Establishing Business in Russia

One of the main questions when registering in Russia is what legal form to adopt. First of all this depends on the planned organizational structure. The initial question is whether Russian staff will be engaged in only marketing and establishing contacts, with the real negotiations leading to the finalization at headquarters outside of Russia. If so, the presence in Russia will not necessitate

a permanent establishment. In this case a representative office is usually the adequate form of registration. However, activities of the representatives in Russia are very much limited and even the head of the representative office should by no means have a power of attorney to conclude deals with clients.

If the presence in Russia should include making deals with clients, then the question for registration is usually between a branch office or a separate legal entity such as a subsidiary company.

To read the full version of this article, please download the inaugural issue of Russia Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may contact Dezan Shira & Associates at russia@dezshira.com for advice or visit www.dezshira.com.