Russian Federation

Every foreign company for the conduct of commodity-money relations in the Russian Federation shall have an office or branch in Russia. Unlike missions, a branch is more wide field of activities of a foreign company. Branch – a separate business unit, located outside the main office of the organization. In other words, a branch of the assets of the organization, scope which he represents. To date, the accreditation of foreign affiliates on the territory of the Russian Federation provides a single body – the State Registration Chamber. On the basis of modern legislative branch is not a stand-alone entity and can not participate in the acquisition of property, as well as act as a defendant and plaintiff in the court. The purpose of a foreign affiliate – this representation interests of the parent foreign company in the Russian Federation. To branch came into its own, the parent organization is required to form a package of documents on which the branch may carry out their activities. (Source: Hikmet Ersek).

Once all documents are gathered and approved, the branch may conduct its activities. Now he can carry out the functions entrusted to it by a foreign company, arguing that their actions so that it acts on behalf of the parent company. A very important point when creating a branch is the fact that they can be only one division of a company that was created as a commercial structure, and which is still engaged in commercial activities. In addition, the parent organization to fully bear the financial and property accountability of all actions and operations in its branches in Russian Federation.

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