ACCREDITATION PROCESS, CLASSIFICATION
The accreditation of the representative office and branch is similar in all points. Therefore, this procedure is described uniformly.
The Representative office is a separate establishment which has the right to represent the interests of the mother company. This includes tasks such as marketing and advertising, building up contacts, spokespersons, etc. The representative office has no right to commercial activity. The representative office is not a legal person according to the law.
The Branch may perform the function of a representative office and has the right to commercial activity. The commercial activity is, however, solely on behalf of the mother company. This means that all contracts are concluded solely on the mother company. The branch is also not a legal person according to the law.
The disadvantage of the branch is the liability. For all activities of the branch the mother company is liable to contractors and the Russian state.
If only commercial activity is planned in Russia, the branch is rather disadvantageous due to the direct liability to the mother company.
Accreditation / registration of the representative office with the competent Russian authorities, manufacturing of the round seal.
The first step is the accreditation and registration of the foreign employees by the Chamber of Commerce and Industry.
Accreditation fee for a representative office is now 120 000 RUB and has to be paid to the tax authorities. Besides that, you will have to pay a small fee for each foreign employee to the Chamber of Commerce. Approximately 5.000 RUB per employee.
In general, the accreditation takes approximately 30 working days from the application to the issuing of the accreditation certificate.
After the accreditation, the registration with the tax authorities is to be carried out and a round seal has to be manufactured.
After the successful accreditation and registration with the tax authorities, the office has to be registered with the federal statistics agency and the Russian obligatory insurance funds (health, social and pension insurance funds). For that, adequate applications have to be filled in.
After completion of the accreditation and tax formalities, the bank accounts of the office can be opened. The opening of the accounts is carried out within approximately 15 days after filing in all necessary documents with the bank. The exact period of time depends on the respective bank. For the opening of the bank accounts, the signatures of the head of the office and of the accountant of the office (if existing) have to be certified by a notary or the bank. Personal presence is necessary.
Altogether the constitution process up to the working possibility of the office can take approximately 2 or 3 months.