Russia SME RegisterRussia launched an electronic register of SMEs August 1, 2016. The register is maintained by the Russian Federal Tax Service – the official body registering companies and individual entrepreneurs.

According to statistics analysis conducted by the National non-profit organization «Buttress of Russia», about 17 million people work officially in the SME sector; among them 30% are individual entrepreneurs (IP). However, SMEs’ share in the Russian gross domestic product amounts to only 20%. Meanwhile, thanks to the state support initiatives for the SME sector, about 40% of procurement orders placed by the government authorities and state-owned corporations are carried out by small and medium-size businesses as suppliers. Total transactions volume exceeded 435 million USD.

Entry of SMEs in the mentioned register goes automatically based on data from the Unified State Register of Legal Entities (EGRUL) and the Unified State Register of Individual Entrepreneurs (EGRIP), and also data provided by SMEs and IPs about their average number of employees in the preceding year, income records and other information.

To be listed in the new register, SMEs and IPs should meet the following criteria:

  • Annual turnover should not exceed
  • 1,800.000 USD for micro enterprises,
  • 12,500,000 USD for small enterprises,
  • 30,800,000 USD for medium enterprises;
  • Average number of employees should not exceed
  • 15 people for micro enterprises,
  • 100 people for small enterprises,
  • 250 people for medium enterprises.

Access to the register is free for everybody interested in its content. It is planned to update the register monthly.  Particularly, those SMEs and IPs who outgrow the definition of an SME will be removed from the register. In the event companies or individual entrepreneurs challenge this exclusion, they will have to confirm their status in the tax bodies or have it confirmed by a court.

It is expected, the new register will help to receive the state support by simplifying the process of SMEs participation in state procurements: earlier companies and IPs needed to provide various certificates to confirm they meet the SME criteria, and, from now on, the listing in the register is Credinform 300 we-find-solutionenough to apply for a state tenders. Large companies will also benefit from the register, which helps to cost effectively identify new suppliers in the SME sector.

Source: Credinform Russia