Wednesday, 16 March 2016


Are there options for foreign Companies to operate on Russian market without registering local legal entity or openning representative office, branch office?

Some foreign Companies do not like idea of having legal entity in Russia, because they are concerned on having accounts in roubles and acting according to Russian laws.

Even it is absolutely safe to operate in Russia if you are acting in full compliance with local legislation this position is understandable espesially in current situation with instability of local currency.

The option for those Companies who do not want to be involved in local routines but want to sell their products in Russia is establishing a network of dealers or distributors. 

It is important to mention that main difference between dealers and distributors is that price policy towards end-users for dealers is decided by manufacturer. Distributors has their own price policy towards end-users which is not being interfered by manufacturer.

To operate on Russian market successfully even without opening legal entity company will still need employee (mid-senior manager level) with knowledge of Russian language and business processes in Russia. 

This will solve the problem when different partners set up different demands and comments towards manufacturer, each of them claiming that their way of doing business is the right one. Another option is hiring a specialized independent consultunt who will represent company interests without having any commissions from third parties. To find one company should first check consultunt background, projects he or she were involved in, recomendations, etc. Good outsourced consultant or in-house employee with required knowledge will save much money.

Also to mention that goods being sold on Russian territory should be duly certified and marked according to TR TC legislation irrespective of how they are distributed.

Regards, Yury

No comments:

Post a Comment