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3. Setting up an Overseas Office

Russia Entering The Market

The main forms of business activity used by UK companies in Russia are:

• Direct sales
• Distributorship agreement
• Representative offices
• Branch of a foreign legal entity
• Subsidiary

Direct sales or distributor contracts

UK companies choosing direct sales or distributor contracts are:

• Not subject to Russian taxes
• Don’t need to establish a presence in Russia via any corporate structure
• nNot responsible for Russian customs processes, taxes and fees

Other business forms

Representative offices are accredited for 1 to 3 years. They can only carry out activities aimed at generating profit, such as market research. They can use rouble and foreign currency bank accounts and transfer funds without restrictions.

A branch of a foreign legal entity is accredited for 1, 2, 3 or 5 years. They can carry out all the functions of the company in the Russian Federation.

UK companies can choose to establish a presence in Russia through a Russian subsidiary. The most common business structures in Russia are:

• Limited liability company (OOO in Russian)
• Closed joint stock company (ZAO in Russian)
• Open joint stock company (OAO in Russian)

Taxation, legal obligations, regulative bodies, registering requirements and information disclosure procedures differ depending on the business structure you choose.

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