How to determine a small business

As the law States, small enterprises are commercial organizations, in which capital the share of participation of religious and charitable organizations, public associations and other bodies of the Russian Federation does not exceed twenty-five percent of the share that belongs to a person who is not a small business entity, also does not exceed twenty-five percent.

To determine whether the company is small, check the data on the earnings of the company from the sale of goods and services for the previous calendar year for small businesses, this indicator should not exceed 400 million rubles.

Also find out the number of employees. A condition limiting the number of workers in the attribution of businesses to a particular class depends on its scope.

So, if the scope of your activities - small business, your company must meet the following criteria (the number of employees is calculated as an average per calendar year):- if the company belongs to the transportation, industrial or construction industry, the staffing shall not exceed one hundred persons; - if the company belongs to scientific, technical, or the agricultural sector – it may not work more than sixty people;- if the enterprise belongs to the field of wholesale trade number of employees should not be more than fifty people;- if the scope of the company includes the retail trade and household service of the population – it should work not more than thirty persons;- if the company specializiruetsya in other areas and conducts other activities – a state shall not exceed fifty people.

Also, if possible, find out the percentage of firm's working capital relative to its main Fund. Small businesses, the ratio is much higher, than big: it usually is about 20:80 to 80, small:20 large.

Also find out whether the inherited enterprise relatives of the owner. If so, most likely, it is a small enterprise, as in the case with medium and large business, this is very rare.