Accreditation of foreign representation and branch.
Your foreign company has decided to work in the Russian market, but here is how to work and what it is better to make for this purpose you still yet do not know, and on studying of the Russian legislation there will leave a lot of time so to do?
One of directions of our Company, reception of accreditation of representation of the foreign company is. Rendering service in the field of accreditation of the foreign companies, highly professional lawyers of our company will help you with a choice of representation and will assist in the field of passage of accreditation of foreign representation.
And so what to start to work, it is necessary will familiarize with the following concepts:
1. What is the branch, representation and their distinctions.
In connection with increase of demand of the goods and services in various areas, the foreign company can feel necessity of what constants - or actions outside the basic location. With this purpose, it has the right to create in other (any) place the detached division as representation or branch.
The second reason or necessity of occurrence of representation is presence of privileges at foreign the companies, it: presence of privileges under the VAT at rent of premises(rooms), further, temporary import of automobiles, office engineering and other property to be made without payment of the customs, and thus, book keeping of open representation is not conducted in full.
Representations and branches have a number(line) of the general(common) features, namely:
· Branches and representations of the foreign companies are created as the detached divisions, they can not have rights of the legal person (parent organization) and operate on the basis of positions.
· Branches and representations are created outside of the location of the foreign (head) organization.
· Branches and representations are allocated with a part of property of the foreign (head) organization which is taken into account on their separate balances and on balance of the foreign (head) organization.
· Branch and representations operate on behalf of the legal person.
· Heads of branches and representations are appointed the foreign (head) organization and operate under the given power of attorney.
· The responsibility for actions of branches or representations is born(carried) with the foreign (head) organization.
· Data on their presence necessarily should contain in constituent documents of the foreign (head) organization.
But, not looking on many similarities between branches and representations, all - таки between them are available essential distinctions:
· The branch represents the detached division of the foreign (head) organization and carries out all his(its) functions or their part, including functions of representation.
· Branches, as against representations, should specify size of cost of an estimation of the capital brought by the foreign (head) organization in a fixed capital of branch.
· Terms on accreditation of branch till five years, term of accreditation of representation till three years.
· There are separate kinds of licenses receive which branches (the Example can exclusively: Publishing).
2. Procedure of accreditation of representations of foreign legal persons.
At opening representation, the foreign company should get the legal status, and it means to pass procedure of accreditation of the representation in the bodies determined by the legislation.
For today, the legislation, namely, by the Decision of Council of Ministers of the USSR № 1074 from 30.11.1989 authorizes Regulations about the order of opening and activity in the USSR of representations of foreign firms, banks and the organizations in which the authorized bodies for passage of procedure of accreditation of the foreign organization are determined.
According to this position, depending on a sort of activity of the foreign organization, competent body are: the federal ministries and departments, the state registration chamber at the Ministry of Justice of the Russian Federation and Trading - industrial chamber of the Russian Federation.
According to above - stated our Company offers the following services in opening and accreditation of foreign representations:
1. Preparation and signing of necessary documents for reception of accreditation on your Company
2. Delivery of necessary documents for passage of procedure of accreditation and reception of the sanction to accreditation of your representation.
3. Entering representation into the summary state register at the State Registration Chamber (further SRC) and reception of the certificate on accreditation on your organization.
4. Manufacturing a seal, statement of foreign representation on the tax account in ФНС and in unappropriated funds with reception of the notice of the insurant, assignment of codes to statistics in Goskomstat.
5. Opening settlement accounts on representation of your organization.
Experts of our Company, also render free-of-charge consultations on questions of accreditation of representation, will help to prepare projects of documents necessary for passage of procedure of accreditation and will present your interests in competent bodies.
For passage of procedure of accreditation of your organization it is necessary to give the following documents:
· Constituent documents, also to have legalization (apostyle or consular legalization) and translation into Russian;
· The decision of the foreign organization on opening of representation;
· Letter of recommendation from bank in which the foreign organization is served;
· The power of attorney for putting on of duties on opening and passages of procedure of accreditation;
· The contract on granting of the legal address for representation;
· Letters of recommendation from business partners, not less than 2 letters.
Terms and conditions for passage of accreditation of representations.
The branch of the foreign organization will be accredited for the term of up to 5 - ти years, and representation - for the term of till 3th years with an opportunity of the subsequent prolongation of accreditation.
On the basis of the Tax Code, procedures of accreditation of representation and its(her) subsequent prolongation, is raised a State Tax from which it is possible will familiarize, having cluck on the given reference.
State Tax for granting of services in accreditation of representation.
Accreditation of representations of the foreign organization to be carried out(spent) SRC in time, not exceeding 30 days from the date of granting documents on accreditation and then the summary state register is granted the certificate on accreditation and entering.
On the basis of the certificate on accreditation, SRC publishes data on the accredited representation in « the Bulletin of the accredited branches of foreign legal persons », in communication(connection), with what the head of representation has duty on granting the annual reporting.
Prolongation of term of accreditation of representation of the foreign organization occurs at the written reference(manipulation) of the head in SRC not later than 30 days prior to expiry of the term of accreditation representation of the foreign organization.
The state Registration Chamber has the right to give up in accreditation of representation of the foreign organization on the following bases:
· The documents determined by the legislation are not submitted;
· The inexact or incorrect information on the foreign organization is given;
· Activity of the foreign organization contradicts the current legislation.
As, the termination(discontinuance) of activity of the accredited representation in territory of the Russian Federation are possible(probable) on the following bases:
· After expiry of the term of accreditation;
· In case of liquidation of the foreign person having representation;
· Under the decision of the foreign person having representation;
· Under the decision of court;
· In case activity of representation contradicts the legislation of the Russian Federation