We are ready to become your permanent or temporary representative in Russia to perform all of the above functions and many other tasks. This type of partnership proves to have the highest efficiency.
Any manufacturer, supplier or investor who decided to work on the territory of the Russian Federation will have to decide which of the four existing methods of doing business suits them:
– Branch of a foreign company;
– Representation of a foreign company;
– Subsidiary company (LLC);
– Branch of LLC (Subsidiary Company).
The differences between these methods are compared in the table in article “Ways of working on the Russian market“!
| Foreign company branch | Establishment of a foreign company | Sunsidiary company (LLC*) |
Branch of LLC (of a subsidiary company) |
|
| Conduct business. | Yes | Yes | Yes | Yes |
| Carry out marketing campaigns. | Yes | No | Yes | Yes |
| Promote and defend a foreign company’s interests. | Yes | Yes | Yes | Yes |
| Licences | For some business activities | No | For some business activities | No |
| Are legal entities | No. Are separate establishments of foreign companies. | No. Are separate establishments of foreign companies. | Are independent Russian legal entities. | No |
| Registration period. | 1.5 months | 1.5 months | 1.5 months | 1.5 months |
| Registered with the tax authorities. With non-budget funds (Pension fund, Social insurance fund) | Yes | Yes | Yes | Yes |
| Registration cost, approximately. | 2,500 USD | 2,500 USD | 50 USD | 50 USD |
| Incorporation form requirements | Registration of a controlling (parent) foreign company only. | Registration of a controlling (parent) foreign company only. | Can be established by one or several individuals or legal entities. | Can be established by corresponding LLC only. |
| Registered office address on the Russian territory | Yes | Yes | Yes | Yes |
| Financial and other resources, provision | A controlling company can provide financial and other resources without any limitations. | A controlling company can provide financial and other resources without any limitations. | A controlling company can provide financial and other resources without any limitations. | LLC branch has no owned assets. |
| Accept financial resources from third parties related to its business activities. | Yes | No | Yes | Yes |
| Contracts. | On behalf of their controlling (parent) companies. | On behalf of their controlling (parent) companies. | On behalf of a subsidiary company. | Are conducted by LLC branch on behalf of the corresponding LLC. |
| Responsibility. | Controlling (parent) companies. | Controlling (parent) companies. | Subsidiary company. | Corresponding LLC. |
| Management system | A branch/establishment director appointed by the parent company | A branch/establishment director appointed by the parent company | General meeting of members of a subsidiary company and executive governing body | A branch of LLC is managed by a branch director |
* ООО – LLC under the Russian law
Our recommendation is to open a Subsidiary Company (LLC).
In this case, you will be able to control the work of your representative office, but won’t be held responsible for it.
There is another good option – self-employed representation without registering your company in Russia.
Your representative (i.e. our person) will have the self-employed status. You delegate the agreed authority to the person and let him or her work with your distributors or customers within the framework of this authority.
Work with distributors is the most optimal, economically viable option for foreign small businesses. At this stage, the company does not yet have full-time employees and reliable mechanisms for marketing products in Russia. Therefore, a foreign company turns to distributors and enters into supply contracts with them. The company sells its products to a distributor, who then sells them in Russia.
There are more than 50 distribution companies in Russia, which occupy more than 80% of the market. Without distribution, it’s hard to achieve success on the component market of Russia.
Want to have a representative office in the Russian Federation?
We are ready to perform all its functions in full, including:
- Market analysis.
- Selection and work of distributors.
- Promotion of your products on the Russian market.
- Visits to customers.
When registering an LLC, we turn to specialized companies, and our customers get:
- English-speaking lawyers will ensure comfortable communication with representatives of the parent company;
- A full range of services for branches / representative offices of foreign companies, including legal and accounting services;
- Impeccably prepared package of documents as soon as possible and with minimal expenses;
- A full package of additional services for the operation of a branch or representative office.