Currently the legislative acts regulating the procedure for accreditation of branches and representative offices of foreign entities have been amended essentially by Federal Law No. 106-FZ of 05.05.2014 and Regulation of the government of the Russian Federation No. 1372 of 16.12.2014. According to the amendments the Federal Tax Service (the Federal Tax Service of Russia) is an authorized federal executive authority which accredits branches and representative offices of foreign entities since the 1st of January 2015 (exclusive of representative offices of foreign credit organizations and representative offices of foreign entities operating in the field of civil aviation).
A branch of the foreign legal entity fulfills a part of functions or all functions, including functions of the representative office, on behalf of the foreign legal entity that established it (parent organization).
Both foreign and foreign organizations can be engaged into entrepreneurial business on the territory of the Russian Federation. Foreign companies can register its representative office for work in the Russian market in accordance with the order, provided for by the law.
In this case the General Director of the foreign company shall issue the general power of attorney for the head of the representative office, i.e. for himself. This shall be allowed in case, if the General Director acts on behalf of the legal entity, and the head of the representative office as an individual, employee of the representative office.
All payments on accreditation of the branch in Russia shall be made in Russian rubles. The state duty for accreditation of the branches of foreign organizations, established on the territory of the Russian Federation, shall be paid at the rate of 120,000 rubles for each branch.
Experts of company "RosCo" grouped 11 major differences between the Company with foreign investment and branches / representative offices of foreign companies.
In spite of the representative office has stopped its activity it is still in the SRC (State Registration Chamber) register. To exclude the representative office out of the SRC it is necessary to follow the shutting down procedure in SRC the same as during the early termination of representative office activity.
To carry out the activity within the territory of the Russian Federation the foreign company must be registered. The registration form depends on choice of its members which is directly specified with the purpose of the activity.
The term “permanent representation” also includes building area, building, assembly or mounting project, but only if such an area or a project have been in existence for not less than 12 months.
If the foreign organization realizes activity in several places in the territories under control of different tax authorities, it is obliged to be registered with each tax authority.
(Certificate No 1809 dated 28.12.2009)
(Certificate No 78)
(Russian Society of Evaluators)
of Commerce and Industry
(Certificate No 123-973 dated 21.12.2009)
Partnership of Turkish Entrepreneurs (RTIB)
is included in the register of reliable enterprises of Moscow