Open Company Branch or Subsidiary in Russia

The state of Russia offers plenty incentives in many business sectors, and the economy is stable and oriented towards foreign investment. Therefore many entrepreneurs wish to establish companies, and companies establish branches or representative offices on the territory of Russia. A Russian branch of a foreign company is subject to registration and taxation but it does not have separate legal character from the parent company which also bears the responsibility for the branch's debts and obligations.

Preliminary activities prior to registering a Russian branch
In order to set up a Russian branch the founders must draft the articles of association of the company, or other foundation deeds. Also a list of managers and their addresses and specimen signatures need to be prepared along with a bank certificate after opening a bank account. The Russian branch must be managed by a representative authorized through power of attorney to do so. All the documents need to be notarized and apostilled or legalized in the country of origin. Also translations in Russian language are required. After these procedures are completed the branch is ready receive a permission of an accreditation authority in the State Chamber of Registration.

Registering a Russian branch at the State Registration Chamber
In order for a Russian branch to undertake commercial activities it must obtain registration with the State Registration Chamber. For this purpose an application letter for accreditation must be submitted and it must contain the charter of articles of association, the resolution of the foreign company deciding to establish a branch in the Russian Federation and a bank deed confirming the bank account and the capital deposit. Also the applicants must submit the registration certificate, certificate of incorporation or equivalent of the foreign parent company certifying that it is a validly existing legal entity and the power of attorney issued to the chief representative. Usually the certificate of registration is issued in a short time period, and the company may commence its activities immediately.

After obtaining the registration certificate the Russian branch must carry out a series of post-accreditation procedures including registration with the State Statistics Committee of the Russian Federation, with tax authorities and social security for employees if it is the case.

Setting up a Russian branch from abroad
Foreign investment in Russia is encouraged in many business sectors and setting up a company branch is welcomed. In order to incorporate a Russian branch the founders must appoint a representative which can be an individual or a legal entity authorized through power of attorney to carry out the registration procedures. Also in order for the branch to function it must have a legal address.

How long does it take to set up a Russian branch?
Usually the whole process is straightforward but different issues may intervene and prolong the required time. Drafting the company documents and notarizing them takes no longer than two days, same as opening a bank account. In five days the registration certificate is issued, and within 3-4 days the branch is registered for tax purposes. A Russian branch is generally incorporated in two weeks.