Globalization and the opening of borders have swept away many obstacles to international business contacts, joint projects and trade transactions.
Representative offices of foreign companies
In recent years, it has become commonplace for foreign companies to invest or begin trading in Russia. Managers of a foreign company entering the Russian market will need to know the following:
- current legal forms for conducting business in the territory of the Russian Federation and their particularities
- the particularities of Russian legislation regulating foreign investments in their specific sector of the economy
- mechanisms for establishing a representative office of a foreign company in accordance with the legal status chosen, including details of the documents required to establish this office
- how to obtain up-to-date and accurate information on the requirements of Russian legislation as to the establishment of a foreign representative office to conduct business activity in Russia.
Two different types of business activity are possible: establishing subsidiaries in the Russian Federation, or establishing local branches and representative offices. It is important to take into account the specifics of Russian legislation as regards regulating foreign investments, and the specific issues relating to different industries and sectors.
These and many other issues can be handled by BEFL lawyers specialized in the activities of foreign companies in Russia.
We can offer you:
- our recommendations for choosing the appropriate legal form for your business
- advice on issues of Russian legislation relating to foreign investments in particular sectors of the economy
- help with determining what documents are required
- representing and defending Client's interests when establishing representative offices, branches or subsidiaries in the Russian Federation
- up-to-date advice on issues of Russian legislation when representative offices and branches of foreign companies begin operating in Russia.
Foreign companies doing business in Russia
If your goal is to…
- improve the structure and management of business
- defend the assets of Russian owners
- optimize tax planning
- project an international image of your business through working with foreign partners
…you may wish to establish a holding structure that includes both Russian and foreign companies.
However, you should be aware of the potential risks and problems (to both parties) of such an approach, including:
- problems stemmed from the incorrect assessment of objectives and the options for achieving them by business owners or managers
- risks caused by lack of knowledge or understanding of the specifics of foreign law, and lack of familiarity with business norms in another jurisdiction
- risks relating to the issues of trust with foreign partners, consultants and banks.
We can offer you our professional experience in this sphere, assisting you with:
- evaluating the necessity of establishing a foreign company
- structuring international holdings
- determining variants for establishing and optimizing the activities of foreign companies
- choosing the most suitable options to represent the interests of the Client abroad
- analyzing specifics of the tax regime for a foreign company; evaluating tax risks
- identifying the advantages of international agreements and terms of application
- defending your interests in dealings with foreign consultants, providers, directors, and company secretaries of foreign companies
- reducing the risk of error when making a corporate transaction involving non-residents
- ensuring timely bank payments.
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