Business registration involves the choice of an organizational and legal form (OIF). The most common choices are:

Limited Liability Society (SCO)
Individual enterprise (IU)

Self-employment

In addition, there are other cooperatives and equity societies (AOs).

The choice depends on many factors. Business objectives and scale must be taken into account. The type and scope of activities, the number of founders and staff, the means of financing and other factors also influence. It would take into account business development plans and possible future changes.

Scope

IPs or self-employment will be optimal for a small business. They're simple in registration and maintenance. Self-employed do not belong to SME entities. In general, this form of registration for those who earn income from work or do little business without employing employees.

In some cases, a small business chooses a GS if it requires an activity, a mode of financing or other circumstances. GS can also be registered with one constituent.

For medium and large businesses, GS and AOs are the most appropriate, providing more opportunities to attract investment, share responsibility and manage.

Responsibility

If the PPI is responsible to creditors of all its property, the GS only risks statutory capital. Fines are generally higher for GS than for IPs. In the AO, the division of responsibility between shareholders is proportional to the size of their deposits.

Taxation

The IP is a simple taxation and reporting system, allowing for the most advantageous treatment for a particular business. For example, patents are often selected because of almost complete lack of accountability (reporting remains).

GSs have a number of limitations in the choice of tax regimes. Okay, they're not suited to NAPs and patents. They are also required to maintain accounting and tax records. The tax on the organization ' s profits is 20 per cent and for the IP is 13 per cent. The most complex taxation system for AOs, but it allows more funds and a more developed governance structure.

Activities

IPs have no right to engage in certain activities, such as the production and sale of solid alcohol, insurance, private security, air passenger and cargo transport, psychotropic, narcotics, explosives and weapons, etc.

The GS is authorized for most commercial activities. But some of the areas, especially those under the control of the State, are not available to the GS. A number of activities are permitted for GS, but with restrictions. It's, for example, a pharmacist, selling pyrotechnics and civilian weapons.

Business and income management

The IP has sole control of the business, but there is no possibility of involving partners. Individual entrepreneurs can use business income at their own discretion, even use a business card for personal purposes.

In the GS, the administration is exercised by the constituents who can share the powers. The custodian, even the only one, can't waste the profits from the business at his discretion. He can get it in the form of dividends or wages. However, 13 per cent of DFS is necessarily retained from the amount of dividends and insurance contributions are also paid. All contributions must be documented.

AO has the most complex management system, including the Board of Directors, the Board, the Director General and other bodies.

Registration

The IP and GS registration procedure is as simple as possible and is unlikely to be a decisive factor in the selection of PIFs. Special Services allows online business registration. IP only needs a passport. For the GS, the procedure is somewhat more complicated. The certified constitutive documents can be found free of charge at the ICPD Digital Platform. There is also a special service to determine the most appropriate PIF.

Source:

***
In the Yaroslav region, various assistance is provided to entrepreneurs through the Mala and Middle Entrepreneurship Project, as well as to industrial enterprises under the " Productivity " project and the " International Cooperation and Export " national project.

All support measures for small and medium-sized businesses can be accessed on my business site.

Details of all support measures for industry and investors on the investing site