Accreditation of a branch office of a foreign company in Russia

Accreditation of a branch office

Law Firm “PRIORITET” performs “turn-key” legal services on accreditation of the branch offices of the foreign legal entities in Russia, including the accreditation in the regions of the Russian Federation.

A branch of the foreign legal entity shall be established to perform in Russia those activities which the foreign legal entity performs outside the Russian territory.  The branch shall be liquidated based on decision of the foreign legal entity which established the branch.

State control over the establishment, activity and liquidation of the branches of foreign legal entities shall be performed through the accreditation procedure approved by the Government of the Russian Federation.  Accreditation of the branch may be initially performed for 1, 2, 3 or 5-year term, which may be extended further.

The branch of the foreign legal entity shall have the right to perform commercial activities in Russia effective from the date of the branch accreditation.  Within 30 days from the start of activities in Russia the branch should be registered with the tax authorities.

 

Our services on accreditation and registration of a branch of a foreign legal entity shall include the following:

1. Preparation of the set of documents in accordance with the legislation of the Russian Federation;
2. Accreditation of the branch of the foreign legal entity with the State Registration Chamber under the Ministry of Justice of the Russian Federation;
3. Design of the seal sketch and its registration with the State Registration Chamber; arrange for the seal production;
4. Tax registration of the branch;
5. Registration of the branch with the state statistics authorities (Rosstat) and obtaining of the respective informational letter from the Rosstat (with OKVED codes on branch activities);
6. Registration of the branch with the Social Insurance Fund;
7. Registration of the branch with the Fund of the Obligatory Medicals Insurance;
8. Registration of the branch with the Pension Fund;
9. Opening the bank account for the branch (with one of the banks-partners);
10. Notification of the tax authorities concerning the bank accounts opened for the branch.  

 

Expenses related to the branch accreditation and registration:

(1) Our fees for the legal assistance in the branch accreditation is RUB 40 000 (approx USD 1 300).

(2) State duty for the branch accreditation is RUB 120 000 (approx USD 4 000).

(3) Accreditation fee of the State Registration Chamber (for the branch accreditation and its enrollment in to the State Register of the Accredited Branches of the foreign legal entities in Russia):

For 1-year term accreditation – RUB 15 000 (approx. USD 500)

For 2-year term accreditation – RUB 30 000 (approx. USD 1 000)

For 3-year term accreditation – RUB 45 000 (approx. USD 1 500)  

For 5-year term accreditation – RUB 60 000 (approx. USD 2 000)  

Additional fee of the State Registration Chamber for the expedited accreditation process (7 business days) – RUB 15 000 (approx. USD 500) .

(4) Expenses for the notary certification of the documents, their translation into Russian, production of the branch’s seal, etc. shall not exceed RUB 20 000-25 000 (approx USD 700-900).

 

 

Timing :

-        Accreditation of the branch with the State Registration Chamber – 21 business days (expedited accreditation process - 7 business days);

-        Producing the seal of the branch – 2-3 days;

-        Tax registration – 7-10 days;

-        Registration with Rosstat and obtaining OKVED codes  – 2 days;

-        Registration of the branch with the social (non-budgetary) funds – 3-5 days.

 

List of documents required the branch establishment and accreditation :

No.	Document	To be provided by
1.	Constituent documents of the Company (Memorandum & Articles of Association, Statute, or By-Laws depending on the jurisdiction)	Company
2.	Extract from the Trade/Commercial Register or Certificate of Incorporation depending on the jurisdiction	Company
3.	Tax certificate containing the official tax registration number assigned to the Company (valid for 3 months from the date of issue)	Company
4.	Bank Reference Letter (should be addressed to “The State Registration Chamber of the Ministry of Justice of the Russian Federation”) - valid for 6 months from the date of issue	Company
5.	Decision of the Board of Directors (of another Management body of the Company) on Branch establishment	Company on the basis of a draft to be prepared by Provider
6.	Regulations of the Branch	Company on the basis of a draft to be prepared by Provider
7.	Power of Attorney for Head of the Branch	Company on the basis of a draft to be prepared by Provider
8.	Power of Attorney for Provider (with powers on Branch registration)	Company on the basis of a draft to be prepared by Provider
9.	Documents for the office premises where the Branch will be located (a letter of guarantee from the landlord and ownership certificate for premises) - optional	Company (sample letter of guarantee may be prepared by the Provider)
10.	Applications, forms, cards to be submitted to the accreditation and registration / tax authorities	Provider