International Practical Conference «Russian Financial Market» International Practical Conference «Russian Financial Market»
SMALL AND MEDIUM BUSINESS AS THE BASE OF THE STABLE CIVIL SOCIETY
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News

06/07/2007

Small and medium business support law

State Duma of the Russian Federation today adopted the third reading of the bill «On the development of small and medium-sized businesses in the Russian Federation», governing the procedure and form of state support to enterprises.

The draft law contains two criteria under which companies can be considered small and medium enterprise (SME) on the average size and revenue. In the first case, the average number of micro-enterprises should be from 16 to 100 people, while medium-sized enterprises from 101 to 250 people. In the second case proceeds without VAT and (or) the book value of assets for the calendar year may not exceed the limits set by the Government of the Russian Federation for each category of actors SMEs. To the actors of SMEs may also include the newly established organization, from the time of registration which took place less than 2 years, subject to compliance with these criteria.

document provides state support to small and medium-sized businesses, as well as the establishment of registers of its recipients. In preparing the document for the second reading the MPs have expanded the roster to include companies working in the field of innovation and craftsmanship. It is assumed that the authorities and municipalities can provide businesses the financial, property and information support, as well as assistance in training specialists. In this regard, to establish a list of state and municipal property, which will be made available for use or possession of SMEs.

The bill also specifies that state aid can not expect lending and insurance companies (with the exception of consumer cooperatives), investment funds and funds of the professional securities market participants, as well as participants of agreements on production sharing, gaming companies and non-residents of Russia.

In addition, during the 4 years since the law came into force on the subjects of SMEs are invited to distribute the changes in law, leading to an increase in their total tax burden.

source: Rosbalt

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