Every company which is registered in Russia has to open a bank account in Russia. The reason is that tax payments have to be settled from a Russian bank account.
This is required by a document of the ministry for finances of the Russian Federation, Department of taxes and custom policies, of April 13th, 2007 (number 03-02-07 \ 1-
A lock of the account entails serious problems for the company. The most frequent reasons for an account lock are listed below:
- Tax reports were not punctually handed in to the Russian authorities;
- Amounts due to taxes were not settled;
- The accreditation was not extended up to the maturity day (representative
- Liquidity is not efficient enough to pay financial commitments.
What can you do to prevent an account lock? The following aspects should be taken into consideration in order to exclude a freezing of an account:
- Engage only professional accounting and reporting employees for the
Russian accounting of your company.
- Transmit the required documents and information for the writing of reports to
the responsible accountants on time.
- Let only trustworthy courier services transmit reports and documents for
audits. Better not rely on the Russian postal service.
- Plan your liquidity long enough in advance. Always make sure that your
availability of liquid funds is sufficient.
Apply for the extension of the accreditation of your representative office long enough in advance so that you can prepare all required data and documents early enough. We recommend you to begin with the application for the new accreditation three months before the current accreditation expires.