Employing a foreign US client’s sales manager in Russia via International PEO solution without creating Legal Entity

Our client with USA-based headquarters wanted to expand into the Russian market. Their approach was to hire a sales representative to execute the company’s sales strategy in Russia. They identified a Ukrainian man with extensive knowledge of Russia and hired him to be their sales rep.

The challenge was that the Ukrainian could not work in Russia because he did not have a work permit. This is a general requirement for all foreigners who need to conduct business operations within the Russian territory.

The challenge for Ukrainians is that getting work permits has become increasingly difficult. This is as a result of the souring relations between Russia and Ukrainian governments since 2013. Therefore, getting work permits for Ukrainians in Russia is quite difficult (and vice versa). The process can be lengthy.

Our client did not have the time to spend months trying to get a work permit for their sales rep. They also did not want to take the option of setting up a legal entity in Russia. They needed their sales rep executing their sales strategy in Russia within the shortest time possible.

Solution

We recommended onboarding the client using our Global Employer of Record service. Under this arrangement, the sales rep would be inducted as part of the Acumen International staff operating in Russia. This would enable him to conduct business operations in the country without a hitch.

Our client agreed and immediately the sales rep was onboarded with Acumen International in Russia. This enabled us to provide him with a working permit to work with a foreign company within Russia. All this was carried out in full compliance with the Russian employment laws. The sales rep was therefore clear to begin business operations within Russia.

As a bonus, we provided the sales rep with all the infrastructure needed to begin conducting operations within Russia. These included insurance, car leasing and servicing. We even enrolled the client with car services during the times they visited their sales rep. Essentially, we ensured that the client had everything required to successfully launch and run their business operations in Russia.

Result

Our solution enabled the company’s expat sales rep to begin working in Russia and run business operations without opening a legal entity. The sales rep has been working in Russia since 2014 up to the present – expanding the client’s presence in the country year by year. Given the long period of stay, the sales rep became eligible for Russian citizenship and acquired this. All this was possible because of Acumen International’s Global Employer of Record service. This is precisely why the company keeps renewing its working agreement with us with every passing year.

At Acumen International, we provide a risk-free, fast and reliable global employment solution. We are a Global Employer of Record serving in over 180+ countries and growing. We employ foreign workers on your behalf and take up the responsibility of their welfare. Our goal is to make it easy for businesses to expand to overseas markets by providing a hassle free, 100% compliant international employment service. Using our express service, you can have your foreign workforce up and running in as little as a couple of days. Call us for a free no-obligation consultation on our service and onboarding foreign workers.

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