The choice depends, first of all, on the type of the organization's activity and its strategic plans for development in Russia:
1. A representative office is not a separate legal entity. It cannot conduct business. Its tasks: to protect and represent the interests of a foreign company on the territory of the Russian Federation. Typically, a representative office hires 3-5 employees, pays them a salary under Russian law, looks for clients and projects, pays for advertising campaigns and participates in tenders, but contracts are concluded directly with the parent company.
Opening a representative office in Russia is an excellent solution for those who are just looking at the Russian market, but are not ready to spend large sums on organizing a local company (after all, this includes renting their own office, hiring employees, building processes from scratch, etc.). Opening a representative office in Russia costs $ 3000 and takes 2 months, since the procedure is more complicated than registration of a regular legal entity
2. The branch undertakes to perform part of legal entity functions: it has the right to conduct commercial activities, own property and conduct other economic activities. At the same time, the process management and control of activities remains in the hands of the central office.
Suitable for those who do not conduct their business in Russia on a permanent basis or who consider the Russian market as an auxiliary direction. In this case, you can work without opening a subsidiary, that will reduce the tax burden. However, the scope and terms of the branch in Russia are limited. The restrictions are established by an accreditation certificate, which must be obtained from the Federal Tax Service.
3. A subsidiary company, most often an LLC, has the same rights and obligations as any other company in Russia. LLC is the most common form, because it allows you to conduct all types of commercial activities without restrictions. The tax burden is exactly the same as for all Russian firms.
However, due to the peculiarities of Russian legislation, the registration of subsidiaries in Russia is a difficult and time-consuming process, mainly due to legalization, translation of all constituent documents and the applicant's personal presence in Russia. The registration procedure itself takes about a week and costs $ 600-1000, however, the legalization of documents can increase this cost.
The RAUIE has been helping Chinese entrepreneurs develop business with Russia for over 10 years. We provide not only assistance in registering legal entities in the Russian Federation, but also give the opportunity to open a sales office in Russia on the basis of our Union.
For advice, leave a request in the feedback form ("ask a question" on the right side of the page) or contact us at the contacts below:
Maxim Kuznetsov - vice-president of the RAUIE
investment@raspp.ru
WeChat: maximkuznetsov