Accreditation of Representations

A representation of a foreign legal entity can be opened in Russia by a permission of the accreditation body. At present, in Russia, there is a single body for the accreditation of foreign legal entities' representations

Accreditation is performed by the following authorities

  • The Ministry for Foreign Affairs of the Russian Federation issues licenses for the opening of representations of the foreign media, unless otherwise envisaged by an inter-state agreement concluded in the Russian Federation;
  • The Chamber of Trade and Industry of the Russian Federation issues permissions: for the opening of foreign trade chambers, federations, associations and unions of entrepreneurs, foreign firms and organizations and mixed-type trade chambers;
  • The State Registration Chamber attached to the Ministry of Justice of the Russian Federation accredits foreign companies' representations in Russia;
  • The Central Bank of Russia performs accreditation of the representations of the financial organizations of the foreign states in the Russian Federation;
  • The Federal Aviation Service of the Russian Federation issues permissions on the opening of representations of foreign airlines, firms, institutions and organizations performing their activities in the field of civil aviation in the Russian Federation.

Accreditation of the representations of foreign legal entities is performed easier than the registration of legal entities with participation of foreign capital. The accredited representations of the foreign legal entities and their staff have a privilege on VAT while renting premises. Compared to the Russian legal entities and the legal entities with participation of foreign capital, at present, complete accounting reporting of the representations is not required. For the taxation inspectorates, the reporting allowing calculating the taxation liability is enough. The fact of the presence of a representation is essential, for only in such case a foreign company can claim privileges and preferences. To obtain an approval on the opening of a representation outside Moscow and St.-Petersburg, a preliminary agreement of the local executive authorities is required.

Accreditation is granted for 1, 2 or 3 years, and when necessary, can be prolonged. A representation is given permission for its opening.

A representation should be entered into the General State Register. Only at the State Registration Chamber, jointly with the accreditation, a representation is entered into the general state register of the foreign companies' representations accredited in the Russian Federation. The entering into the register is obligatory for all the representations irrespective of when and by which organization they were registered. The certificate on the entering into the register is a confirmation of the official status of the representation on a federal level, and is required when opening bank accounts, registration with the taxation authorities, formalizing Russian visas and passing customs procedures.

An accreditation of a foreign legal entity is performed within a term not exceeding thirty days since the time of documents' submission..

Upon receiving an accreditation, the following procedures are to be performed:

  • produce a stamp;
  • receive a letter on the registration at Statistics Register of the Russian Statistics Committee (statistics codes);
  • receive taxation registration at Inter-District of the Federal Taxation Service No. 47 in Moscow;
  • receive registration at the Mandatory Medical Insurance Fund, the Social Security Fund and the Pension Fund of the Russian Federation;
  • open a bank account.