Companies with a share of foreign capital can now receive small business status

On August 3, 2018, revolutionary changes were introduced by Federal Law No. 209-FZ “On the Development of Small and Medium-Sized Businesses in the Russian Federation”, which will come into effect on December 1, 2018.

Now, Russian companies with a share of foreign capital exceeding 49% have the opportunity to acquire the status of a small or medium-sized business entity and receive preferential treatment from this status. Earlier, these types of organizations did not have an opportunity to apply for this status.

Can your company be considered a small or medium enterprise?

To obtain the status, it is necessary to meet the following conditions:

  • The average number of employees of a Russian company for the previous calendar year should not exceed 250 people;
  • The amount of income from conducting business activities of a Russian company for the previous calendar year should not exceed 2 billion rubles (about 25 million Euros);
  • The parent company abroad must also meet the above criteria.* Check of the parent company for compliance with the criteria will be carried out by specialized auditing organizations upon the companies’ applying.

* For the companies with less than 49% of the share of foreign capital, or for companies possessing the status of «Skolkovo» project participant, the last condition is not relevant.

What does the status of a small or medium-sized enterprise give?

Below are the benefits that the companies, classified as small and medium-sized businesses, can receive:

  • Special tax regimes (for certain types of activities and with a share of participation of other companies not more than 25%)
  • Simplified rules for statutory and tax accounting
  • Simplified procedure for preparing statistical reports
  • Benefits and quotas when participating in government procurement
  • Property support (transfer to the possession or use of state or municipal property on a paid or free of charge basis or on preferential terms in accordance with state and municipal programs)
  • Various forms of state support (financial, informational, consulting, etc.).

A company can receive these benefits if it is included in the Unified Register of small or medium-sized businesses. The Unified Register is available at the website of Russian Federal Tax Service.

How to register in the Unified Register of Small and Medium-Sized Businesses?

From 2016, the status of the company is determined by the Unified Register of small and medium-sized businesses (hereinafter referred to as the Register).

The register is formed annually by the Federal Tax Service. Regarding the participating companies, it will be formed from 1 to 5 July. The information required for the register will be provided by auditors on the basis of the reporting data of the parent company (with a share of foreign capital exceeding 49%).


SCHNEIDER GROUP can advise you on issues related to the definition of state support measures and with obtaining special status. If you are interested, please contact our experts.

Contact us:
Natalia Dobrova
Senior Expert of Internal Controls
+7 / 495 / 956 55 57
Alina Klushina
Team Leader Corporate Law Practice
+7 / 495 / 956 55 57