Barabashev & partners

Engagement of a foreign national as General Director of Russian Company

Date: 30-01-2013
A legal entity shall be deemed created upon the state registration thereof, that it, the day of entry of the respective record in the Unified State Register of Legal Entities (Federal Law dd. 08 August 2001 No. 129-FZ "On state registration of the legal entities and private entrepreneurs").

Article 12 of Federal Law dd. 08 August 2001 No. 129-FZ "On state registration of the legal entities and private entrepreneurs" sets out a list of documents to be submitted for the state registration of a legal entity upon creation. Registration (tax) authorities do not require mandatory submission of documents that permit engagement and use of foreign workers in order to carry out state registration.
Thus, a permit for engagement and use of foreign workers to register a foreign national as general director is not required.
It is important to note that in the process of registration the applicant may be the director or the founder of the legal entity. Documents shall be submitted personally or by mail. In case of personal submission, any person acting under a power of attorney issued by the applicant may receive registered documents and the registration certificate, which substantially facilitates reception thereof. The tax inspectorate reviews submissions within 7 to 10 days. In case of submission by mail, the Tax Service sends its favourable decision concerning the creation of the legal entity together with the package of documents to the legal address of the new company. In case a negative decision is taken by the Tax Service, the applicant receives the documents at its residential address. The delivery time for mail starts from two weeks, and sometimes delivery fails.
If a foreign national is a director, a notarized translation of his/her passport is required.

There is a special procedure for employment of the citizens of states with which Russia has entered into visa-free treaties. These states are: Ukraine, Belarus, Kazakhstan, Abkhazia, Kyrgyzstan, Armenia, Azerbaijan, Moldova, Tajikistan, Uzbekistan.
Upon their entry to the Russian Federation, a foreign national shall within 3 days register at the temporary residence address. The registration shall be carried out either by the employer (following employment) or any person with whom the foreign national is staying. Such notice of registration at the temporary residence address may be submitted by mail or directly to the division of the migration service. The foreign national holds a tear-off receipt of the notice which confirms the legal nature of their stay in the Russian Federation.

A requirement to employment of foreign nationals temporarily staying in the Russian Federation is a work permit (cl. 4 Article 13 of Law No. 115-FZ "On the Legal Status of Foreign Citizens in the Russian Federation"). A foreign national which has entered into the Russian Federation in a procedure that does not require a visa shall apply for a work permit in person or through the organization that carries out employment of foreign nationals in the Russian Federation, or through a person that represents them under a power of attorney.

Together with the application the foreign national submits the following:
1) a notarized translation of their passport;
2) a migration card bearing a mark of a border control body confirming the entry of the foreign national into the Russian Federation, or a mark of the territorial division of the federal executive migration body confirming issue to the foreign national of the above migration card;
3) a receipt confirming payment of a state duty for issue of a work permit to the foreign national (RUR 2,000);
4) a labour agreement or a Russian Federation civil contract for works (services) entered into and executed in compliance with the laws of the Russian Federation (if available).

If the work permit of the foreign national who entered the Russian Federation in a procedure that does not require a visa has been issued for a period of over 90 days he/she shall within 30 days upon receipt thereof submit to the territorial division of the federal executive migration body documents confirming absence of drug addiction or infectious deceases which pose a hazard to health of people as per the schedule approved by the federal executive body authorized by the Government of the Russian Federation, as well as a certificate of absence of a decease caused by the human immunodeficiency virus (HIV). Schedule of deceases: Decease caused by the human immunodeficiency virus (HIV), leprosy (Hansen's decease), tuberculosis, infections with a predominantly sexual mode of transmission (syphilis, chlamydial venereal lymphogranuloma, chancroid).

By a general rule, the employer may engage and use for employment foreign nationals only subject to a permit for engagement of foreign work force. However, foreign nationals who entered the Russian Federation in a procedure that does not require a visa and having work permits may be employed in absence of the permit for engagement and use of foreign workers, however, subject to a mandatory notification of such engagement and use of the territorial federal migration service that issued a work permit to the migrant and the labour office. Such notification shall be filed within 3 business days upon conclusion of a labour agreement with the worker in the form stipulated by the law.
A fine for violation of the above requirement amounts to RUR 400,000 to 800,000.
One shall also within 10 days submit a notice to the tax inspectorate at the company's registration address by ordinary letter with a list of enclosures.

If a foreign national is employed in the Russian Federation for the first time, the employer shall issue a labour book by the rules stipulated in the Russian laws (Article 65 of the Labour Code of the Russian Federation, Government Resolution of the Russian Federation dd. 16 April 2003 No. 225 "On labour books").

Lawyers of BBNP will assist with execution of a work permit for your employee and provide visa support services.
Please contact us should you have any questions.
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