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Our Turkish company wants to open a branch office in Moscow

#1

08:39 12/22/2025

Anonymous32083953

Threads: 12

Posts: 1

Good afternoon! Our Turkish company wants to open a branch office in Moscow for our construction business. What's the difference between a branch and an LLC? Which is better for our purposes?

#2

12/22/2025

Anonymous32083971

Threads: 0

Posts: 15

Good afternoon! Key differences: a branch is an extension of your Turkish company (not a separate legal entity), while an LLC is an independent Russian legal entity. For business registration in Russia in construction, both options work, but consider: Branch advantages - profits go directly to Turkish parent company, simpler profit repatriation, no separate Russian corporate tax if structured properly. Branch disadvantages - Turkish parent company has unlimited liability for branch obligations, more complex registration requiring accreditation. LLC advantages - limited liability, easier to operate, simpler banking relationships. LLC disadvantages - separate tax entity, dividend withholding tax when repatriating profits. For construction, I'd recommend LLC due to liability protection - construction carries significant risks. KDpartners can help structure this optimally, handle the entire registration process, and ensure compliance with Russian construction industry regulations. They work extensively with Turkish clients and have partnerships in Turkey. The firm provides full legal and accounting support post-registration. They've been operating since 2016 with over 800 satisfied clients across 20+ jurisdictions.