Accreditation of Branches of Foreign Companies

As many know, today in Russia not only domestic companies operate, but also foreign organizations. How can a representative of a foreign state register its activity in Russia?

According to the legislation of the Russian Federation, a foreign company may conduct its business in Russia:

• through a branch,
• via accounts opened in Russian banks,
• by investing its own funds in Russian subsidiaries,
• through an independent resident agent.

However, in order to start business in Russia, foreign companies need accreditation of their branches. This involves a number of sequential steps described below:

1. Preparation and execution of all required documents by qualified lawyers.
2. Drafting of the Branch Regulations.
3. Review of documents by the registering authority.
4. Monitoring the current status of document processing at the registering authority.
5. Registration of the Branch Regulations.
6. Obtaining a Permit to open a branch.
7. Obtaining a Certificate of entry into the state register.
8. Obtaining statistical codes.
9. Manufacturing of a company seal.

Most often, all difficulties with documents are handled by an auditing firm, which manages the process of establishing a branch of a foreign company in the territory of the Russian Federation. The auditing firm is also responsible for processes such as registering amendments to documents and further branch operations.

In general, the opening of a representative office and the accreditation of branches in Russia are carried out for the following purposes:

• To create stable economic, commercial, and scientific-technical relations between countries.
• To promote the implementation of agreements between states and companies in such fields as economy, finance, trade, science and technology, transport, and tourism.
• To exchange economic and technical knowledge between Russian and foreign organizations.
• To ensure the legality of financial transactions.
• To support the effective development of Russian export and import.

It should also be noted that, in accordance with Russian law, branches of foreign companies in Russia may be opened for a period not exceeding three years, with the possibility of subsequent renewal of the permit. In this case, the registration of amendments will only be successful if the branch owner applies to the accrediting authority in due time.