Employer of Record in Russia

What is freelance administration in Russia?

Portage salarial is a form or stage of entry into the Russian market that is often overlooked in favor of more commonly used formulas. Indeed, many companies go directly from a contract with one or more distributors to a subsidiary or representative office. However, the difference between these two forms of implementation is such that, if you’re not sufficiently prepared, the exercise can turn into a big splits that can hurt.

Setting up a subsidiary in Russia, whether the activity is small or large, immediately generates significant local fixed costs: director’s salary, rent, accounting, administrative management costs, etc. From the parent company’s point of view, one more subsidiary also means additional management and more complex reporting. And the fact that Russian accounting is fundamentally different doesn’t make things any easier. This means that the break-even point is quite high from the outset, even though the volume of business may not justify it at this stage.

Portage salarial allows us to bridge this important gap between a presence through the distributor and the subsidiary.

The employees whose portages are entrusted to us by our customers most often have the role of sales or technical sales representatives.

To fully understand the advantages of freelance administration, we need to look at it from the point of view of the end customer, i.e. the Russian company using your product or service. What changes does your choice of freelance administration as a form of setting up business in Russia imply?

The advantages of freelance administration in Russia

First and foremost, your customer sees your real local presence, a salesperson or technician who answers a Russian phone line, shows up promptly for an appointment, provides technical support, etc., as well as your local presence. The sales representative has a business card bearing the colors of his French employer. As a result, the end customer sees nothing but good. For him, you are present on his territory, and he feels secure and supported. Needless to say, in legal terms, the subsidiary does not exist.


Although often seen as a temporary step, freelancing can last for years without any damage to the business. A Russian proverb says: ” Nothing is more permanent than the temporary “. Our longest-standing customers have been entrusting us with the same employees since 2009. And they have no plans to open a subsidiary, at least not in the near future.

Wage portage

Your risks
Your costs
Setting up (time)
Complexity of implementation

Setting up a subsidiary

Your risks
Your costs
Setting up (time)
Complexity of implementation

It’s also worth noting that freelance administration is a regulated activity in Russia. In fact, for some years now, the host organization has been required to hold a valid license in order to offer a solution that complies with local law. You should therefore check this point before taking out a portage contract in Russia. Today, there are a huge number of such structures, but the solutions are not always legal.

The real reason why freelance administration may be an inadequate solution is the need for local invoicing in connection with an import/sales/production activity. In such cases, it is essential to set up a local legal entity. But as long as your invoices are issued outside Russia and your customers are happy with this, freelance administration is an excellent solution. Flexible, efficient, cost-effective and value-creating for your Russian customers.

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