7) If all previous steps are duly executed, then you will receive accreditation documents
within 30 working days of the date on which documents were filed with the relevant registering authority (25 working days for accreditation and 5 working days for document issuance). The Federal Tax Service (FTS) does not always comply with this timeline, so this may take longer although not much more.
Accreditation may be checked using the FTS service.
At this stage, you will still need to obtain the following and/or perform the following actions:
- A certificate of tax registration;
- A record of entry in the state register of accredited branches, representative offices of foreign legal entities;
- A notice of registration with and statistics codes from Rosstat;
- A notice of registration with extra-budgetary funds, i.e. Social Insurance Fund and Pension Fund of Russia;
You will also need to open a current account in a Russian bank to carry out settlement transactions, and if necessary, order a company seal although organizations may now operate in the Russian Federation without one. In such case, this will need to be specified in the company's foundation documents.
- Prepare the documents necessary for entry of foreign employees to Russia (work permits and work visas);
- Organize accounting and tax accounting.
Article 6(2(2)) of Federal Law No. 402-FZ On Accounting sets out that the branch of a foreign company is entitled not to keep accounting in accordance with Russian standards although, in such case, the branch must keep records of income and expenses for tax purposes only in compliance with Russian law.
This means that the representative offices of foreign companies may keep accounting in accordance with International Financial Reporting Standards (IFRS), which are now also widely used for accounting in Russia.
If a company chooses to keep accounting in accordance with Russian standards, then it should be borne in mind that Russian accounting standards have their own characteristics and do not completely coincide with international accounting standards.
Whatever the option chosen by foreign companies, they will need a local specialist or outsourcing company with the necessary knowledge and experience.
It is easy for foreign companies to get a branch/representative office accredited in Russia providing they appeal and enlist the help of professionals.