Entrepreneurs interested in the business market available in Russia should know that they can set up a liaison office in Russia. This is a legal entity that can be established in order to communicate with the head office of the company. The liaison office is opened in order to maintain the relations between the parent company and the suppliers or partners in the country where the office carries out its operations. Our Russian company formation agents can provide assistance for the incorporation of a liaison office in Russia.
| Quick Facts | |
|---|---|
| The purpose of a liaison office in Russia | The activities of companies from abroad can be represented and promoted with the help of a liaison office in Russia. |
|
What activities can you undertake with a liaison office in Russia? |
– acting as a contact point between the foreign company and potential customers in Russia, – promoting the activities of the specific business, – developing marketing campaigns |
|
How can a representative office be registered in Russia? |
– an accreditation issued by the State Registration Chamber is solicited, – registration with the tax authorities, pension funds, medical and social insurance, – a decision stating the appointment of liaison office director |
| Can a liaison office in Russia have commercial activities? (YES/NO) | No |
| Contracting potential clients and partners (YES/NO) |
Yes |
| Local agent required (YES/NO) |
Yes |
| Attributes of a liaison officer |
– promoting the business operations, services and products of the foreign company, – developing constant communication with the parent company, – good negotiation skills, – representing the interests of the firm from abroad |
| Bank account for a liaison office in Russia |
Necessary for the financial operations of a liaison office in Russia |
| Minimum deposit |
Not solicited |
| The institution that authorizes the liaison office in Russia | Russian Trade Register at the Ministry of Justice |
| The costs of opening a representative office in Russia |
The expenses of a representative office in Russia are supported by the foreign company. |
| Other formalities for opening a liaison office in Russia |
Presenting a bank reference from the foreign company’s bank |
| Accreditation fee (approx.) |
Around RUB 120,000 paid to the Russian tax authority |
| Time frame for opening a liaison office in Russia |
Around 30 business days, if all the approvals are issued by the relevant authorities |
| Why choose our company formation agents in Russia? |
We offer: – support for registration procedures of a liaison office in Russia, – reparation of solicited documents, – collaboration with the local authorities, – complete serices at affordable costs |
Characteristics of a Russian liaison office
Foreign investors who want to open a liaison office in Russia can perform a limited number of activities, which have the purpose of promoting the parent company on the Russian market.
As such, a liaison office can conduct the following activities:
- market research;
- participate in seminars;
- offer promotions.
An important aspect is that the liaison office is not considered a different legal entity than the parent company; it is seen as an agent representing the parent company on the Russian market. As such, the office can’t conduct businesses, nor sign contracts with various partners.
According to Russian legislation, all companies in Russia, regardless of their business form, have to register with the local authorities; our company formation specialists in Russia can provide you with further details on this matter. Also, we suggest you discover the following infographic we have prepared for you:
Registration of a liaison office in Russia
The registration of a liaison office is comprised of a much simpler procedure, compared with the incorporation of a regular company. The office must receive an accreditation issued by the State Registration Chamber; after this, the liaison office must be registered with the local authorities. The State Registration Chamber will issue an accreditation permit available for a determined period of time – for one, two, or three years. The liaison office should register at the following authorities:
- State Tax Authority;
- State Committee for Statistics;
- Medical Insurance Fund;
- Pension Fund;
- Social Insurance Fund
Do you want to open a business in Russia? We recommend the services offered by our certified accountants in Russia. Payroll, Bookkeeping, debt monitoring, audits, tax registration, and management of human resources are among the services offered by our specialists and necessary for any company. Financial planning and risk assessment and evaluation are also important for the good running of a business, so you can also contact us for this type of service.
We invite you to watch a video presentation with information about liaison offices in Russia:
The main attributes of a liaison office in Russia
As mentioned above, a representative office in Russia is the image of a company and an entity that can implement specific activities. This means that the liaison office has strong relations with the company from abroad for several reports are made. Having marketing and research activities, the liaison office communicates with the parent company to implement better business strategies before any economic activity.
Numerous entrepreneurs believe that a liaison office might represent a good step in further businesses in Russia because they can properly test the market and see the type of clients who might be substantial for future operations in the country. Promoting products and implementing a series of marketing strategies enter the attention of a liaison office in Russia. In this matter, the local representative will be extremely helpful, starting from the first day of the liaison office in Russia. If you are interested in a liaison office in Russia, you can discuss it with our team of specialists who can represent your business in this country and offer support for opening a liaison office.
Getting in touch with potential partners
As it is known, a liaison office cannot draft and sign contracts, so the main focus is to test the market and see if there are any potential collaborators. One can access the exact market where he/she wants to establish the operations in the future. A complete strategy involving research and marketing should be prepared in time, in order to easily access the potential partners and future clients. A liaison office presents quite an advantage from this point of view because it offers the possibility of developing marketing plans while undergoing research in matters of collaborators and customers. Further details on this matter can be obtained from our company formation specialists in Russia.
Documents for a liaison office
A liaison office can be easily registered in Russia. A copy of the Articles of Association, information about the type of business, the name of the owners, the address of the liaison office in Russia, and information about the representative of this office should suffice for registration. All the formalities can be handled by our specialists, so make sure you send your inquiries and ask for help.
Connecting with future customers in Russia
Thinking of a liaison office in Russia? This can be an excellent option if you want to test the market and get in touch with potential customers. A liaison office is a great choice for promoting your business in a new territory, without having to implement the activities. In most cases, the support of marketing and promotion strategies will prove extremely helpful and also beneficial. Contacting potential collaborators and customers is crucial for a new business on the market.
This way you can present your activities and services, ask questions, make verifications and tests, see the reactions and solicit opinions for future improvements. Connecting with potential customers is quite important, so a liaison office can represent the solution you are looking for. Feel free to discuss this with our company formation agents in Russia and ask for help.
Responsibilities of a liaison officer in Russia
A liaison officer has a series of attributions when it is delegated to a representative office in Russia. Among them, we mention:
- It must maintain jointly beneficial connections.
- He/she enables communication between the parent company and potential customers in Russia.
- It can coordinate all the activities related to the representative office in Russia.
- Can manage public communications on behalf of a liaison office in Russia.
- Brand perception purposes and promotional events also fall under the responsibilities of the liaison officer in Russia.
So, these are some of the attributes of such a representative. Depending on the field where the representative office in Russia operates, a liaison officer can be employed in:
- law enforcement,
- import and export,
- large organizations,
- educational institutions,
- embassies and consulates.
Among the skills of a liaison officer, the following can be listed:
- good communication skills,
- identifying communication problems,
- collaboration with institutions and/or organizations relevant to the business it represents,
- acting as a contact point in compliance with the principles and objectives of the company it represents.
We recommend those who want to open a company in Russia talk to one of our local specialists. Also, a representative office in Russia can be established with the help of the services offered by our company.
Differences between branches and representative offices in Russia
Branches in Russia are different compared to liaison offices. While branches can have economic activities, ROs in Russia cannot. Branches can be considered extensions of foreign companies but under their strict supervision.
On the other hand, even if the liaison office is controlled by the parent company, it can only undertake promotional activities of the respective company, as well as develop and maintain collaborative relationships with various clients on the territory of Russia. Both structures must be registered with the relevant authorities in this country.
Regardless of the choice made, whether you want to open a branch in Russia or a representative office, we recommend specialized help from our local agents. They know the legislation and can offer all the necessary support to interested foreign entrepreneurs.
Who financially supports the representative office in Russia?
As mentioned above in this article, a liaison office cannot have economic activities or operations. However, there is financial support for promotional matters and other tasks, from the represented company.
The expenses of a liaison office, therefore, come to the attention of the company from the foreign country, which wants to be promoted on the territory of Russia. There is also a bank account for such expenses, and the recommendation is that it be opened in Russia to be able to make transfers or payments in the local currency.
Why make investments in Russia
Russia is a great financial and economic hub that already hosts a wide range of international companies that generate huge profits in the country. Russia offers the support of more than 28 special economic zones with a special tax regime, and many other encouragements. Manufacturing, automotive, agriculture, tourism, extracting industry, financial and insurance, energy, IT, and engineering are among the sectors of high interest for international entrepreneurs wanting to make profits in Russia.
The skilled and experienced workforce is also a plus in front of foreign investors in Russia, alongside logistics, transportation, telecommunication, and more. The ease of doing business is another advantage offered by Russia to domestic and foreign entrepreneurs. The following facts and figures highlight a part of the Russian economy:
- UK, Luxembourg, Ireland, Bermuda, the Netherlands, and Cyprus are the main investors in Russia.
- Most of the FDIs are directed to sectors like financial and insurance services, manufacturing, real estate, extractive industry, and wholesale.
- The annual growth rate in Russia exceeded 5% by the end of 2021.
- In 2022, the annual growth rate, according to forecasters, stood at 3% rate.
- The year-end commodities export revenues reached a record USD 580 billion (compared to a ten-year average of USD 420 billion).
Choosing our local specialists
If you are interested in company incorporation in Russia, you can contact our team of local agents. Experience in the field and professionalism can be found on our business card. Moreover, we can offer assistance regardless of the desired business structure. A representative office in Russia can be established with the help of our local specialists who know the legislation and also the formalities imposed by the relevant authorities.
If you need further information on the liaison office in Russia, please contact our Russian company formation agents, who can assist you in registering a company here.