Closing down (de-registration) a foreign representative office/branch

THE CLOSURE OF REPRESENTATIVE OFFICES OF FOREIGN COMPANIES

The process of closure of representative offices of foreign companies is, in point of fact, often more complex and longer than the closure process of a Russian company. In both cases, it is necessary to prepare an abundant set of the necessary documents and to attend many public authorities. However, all the documents for closure of a foreign branch are to be translated and properly legalized, which increases the period of the procedure. The closureof representative office of foreign company may be carried out by a parent company resolution (including its exit from the Russian market) or by accrediting body decision.

Stages of closure of representative office(branch)of foreign company

After the decision regarding the closure has been accepted and legalized, it should be made available to the accrediting body, moreover, it is necessary to execute not later than within 15 calendar days from the resolution date. You are to receive the documentary evidence of the representation office winding-up. Next, it is necessary to contact the tax authority and various foundations (pension fund, Social Insurance Fund) for the branch deregistration. At the same time all existing contracts are to be terminated and mutual settlements with the partners to be performed, all employees to be dismissed, settlement account to be balanced. Subsequent to the results of these activities, all accounting records are to be properly filled. The tax inspectorate, in such event, may well assign a field audit in case it would find any documents to be suspicious. It is mandatory to return all personal accreditation certificates, in case such ones were received for the branch office staff.

Duration of foreign branch closure

The closure procedure for a branch of a foreign company takes up a considerable amount of time and energy and can last for three to four months. However, all stages are obligatory to be passed, because errors in the procedure itself or failure to meet deadlines may result in real sanctions. And this is not only administrative responsibility, but also financial penalties to which both the distributing company and directly the top manager of the mission could subject. It is rather easy to reduce the time for closure of foreign company branch - it is worth only to appeal to a professional lawyer, who has underwent this procedure (from the decision making to the deregistration certificate)not once. “Your Lawyer” - means 20 years of successful legal experience, the documents, which always are perfectly prepared and acceptable on the first try. It's hard for us to even count how many times together with our clients we underwent the procedure of closing of branch, we are aware of all of its traps and pitfalls. Our lawyers are not just experts, many of them speak fluently in different foreign languages, which makes communication with foreign companies’ representatives free and meaningful. At the request of the customer, we hold consultations, where comprehensively and in details dwell on nuances of the closure process. After you learn about all the “secrets” of the procedure, you would certainly wish to order all-in-one support for the branch closure so that the procedure ceased to cause a headache. “Your Lawyer” offers a perfect rate: minimum of your time and your participation, maximum guarantees and legal benefits!

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