for the parent company

A document that confirms the legal status of a company opening a branch in the Russian Federation. The ideal option is an extract from the state register of legal entities. Such registers are maintained by many countries (Switzerland, Spain, Germany, etc.). But at the same time, there are many countries that do not issue extracts from the register of legal entities or do not keep a single register of legal entities (Cyprus, etc.). In this case, any document that can confirm the existence of the company and its legal status (say, a certificate of registration) should be submitted.
A document indicating the taxpayer code and confirming registration as a taxpayer in our country. It is issued by the authorized body of the country where the legal entity is registered. There may also be difficulties. Not all countries assign a tax number to legal entities. If the number is not assigned, it is worth contacting the tax authority at the location of the parent organization for an explanation letter.
Articles of Association, Memorandum of Association, Decision on establishing a company, etc. The list of corporate documents varies from country to country. It is recommended to provide all documents that are possible, with the exception of irrelevant ones at the time of submission.

2. Preparation of documents for a branch in Russia

Regulations on the branch or representative office,

The regulations on the branch of a foreign legal entity shall indicate:

name of the foreign legal entity,
legal form of a foreign legal entity, location of the branch,
address of the legal entity in the country of registration,
the objectives of the creation, opening and activities of the branch,
branch management procedure,
other information that the company considers necessary to indicate.

(see article 22 of the Law "On Foreign Investments in the Russian Federation").

Power of attorney for the head. The power of attorney must be issued by an authorized body of the parent organization and notarized.
The decision to create a branch.

Documents can be legalized at the consulate or apostilled. Translation of documents into Russian is required. The translation must be certified by a Russian notary.

In some cases, apostille or legalization of documents at the consulate is not required, since this issue is separately regulated by Art. 13 of the Convention on legal assistance and legal relations in civil, family and criminal matters (Minsk, January 22, 1993) (say, in the case of documents issued in Armenia, Kazakhstan, etc.).

Corrections and cleanings in documents are not allowed. This is an important point, since document management practices in many countries allow manual correction of printed documents.

Documents containing more than one sheet must be stitched, the sheets are numbered. On the back of the last sheet of each such document, a record should be made of the number of sheets in the document - this is usually done by a notary public.

Documents should not be issued later than 12 months from the date of submission to the tax authority.

3. Filling out an application for registration of a branch in Russia

The form was approved by order of the Federal Tax Service of Russia dated 12.26.2014 N MMV-7-14 / 681 @ (as amended on 09/12/2016) "On approval of the forms and formats of applications and documents used in accreditation, amendments to the information contained in the state register accredited branches, representative offices of foreign legal entities, termination of the accreditation of a branch, representative office of a foreign legal entity operating in the territory of the Russian Federation (except for a representative office of a foreign legal entity and carrying out activities in the field of civil aviation, and representative offices of foreign credit institutions) "(Registered in the Ministry of Justice of Russia 27.02.2015 N 36264). This is form 15AFP.

4. Submission of documents to the Chamber of Commerce

After preliminary preparation, it is necessary to submit documents to the Chamber of Commerce and Industry of the Russian Federation (see paragraph 6 of Article 21 of the Law "On Foreign Investments in the Russian Federation"). The Chamber of Commerce and Industry must approve the number of foreigners whom it is planned to attract to work in a Russian branch or representative office.

The documents required to certify information on the number of foreigners are as follows:

A letter requesting certification of the number of foreign workers, signed by the head of a foreign legal entity or branch, representative office. The letter should contain an instruction for the processing of personal data on the terms posted on the website of the RF CCI;

The letter is submitted in the original on the letterhead of a foreign legal entity with the telephone, fax, address, e-mail;

When filling out a letter in electronic form, a reduced tariff is applied, documents for certification of numbers are accepted without priority in priority order. Currently, the cost of certifying information on the size of a legal entity is 21,000 rubles, while submitting an online application - 19,000 rubles.

Completed page 5 of form 15AFP;
Constituent documents of a foreign legal entity. The CCI of the Russian Federation accepts notarized copies if there is a translation into Russian.
An extract from the register of foreign legal entities of the country of registration or another document of equal legal force confirming the legal status of a foreign legal entity;
Document on tax registration of the parent company in the country of registration,
The decision of a foreign legal entity on the establishment of a branch / representative office in the territory of the Russian Federation
Regulation on the branch / representative office (1 notarized copy is submitted);
A power of attorney to vest the head of a foreign branch / representative office in the Russian Federation with the necessary powers (1 notarized copy is submitted).

The CCI makes the same requirements for documents as the IFTS: documents must be legalized (or apostilled) and translated into Russian, and the translation must be notarized.

5. Personal accreditation of the staff in the Chamber of Commerce

So, the accreditation of a foreign employee in the Chamber of Commerce is the duty of branch. Without such accreditation, a branch cannot hire staff. That is, there are no options - to receive accreditation for employees or not. Representation is simply obliged by law.

What documents are submitted to the Chamber of Commerce to obtain a certificate:

A letter from the branch / representative office requesting personal accreditation of a foreign employee of the representative office, signed by the head of the branch / representative office and certified by a seal.
Certificate of making an appropriate entry in the state register of accredited branches, representative offices of foreign legal entities - the original and a copy or a notarized copy.
Information sheet on making an entry in the state register of accredited branches, representative offices of foreign legal entities - the original and a copy or a notarized copy.
Card of information on the branch / representative office of a foreign legal entity.
Autobiographical certificate for an employee with pasted photos - 2 copies.
Color photographs on a light background of size 3x4 (official view) - 2 pcs.
Copy of passport pages with installation data.
Original personal accreditation card issued by the PIU under the Ministry of Justice (if any).

6. Submission of documents to the appropriate Inspectorate of the Federal Tax Service

Submission of documents to the appropriate Federal Tax Service at the location of the branch office is the most crucial moment when registering a branch of a foreign organization in Russia. To do this, you must pay a state fee of 120 000 rubles.

Documents are filed with an inventory. Form 15AFP is filed in stitched form.

The Federal Tax Service Inspectorate may request additional documents, primarily concerning the address of a future branch or representative office (say, a letter of guarantee from the owner of the premises, which will be provided under a lease agreement).

The term for registration of a branch or representative office is 25 business days.

Documents with an inventory can be sent by mail or submitted in person. For personal submission, the company representative must have a power of attorney to submit and receive documents. The power of attorney issued in the territory of a foreign state must be apostilled. The translation of the power of attorney must be notarized.

7. Prepare the seal of a branch

The seal can be done within 1 day, urgent production is possible within 1 hour.

8. Open a bank account

Each bank has its own list of documents that are required to open a current account. In any case, the bank will request:

Documents for the parent organization,

Regulations on the branch (representative office),

Power of attorney for the head of the branch (representative office).

8. To register a branch of a foreign company in Russia in state funds.

From January 1, 2017, organizations at the location of their separate subdivisions that have a current account and accrual payments and other remuneration in favor of individuals are not required to apply to the federal pension fund of Russia for registration and deregistration.

An organization or its separate subdivision is automatically registered with the FIU as an insurer by the tax authority.

At the same time, registration with the Social Insurance Fund is mandatory in accordance with Order No. 202n of the Ministry of Labor of Russia dated April 29, 2016 “On the Procedure for Registration and Deregistration of Policyholders and Persons Equated to Policyholders with the Social Insurance Fund of the Russian Federation”.

Based on the meaning of the provisions of this Order, registration in the FSS is carried out within 30 days from the moment of creation of a separate unit, but provided that it has a current account and it accrues wages to employees.

FAQ

Is there a difference between a branch of a foreign company and a representative office

The main difference between a branch and a representative office in Russia is that the branch can carry out commercial activities as a full-fledged company, and the representative office carries out "auxiliary" functions - protects the interests of the parent company, negotiates, and participates in exhibitions on behalf of the company. The tax code uses the term "separate division", meaning both a branch and a representative office.

What is better to create - a branch of a foreign company in Russia or a subsidiary?

The question of which is better - to create a subsidiary or to open a branch should be decided in each case based on the goals and objectives that business owners set themselves. However, it is obvious that creating a branch or representative office of a foreign organization is both more difficult and more expensive than registering a subsidiary. In addition, it should be noted that the parent organization is responsible for the debts of its branch or representative office with all of its property.

What is the main regulatory framework for the accreditation of branches in Russia

The legal framework for the accreditation of branches and representative offices of foreign legal entities is constituted by laws and by-laws of state bodies authorized to carry out this procedure. Fundamental is the Federal Law of July 9, 1999 No. 160-ФЗ “On Foreign Investments in the Russian Federation”. A more detailed idea of the procedure is given by:

Order of the Federal Tax Service of Russia dated December 26, 2014 No. MMV-7-14 / 680 “On Approving the Accreditation Procedure ...”;
Regulation of the Central Bank of the Russian Federation dated April 22, 2015 No. 467-P “On the Procedure for Accreditation by the Bank of Russia of a Representative Office of a Foreign Credit Organization ...";
Order of the Ministry of Transport of Russia dated February 6, 2013 No. 25 “On approval of the Administrative Regulation of the Federal Air Transport Agency for the provision of state services for accreditation of representative offices of foreign organizations ...”.

What size of state duty is charged for accrediting a branch in Russia?

You must pay a state fee of 120 000 rubles.

What tax regime can a branch of a foreign company in Russia use?

The branch and representative office are required to pay taxes in Russia in full. A branch or representative office is not entitled to apply a simplified taxation system. According to Art. 307 of the Tax Code, income earned on the territory of the Russian Federation is subject to income tax. This provision also applies to representative offices, which, not having the right to carry out commercial activities, can nevertheless generate income on the territory of Russia and are required to pay tax on this.

What tax regime can a branch of a foreign company in Russia use?

The branch and representative office are required to pay taxes in Russia in full. A branch or representative office is not entitled to apply a simplified taxation system. According to Art. 307 of the Tax Code, income earned on the territory of the Russian Federation is subject to income tax. This provision also applies to representative offices, which, not having the right to carry out commercial activities, can nevertheless generate income on the territory of Russia and are required to pay tax on this.

What is the term accreditation of a branch of a foreign company in Russia?

The term for registration of a branch or representative office is 25 business days.

The advantages of doing business in Russia

Apart from starting business in the largest and most beautiful country in the world, you will get.

A new market

The Eurasian Economic Union provides freedom of movement of goods, as well as services. It is a market of around 186 million people.

Lower production costs

Russia has the most talented and educated personel in the world with relatively moderate wages.

Favorable tax regime

You can choose several tax regimes, including the one without VAT and strict accounting reports.

Bank accounts

The possibility of opening a bank account in more than 100 banks throughout the country and conduct stable payment operations in any currency.

A developing environment

Russia is a sovereign country that aspires to become the most technological and eco-friendly country. Today you have many opportunities.

Special Investment Contracts

The Russian Tax Code provides tax incentives to investors who undertake to set up a new, or modernise an existing production facility and comply with certain requirements.

Foreign investment law

The rights of foreign investors to conduct business in Russia cannot be less favourable than the rights of Russian investors.

Fair judicial system

While in the “fair” western world judicial decisions are taken to the benefit of political connotations, the Russian judicial system stands solely by the principles of the law.

+7 (499) 110-80-55

konon@vitaliberta.com

Russia, Moscow, Cosmonaut Volkov street - 20, office 520.

Make a request

Name

Telephone *

Email

Форма захвата

Нажимая на кнопку, вы даете согласие на обработку персональных данных

Thank you

We will call you in 5 minutes