A draft law on subsidiaries of foreign IT-companies has been introduced to the State Duma

A draft law has been introduced to the State Duma requiring foreign companies operating in the field of information technologies to open representative offices on the territory of the Russian Federation if the number of Russian users of an information resource exceeds 500,000 per day.

Besides a representative office, a foreign company may set up a legal entity on the territory of the Russian Federation or create a branch that will represent the interests of the parent company in the field of business activities as well as in relations with Russian state bodies.

Thus, a foreign IT-company that meets the specified criteria will be required to:

• establish a branch in Russia, open a representative office or a relevant legal entity;
• register a personal account on the Roskomnadzor website;
• post an electronic feedback form for Russian citizens and companies on its website.