What is a medium business. Small, medium and large business: what is it, definitions, differences. Basic and additional criteria for medium-sized businesses

30.03.2020

Recall that micro, small and medium-sized enterprises include organizations whose revenue for the past year does not exceed the established limit values. New companies during the year in which they are registered can be classified as small businesses if their performance from the date of their state registration does not exceed the limit values. The criteria for belonging to micro, small and medium enterprises are approved, they entered into force on 07/25/2015. See the table for details.

New criteria for membership in micro, small and medium enterprises

Recognition of an organization as a small business entity provides a number of advantages aimed at development this business. So, micro and small enterprises can keep accounting according to simplified rules:

use an abbreviated working chart of accounts;
apply the cash method of recognition of income and expenses;
prepare condensed financial statements, consisting of a balance sheet and a statement of financial results;
accounting can be entrusted to the head;
interest on any borrowed obligations to be included in other expenses;
to reflect prospectively in the financial statements the consequences of changes in accounting policies;
any errors, including significant ones, correct as insignificant;
do not apply the requirements: , ;
do not create vacation reserves and revaluate according to market value any financial investment.

Microenterprises have additional benefits. They have legal right do not accept bank cards for payment, as well as keep accounting without using double entry.

In the tax accounting, benefits for small businesses of the Tax Code of the Russian Federation are not established, but local governments can approve reduced rates for property tax and land tax.

Order of conduct cash transactions small businesses must comply, but they have the right not to set a limit on the balance of cash in the cash register and keep all the money in the cash register without depositing it with a bank institution.

In addition, favorable conditions are provided for small businesses to participate in public procurement.

Small business in Russia enjoys special, intended only for him, benefits. The state is trying to reduce the tax and administrative burden of small businesses, receiving in return an increase in employment and a decrease in social tension. What does the definition of “small business entities” mean and who are they in 2020?

A small business entity is a Russian commercial organization or an individual entrepreneur who is aimed at making a profit. Also included in this category are:

peasant (farm) farms;
production and agricultural cooperatives;
business partnerships.

A non-profit organization, as well as a unitary municipal or government agency is not a small business.

Who belongs to SMEs

The criteria for classifying small businesses in 2020 are established by the state. The main requirements, subject to which it is possible to classify a businessman as a small and medium-sized business (SME), relate to the number of employees and the amount of income received. Who is the SME, i.e. refers to small businesses, defines the law of July 24, 2007 N 209-FZ in article 4. Let's consider these criteria, taking into account innovations.

Thanks to the amendments made to Law No. 209-FZ, a greater number of enterprises and individual entrepreneurs can be classified as small businesses.

The maximum allowable amount of annual revenue without VAT for the previous year for micro-enterprises increased from 60 to 120 million rubles, and for small enterprises - from 400 to 800 million rubles.
The permitted share of participation in the authorized capital of a small enterprise of other commercial organizations, which are not subjects of small and medium business - from 25% to 49%.

But the allowable average number of employees has not changed: no more than 15 people for micro-enterprises and no more than 100 people for a small enterprise.

For individual entrepreneurs, the same criteria for dividing into business categories apply: by annual revenue and number of employees. If an individual entrepreneur has no employees, then his SME category is determined only by the amount of revenue. And all entrepreneurs working only on the patent system of taxation are classified as micro-enterprises.

The period during which a businessman continues to be considered an SME, even if he has exceeded the allowable limit on the number of employees or received revenue, has been extended. Until 2016 it was two years, and now it is three. For example, if the limit was exceeded in 2017, then the organization will lose the right to be considered small only in 2020.

What to do in a situation where the status of a small enterprise is lost due to the achievement of the previously existing limit of 400 million rubles, because it is lower than the current one? The Ministry of Economic Development believes that after the act of the Government of the Russian Federation dated July 13, 2015 No. 702 comes into force, such an enterprise can return the status of a small one if the annual revenue does not exceed 800 million rubles.

State Register of SMEs

Since mid-2016, the Unified Register of Small and Medium-Sized Businesses has been in operation. A list is posted on the portal of the Federal Tax Service, which includes all subjects of small and medium-sized businesses of the Russian Federation. Information about SMEs is entered into the register automatically, based on data from the Unified State Register of Legal Entities, EGRIP and tax reporting.

The following mandatory information is publicly available:

the name of the legal entity or the full name of the individual entrepreneur;
TIN of the taxpayer and his location (residence);
the category to which small and medium-sized businesses (micro, small or medium enterprises) belong;
information about activity codes according to OKVED;
an indication of the presence of a license, if the type of activity of a businessman is licensed.

In addition, according to the application of a businessman belonging to small and medium-sized businesses, additional information can be entered in the register:

about the manufactured products and their compliance with the criteria of innovative or high-tech;
on the inclusion of an SME entity in partnership programs with government customers;
on the existence of contracts concluded as a participant in public procurement;
complete contact information.

To transfer this data to the Unified Register, you need to log in to the information transfer service using an enhanced qualified electronic signature.

After the formation of the official register, small businesses are no longer required to confirm with documents that they correspond to this status in order to participate in state support programs. Previously, this required the submission of annual accounting and tax reporting, a statement of financial results, information on average headcount workers.

You can check the information related to small and medium-sized businesses, and their reliability, by making a request for information on the TIN or name in the Register. If you find that there is no data about you or they are unreliable, then you must send a request to the Registry operator to verify the information.

What gives the status of a small business entity

As we have already said, the state creates special preferential terms entrepreneurial activity, pursuing the following financial and social goals:

ensure a way out of the shadows and self-employment of persons providing services to the population, engaged in small-scale production, working as a freelance;
create new jobs and reduce social tension in society through the growth of the population's well-being;
reduce budget spending on unemployment benefits, health insurance and pensions for officially unemployed persons;
develop new activities, especially in the field of innovative industries that do not require significant costs.

The easiest way to achieve these goals is to make the state registration procedure simple and quick, reduce administrative pressure on businesses, and reduce the tax burden. In addition, targeted financing in the form of non-repayable subsidies has a good effect on the activities of start-up entrepreneurs.

The main list of preferences for small businesses looks like this:

tax incentives. Special taxation regimes (STS, UTII, ESHN, PSN) allow you to work at a reduced tax rate. Since 2016, regional authorities have the right to additionally reduce taxes on UTII (from 15% to 7.5%) and on the STS Income (from 6% to 1%). On the simplified tax system Income minus Expenses, the opportunity to reduce the rate from 15% to 5% has existed for more than a year. In addition, from 2015 to 2020, individual entrepreneurs, first registered after the entry into force of the regional law on, have the right not to pay tax at all under the PSN and STS regimes for two years.
Financial perks. This is direct financial state support in the form of grants and gratuitous subsidies issued under the all-Russian program valid until 2020. Funding can be obtained to reimburse leasing costs; interest on loans and credits; to participate in congress and exhibition events; co-financing projects (up to 500 thousand rubles).
administrative benefits. This refers to such concessions as simplified accounting and cash discipline, supervisory holidays (limiting the number and duration of inspections), the ability to issue urgent employment contracts. When participating in public procurement, there is a special quota for small businesses - at least 15% of the total annual volume of purchases by state and municipal institutions are required to be made from them. When obtaining loans, government guarantors act as guarantors for small businesses.

Small business is the subjects of small and medium-sized businesses. This status can be obtained by an organization that meets the criteria approved by law. Companies from the list of SMEs are exempt from inspections and have advantages and benefits in accounting and tax accounting, participation in public procurement.

Let's figure out which organizations and individual entrepreneurs in 2020 fit the definition of small business.

Key Criteria for a Small Business

fall within the income limit;
fall within the limit on the number of employees (the number of small enterprises should not exceed 100 people);
fall within the limit on the share of participation of other companies in the authorized capital.

Small businesses are considered to be companies and entrepreneurs, regardless of the tax regime, if they meet the conditions. These can be firms and individual entrepreneurs on the simplified tax system, UTII, patent, DOS.

From 08/01/2016, the calculation of the maximum amount of income for the past year includes not just all cash receipts, but all income from a tax return. Here are the criteria for classifying an enterprise as a small one in the form of a table.

Table 1. Indicators of income and number of employees.

Another significant factor is the equity stake. Let's supplement the criteria for a small business in 2020.

Table 2. Shares in capital.

The number of employees in 2020 is determined on the basis of the average headcount, 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 practice Newest 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.

But income for the past tax period is estimated according to tax returns.

The Federal Tax Service explained what small and medium-sized businesses are: the 2020 classification criteria are contained in a letter dated 08.18.2016 No. 14-2-04 / [email protected].

Small Business Inspections 2020

For such enterprises, shortened inspection periods apply. Any regulatory authority may inspect a small business entity for no longer than 50 hours per year. And for microenterprises maximum term- 15 hours per year.

For 2 years (from 01/01/2016 to 12/31/2018), the "kids" were provided with supervision holidays. Such a benefit for small companies and individual entrepreneurs was established by Federal Law No. 246-FZ of 07/13/2015. But this only applied to scheduled inspections. If a complaint is received from the consumer or government agencies have information about the violation of the law by the company, the inspectors will come with an audit.

The term of the "supervisory holidays" established by Federal Law No. 246-FZ, which expired at the end of 2018, was extended for 2019 and 2020 by the Federal Law, it is published on the official portal of legal documentation. But it must be borne in mind that supervisory holidays do not apply to inspections carried out by the risk-based control method, and this method is used by such departments as the Federal Tax Service, the Ministry of Emergencies, the Federal Antimonopoly Service, Rosprirodnadzor, Rosalkogolregulirovanie and Rospotrebnadzor. Consequently, the subject of SMEs is not exempted from inspections by these departments.

In addition, there are no supervisory holidays for those enterprises that are engaged in licensed activities:

banks;
insurers;
private security companies;
subsoil users;
pharmaceutical companies;
carriers;
and many others ( full list of 52 points is given in Article 12 of the Federal Law of 04.05.2011 No. 99-FZ “On Licensing Certain Types of Activities”).

Small businesses do not need proof of status

The organization does not need to be separately registered and receive confirmation that your firm is an SME entity. The status in the future is also saved automatically. It is enough that the firm or entrepreneur meets the listed conditions. Moreover, even if within one or two years you exceed the established limits, the status of the enterprise will remain. A change in status occurs only when the maximum indicators for the number of employees, the amount of income or shares in the capital are not met for three consecutive calendar years (part 4 of article 4 of the Federal Law No. 209).

Deposits are now insured

From 01/01/2019, the deposit insurance rule also applies to small businesses. But in order to claim a refund on deposits, the enterprise must be entered in the register of SMEs. Talks about it

Small and medium-sized enterprises (SMEs) are organizations and individual entrepreneurs that, in accordance with certain conditions, belong to small and medium-sized enterprises and information about which is indicated in the unified register of such entities (clause 1, article 3 of the Federal Law of July 24, 2007 No. 209-FZ). It is convenient to be an SME and especially a small business, because small businesses, for example, can generally keep simplified accounting and draw up simplified financial statements. Small businesses may not approve the cash balance limit (clause 2 of the Directive of the Central Bank of March 11, 2014 No. 3210-U). Many small businesses cannot conduct scheduled inspections in 2020 (but we are not talking about inspections by the Federal Tax Service or the FSS) (part 3.1, article 1, article 26.2 of the Federal Law of December 26, 2008 No. 294-FZ).

Medium and small enterprises: criteria 2020

The criteria for small businesses in 2020 are established by Art. 4 of the Federal Law of July 24, 2007 No. 209-FZ.

For small and medium-sized businesses, we will group the 2020 criteria in tables.

At the same time, we will divide such criteria into 3 groups: legal criteria, criteria for the number and criteria for income. If a business entity or business partnership meets at least one of the legal criteria, it is necessary to verify their compliance with the headcount criterion (more precisely, the average number of employees for the previous calendar year) and the income criterion. But for production consumer cooperatives, peasant (farm) households and individual entrepreneurs, only the criteria for number and income are important. Other conditions for them are not taken into account.

Legal Criteria

For business companies and partnerships, the legal criteria for classifying an enterprise as a small business are as follows.

Form (features) of the organization	Conditions	Note
Any LLC	Condition 1: 1a) The total share of participation of the Russian Federation, constituent entities of the Russian Federation, municipalities, public and religious organizations (associations), charitable and other funds (with the exception of the total share of participation that is part of the assets of investment funds) in the authorized capital does not exceed 25%; 1b) the total share of participation of foreign organizations or organizations that are not SMEs does not exceed 49%	An LLC that satisfies Condition 1a) but does not satisfy Condition 1b) is recognized as an SMP if such LLC complies with Condition 4, 5 or 6
Any JSC	Condition 2: Shares traded on the organized RZB are classified as shares of the high-tech (innovative) sector of the economy	—
Any JSC	Condition 3: Shareholders - the Russian Federation, subjects of the Russian Federation, municipalities, public and religious organizations(associations), charitable and other funds (excluding investment funds) own no more than 25% of voting shares, and shareholders - foreign organizations or organizations that are not SMEs, own no more than 49% of voting shares	—
Organizations - "intellectuals"	Condition 4: The activity is practical application(implementation) of the results of intellectual activity (computer programs, inventions, breeding achievements, etc.), the exclusive rights to which belong to the founders (participants)	Founders (participants) are budgetary, autonomous scientific institutions or educational organizations of higher education that are budgetary, autonomous institutions
Skolkovo organizations	Condition 5: They have the status of "Skolkovets"	—
Organizations with a "special" founder	Condition 6: The founders (participants) are JSC RUSNANO or the Fund for Infrastructure and Educational Programs	—

Small and medium enterprises: 2020 criteria by number

Small and Medium Businesses: Income Criteria

Please note that the SMP category is determined in accordance with the most significant condition (part 3 of article 4 of the Federal Law of July 24, 2007 No. 209-FZ). If, for example, in terms of size, an LLC that meets the legal criteria can be considered a microenterprise, but its revenue for the past year is in the range of more than 800 million rubles to 2 billion rubles inclusive, such an LLC will be considered a medium-sized enterprise.

Small and Medium Businesses: Registry

You can find out if your organization belongs to a small or medium business using

Not many people know the difference between small, medium and large businesses. To understand the differences between these concepts should, especially, a novice entrepreneur. In the case of defining the idea of entrepreneurship and writing a business plan, you should have ideas about the future occupation.

What it is

Small business is the most common form of entrepreneurship, which is chosen by most start-up businessmen.

Medium business̶ it is a form of entrepreneurial activity that, compared to a small business, has a more impressive annual income and more extensive and diverse resources for commercial activities.

Big business is a form of entrepreneurship that includes popular companies covering an entire country or more than 2 countries of the world, as well as having high demand at consumers.

Key Features of Entrepreneurship

Each form of commercial activity ̶ SME or big business, has its own characteristics, which distinguish them from each other.

small features

The subject of small business is not only individual entrepreneurs, but also companies average annual population whose employees is at least 50 people.

The territorial activity of these companies is small, and the list of their areas of activity may include:

the shops;
firms with a small production that produce small volumes of goods;
companies with tourism activities;
medical offices (dental, etc.);
various training courses, etc.

For small businesses, the period for conducting inspections has been reduced and annually is no more than 50 hours.

Until December 31, 2018, these businesses are granted a two-year supervisory vacation, during which no supervision will be carried out. Sanepidemnadzor and fire inspection visits are not threatened, and the activity license will not be checked.

According to part 2 of article 10 of the Federal Law “On the protection of the rights of legal entities and individual entrepreneurs in the exercise of state control (supervision) and municipal control”, upon receipt of complaints from consumers about violations of the law, an audit will be carried out.

In 2018, the right to receive tax holidays have entrepreneurs who:

register for the first time;
carry out industrial, social or scientific activities;
provide services to the public.

Small businesses do not need proof of status. It is only necessary to adhere to the above limits (income, number of employees and share in the authorized capital). If the limits were exceeded within 1 or 2 years, then this is not a reason for losing status. In this case, it will be kept for 3 calendar years.

signs of mean

Compared to a small business, medium business includes entire networks of enterprises working for a large consumer audience. This entrepreneurial form can carry out its activities not only within the whole city, even within the region.

Compared with small businesses, where a large role is assigned to staff, on average - the quality of goods (services) is put in the foreground. Since the average enterprise is not large, it will not be difficult for it to adapt to changing market conditions.

Large or big business

Large businesses can spend money advertising their products on the most popular television channels. In different cities and countries, this form of business has its own branches and representative bodies, employing hundreds of thousands of employees.

The subjects of large business are large companies that:

engaged in the production of equipment: Apple, Bosch, Samsung, Lenovo, etc.;
produce food products: MC.Donald, Nestle, Coca Cola, etc.;
produce vehicles car brands: Ferrari, Bogati, Alfa Romeo, BMW, etc.

The criteria are easy. In order to be a major entrepreneur, you must meet the following:

have at least 251 employees:
receive income of at least 2 billion rubles;
timely inventory and revaluation of fixed assets.

Since 2016, a unified register of SMEs has been operating, which contains enterprises that have received the status of SMEs.

These forms of entrepreneurship acquire the status of SMEs if they meet the criteria below:

have a certain amount of income;
have a certain number of employees;
have a certain share of participation of other companies in the authorized capital.

According to article 4 of the Federal Law "On the development of small and medium-sized businesses in the Russian Federation", these limits do not apply:

persons holding shares in the economic high-tech sector;
persons participating in the Skolkovo project;
companies that practically apply the latest technologies developed by their owners ̶ budgetary and scientific institutions;
companies whose founders are included in the government list of persons who provide state support innovative activity.

If an individual entrepreneur does not have employees, then his status is determined by the criterion of their annual income. If individual entrepreneurs and LLCs were included in the unified register of SMEs for the first time, then their status should be determined by the criterion of the number of employees.

If an enterprise receives the status of an SME, then certain benefits are provided to it, namely:

the right to keep as much money in the cash register as you want and there will be no fine for this.
the ability to maintain simplified accounting. This does not apply to individual entrepreneurs, since they are not required to keep records. And companies are required to charge annual depreciation, and not once a month.
endowed with an advantage in the purchase of state and municipal real estate, etc.

List of enterprises that meet the specified criteria, annually formed by the Ministry of Industry and Trade of the Russian Federation. This list is provided to the Federal Tax Service of Russia, after which certain information is entered in the register by the tax authorities.

We bring to your attention a video that explains why he wins big business.

Main advantages

Both SMEs and large companies have their own strengths and weaknesses.

The list of advantages of small business is as follows:

the presence of a small need for initial capital;
relatively low costs during the implementation of entrepreneurial activities;
availability of a quick response to changes in the market sphere;
the presence of a relatively fast turnover of equity capital;
the trend of growth of vacant vacancies, which has a beneficial effect on the increase in populated employment.

The main advantages of medium-sized enterprises are:

creation of new places of employment;
high productivity of capital investments;
relatively high profitability;
high competitiveness and mobility.

Big business is also endowed with positive qualities, namely:

the ability to ensure economic stability in the country;
ability to change external environment business;
the ability to save on production costs;
implementation in business modern technologies etc.

Cons and risks

In order to start building your business, an entrepreneur must familiarize himself with the main disadvantages of various enterprises. For example, small business has the following disadvantages:

relatively high level of risk;
dependence on big business;
the presence of a low professional level of managers;
difficulties in obtaining loans and subsidies.

The size of the initial capital also matters. For example, if this size is large, then the firm will be able to hold out during the crisis period.

Medium business also has certain disadvantages, namely:

the presence of fierce competition and the threat of being taken over by large companies;
the presence of barriers and difficulties in obtaining a license and patents;
frequent shortage of working capital;
difficulties in obtaining loans due to lack of confidence in banks.

Big business is also not without problems. The main disadvantages of this business are the presence:

excessive economic concentration;
localization of economic relations;
blocking horizontal commercial links that do not go beyond a particular company.

Differences among themselves

For a clear example of the differences between small medium and large businesses, we can cite the following table.

Basis for success

Despite the dependence on the external environment, small business can also be successful. Only the best employees in their field work here. The success of this business is determined by having a strategic plan for the development of the enterprise.

Medium business can easily adapt to changing market conditions. Success also depends on having effective management.

The main success of a large enterprise is the presence efficient business models that are built in such a way that even after 10 years they continue to work, surviving crisis situations and bringing huge income.

Regulatory regulation

Questions regarding the implementation of entrepreneurial activities by SMEs and large companies, governed by a number of laws, namely:

Federal Law "On the protection of the rights of legal entities and individual entrepreneurs in the exercise of state control (supervision) and municipal control" dated December 26, 2008 No. 294-FZ.
Federal Law "On the development of small and medium-sized businesses in the Russian Federation" dated July 24, 2007 No. 209-FZ.