The subjects of small and medium enterprises: criteria, classification

At the heart of any economy lies in entrepreneurship. The right to engage in any business prescribed in the constitutions of practically all countries of the world. Of course, we are talking about legal (not prohibited) matter. In any field (except mining industry and large engineering industries) we are talking about the fact that the head of the whole “pyramids” are the subjects of small and medium-sized businesses.

Market economy and small business

So, what is considered a business at all? How to understand whether your firm large or medium-sized business? Maybe your company – a small business?

According to the official definition, refers to any independent business activity which is carried out with understanding and acceptance of all possible risks. A mandatory condition is systematically profit. Small and medium entrepreneurship is the most active part of the market. Will you have something to sell or offer to rent, provide services, produce, or grow, it does not matter. Main – to find the customer's need, which is not satisfied, and offer the consumer the options of your products or services.

States benefits from the presence of a large number of small businesses. In addition to the jobs created and the regular tax payments to the budget. Russian Federation is definitely not an exception.

Custody of the state

Support, which get the subjects of small and average business, is carried out in the following areas:

• Preferential terms of use of resources: Finance, logistics and information;
• Licensing, technical developments and patenting of innovations;
• Simplification of registration of small enterprises;
• The promotion of foreign economic activities, which are the subjects of small and average business, including not only trade relations, but also high-tech and scientific contacts with foreign countries;
• Support to educational institutions involved in the training and qualifications of personnel to small firms;
• Development and implementation of not only the municipal, but of national programmes for financial support.

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Small business and public procurement

One of directions of support is a recommendation (and with certain point requirement) to include in the public procurement small and medium enterprises (223-FZ regulates not only the duration of compulsory procurement from small firms, but the quality and the number of transactions). In addition, the act provides for the establishment of the government of the Russian Federation, the priority of procurement of goods (services innovation) Russian production to foreign. So it is expected to contribute to the development of small business.

The Continuous expansion of the infrastructure development programs of private business suggests that small and medium enterprises (the concept, classification described below) is supported by the government.

Concept

The classification of the companies is necessary not only for the statistics. This allows to determine the direction of public assistance, to define groups of businesses that may obtain preferential taxation, etc.

So, what is the subjects of small and average business? The criteria specified in the Russian Federation in the first place consider two measures: the number of people employed and the degree of state participation in the authorized capital. This is followed by the residual value of assets and Charter capital, as well as the annual turnover.

First verify that any firm can be attributed to the small (average) business, if the public part of the authorised capital does not exceed 25%. An important caveat is to clarify that under state participation refers to both religious and public organizations, charitable and other funds, as well as foreign citizens and legal entities. Another significant point is the requirement to share a single legal entity in the Charter capital of the company of the small (middle) scale also does not exceed 25%.

Small and medium-sized enterprise (criteria for determining which at the moment we are interested in) must not consist of more than 250 people in the reporting period. But here we are talking about what the company will receive the status of the average when the number of state 101-250 employees; and small - if the number of employees does not exceed 100. For small businesses provided a deeper classification, which will be discussed later.

The Following factor in the selection of enterprise in secondary or small is the annual turnover. In the reporting year, revenues from sales of its products, excluding value added tax should not exceed the established by the government of the Russian Federation amount. This figure is determined every five yearson the basis of continuous statistical observation. The limit values for annual turnover are established by industries and categories of firms.

What is considered a small business in various industries

Depending on the sphere of activities of subjects of small and average business can count in the reporting period, the number of staff (as well as working on a contractual basis) no. of employees:

• 100 people for transportation, industrial and construction companies;
• 60 people for science and technology and agriculture;
• 30 people for retailers and consumer services;
• 50 employees for firms engaged in wholesale trade.

  

The Last criterion (50) applies to all non-listed sectors and activities.

Individual entrepreneurs

In addition, according to the Federal law of the Russian Federation of 24 July 2007 № 209-FZ “On the development of small and medium entrepreneurship in the Russian Federation”, the small and medium business – it “owners”. I.e. physical persons engaged in business without registration of a legal entity.

Thus, it is quite a broad category of companies, which can be defined as small and medium businesses. The concept of “species” only applies to small firms: here stands a group such as “micromala” the enterprise. Regardless of the scope of activities, the total number of employees of a company should be no more than 15 people.

Taxation

The Most frequently asked question: how to pay taxes subjects of small and average business. Classification of companies gives the possibility to identify firms that can benefit from preferential tax treatment on an ongoing basis. Today the simplified system of tax accounting and reporting applies only to individual entrepreneurs (individuals engaged in business without creation of a legal entity) and micro enterprises (organizations with number of workers not more than 15). Activity and turnover in this case play no role.

However, it is worth considering that the official bodies of the company will be deemed minor only if the amount of revenue (sales of goods, provision of services, works) does not exceed the 1000-fold value of the minimum wage for four quarters (including reporting).

In Addition to the lightweight of taxation, the state seeks to develop small business more and by issuing loans at preferential terms, rental equipment based on leasing contracts, etc.

The definition of the enterprise

As already noted, the state is based on three factors determines the membership of the company to one category or another: the number of employees, assets, revenue for the period.

However, it is quite possible a situation in which small terms of number of employees the company provides services (sells products) in excess of the set limit value. In such cases, the category is determined by the highest value of the factors headcount and revenues.

How small businesses become medium

Belonging to one group or another of the enterprise is changed only if the indicators of the limit values of the company for two consecutive calendar years less (more) established by the government of the Russian Federation. Small and medium entrepreneurship in Kazakhstan and Russia are automatically transferred to another category. Management of the company there is no need to write any statements or fill out paperwork.

Note that the change in category may result in the cancellation (or, conversely, obtain) some tax incentives and the renegotiation of the loan. To do this, the IRS sends a notice to the company management, which defines the new status of the company.

New businesses

The companies registered during the year, can be called small, if in the first year of activities the number of employees and book value of assets do not exceed established limits. This applies not only to individual entrepreneurs, but also to farmers and to the production companies.

Since the company recorded during the year, these indexes are calculated only for the period from the date of registration of the company.