Establish a Branch in Russia

The Russian branches are chosen by the companies that prospect the Russian market before taking the decision of opening a limited liability company or a public limited liability company. The liability for the branch’s actions belongs to the foreign company and the branch can take very few decisions without the consent of it. One of our experts in company formation in Russia can give complete support and assistance for opening a branch in Russia.

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	15%
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, – pension fund, – social security, – medical insurance fund, – State Committee
VAT reports for branches in Russia	Submitted every month
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	Limited liability company (OOO)
Patent for business activities of a branch in Russia	If applicable
Registration authority	Russian Registration Chamber
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	20%
Why work with our Russian agents?	– experience in company formation, – personalized services, – affordable costs, – professionalism

Legal requirements for opening a branch in Russia in 2025

There is an obligation to receive an accreditation from the State Chamber of Registration by the branches before starting the operations in Russia in 2025. The accreditation can be also received from the Chamber of Trade and Commerce or various Ministries of the Russian Government. There is an accreditation tax that has to be paid before registration at the State Chamber of Registration and a state duty that must be acquitted. For registration of a branch in Russia, it’s advisable to consult a lawyer because of the large number of documents that have to be deposited. The below information and documents are necessary in order to register a branch with the State Registration Chamber by the parent company:

• the foundation deeds and the company’s charter,
• the certificate of incorporation,
• the certificate of registration,
• an extract from the foreign trade register where the company is registered (or the certificate of good standing),
• the decision to open a branch in Russia,
• the internal rules of the branch,
• a certificate from the foreign bank, where the company is keeping its accounts regarding the good stand of it,
• the general power of attorney for the branch’s representative,
• the power of attorney for subscribing the documents in the name of the foreign company,
• tax certificate and the specific tax identification number,
• certificate of payment of the registration duty.

Incorporating a branch in Russia takes around 8 weeks, depending on the formalities and complexity. But in order not to be hit by the language barrier, we recommend that you contact one of our local specialists who can take care of all the procedures and paperwork required by law.

More about how to establish a branch in Russia in 2025 can be discussed with our specialists in company formation in Russia. You can also discover the following infographic:

Post branch registration formalities in Russia

Once the branch registration process has been completed, the company owner receives a series of certificates (PSRN, TIN, etc.), a notice of registration issued by the Pension Fund in Russia and one from the Social Insurance Fund, plus an information letter from the Chief Interregional  Center of the Federal State Statistics Service in Russia.

The company seal, the decision of minutes, plus other documents will be delivered at the time the branch is established in Russia. All the formalities for branch registration in Russia can be handled by one of our company formation specialists in Russia.

Who can establish branches in Russia in 2025?

Foreign company owners interested in doing business in Russia in 2025 can think of establishing their operations under the rules of a branch. We remind you that to have a branch in Russia, a limited liability company needs to be registered. The minimum share capital for opening an OOO or LTD in Russia is set at RUB 10,000 which needs to be deposited in a local bank account. It is good to know that at least one shareholder can open a limited liability company in Russia.

Business sectors for branches in Russia

The appealing business sectors of Russia allow foreign investors to set up any kind of operations as long as they respect the applicable laws. Most of the branches in Russia are found in the banking sector, IT, insurance, logistics, mining, agriculture, import & export, and many more. For more details about the types of investments in Russia, you can talk to one of our specialists.

Here is a video presentation with information on this topic:

Advantages of branches in Russia

Even if branches do not benefit from a level of independence as it is the case of subsidiaries, there are other kinds of benefits. For instance, Russian branch offices pay taxes only for the incomes generated in the country of establishment. More than that, branches registered in Russia are protected by the provisions of the double taxation treaties signed by Russia with a large number of states.

Are there any office facilities for branches in Russia?

Yes, foreign entrepreneurs can choose between a traditional office and a virtual one for their branches in Russia, depending on the business needs in this country, mentioning that a virtual office is a temporary solution. The difference between these two refers to the costs involved, meaning that a virtual office in Russia is subject to low expenditures. As for the facilities of a virtual office in Russia, we mention a prestigious business address, mail collection, a virtual assistant, the use of meeting rooms, collection of bank statements, and many more.

Differences between branches and subsidiaries in Russia

The main difference between branches and subsidiaries in Russia is the level of independence of each entity. Branches are completely dependent on the parent company, while a subsidiary has full independence that allows other activities too.

In terms of taxation, subsidiaries are obliged to register for all tax purposes and submit annual financial statements, while branches need to pay the taxes imposed only on the incomes generated in Russia. As for common advantages, both branches and subsidiaries are protected by the double taxation treaties signed by Russia.

Business and economy updates for Russia in 2025

Given the current social and economic context of Russia, a series of legislative changes are expected that are intended to keep the country’s economy on a positive path. We will review some important aspects to keep in mind if you want to start a business in Russia in 2025:

• In 2024, the Russian economy grew by almost 4%.
• The manufacturing sector of Russia, which grew by 8% in 2024, was the one that largely supported Russia’s economic growth, of almost 4%.
• Foreign investments and consumer activity were other important factors that supported Russia’s economic growth in 2024.
• However, the Central Bank of Russia decided to raise its benchmark interest rate to 21% in 2025.

Interested in company incorporation in Russia? You can also benefit from the services of our accountants in Russia. Feel free to contact our local agents and find out more about the business requirements for setting up a company in Russia, including branches.