A Russian company in Latin America: structure, documents and everything to be done in Russia

What is happening

An equipment manufacturer has received its first major order from Mexico and wants to open a subsidiary there for servicing and warranty repairs. It needs to choose a legal form, work out how to pay in the capital from Russia and what to report to the tax authority.

An IT company is building a team in Argentina and Chile. Questions arise: whether to work under direct contracts or through a local legal entity, how to apply the double tax treaty to payments for services, and where to hold the account.

A distributor already operates in Brazil through an agent and wants to buy the agent's business. The partner's bank requires a know-your-customer package and an explanation of the source of funds, and the Russian bank asks whether a permit is needed for the transfer.

What the law says

• A company in a country of the region is registered by local authorities under local law: in Brazil, the state commercial registry (Junta Comercial) and Receita Federal, with a CNPJ number; in Mexico, the Registro Público de Comercio and SAT, with an RFC number; in Argentina, the Inspección General de Justicia or the provincial registry, with a CUIT tax number; in Chile, the Registro de Empresas y Sociedades and SII, with a RUT number; in Colombia, the chamber of commerce and DIAN, with a NIT number; in Peru, SUNARP and SUNAT, with a RUC number. These steps are carried out by a local specialist.
• In Mexico, a company with foreign capital registers with the National Registry of Foreign Investment within 40 working days of the date the investment enters its capital (Article 32 of the Mexican Foreign Investment Law, Ley de Inversión Extranjera).
• Russia has double tax treaties in force with Argentina, Brazil, Venezuela, Cuba, Mexico, Chile and Ecuador; there are no such treaties with Colombia, Peru, Nicaragua or Bolivia (Russian Ministry of Finance information on the status of treaties as of 14 July 2026). The treaties with countries of the region have not been suspended.
• Payment by a Russian resident for a stake or contribution in a foreign company is restricted by Presidential Decree No. 126 of 18 March 2022. Under Bank of Russia working group decision No. PRG-43-11/1199 of 1 June 2026, from 1 July 2026 such payments are permitted without an individual permit up to the equivalent of RUB 30 million in favour of a single non-resident; above this limit, a Bank of Russia permit is required.
• A Russian company notifies the tax authority of opening an account abroad no later than one month after opening it and submits reports on cash flows through the account (Article 12 of Federal Law No. 173-FZ of 10 December 2003 "On Currency Regulation and Currency Control").
• Participation in a foreign organisation with a stake of more than 10% must be notified to the tax authority within three months (subparagraph 1 of paragraph 3.1 of Article 23 and paragraph 3 of Article 25.14 of the Tax Code). If the local company becomes a controlled foreign company (CFC), the controlling person files a CFC notification: for an organisation, no later than 20 March of the year following the period in which the profit is recognised (Article 25.13 and paragraph 2 of Article 25.14 of the Tax Code).
• US dollar payments pass through US correspondent banks and are subject to their rules; separate US sanctions programmes apply to Cuba, Venezuela and Nicaragua. Banks in the region generally apply enhanced due diligence to clients with Russian beneficial owners.
• Exporting goods and technologies that may be used to create weapons and military equipment requires permits under Federal Law No. 183-FZ of 18 July 1999 "On Export Control".

What we do

• We help choose the country and form of presence to suit the task: a subsidiary, an agent, a distributor or direct contracts.
• We brief the local lawyer or notary: what to set up, which documents are needed from the Russian side and by when. If you do not have your own specialist in the country, we help you choose and vet one.
• We prepare the Russian shareholder's documents: an extract from the Unified State Register of Legal Entities (EGRUL), the decision to participate in the foreign company and powers of attorney; we arrange notarisation, the apostille and translation into Spanish or Portuguese.
• We check the Bank of Russia limit on paying for the stake, prepare a permit application if needed, and register the contract with the authorised bank.
• We keep the Russian reporting calendar: notifications of a foreign account and of participation in a foreign company, cash flow reports, CFC notifications.
• We check how the double tax treaty applies to dividends, interest, royalties and services, and obtain confirmation of Russian tax residence for the local tax agent.
• We carry out sanctions screening of the company, counterparties and banks against US, EU, UK and local lists, and prepare a document package for the bank.
• We draft contracts with local partners: governing law, dispute resolution, currency clause, terms in case a payment is blocked.

What we will need from you

• A project description: country, what you sell or produce, planned volumes and timeline.
• The Russian company's constitutional documents and information on its beneficial owners.
• Details of the future head of the company or representative in the country.
• Contracts and correspondence with local partners, if any.
• Information on the banks you plan to use for payments.