11.08.2014 Natalia Zelentsova, associate at Maxima Legal

Procedure for accreditation of branch, representative office of a foreign legal entity has been changed

Procedure for accreditation of branch, representative office of a foreign legal entity has been changed by the Federal Law. Procedure for personal accreditation of foreign citizens employed by those branches or representative offices has been changed by virtue thereof as well.

In particular, within 12 months upon making a decision to establish or open branch or representative office of a foreign legal entity on the territory of the Russian Federation, the respective foreign legal entity must submit to an authorized federal executive body its application seeking accreditation including information about number of foreign citizens employed by such a branch, representative office and documents required for accreditation of such a branch, representative office of a foreign legal entity certified by the Chamber of Commerce and Industry of the Russian Federation (CCI RF).

Accreditation of branch, representative office of a foreign legal entity shall be made within a period not exceeding 25 business days upon submission of the respective documents together with the application seeking accreditation to the authorized federal executive body.

Refusal of accreditation of branch, representative office of a foreign legal entity may be caused, for example, by a failure to submit the requisite documents, untrue information revealed in the submitted documents, or if the branch, representative office is established, opened for the purposes contradictory to the Constitution of the Russian Federation, international treaties to which the Russian Federation is a party, laws of the Russian Federation or jeopardizing sovereignty, political independence, territorial integrity, national interests of the country.

An obligation of personal accreditation of foreign citizens employed by a branch, representative office of a foreign legal entity is imposed at the level of the Federal Law.

The Federal Law shall become effective from 1 January, 2015, save for its specific provisions for which other effective date is established. The transitional period provisions concerning existing branches and representative offices are provided by the Federal law.