- Confirmation of SME Status for Legal Entities with Foreign Participation
Confirmation of SME Status for Legal Entities with Foreign Participation
Due to economic crisis resulting from the COVID-19 outbreak, the state announced additional benefits and preferences to small and medium entities (SMEs).
BDO Unicon is willing to render integrated service on support of inclusion into Register of SMEs to companies that own foreign capital exceeding 49% of chartered capital.
In accordance with article 4.1 of Federal Law No. 209-FZ “On the Development of Small and Medium Enterprises in the Russian Federation”, the information about legal entities that comply with provision of the assignment to SMEs, is entered into Unified Register of SMEs. This Register is maintained by the Federal Tax Services of the Russian Federation (FTS). If an entity is designated as SME, the state might provide a support (financial, property, etc.).
Audit company is one of the possible source information required by FTS to maintain the Register for Russian legal entities with predominant foreign participation (foreign participants’ total interest is more than 49% of the chartered capital of a limited liability company).
1. Annually confirm the compliance of the participants of the client which are foreign legal entities, to the following criteria:
- Income of the participants which are foreign legal entities from conducting a business for the preceding calendar year and the headcount for the said year does not exceed boundary values, established by regulatory acts (i.e. RUB 2 billion per 250 persons);
- State of residence of the participants which are foreign legal entities shall not be included in the list of offshore areas being subject to review by the Tax Code of the Russian Federation.
2. We form the list of those companies and submit it to FTS for the inclusion in the Register (annually from 1 to 5 July).
3. We provide legal support in the preparation and submission of client’s documents to confirm his compliance with the criteria of SME required for the inclusion into the Register.
To have a detailed advice and to specify the cost of services please send a request to: