Company Formation Russia



Liaison Office in Russia

Updated on Monday 04th January 2021

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Liaison-Office-in-Russia.jpgEntrepreneurs interested in the business market available in Russia should know that they can set up a liaison office, which is a legal entity that is 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


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 the 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. 

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 at 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;
  • Pension  Fund;
  • Medical Insurance Fund;
  • Social Insurance Fund. 


The main attributes of a liaison office in Russia

As mentioned above, a liaison office is the image of a company and the 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 for implementing 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 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 the marketing plans while undergoing the 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 with our company formation agents in Russia and ask for help.

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:
  1. Nearly USD 464 billion was the total FDI stock registered in Russia in 2019.
  2. About USD 24 billion represented the total value of greenfield investments in Russia in the same year.
  3. The 2020 Doing Business report ranks Russia 28th out of 190 worldwide economies.
  4. UK, Luxembourg, Ireland, Bermuda, the Netherlands, and Cyprus are the main investors in Russia.
  5. Most of the FDIs are directed to sectors like financial and insurance services, manufacturing, real estate, extractive industry, wholesale.
If you need further information on the liaison office in Russia, please contact our Russian company formation agents, who can assist you to register a company here.

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Call us now at +7(495)504-12-15 to set up an appointment with Evgeny M. Kuznetsov, the managing partner and founder of Herman & Smith LLC. 

As our client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Russia.

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