PDA

View Full Version : "Independent Contractor" status (not Entrepreneur's License)?



Bogatyr
11-11-2009, 22:44
Has anyone heard of an "independent contractor" (consultant) status (called a "grazhdansko-pravovoy dogovor"). This is not the Entrepreneur's License, it's not a license at all just an agreement. I may be doing a few months of work for my US-based company (with a presence in Moscow) once I arrive in Saint Petersburg on a 90-days delovaya visa. The company is offering this sort of a work relationship since I will not be a regular employee for various reasons. This is supposedly just an agreement between the company and me, and is called a "grazhdansko-pravovoy dogovor" and supposedly only requires me to have a visa for and to be registered in Russia. This agreement supposedly protects the company in hiring a foreign citizen to do work, but what about me? Do I need anything other than this agreement to be legitimate? I do understand I will have to pay Russian taxes (probably at the 13% rate since I won't have the Entrepreneur's License yet, or even 30% for the end of the year since it will begin in the last month of the year, December?). Is there any downside to this sort of agreement for me (I'm aware of the obvious: no benefits, insurance, etc.)? Meaning, could it interfere with my application for temporary residency in any way?

Bels
11-11-2009, 22:57
I don't know why you chose this direction and I have never heard of it. But if you are already seeking TRP, isn't it a better deal for going for entrepreneurs license and paying 6% tax. Is this not the best idea? Also there is no problem with getting entrepeneurs licence interfering with your TRP application.

tvadim133
11-11-2009, 23:50
If I am not mitsaken, cause I used something like that 12 years ago or more to hire some people, it is a contract according to which you provide a company with some service during short period of time, and company will pay exactly for the service you did (for example: translation, organizing an event, writing a special program e.t.c.).

According to this contract, you are not hired by the company (you are freelancer). I used it ti hire promoters and office cleaners

12 years ago, all taxed (13%) were paid by the company but are taken from the ammount of money, the company should pay for your service.

May be now there are some changes.

All responsibilities regarding your "relationship" with the state and your health(visa, registration, insurance e.t.c.) are your own problem.

As a Russian even, I would think to accept the offer for a long period of time..

Bogatyr
12-11-2009, 00:18
I don't know why you chose this direction and I have never heard of it. But if you are already seeking TRP, isn't it a better deal for going for entrepreneurs license and paying 6% tax. Is this not the best idea? Also there is no problem with getting entrepeneurs licence interfering with your TRP application.

I only plan on having a temporary relationship with the company to start out with. The idea with this independent contractor approach is that I could start receiving income almost immediately upon arrival in Russia as opposed to waiting for the Entrepreneur's License. Can one even apply for the Entrepreneur's License while on a 90-day delovaya visa and before one receives the TRP? If I applied for both simultaneously (TRP and Entrepreneurs) would I have to do double medicals, double waiting in line, etc?

I do plan to acquire the Entrepreneur's license as soon as possible. Once I have that any subsequent business arrangements would be under that.

Thanks for the feedback, I appreciate it!

Bogatyr
26-11-2009, 02:29
I only plan on having a temporary relationship with the company to start out with. The idea with this independent contractor approach is that I could start receiving income almost immediately upon arrival in Russia as opposed to waiting for the Entrepreneur's License. Can one even apply for the Entrepreneur's License while on a 90-day delovaya visa and before one receives the TRP? If I applied for both simultaneously (TRP and Entrepreneurs) would I have to do double medicals, double waiting in line, etc?

I do plan to acquire the Entrepreneur's license as soon as possible. Once I have that any subsequent business arrangements would be under that.

Thanks for the feedback, I appreciate it!

Does anybody have a pointer to the requirements for setting up this "independent contractor" status? I've been referred to an agency by the company I'll be contracting for, and recall reading that agencies are not worth the money for things like temporary residency (at least if you're outside the quotas). I've been told for "independent contractor" status (an agreement with a single company) all you need is a visa and registration. Does anybody know what's required to set this up? I have a Russian speaking citizen wife, so unless something with "connections" is required I can probably do fine on my own.

thanks!

moscowbni
26-11-2009, 13:19
I don't know why you chose this direction and I have never heard of it. But if you are already seeking TRP, isn't it a better deal for going for entrepreneurs license and paying 6% tax. Is this not the best idea? Also there is no problem with getting entrepeneurs licence interfering with your TRP application.

You can't get your "Individual Entrepeneurs" license unless you have TRP, or are a Permenant resident. It takes upto 6 months to obtain TRP once you have done the paperwork, and filed the request. Be sure to read the threads here to be ensure that you obtain all the required leagalized paperwork while you are back in the states...to apply for your TRP once you arrive. Technicaly, you shouldn't work here if you don't have a work permit and associated visa.

If you are just looking for a way to collect money from the company, you might consider registering your Russian wife as an Individual Entrepeneur, and invoicing through her as if she is providng the service...or asking to be paid offshore. This is not above board, but has been done in the past from what I hear. After you obtain TRP, you can then start doing things in your name and onshore.

Bogatyr
26-11-2009, 22:29
You can't get your "Individual Entrepeneurs" license unless you have TRP, or are a Permenant resident. It takes upto 6 months to obtain TRP once you have done the paperwork, and filed the request. Be sure to read the threads here to be ensure that you obtain all the required leagalized paperwork while you are back in the states...to apply for your TRP once you arrive. Technicaly, you shouldn't work here if you don't have a work permit and associated visa.

If you are just looking for a way to collect money from the company, you might consider registering your Russian wife as an Individual Entrepeneur, and invoicing through her as if she is providng the service...or asking to be paid offshore. This is not above board, but has been done in the past from what I hear. After you obtain TRP, you can then start doing things in your name and onshore.

Please note the title of this thread -- "independent contractor" status is not the same thing as the "entrepreneur's license." And it's not really a status per se, but a single agreement for short-term work with a particular company.

Bels
26-11-2009, 23:28
I am not so sure about that. I do believe you can get Entrepeneurs' license even with a business visa. However it will not change anything in regards to 90 days in and ninety days out on visa restrictions. The Russian government has no problem in you having a desire to legally pay their taxes whatever. Of course if you happen to be an Oil tycoon they would not be too happy with you paying only 6% in taxes. For Small individuals businees growth only. That is the reason of this liscence.

Yes I got mine with temporary residence,temporary and then permanent keeps me in the country without having to leave to renew another visa. It is as simple as that.

If you are just looking for a way to collect money from the company, you might consider registering your Russian wife as an Individual Entrepeneur, and invoicing through her as if she is providng the service...or asking to be paid offshore. This is not above board, but has been done in the past from what I hear. After you obtain TRP, you can then start doing things in your name and onshore.[/QUOTE]
[QUOTE=moscowbni;602072]You can't get your "Individual Entrepeneurs" license unless you have TRP, or are a Permenant resident. It takes upto 6 months to obtain TRP once you have done the paperwork, and filed the request. Be sure to read the threads here to be ensure that you obtain all the required leagalized paperwork while you are back in the states...to apply for your TRP once you arrive. Technicaly, you shouldn't work here if you don't have a work permit and associated visa.

Ian G
27-11-2009, 10:58
Just to clarify what's already been said on this thread. There is no independent contractor status in Russian law. "Independant contractor" is a way of describing a legal relationship - the alternative is "employee". To be an independent contractor (and sign a services agreement) you have to have either "individual entrepreneur" status or be a legal entity.

Bogatyr
27-11-2009, 19:54
Just to clarify what's already been said on this thread. There is no independent contractor status in Russian law. "Independant contractor" is a way of describing a legal relationship - the alternative is "employee". To be an independent contractor (and sign a services agreement) you have to have either "individual entrepreneur" status or be a legal entity.

And what is a "legal entity"? I'm hoping (and have been told) that it means "in Russia on a valid, registered visa" (mine is "delovaya").

Bels
27-11-2009, 20:18
And what is a "legal entity"? I'm hoping (and have been told) that it means "in Russia on a valid, registered visa" (mine is "delovaya").
To me a legal entity in Russian English means a company or an individual person registered with the Russian tax office as being in business.

In other words a legal entity is a OOO company, or other form of Russian company, or a person licensed as an individual or partner entrepeneur. You must be registered in Russia with the Russian tax office as a company, partner, or individual being in business in Russia. That is a legal entity to Russians.

Kvartiraokhotnik
28-11-2009, 13:22
To me a legal entity in Russian English means a company or an individual person registered with the Russian tax office as being in business.

In other words a legal entity is a OOO company, or other form of Russian company, or a person licensed as an individual or partner entrepeneur. You must be registered in Russia with the Russian tax office as a company, partner, or individual being in business in Russia. That is a legal entity to Russians.

Can I ask Bels....

Do you have permission to work, as well as TRP and entrepreneurs license?
I have TRP and am planning on getting the entrepreneurs license, but do i need permission to work?

Thanks mate for any tips - Russian law is mighty complicated.