Russian legislation defines that accounting is the responsibility of all economic entities that carry out their activities on the territory of the Russian Federation.
Speaking about the financial audit in Russia, we should mention that it can be mandatory or voluntary. The voluntary audit is carried out if the company decides to do that. The mandatory audit is carried out on the basis of the requirements of legislative and regulatory acts of the Russian Federation, which establish the compulsory verification of annual accounting statements for some categories of economic entities.
Outsourcing Solutions has multiple years of experience in providing registration and bookkeeping services to foreign organizations (representative offices, branches and limited liability companies) operating in Russia. Our regular customers are companies from the USA, Great Britain, Germany, Italy, Denmark, Sweden, Poland, France, China, Panama and other countries.
More and more branches and representative offices of foreign companies are established in Russia. When performing the functions of a legal entity, they must keep accounting and tax records like Russian companies that implies duly preparation of accounting reports according to the established forms and its timely submission to the corresponding authorities in respect of their business activity.
The Russian Federation is one of the most promising economical regions of the world. This is why leading international companies seek to do their business in this country. For this purpose, international companies open their branches and representative offices in Russia. This creates the need for bookkeeping and tax accounting in the country of their accreditation, i. e. in this country.
Business activities have long been international. Labor resources and money flows move around the world almost unimpeded. Of course, in Russia as well, there are foreign investments. Legal entities and individuals who have the status of a foreign resident invest in organizations having various forms of ownership. The goal of business is profit. Founders of enterprises receive it in the form of dividends. But how precisely are dividends paid in accordance with the law to a foreign founder as a legal entity?
Lately, the volume of foreign direct capital investment in the Russian economy is constantly decreasing, and the withdrawal of funds abroad has intensified. The major causes are the pressure of international sanctions, the increase of crisis tendency and the deterioration of the geopolitical situation. In the recent circumstances, the advantage is given to venture business, businesses with foreign capital investment from China and South Korea emerge.