Small business entity - the criteria for 2018-2019 represent legally defined conditions under which organizations and private entrepreneurs can be classified in this category. We will tell you in our article what criteria small or medium-sized businesses (hereinafter referred to as SMEs) must meet.
Legislation regulating issues of small and medium-sized businesses, criteria for classification as such in 2018 - 2019
Relations in the field of SME development are regulated by the provisions of the Law “On Development...” dated July 24, 2007 No. 209-FZ. Clause 1 of Article 4 of the said regulatory act establishes that SMEs include persons (economic entities, partnerships, production cooperation companies, agricultural farms and individual entrepreneurs) who have passed state registration in accordance with current legislation and meet a number of requirements.
The list of conditions, compliance with which gives the right to belong to SMEs, is established in clause 1.1. Art. 4 of Law No. 209-FZ and consists of 4 indicators (we will talk about them a little later).
In addition to the basic regulatory act, the package of documentation in the field of application of indicators of relevance to SMEs includes other acts and letters, including:
- letter of the Federal Tax Service of Russia dated August 18, 2016 No. 14-2-04/0870@;
- rules approved by Decree of the Government of the Russian Federation dated December 8, 2014 No. 1335;
- Decree of the Government of the Russian Federation “On the limit...” of November 22, 2017 No. 1412;
- Decree of the Government of the Russian Federation “On Limits...” dated 04/04/2016 No. 265.
In addition, judicial practice helps resolve this issue, for example:
- Resolution of the 9th Arbitration Court of Appeal dated July 19, 2017 No. 09AP-20234/2017 in case No. A40-227420/16;
- ruling of the Supreme Court of the Russian Federation dated October 19, 2017 No. 305-KG17-16725 in case No. A40-216724/2016.
Criteria for small and medium-sized businesses in 2018 - 2019
The circumstances that allow businessmen to be classified as SMEs include (clause 1.1 of Article 4 of Law No. 209-FZ):
- One of the following indicators (for business entities or partnerships):
- the total share participation of the state, religious and/or public organizations, charitable and other stock companies in the share capital of the LLC is no more than 25%, with the total percentage of ownership of foreign companies or firms not related to SMEs not more than 49%;
- classifying a company's securities as shares of an innovative economic cluster;
- carrying out activities related to the use of the results of intellectual creativity, which is a key activity if the copyright holders for such results are state scientific institutions, state organizations of higher education;
- the organization has the status of a participant in the Skolkovo Information Center project;
- affiliation of the company’s founders with organizations that provide state support for innovative activities and belong to public joint-stock companies (PJSC) with state ownership in the share capital of 50% or more; companies in which the specified PJSC are authorized to dispose of a block of more than 50% of voting shares; state corporations; companies created as a result of the reorganization of the Republic of Kazakhstan nanotechnologies.
- The average number of the workforce does not exceed the established limits.
- The total income does not exceed the maximum standards established for each group of SMEs.
Medium and small businesses - criteria for inclusion in 2018 - 2019 based on staff size
According to sub. 2 clause 1.1 art. 4 of Law No. 209-FZ, if the persons involved meet one of the conditions of sub. 1 clause 1.1 art. 4 listed above, then in order to recognize these persons as SMEs, the average number of members of the labor collective should not exceed:
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- for microenterprises - 15 people;
- for small enterprises - 100 people;
- for medium-sized merchants - 250 people.
At the same time, for some medium-sized companies there is a clarification, according to which the Government of the Russian Federation may establish other standards for the average number (subclause 2.1, clause 1.1, article 4 of Law 209-FZ). These individuals include businessmen whose key type of business (with a revenue share from this production of at least 70% of the total) is:
- Production of textile products.
- Making clothes.
- Production of leather and leather products (manufacturing).
The final indicator of the average number of employees for these persons was established by the Decree of the Government of the Russian Federation “On introducing changes...” dated November 22, 2017 No. 1412 from December 5, 2017 - no more than 1000 employees.
Medium and small business entity - criteria for 2018 - 2019 regarding income
Income that allows individuals who fall under the criteria of subclause to be classified as SMEs. 1 clause 1.1 art. 4 of Law No. 209-FZ, defined in sub. 3 clause 1.1 art. 4. However, the norm in question is a reference one and only indicates that the boundary values of this indicator are established by the Government of the Russian Federation.
By Decree of the Government of the Russian Federation dated 04.04.2016 No. 265, from 01.08.2016 the following maximum volumes of income from business activities for the past year were introduced for SMEs:
- for microenterprises - 120 million rubles;
- for small enterprises - 800 million rubles;
- for medium-sized enterprises - 2 billion rubles.
The procedure for applying the criteria for small and medium-sized businesses
In addition to the direct indicators by which the status of the person involved as an SME can be determined, Art. 4 of Law No. 209-FZ contains a number of rules explaining the procedure for applying these conditions (clauses 3-5 of Article 4):
- The group of SMEs is determined based on the value of one of the conditions given in Art. 4 of Law No. 209-FZ (by income or by average number of employees).
- If an individual entrepreneur who did not have employees in the reporting (last) year applies for the status of a SME, small business criteria relating to the amount of income received are applied to determine ownership.
- Companies and individual entrepreneurs created and/or registered during the period from August 1 of the current year to July 31 of the following year (hereinafter referred to as newly created merchants) and individual entrepreneurs with a patent taxation system are classified as micro-enterprises.
- If a project partner of the Skolkovo Information Center is exempt from the obligation to submit tax reports, his group of belonging to SMEs is determined based on the average number of employees.
- Correction of the category of an SME entity occurs sequentially in the event of an increase or decrease in the maximum standards. In this case, indicators for 3 years are taken into account.
- Changing the category of a newly created merchant (both an organization and an individual entrepreneur) takes into account the indicators listed in Art. 4 of Law No. 209-FZ, when deleting from the register of SMEs an indication that a particular person involved is a newly created merchant.
- Newly created/registered merchants included in the register of SMEs declare compliance with the conditions for classification as SMEs in the form approved by Order of the Ministry of Economic Development of Russia dated March 10, 2016 No. 113. Thus, they provide a reason for classifying them as one or another group.
Small, medium and large businesses - comparison of criteria 2018 - 2019
Microenterprises, small and medium-sized businesses should be distinguished from each other. It is also necessary to clearly define the boundaries between these individuals and large businesses, since this is important for assessing the presence or absence of rights to support measures established by Law No. 209-FZ.
Obviously, if the person involved does not fall under the conditions defined in Art. 4 of Law No. 209-FZ, then it cannot be included in the register of SMEs. Thus, the following merchants can be classified as large businesses:
- not meeting at least one of the requirements listed in subparagraph. 1 clause 1.1 art. 4 of the same law;
- having a team whose average number exceeds 250 units;
- having income over the past period of more than 2 billion rubles.
Thus, with regard to medium and small businesses, the criteria in 2018 - 2019, as before, are clearly regulated by Law No. 209-FZ, which makes it possible to clearly distinguish business entities from each other. Since the provisions of this law are quite difficult to understand, in the article we have presented them in an accessible form.
You will also be interested in reading the materials that we wrote specifically for our Zen channel.
The regulatory framework for the development of small businesses in Russia is the Federal Law of July 24, 2007 No. 209-FZ “On the development of small and medium-sized businesses in the Russian Federation,” which came into force on January 1, 2008.
In accordance with Law No. 209-FZ, small and medium-sized businesses include: consumer cooperatives included in the Unified State Register of Legal Entities; commercial organizations (except for state and municipal unitary enterprises); individuals included in the Unified State Register of Individual Entrepreneurs and carrying out entrepreneurial activities without forming a legal entity; peasant (farm) holdings that meet the conditions established by law.
The criteria for classifying organizations and individual entrepreneurs as small and medium-sized businesses are presented in Table. 1.
The maximum values of revenue from the sale of goods (works, services) and the book value of assets are established by the Government of the Russian Federation once every five years, taking into account data from continuous statistical observations of the activities of small and medium-sized businesses. Currently, the criteria are determined by Decree of the Government of the Russian Federation dated July 22, 2008 No. 556 “On the maximum values of revenue from the sale of goods (works, services) for each category of small and medium-sized businesses.”
The category of a small or medium-sized business entity is determined in accordance with the most significant condition. For example, if in terms of the average number of employees the organization corresponds to a medium-sized enterprise, and in terms of revenue it corresponds to a small enterprise, the category will be established by the number of employees.
The category of a small and medium-sized enterprise changes only if the limit values are higher or lower than the limit values of the average number of employees and sales revenue specified in Table. 1, for two consecutive calendar years.
Newly created organizations or newly registered individual entrepreneurs can be classified as small or medium-sized businesses in the year they began their activities based on indicators calculated from the date of state registration.
1. Criteria for classification as small and medium-sized businesses
The average number of employees of an enterprise for a calendar year is determined taking into account all its employees, including employees working under civil contracts or part-time, taking into account the actual time worked, employees of representative offices, branches and other separate divisions of the enterprise.
Revenue from the sale of goods (work, services) for a calendar year is determined in the manner established by the Tax Code of the Russian Federation.
The book value of assets (the residual value of fixed assets and intangible assets) is determined in accordance with the legislation of the Russian Federation on accounting.
Small business- this is a business activity carried out by subjects of a market economy according to criteria (indicators) established by laws that constitute the essence of the concept. The main criterion for classifying market economy entities as small businesses is, first of all, the average number of workers employed at the enterprise during the reporting period. The following criteria for classification as small businesses are most often used: the average number of employees employed at the enterprise, the size of the authorized capital, the annual turnover received by the enterprise, usually per year, and the amount of assets.
In accordance with the Federal Law of the Russian Federation dated July 24, 2007 No. 209-FZ “On the development of small and medium-sized businesses in the Russian Federation,” small and medium-sized businesses include consumer cooperatives and commercial organizations included in the unified state register of legal entities (with the exception of state and municipal unitary enterprises), as well as individuals included in the unified state register of individual entrepreneurs and carrying out entrepreneurial activities without forming a legal entity (hereinafter referred to as individual entrepreneurs), peasant (farm) enterprises that meet the following conditions:
1. for legal entities - the total share of participation of the Russian Federation, constituent entities of the Russian Federation, municipalities, foreign legal entities, foreign citizens, public and religious organizations (associations), charitable and other funds in the authorized (share) capital (share fund) of these legal entities persons should not exceed 25% (with the exception of assets of joint-stock investment funds and closed-end mutual investment funds), the share of participation owned by one or more legal entities that are not small and medium-sized businesses should not exceed 25%;
2. the average number of employees for the previous calendar year should not exceed the following maximum values of the average number of employees for each category of small and medium-sized businesses:
§ from 101 to 250 people inclusive for medium-sized enterprises;
§ up to 100 people inclusive for small businesses; Among small enterprises, microenterprises stand out - up to 15 people;
3. revenue from the sale of goods (work, services) excluding value added tax or the book value of assets (residual value of fixed assets and intangible assets) for the previous calendar year should not exceed the limit values established by the Government of the Russian Federation for each category of small and medium-sized entities medium entrepreneurship.
The average number of employees of a microenterprise and small enterprise for a calendar year is determined taking into account all its employees, including employees working under civil contracts or part-time, taking into account the actual time worked, employees of representative offices, branches and other separate divisions of the specified microenterprise, small enterprise .
A microenterprise is one of the following business entities: individual entrepreneur; private enterprise; a fishing peasant farm, and sometimes a limited liability company. Attribution to other categories of business entities (for example, medium and large businesses) is possible if the above boundaries do not comply with established standards.
A micro-enterprise is a payer that pays the following taxes: on personal income; on profits and various duties. Payment procedure and tax rate for micro-enterprises The basic tax rate is 9% of turnover for the calendar year. However, there are some peculiarities. For example, if the number of employees per quarter exceeds five people, then 2% is added to the indicated tax rate (9%) for each individual employee.
Microenterprises are small business enterprises. The circle of such enterprises includes newly created business entities or those that have been operating for a year from the moment of their registration. Thus, any organization with insignificant turnover and a small number of employees can be classified as a micro-enterprise. The criteria for these enterprises are as follows: the staff employs about 15 people, and the average annual revenue does not exceed 60 million rubles. It is also necessary to pay attention to the book value of assets, calculated in the form of the residual value of fixed assets including the amount of intangible assets. Definition of criteria
The first criterion is that the average number of employees of a microenterprise is determined for a calendar year, taking into account not only those employed on staff, but also employees registered under civil law contracts, part-time workers, as well as employees of branches or other structural units. The actual time worked is taken into account.
The second criterion is that revenue received from the sale of goods for a calendar year can be determined in accordance with tax legislation.
The third criterion - the residual value of fixed assets with intangible assets is determined by small and micro enterprises in accordance with the relevant accounting legislation. Register of micro-enterprises Special government bodies responsible for supporting such business entities maintain appropriate registers in order to record the recipients of this support. Moreover, even if the statistics of a micro-enterprise indicate that it is classified as a small enterprise, this does not mean that it will be included in this register. It also happens the other way around, a business entity is on the register and is not a small one. Advantages of creating micro-enterprises A newly created micro-enterprise has a number of advantages for a successful start. Thanks to the creation of favorable conditions, many entrepreneurs create just such enterprises. One of the advantages for individual entrepreneurs is the reduced tax rate (9%), including: personal income tax; payments of state importance for compulsory social insurance; state duty for business risk, as well as tax on enterprise income.
It is generally accepted that the main conditions for registering a micro-enterprise are: the participants are individuals who can simultaneously be members of the board of an LLC (if this particular form of organization was chosen when registering the enterprise); not exceeding the threshold level of the enterprise’s turnover (60 million rubles); the number of employees should not exceed the established standard (15 people). A micro-enterprise has the right to register as a VAT payer. Pros and cons of the existence of a micro-enterprise Positive aspects of the functioning of such an enterprise: a report to the tax authorities is submitted quarterly, payment is made in the same way; when submitting the annual report, you do not need to provide a sworn auditor’s opinion; there are no obligations to make advance payments for corporate income tax; the possibility for employees of micro-enterprises to work part-time at several business entities; relatively low costs for maintaining accounting records in an enterprise. Negative aspects of micro-enterprises: employees of such enterprises cannot enjoy certain benefits; accounting is the same for all small businesses; a transition to another category of enterprise (for example, medium or large business) is possible only with the onset of a new calendar year.
Thus, we can confidently say that a microenterprise is an independent business entity that has its own fixed assets and maintains accounting records. In other words, such enterprises are no different from large and medium-sized businesses, except for the amount of turnover and fixed assets, as well as the number of employees.
The concept of small and medium-sized enterprises is legislatively established, which, in accordance with Article 4 of the Federal Law of July 24, 2007 No. 209-FZ “On the development of small and medium-sized enterprises in the Russian Federation” includes:
- citizens registered in the prescribed manner (as individual entrepreneurs (IP) or as heads of peasant (farm) farms (peasant farms);
- duly registered consumer cooperatives and commercial organizations (except for state and municipal unitary enterprises).
Small and medium-sized businesses must meet three criteria.
Criterion 1. Participation in capital for legal entities.
1) The total share of the Russian Federation, constituent entities of the Russian Federation, municipalities, public and religious organizations (associations), charitable and other funds should not exceed 25% in the authorized (share) capital (share fund) of legal entities.
The exception is the assets of joint-stock investment funds, closed-end mutual funds and investment partnerships.
2) The share of participation in the capital of foreign legal entities, one or more legal entities that are not small and medium-sized businesses, should not exceed 49% each.
The exception is business companies (business partnerships), whose activities consist of the practical application (implementation) of the results of intellectual activity 1, the exclusive rights to which belong to the following types of founders:
- budgetary, autonomous scientific institutions;
- budgetary institutions, autonomous institutions, educational organizations of higher education;
- legal entities, the founders (participants) of which are legal entities included in the list of legal entities approved by the Government of the Russian Federation that provide state support for innovation activities 2, subject to compliance with certain criteria.
An exception is also made for legal entities that have received the status of a project participant in accordance with the Federal Law of September 28, 2010 No. 244-FZ “On the Skolkovo Innovation Center”.
Criterion 2. Based on the average number of employees.
The average number of employees for the previous calendar year should not exceed:
a) from 101 to 250 people inclusive for medium-sized enterprises;
b) up to 100 people inclusive for small enterprises, including up to 15 people for micro-enterprises;
The average number of employees of a micro-enterprise, small enterprise or medium-sized enterprise for a calendar year is determined taking into account all its employees, including employees working under civil contracts or part-time, taking into account the actual time worked, employees of representative offices, branches and other separate divisions.
Criterion 3. Based on revenue from the sale of goods (works, services).
Revenue from the sale of goods (work, services) excluding VAT or the book value of assets (residual value of fixed assets and intangible assets) for the previous calendar year should not exceed:
- for microenterprises – 120 million rubles;
- for small enterprises – 800 million rubles;
- for medium-sized enterprises – 2000 million rubles.
The indicated values may be revised by the Government of the Russian Federation.
The category of a small or medium-sized business entity is determined in accordance with the highest value of the conditions established by criterion 2 and criterion 3. For example, if an individual entrepreneur, a peasant (farm) enterprise, a legal entity (OJSC, CJSC, etc.) that meets the criterion 1, have an average number of employees of 15 people, and sales revenue or book value of assets is 500 million rubles, then such an economic entity falls into the category of “medium-sized enterprise”.
Or, conversely, if the sales revenue or book value of assets of an economic entity is less than 60 million rubles, and the average number of employees is over 250 people, then such an entity does not fall under the concept of even a medium-sized enterprise, that is, it is a large enterprise.
Detailed information about the statuses of small and medium-sized businesses in Moscow can be obtained on the Small Business of Moscow portal.
1 Programs for electronic computers, databases, inventions, utility models, industrial designs, breeding achievements, topologies of integrated circuits, production secrets (know-how).
2 In the forms established by the Federal Law of August 23, 1996 No. 127-FZ “On Science and State Scientific and Technical Policy.”
Recently, quite a lot of attention has been paid to small and medium-sized businesses in our country. and belonging to these business categories may enjoy some benefits, including:
- the possibility of using special tax regimes, reduced tax rates and other tax benefits;
- the right to apply simplified procedures and forms of accounting and static reporting;
- the opportunity to participate in state support projects for small businesses and receive subsidies from the state budget.
Recently, the fact that a subject is classified as a small business has become of great importance in the field of government procurement: such participants in announced requests for proposals, other things being equal, are given priority over competitors. Some competitions are initially held with the condition that only small / medium-sized businesses can apply for participation in them, and their status must be confirmed.
How to determine which category of entrepreneurs you belong to? The criteria that allow an individual entrepreneur or legal entity to be classified into any of the categories are specified in Federal Law No. 209-FZ of July 24, 2007, aimed at the development of small forms of entrepreneurship in the country.
In 2015, the revenue criterion was doubled, and in 2016 another change was made to the law, which came into force in August. Now, instead of proceeds from sales, you should take all income from business activities.
Important! Income from business activities is calculated according to the rules of the Tax Code of the Russian Federation. That is, you simply take its value from the declaration for / UTII / income tax, depending on the regime.
Let's combine the criteria into one table:
| Criteria | Content | Criterion value |
| Capital structure (for legal entities only) | Total share in the authorized capital: Russian Federation, constituent entities of the Russian Federation, municipalities, public and religious organizations, charitable organizations and foundations |
No more than 25% |
| Share of participation in the authorized capital of foreign legal entities, the total share of participation owned by one or more legal entities that are not small / medium-sized businesses | No more than 49% | |
| Number of employees | Average number of employees for the previous calendar year | Up to 15 – micro-enterprises; From 16 to 100 – small business; From 101 to 250 – medium business |
| Business income | Income from business activities calculated in accordance with the Tax Code of the Russian Federation | Up to 120 million rubles. – micro-enterprises; Up to 800 million rubles. – small business; Up to 2 billion rubles. – medium business |
Legal entities use all three criteria, individual entrepreneurs use only two: number of employees and income.
The number must take into account all employees, including those who work under the GPA and holding multiple positions. Employees of branches/representative offices/separate divisions of legal entities must also be counted.
The income limit was changed back in July 2015; the Government of the Russian Federation doubled the previous limits: previously they were 60, 400 and 1,000 million rubles, respectively.
Separately, we note that in order to obtain the status of a small business, an individual entrepreneur or legal entity must meet the specified criteria for three years (this period has also been increased by the latest Decree of the Government of the Russian Federation, previously it was two years). A similar situation arises when a small enterprise loses its status and moves to the next business category. That is, if you are now a small business, then even if you exceed the limit on numbers or revenue next year, you will still be a small business. To move to the medium-sized business group, the limits must be violated for three years.
Due to recent changes, there is now no need to confirm the status of a small business - it is automatically assigned based on the data of your tax returns. In this case, income from the declaration for the previous year is taken for analysis.
From the latest news, it is also worth noting that since August 2016, the Federal Tax Service has been creating a register of small businesses, where it includes everyone who belongs to it. This, again, will simplify work for small businesses, since in order to receive the benefits they are entitled to, they will not have to provide additional documents: the presence of a company in the register already confirms that it belongs to a small business.
The register is available on the website Nalog.ru.
Here you can use the “Register Search” service to view data on yourself or your counterparties. To do this, in the search field you need to enter the TIN or OGRN or OGRNIP or the name of the legal entity or full name of the individual entrepreneur.
The legislation establishes several criteria for classifying enterprises as small business entities, and one of them is the number of employees of the organization.
Small Business Legislation
The main issues of small enterprises are regulated in Federal Law No. 209-FZ of July 24, 2007 “On the development of small and medium-sized businesses in the Russian Federation” (hereinafter referred to as 209-FZ).
There are also government decrees regulating certain issues of the criteria for inclusion in such entities (N 265 of April 4, 2016, etc.).
The issues of compiling and submitting reports by such entities are regulated by orders of Rosstat, the Federal Tax Service and other departmental regulations.
Small Business Criteria
Number of employees in a small enterprise
In paragraphs 2 "b" clause 1.1 part 1 art. 4 209-FZ establishes a criterion related to the number of personnel of a small business entity and allowing the entity to be classified in this group.
This is the average number of its employees for the previous calendar year.
The legislation classifies as small enterprises enterprises with a workforce of no more than one hundred people inclusive, and for microenterprises separately identified as small enterprises - fifteen people inclusive.
Microenterprises have recently undergone significant changes in terms of legislative regulation, but the criterion for their number has remained the same.
How to calculate the average number of employees of a small enterprise
Calculating the number is not too simple, since the latter contains:
- average number of employees;
- average number of external part-time workers;
- the average number of persons working under civil contracts (performing work, providing services, etc.).
The issues of calculating each indicator are regulated in the currently valid
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