What's a social contract?

The social contract is a measure of support for low-income or unemployed citizens. Under the rules of the programme, the Social Security Authority undertakes to provide financial assistance, and the applicant is literate in managing money and entering a stable source of income. For example, study, work or start.

A social contract could be concluded in any region of the country. Financial support is generally decided by local social protection bodies: employment centres, social support centres and social service centres. Details on the modalities and conditions for the provision of social assistance to the Russian Federation in Decision No. 1931 of the Government of the Russian Federation.

In our material, we will consider the rules of social contract for business purposes.

5 important rules of social contract for business discovery:

A socially open business must last for a minimum of two years. One year is a contract with the State for a grant, and one year after the expiry of the social contract, the Social Security Authority controls the business process.
Business should be the main source of income.
All documentation supporting the rental, equipment and consumables should be maintained. They will have to be brought in personally to the Social Security Service as evidence that the funds have been spent on assignment.
For two years, social security professionals can come with checks to make sure that business works and the equipment purchased on the ground is properly stored and used on purpose.
Every month during the year, it is necessary to report on income.
Who can get a social contract?
Only a citizen of the Russian Federation with permanent registration in the region where a request for a grant is planned. If registration is temporary, you need to get a background in your region that you didn't conclude a social contract;
Income should be below the regional subsistence minimum. Finding your local subsistence minimum is available on the Rosstat website. The status of the needy can be attained both independently and within the family. In this case, account shall be taken of the average per capita income of the applicant, his or her spouse, children under the age of 18 and children under the age of 23 if they are taught in absentia. Property is also taken into account, for example, if, by income, the family falls into the category of poor but owns several cars and expensive real estates that may or may not be recognized.
What documents are needed for the social contract?

In each region, the package of documents may differ, but there are general requirements:

Statement to the conclusion of the social contract;
Document Set: passport, marriage certificate and birth certificate of children (if available), income and tax certificates of an individual, NIS of working family members, certificate of ownership;
Business plan.

Since 2024, all social-contractors have to undergo a test examination of entrepreneurial competences on the ICP.RF website. Testing shall be carried out in the Social Protection Authority in the presence of the staff member. The results of the verification also need to be attached to the set of documents.

An active list of documents, as well as information on testing, can be obtained from regional social protection bodies.

How much money can you get from a social contract?

The amount of the payment depends on the type of contract: up to 350,000 roubles are available for business, up to 200,000 roubles, up to 30,000 roubles for training. The money is free, but we need to report where they're spent.

The duration of the social contract also depends on its type, so the contract for the opening of the case is for a period not exceeding 12 months. This means that during the year a citizen is committed to starting a business. In doing so, it may be self-employed or CPI at the time of submission of the application or become a status after the conclusion of the social contract.

In the event of a positive decision by the commission, the funds of the social contract come to the complainant ' s map. NDFL doesn't have a social contract.

BAWO: the grant is listed only on the MRI payment system card, so the applicant should take care of the map in advance.

What can you spend money on?
Socrates can be used to rent business premises, purchase equipment and consumables.

When spending money, it's important to follow the rules of social contract. For example, the rental of premises cannot be spent more than 15 per cent of the total financial support, the Internet relay is not more than 5 per cent, the authorization and software are not more than 10 per cent.

How do you write a social plan?
The business plan is a document with a detailed description of your case and steps towards marketing, competitiveness analysis, financial calculations and a production plan.

Some of my business centres provide a business plan audit service for the social contract. Find details and conditions in your region.

Where do you want to get a social contract?
Applications can be submitted to the regional social protection bodies in their place of residence, as well as to the IFC or the Gosusch portal. Online, it will still be necessary to provide the original documents in person to the social protection authorities or the IFC.

At this stage, specialists will identify the causes of difficult living conditions, assess the income of a citizen or family, and provide guidance on the necessary documents for the social contract.

We should also be prepared for an interview: the commission may ask clarifications on any item in your business plan.

I've filed papers. What's next?

The application is reviewed by 10 working days. This period may extend to 30 working days if the commissions need additional documents, or it decides that the business plan needs to be refined.

Details are given in paragraph 28 of the regulations adopted by Government Decision No. 1931 of 16 November 2002.

Reasons for denial of social security
The most common reason for refusing a social contract is that there is no reason to recognize the complainant as poor. Social protection may also refuse in the event of a poorly developed business plan or incomplete document package. If a citizen had previously received a social contract and violated its terms, for example, in an unearthed waste of money or ceased to work during the course of the past social contract, he could also be denied a new social contract.

The decision to refuse is sent within 10 working days.

What happens if you don't meet the conditions of the social contract?
The state will dissolve the social contract and demand the return of the money. A citizen is also entitled to terminate the contract, in which case the amount of the grant will also have to be returned.

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Entrepreneurs ' support is provided through the Maloy and Middle Entrepreneurship Project