In accordance with the new Federal Law No. 349-FZ, which entered into force on November 7, the Federal Tax Service will make changes to the register of SMEs on a monthly basis (previously the register was updated only once a year on August 10). This means that the process required to take advantage of government support dedicated to Small and Medium Sized companies (such as the reduction of the Social Insurance rate from 30% to 15%) has been greatly accelerated.
As a reminder, companies with foreign participation may qualify as a small / medium sized company if:
- The average number of employees in the previous last year did not exceed 250 people, and
- The income of the company in the previous year did not exceed 2 billion rubles, and
- One of the following conditions is met:
- the share of foreign companies in total does not exceed 49% of the authorized capital of the Russian company,
- or (if the share of foreign companies in total exceeds 49%) all the following conditions are met:
- corporate income of the company did not exceed 2 billion rubles,
- the average number of employees did not exceed 250 people,
- the place of permanent residence of the foreign participant is not included in the list of offshore zones, approved by Order of the Ministry of Finance of Russia dated 13.11.2007 No. 108n.
Subject to conditions 1 and 2, a Russian company with foreign participation up to 49% is automatically entered by the Federal Tax Service into the register of SMEs.
To include information on companies with foreign participation in excess of 49% in the register of SMEs, it is necessary that an audit organization verifies that the foreign participant meets the criteria specified in paragraph 3 above and submits the data on the Russian company to the Federal Tax Service from the 1st through the 5th of each month.
The Auditors of Emerging Markets Group will be glad to assist in the preparation and submission of the required documents to get you on the list!