The procedure for maintaining the register of SMEs has been changed

Pepeliaev Group advises that on 27 October 2020 the Russian President signed a Law providing for a possibility to enter into the the Unified Register of SMEs (the “SME register”, the “register”) data on companies and individual entrepreneurs (“IEs”) on a monthly basis.

Federal Law No. 349-FZ dated 27 October 2020 [1] provides in particular that data concerning companies and IEs that are eligible to be classified as SMEs will be entered on the 10th day of each month based on the data available to the Russian Federal Tax Service as at the 1st day of the corresponding month.

comment.jpgCurrent legislation provides that, according to the general rule, the SME register should be updated once a year (on 10 August based on the data as at 1 July of the corresponding calendar year).

Therefore, after the new Law comes into force, companies and IEs that either have been excluded from the SME register on formal grounds, or have missed the deadline for submitting reporting, will be able to restore their status by providing the necessary documents to the Federal Tax Service without waiting for the register to be updated next year. In the period between 10 January and 10 June data is included which relates to the year before the previous one, and in the period between 10 June and 10 December, data is included which relates to the previous year. Data concerning SMEs will be taken into account when the register is updated in the month following the month when the data is filed. This new development will facilitate, among other things, the timely provision of measures of state support to which SMEs are entitled. 

Companies and IEs that have missed the deadline for submitting reporting or no longer meet the SME criteria will still be excluded from the SME register once a year on 10 July of the current calendar year, rather than on 10 August as is currently the case.

Also, the adopted Law adds new entities to the list of entities that form the infrastructure supporting SMEs. Such entities include chambers of commerce and industry.

The amendments will come into force on 7 November 2020.

What to think about and what to do

It makes sense to check whether you meet the criteria to be recognised as an SME at present. If you meet such criteria but have not been entered into the SME register because you have missed the deadline for submitting reporting or were previously excluded from the register on formal grounds, it would be reasonable for you to use the opportunities the new Law provides after it comes into force.

Help from your adviser 

Pepeliaev Group's lawyers promptly respond to all the changes that are being made to legislation in the current situation. They are ready to provide legal support with regard to all issues relating to how measures to prevent the spread of the coronavirus infec-tion affect your business and any other legal issues. We are ready to provide an in-stant response with practical recommendations tailored to your specific situation.

[1]Federal Law No. 349-FZ “On amending article 12 of the Law of the Russian Federation “On chambers of commerce and industry of the Russian Federation” and Federal Law “On developing small and medium-sized business in the Russian Federation” dated 27 October 2020.

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