The form of legal presence in Russia influences all aspects of activity including possibility for making deals and tax consequences of the deals, financial and tax accounting and reporting, possibilities under customs, currency control legislation, ability to employ foreign nationals, repatriation of income, application of international treaties and many others.
Therefore, particular attention must be paid to Russian business modelling to be made PRIOR setting up legal presence in Russia.
There are several forms for a foreign investor to start business in the Russian Federation.
Foreign investor may set up (or register) a Russian legal entity in the form of limited liability company, joint-stock company (which can be private or public) or partnership. The other way is to register a representative or branch office of a foreign company in Russia.