Micro-enterprise is a small business entity

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A micro-enterprise is one of the following business entities: an individual entrepreneur; private enterprise; a fishing farm, and sometimes a limited liability company. Attribution to other categories of business entities (for example, to medium and large businesses) is possible if the above boundary indicators do not meet the established standards.

A micro-enterprise is a payer that pays the following taxes: on personal income; on profits and various duties.

Payment procedure and tax rate for micro-enterprises

The basic tax rate is 9% of the turnover for the calendar year. However, there are some features. For example, if the number of employees in a quarter exceeds five people, then 2% is added to the designated tax rate (9%) for each individual employee.

Microenterprises are small businesses

The circle of such enterprises includes newly createdbusiness entities or operating within a year from the moment of their registration.

Thus, any organization with low turnover and a small number of employees can be classified as a microenterprise. The criteria for these enterprises are as follows: the state employs about 15 people, and the average annual revenue does not exceed 60 million rubles. It is also necessary to pay attention to the book value of assets, calculated in the form of the residual value of fixed assets, including the amount of intangible assets.

Define criteria

The first criterion - the average number of employees of a micro-enterprise is determined for the calendar year, taking into account not only employees, but also employees registered in accordance with civil law contracts, part-time workers, as well as employees of branches or other structural divisions. Actual hours worked are taken into account.

The second criterion is the revenue received from the sale of goods for the calendar year can be determined in accordance with tax laws.

Third criterion - the residual value of fixed assets with intangible assets is determined by small and micro enterprises in accordance with the relevant accounting legislation.

Micro-enterprise registry

Special state bodies responsible for supporting such business entities maintain appropriate registers to record the recipients of this support. At the same time, evenif the statistics of a micro-enterprise speaks of classifying it as a small enterprise, this does not mean that it will be included in this register. It also happens vice versa, the business entity is in the register, and is not small.

Benefits of creating microenterprises

A newly created micro-enterprise has a number of advantages for a successful start. Thanks to the creation of favorable conditions, many entrepreneurs create just such enterprises.

One of the benefits for sole proprietors is a reduced tax rate (9%) including:

• personal income tax;
• state-important payments for compulsory social insurance;
• state duty for entrepreneurial risk, as well as corporate income tax.

The main conditions for registering a micro-enterprise are considered to be:

• participants are individuals who can simultaneously be members of the board of an LLC (if such a form of organization was chosen during the registration of the enterprise);
• not exceeding the threshold level of the company's turnover (60 million rubles);
• the number of employees should not exceed the established standard (15 people).

A micro-enterprise has the right to register as a VAT payer.

Pros and cons of microenterprise existence

Positive aspects of the functioning of such an enterprise:

• report to the tax authorities is submitted quarterly, similarlypayment;
• when submitting the annual report, you do not need to provide the opinion of a sworn auditor;
• no obligation to pay advance payments for corporate income tax;
• the opportunity for employees of microenterprises to work part-time in several business entities;
• relatively low cost of accounting in the enterprise.

Negative aspects of microenterprises:

• employees of such enterprises cannot enjoy some benefits;
• bookkeeping is the same for all small businesses;
• transition to a different category of enterprises (for example, medium or large businesses) is possible only with the onset of a new calendar year.

Thus, it is safe to say that a micro-enterprise is an independent business entity that has its own fixed assets and maintains accounting records. In other words, such enterprises are no different from large and medium-sized businesses, except for the amount of turnover and fixed assets, as well as the number of employees.