SMP and SONO in public procurement: which companies belong to them and what advantages do they have?

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Published: 04/02/2019

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Since 2007, the Russian Federation has taken a course towards supporting small organizations and individual entrepreneurs. As a legal framework for the benefits provided to these organizations and enterprises, Federal Law No. 209 “On the development of small and medium-sized businesses in the Russian Federation” was adopted on July 24, 2007.

• SMP
• SONO
• Confirmation of the company's compliance with the status of SMP or SONO
• Advantages for SMP and SONO during public procurement

What is small business

According to the Constitution of the Russian Federation and the Civil Code, any citizen has the right to open an individual entrepreneur and organize an enterprise. Small businesses in Russia are supported at the government level and receive considerable benefits.

Small and medium-sized enterprises are commercial activities characterized by established criteria. These include annual income, number of employees, share in the authorized capital, etc.

Small enterprises are considered an important and most flexible element of the market structure. Their activities are aimed at identifying consumer needs for goods and services and satisfying them.

Important! Small and medium-sized businesses are an important factor in stimulating competition. To win clientele, enterprises have to compete with each other, thereby identifying the most viable entities within the market economy.

Small businesses in 2021 - which companies fall into this category

To be considered a small, medium or micro enterprise in 2019, you need to meet this definition according to three main parameters:

• fall within the income limit;
• fall within the limit on the number of employees;
• fall within the limit on the share of participation of other companies in the authorized capital.

Companies and entrepreneurs are considered small business representatives, regardless of the tax regime, if they meet the conditions. These can be companies and individual entrepreneurs using the simplified tax system, UTII, patent, OSN.

From August 1, 2021, the calculation of the maximum amount of income for the past year includes not just all cash receipts, but all income according to the tax return. We present the criteria in table form:

The number of employees in 2021 is determined based on the average number of employees, a report on which is submitted annually to the tax office.

As for shares in the authorized capital, Federal Law No. 209 of July 24, 2007 provides for exceptions. Limits do not apply to:

• shareholders of the high-tech (innovative) sector of the economy;
• participants of the Skolkovo project;
• companies that practically apply the latest technologies developed by their founders - budgetary or scientific institutions;
• companies whose founders are included in the government list of persons providing state support for innovation activities.

But income for the past tax period is estimated based on tax returns. Separately, it should be noted that the Federal Tax Service, in a letter dated August 18, 2016 N 14-2-04 / [email protected] , explained what criteria it uses when entering information about business entities into the register of small and medium-sized enterprises. Tax officials indicated that the updated criteria for classifying economic entities as small and medium-sized enterprises (SMEs), established by Federal Law No. 408-FZ of December 29, 2015, will be taken into account when entering the register for the period from 2021 to 2021. Therefore, the first changes to the register related to this will be made only during the next formation of the Register on August 10, 2021, as of July 1, 2021. IMPORTANT! Note! From December 1, 2021, Federal Law dated August 3, 2018 N 313-FZ added business entities to the list of small businesses. Now they too can apply for state support.

Small businesses

In short, a small business entity is an organization, individual entrepreneurs, whose activities meet the national criteria for small business. They are bearers of economic rights and obligations, possess property and are endowed with competencies.

Who belongs to small businesses is determined by Art. 4 of the Federal Law of July 24, 2007 No. 209-FZ. This category includes:

• business entities, partnerships or partnerships;
• consumer and production cooperatives;
• farms;
• individual entrepreneurs.

Citizens of the Russian Federation or foreign countries (individuals - individual entrepreneurs and private entrepreneurs, i.e. entrepreneurs without forming a legal entity), partnerships and teams of entrepreneurs (legal entities) can become self-employed entrepreneurs.

Since 2021, a unified state register has been launched, which includes information about all medium and small enterprises registered in the Russian Federation. It stores and makes available to the public the following information about the NSR:

• Name;
• TIN and location;
• category;
• activity codes;
• license.

Additionally, information about the signing of contracts, participation in government partnership programs, and manufactured goods is entered. To confirm his status, an entrepreneur just needs to take an extract from the register from the tax service. The document is valid for presentation to business partners and for concluding transactions.

Important! After receiving official SMP status, an organization can apply for participation in the state support program. Previously, this required providing financial statements for the year and other documents. This is not required in 2021.

What is a small business?

According to Law No. 209-FZ “On the development of SMEs in Russia” dated July 24, 2007, a small and medium-sized enterprise (SME) is any commercial structure registered in the country and meeting certain criteria. The organizational form in this case does not play a significant role, that is, both an individual entrepreneur and a legal entity can be considered a small business. In addition, agricultural and consumer cooperatives, farms and business partnerships are allowed to acquire SME status. What criteria must a company or individual entrepreneur meet to be considered a small enterprise?

SME criteria

The criteria for distinguishing between small, medium and micro enterprises are specified in Art. 4 of Law No. 209. Restrictions for SMEs exist on:

• number of employees
• the amount of annual profit,
• participation shares in the authorized capital of the state, as well as other organizations.

The first two parameters are key and apply to all types of legal entities, farms and individual entrepreneurs. Let us consider the criteria for SMEs in more detail.

In 2021, amendments were made to Law 209-FZ, thanks to which there are more enterprises in Russia that are classified as SMEs. This happened due to the fact that legislators slightly raised the upper limit on maximum income for small businesses. In particular, for micro-enterprises the maximum amount of earnings increased from 60 to 120 million, for small enterprises - from 400 to 800 million. The maximum number of employees remained the same. For enterprises engaged in the processing of textiles and clothing production, the average number of employees can reach up to 1000 people (Government Decree No. 209-FZ of November 22, 2017). The changes also affected the period during which an entrepreneur retains the status of a SME after exceeding the limit on the number of employees or income. Previously, this period was two years, from 2021 - three. Thus, a company that has exceeded the limit in terms of numbers or revenue this year, according to 209-FZ, will be included in the category of SMEs until 2021. Another important criterion for determining SMEs is the share of participation in the authorized capital of the company. For government agencies, as well as foundations, public and religious organizations, it cannot exceed 25% in the capital of a small enterprise. Other commercial structures can now occupy up to 49%. Until this year, the limit was, as for government agencies, 25%.

Limits on the share of participation of state and commercial structures in the management company do not apply to:

• participants of the Skolkovo project;
• shareholders working in the innovation sector of the economy;
• organizations that apply in practice the advanced technological developments of their founders (scientific, budgetary institutions).

Criteria for a small entrepreneur

In recent years, amendments have been made to Law No. 209-FZ, which have made it possible to revise the definition and concept of a small enterprise and become the basis for the fact that more organizations and individual entrepreneurs have become part of the SMEs.

The criteria were established for different categories of small businesses:

• Microenterprise. Annual revenue is 120 million rubles, the number of employees is no more than 15 people.
• Small business. Has the right to receive annual revenue of up to 800 million rubles. The staff consists of no more than 100 people.
• Medium enterprise. Annual revenue is up to 2 billion rubles, employs up to 250 people. Up to 1,000 employees have the right to hire business partnerships according to the list of light industry enterprises approved by the Ministry of Industry and Trade.

If other persons do not work for the entrepreneur, assignment to one of the listed categories is carried out based on the amount of revenue.

In 2021, the share in the authorized capital of the enterprise of other commercial organizations may be 49% instead of the previous 25%.

SMP

The above-mentioned legal act, namely Article 3, determines that small business entities (SMB) include organizations that meet the criteria established by the mentioned law. In addition, information about such entrepreneurs is entered into a unified register.

SSEs include both legal entities, in particular those organized in the form of joint-stock companies and limited liability companies, and individual entrepreneurs.

In order for a company to be included in the SME register, it must meet the requirements established in Article 4 209-FZ:

1. According to a certain composition of founders and shareholders for business entities, partnerships, partnerships . First of all, the share of state participation in the capital or management of the company should be no more than 25%, and the share of foreign organizations or organizations that do not belong to the SMP should not exceed 49%. This rule does not apply to a company if it is engaged in high-tech developments, introduces know-how under its own patents, or has received the status of a member of an innovative company.
2. The maximum established limit for the number of employees in the company's staff . The legislator has established that a small enterprise means an average number of employees of no more than 100 people inclusive. The list of employees from 101 to 250 people corresponds to a medium-sized enterprise.
3. Limit values ​​of the organization's annual income . This gradation is established by Decree of the Government of the Russian Federation dated April 4, 2016 No. 265. For small enterprises, the maximum allowable income level is 800 million rubles. in year. In this case, all types of income are summed up using all tax regimes of the company.

An organization is classified as a small business in accordance with the criterion that is most important. So, if a company has only 50 employees, but at the same time receives an income of 1 billion rubles. per year, then it will not apply to small businesses.

What are the restrictions?

Small business owners cannot be employees of the court, law enforcement and government agencies, or the military. However, these persons may own shares of the enterprise and receive dividends from them. Citizens with a criminal record for theft, bribery and commercial crimes are prohibited from engaging in entrepreneurial activities.

Strict restrictions are placed on profit margins and the number of employees. If the criteria are exceeded, the entrepreneur may lose his status. Until 2021, if the limit on revenue or number of personnel was exceeded, small businesses and all individual entrepreneurs continued to be considered as such for another 2 years. If during this time the owner of an organization or individual entrepreneur did not apply for a new status (for example, a medium-sized enterprise), he was deprived of the previous one. By 2021, the limit has been extended for another 1 year.

Before the establishment of new profit criteria, small entrepreneurs were called such if the SMP received no more than 400 million rubles per year. If the status of an individual enterprise was lost in those years, a businessman can now apply to the tax office to return it, if the annual profit of the organization does not exceed 800 million rubles.

Important! Observe prescribed restrictions. Caution when preparing documents will protect you from losing your status.