Representative Offices of Western Companies May Apply for HQS-Work Permits
Great news for representative offices of foreign companies: Starting from the 1st of January 2015 they will be able to apply for work permits for so-called “HQS”-employees (high-qualified specialist). The “HQS”-regulation foresees a very easy application procedure, substantial savings on social security contributions and was not available for representative offices before, but only for subsidiaries and branches. But some foreign employees of representative office might not need to wait until 2015 – due to the accession of Russia to the WTO foreign employees from WTO-countries might be seconded to Russia and obtain a work permit similar to the HQS-work permit already this year. Unfortunately this kind of work permit does not provide for a release from social security payments. Furthermore the implementation rules for the FMS are still being drafted.
Another change for the representative offices and branches taking into force from 1st January 2015: In future they will not be accredited any more by the Ministry of Justice or the Chamber of Commerce and Industry, but by another state organ, probably the Tax Inspections. Accordingly representative offices and branches will need to undergo a re-accreditation next year.
RUSSIA CONSULTING will gladly inform you about the current situation and its impact on your business.
For more information, please contact us:
+7 / 495 / 956 5557
RUSSIA CONSULTING has been consulting and supporting foreign clients in St. Petersburg since 2004. The company has been instrumental in helping foreign investors to set up businesses in the city and handle local economic conditions. On-the-ground presence and years of business experience in the given city are essential to giving sound advice on foreign investment. RUSSIA CONSULTING can provide you and your organization with an in-depth understanding of business set-up, business consulting, taxation, accounting, recruiting, basic legal matters, IT services, set-up of internal control systems, adapted to the local environment. Furthermore, we can provide you with office space, a local general director, or finance and tax due diligence.