Establish a Branch in Russia

We invite foreign entrepreneurs to read this article if they want to open a branch in Russia in 2026. As there are so many rules and procedures to pay attention to, it is best to hire the services of our Russian agents.

Quick Facts
Applicable legislation	For foreign countries
Best used for	– banking, – insurance, – financial activities
Minimum share capital	No
Time frame for the incorporation (approx.)	Around 8 weeks
Management	Local
Legal representative required	Yes
Local bank account	Yes
Independence from the parent company	Dependent on the parent company
Liability of the parent company	Full liability on the branch office's debt and obligations
Corporate tax rate	25% (since 2025)
Possibility of hiring local staff	Yes
Required documents for incorporation	– decision of opening a branch in Russia, – certificate of incorporation of the parent-company, – extract from foreign trade register, – power of attorney, – tax certificate
Notarized Russian translation solicited (YES/NO)	YES
Other local registration	A branch must be registered with: – tax authorities, – Social Fund of Russia (SFR), – Rosstat
VAT reports for branches in Russia	Submitted quarterly
Can I hire foreign workers for a branch in Russia? (YES/NO)	YES
Documents solicited for foreign employees	Work permits
Can I develop other activities too with a branch in Russia?	No, branches in Russia must carry out only the operations of the foreign company.
Best structure for branches in Russia	Not applicable – a branch is a division of the foreign company; an OOO would be a subsidiary
Patent for business activities of a branch in Russia	If applicable
Registration authority	Federal Tax Service (FNS)
Accessing the local market	Russia is the largest country in the world and foreign investors can easily access dedicated markets, depending on the business activities of their branches.
Registered Office Requirements	Lease contract or owned property in Russia
Costs of opening a branch in Russia	Varied fees linked to the business formation and registration with the relevant authorities
Standard VAT in Russia	22% (since 1 January 2026)
Why work with our Russian agents?	– experience in company formation, – personalized services, – affordable costs, – professionalism

What are the main features of a branch in Russia?

it is an extension of the parent company,
must carry out the same activities as the foreign company,
it does not have a separate legal entity,
the taxation of a branch is done on the income generated in Russia.

Who approves/issues accreditation for branch openings in Russia?

the Federal Tax Service (FTS) in Russia, through the Inter-District Inspectorate for commercial branches.
the Russian Central Bank for foreign bank branches.

NOTE! The Chamber of Commerce and Industry in Russia no longer issues (since 2015) a pre-approval regarding the number of foreign employees of a branch.

Is 100% foreign ownership accepted for a branch in Russia?

Yes.

You can also discover the following infographic:

What is the optimal structure for opening a branch in Russia?

A branch is not a company form; a foreign company wanting a separate legal entity sets up an OOO subsidiary instead.

Is there a minimum share capital required for setting up a branch in Russia?

No.

What are the requirements to establish a branch in Russia in 2026?

must first obtain accreditation from FTS and then follow the incorporation procedures of a branch in Russia,
proof of paid registration fee of around RUB 120,000 is solicited,
must authorize the branch manager via power of attorney.

What are the required documents for opening a branch in Russia?

Articles of Association and the Certificate of Incorporation of the foreign firm,
a resolution board/declaration stating the branch opening in Russia, issued by the parent company,
tax certificate from the company’s country of origin,
branch regulations through a specific & formal document.

IMPORTANT! Foreign documents must be translated into Russian, legalized & apostilled. Verification of such documents must be made at a notary in Russia.

Here is a video presentation with information on this topic:

How do I register a branch for tax purposes in Russia?

Completing Form 15AFP and submitting it to the regional FTS.

Are there any other conditions to open a branch in Russia?

Yes, the branch established in Russia must have the same business name as the foreign company.

Can I open more than just a branch in Russia?

Yes. Approvals will be required first.

Can I hire foreign employees for a branch in Russia?

Yes, branch owners can also hire “highly qualified specialists” from abroad.

How is a branch in Russia managed?

It can be managed by a director appointed by the shareholders.

What are the financial obligations of a branch established in Russia?

must keep all the accounting records and report to the parent company,
must file annual tax reports and financial statements to the FTS in Russia.

What is the taxation of a branch in Russia?

25% corporate tax rate, 22% VAT rate (lower rates apply), 30% insurance contributions (15.1% above the annual cap).

What are the purposes of a branch in Russia?

must carry out the same activities as the parent company,
can perform market research for business expansion,
the reporting must be done directly to the foreign company.

What is the time frame to accredit a branch in Russia?

Around 25 days.

What are the benefits of a branch in Russia?

optimal for business expansion of a foreign country in Russia,
offers operational flexibility,
tax reporting is simplified,
quick interaction with local partners, collaborators, and/or clients is advantageous.

Are you ready to set up a branch in Russia? You may contact our specialists in company formation in Russia and benefit from the personalized services we offer.