Establishing A Company In Russia - Possibilities And Risks

1. The choice of form for establishing a representation in Russia

The emerging free market in the Russian Federation creates various opportunities for foreign entrepreneurs to conduct their activities in the Russian Federation. Even when a foreign company does not consider a direct investment in the Russian industry as a prospective way to develop its business or does not have sufficient information to estimate whether these investments will yield a fair return the foreign company may be interested in exporting its goods or services into Russia. For such a company the appropriate way would be to establish a permanent local representation. This does not require a big investment but may create the basis for a further extension of activities in Russia.