Absolutely every legal entity, if necessary, can decide to expand the boundaries of its business activities, creating various separate divisions or, in other words, opening a branch. This right is reserved for her by law. However, many do not know how it works.
What is meant by the term "branch"?
A branch is a term that is unique to various legal entities. In this regard, any private entrepreneur who is an individual, if necessary, can organize a certain workplace or even several, and then, for example, engage in the sale of certain goods through them without notifying the tax inspectorate thereof. Create such separate units, as well as inform about their opening tax authorities only organizations can.
Unlike a specific legal address or its location, a branch is a unit that can be located not only in other constituent entities of the Russian Federation, but also in principle in other cities or countries. First of all, they are opened in order to expand the activities of a certain company through auxiliary outlets or the use of additional service offices.
Tax code
In accordance with the current Tax Code, it is determined that a branch is any unit that is geographically isolated from a legal entity, where all kinds of jobs are equipped for a period of more than a calendar month.
At the same time, the term “workplace” provides for a certain area or territory on which the employee should be located in the course of his work or where he will be obliged to arrive in connection with the fulfillment of the labor functions assigned to him. At the same time, it is worth noting that, from the point of view of the tax service, a branch of an organization is one equipped place where one company employee works.
A separate place cannot be a functioning place where an employee is not located, as well as the labor activity of a certain employee of the company, working away from the main office (for example, at home), but without a specially equipped workplace to fulfill his duties .
Types of units
In accordance with applicable law, any legal entity has the right to create special separate divisions, which are representative offices, as well as company branches. However, it is worth noting the fact that these are radically different things from the point of view of legislation, and you need to consider if you are going to expand your business or any other activity.
Representation
A representative office is a separate subdivision of a certain legal entity that is involved in the representation and protection of its interests, but is located outside its location. It is important to understand that branches and representative offices are two different things. In this case, exclusively representative functions are provided, that is, advertising of certain services or goods offered by this company is carried out, as well as information or any other support to the clients of the legal entity is provided.
Branch
A company branch is a separate subdivision, the competence of which includes all the functions of the company or a certain part of them, but at the same time located outside the place of this company.However, it is worth noting that the branch in this case has an order of magnitude more functions of a legal entity compared with what functions a representative office has.
It is also worth mentioning that the branch of a legal entity is a full-fledged structure, which has the right to engage in entrepreneurial activity in full, just like the company itself, that is, in fact, is a completely separate organization.
However, regardless of the convenience and beauty of each particular option, none of them is a legal entity, that is, it will always act in the interests of the name of the company that formed them. However, it is worth noting the fact that the company also assumes full responsibility for the performance of this unit. A branch of a store or a branch of a bank - it makes no difference.
How does it work?
Considering the differences from representative offices and branches from standard separate subdivisions, for which it is simply necessary to equip a workplace and place a company employee in it, a number of actions will need to be taken to form a branch or representative office:
- To develop, as well as approve various fundamental documents, namely the "Regulation". In addition to this document, it is also important to correctly fill in the constituent documents of the legal entity that made the decision to form this unit. For example, you can use the Charter.
- A manager should be assigned to the branch, assuming all kinds of managerial functions, based on the power of attorney issued by the legal entity.
- The constituent documents of a legal entity must be made all relevant changes.
Any information related to the fact that a certain representative office or branch of an enterprise was opened / closed is information that must be prescribed in the relevant constituent documents, as well as additionally recorded through the authorized tax authority.
A responsibility
In accordance with the laws, in addition to the fact that the company must obligatorily notify the tax authority of the opening or closing of its representative office, there is also a liability for violation of this obligation in the form of a fine. At the moment, the penalty includes 200 rubles for each individual document that was not provided by this company on time.
Tax accounting
To date, a legal entity is not required to register any branch of the company. This change in tax legislation was adopted relatively recently, and nowadays, after all the relevant changes to the constituent documents of the company are made, as well as after they are registered with the tax authority, absolutely automatic setting is carried out or, conversely, deregistration of a representative office or branch of a company.
What to consider?
Initially, you must understand what exactly you are going to open: a branch or representative office of the company. In some situations, it is better to use the services of qualified specialists in order to choose the most optimal option for yourself. All information about those representative offices or branches operating at the moment must be indicated in the constituent documents of the company deciding on their creation.
Registration of a representative office of a foreign legal entity is possible only if permission has been obtained from the registration authority. A branch of a foreign company also has the right to engage in entrepreneurial activity on its territory of the Russian Federation only after its registration is completed.
A representative office of a foreign legal entity is formed on the territory of Russia in order to coordinate and develop cooperation in the field of investment, the economy, as well as various foreign economic relations.
Any foreign citizen who works in a representative office in the Russian Federation must undergo personal accreditation. It should be noted that Russian citizens will also have to undergo accreditation in the event that they are appointed to the post of head of this mission.
How does a branch open?
The branch opens as follows:
- Legal registration of all necessary documentation takes place.
- Documents are transmitted to the IMNS, after which a certificate must be obtained that the branch has been registered.
- The following documents are submitted to the IMNS in order to obtain a certificate of registration.
- Obtaining all the necessary codes of Goskomstat.
- Submission of documents with subsequent receipt of notifications from various state funds.
- Making your own print.
- Certification of all necessary bank cards.
- Opening an individual company account in one of the banks.
- Payment of all relevant fees and charges prescribed by applicable law.
Thus, opening a branch is a rather time-consuming procedure, but in many cases simply necessary for the development of your own business.
