Frequently asked Questions
REGISTRATION OF LEGAL ENTITIES
ACCREDITATION OF LEGAL ENTITIES
BUSINESS SUPPORT /
CONSULTING
CLOSING AND REORGANIZATION
Frequently asked Questions
ACCREDITATION OF BRANCHES AND REPRESENTATIONS
Terms of accreditation?
25 working days
What is the amount of the state fee?
State duty - 120,000 rubles (in case of refusal, it is not refundable),
Chamber of Commerce and Industry fee: 5000 rubles (no foreign employees), 15000 rubles (presence of foreign employees)
Is a legal address required for branches and representative offices?
A legal address is required for accreditation. Without it, the branch / representative office will not be accredited.
Can a foreign citizen be the Head of a branch / representative office?
Yes, but for this he will need to obtain personal accreditation.
What is the maximum allowed number of foreign employees in a branch / representative office?
A branch or representative office of foreign companies is entitled to employ only up to 5 foreigners. The accreditation of employees is carried out only within the limits of the number registered in the state register containing information on accredited branches and representative offices of foreign organizations.
Financial statements and taxes of a branch / representative office of a foreign organization
According to the legislation, foreign representative offices operating in the territory of the Russian Federation have the right not to keep accounting according to the rules established by Law N 402-FZ, if they keep records of income and expenses and other objects of taxation in the manner determined by the tax legislation of the Russian Federation.
INCOME TAX FOR FOREIGN ORGANIZATIONS
In accordance with the Tax Code of the Russian Federation, foreign organizations operating in the Russian Federation through permanent missions and (or) receiving income from sources in the Russian Federation are recognized as taxpayers of income tax.
For foreign organizations, profit is recognized as income received through a permanent establishment, reduced by the amount of expenses incurred by this representation, which are economically justified. The representative office will be able to take into account for tax purposes only those expenses that are aimed at ensuring its activities in the Russian Federation. Such expenses must be documented and incurred in order to carry out activities aimed at generating income.
VALUE ADDED TAX FOR FOREIGN ORGANIZATIONS
Foreign organizations that sell goods, services, works on the territory of the Russian Federation through permanent missions are VAT payers on the same grounds as Russian companies. They calculate and pay VAT to the budget and submit reports to the tax authorities on a general basis. If the place of sale of works and services is recognized as the territory of a foreign state, these operations are not subject to taxation on the territory of the Russian Federation, in addition, for these transactions, the amount of VAT paid to suppliers when performing these works is not subject to tax deductions. The amount of tax is taken into account in the cost of work and is not subject to reimbursement from the budget.
INSURANCE PREMIUMS FOR FOREIGN ORGANIZATIONS
With regard to compulsory insurance (pension, medical and social), a permanent establishment of a foreign organization has exactly the same responsibilities as a Russian organization. The representative office of a foreign organization must be registered with the FIU and the FSS and report to the funds.
If a foreign representative office employs individuals with whom labor and civil law contracts are concluded, and payments are made, then these payments are subject to insurance contributions to the Pension Fund, Social Insurance Fund, Federal Health Insurance Fund.
INDIVIDUAL INCOME TAX FOR FOREIGN ORGANIZATIONS
Permanent missions of foreign organizations in the Russian Federation, from which or as a result of relations with which the taxpayer received income, act as tax agents.They are obliged to calculate, withhold from the taxpayer the amount of personal income tax from the amount of wages and other remunerations accrued to the employees of the representative office, and transfer to budget of the Russian Federation.
In addition, the representative office of a foreign organization is also obliged to provide the tax authority at the place of its registration with information on the income of individuals and the amounts of taxes accrued and withheld from them.
Along with tax and accounting reporting, foreign legal entities operating on the territory of the Russian Federation submit an annual report on their activities, regardless of their tax status and financial performance in the reporting year. The report reflects the peculiarities of the functioning of a foreign representative office, branch or department on the territory of the Russian Federation.
Fill out the form and our specialist will contact you as soon as possible and prepare an individual offer
OUR PARTNERS
Our office
The address:
123112, Russia, Moscow, Presnenskaya nab., 12, Federation-East Tower, 18th floor
