Subsidies to Small Businesses – This is one of the most sought-after and most effective ways to support small businesses in Russia. The state thus encourages people to open their own business and to further develop it. Develop relevant regional and federal programs. How and where to get the subsidy, what is needed for it, will be discussed below.
Who can count on subsidies for small businesses?
Under the Small Farming Support Program in the Russian Federation, anyone who wants to do business has the right to rely on state aid, including in the form of free subsidies. Such financial support is implemented in strictly fixed amounts operating in each particular region. Practically everyone can apply for such state support. But not the fact that everyone will receive it.
It should be borne in mind that the availability of own funds is not at all redundant, as the government is not prepared to cover all future costs of future entrepreneurs. However, the return of the subsidies granted, unlike a bank loan, will not require any businessman – provided that the money is used for the intended purpose.
Subsidies provided by TsZN
Only nationals who are officially recognized as unemployed can receive free state aid. Therefore, once you have decided to start your own business with the help of subsidies, you will need to apply to the Central Employment Center (Employment Center) to become unemployed. To do this, you must submit the following documents:
- SNILS (Pension Insurance Certificate);
- education certificate;
- the last job receipt for the last 3 months salary paid to the employee prior to the dismissal;
- a statement on the wish of the unemployed to participate in the self-employment program;
- made a business plan.
What’s the last document? This is an unusual estimate of future costs and revenues, which is a source of usefulness and benefit from the company’s creation, here is also indicated the approximate return period.
The document package is submitted for consideration to a special commission working at the Employment Center, which will make the final decision on the granting of the grant or the refusal.
If the decision is positive, a contract between the citizen and the central security depositor is concluded, according to which the grants subsidy will be transferred to his personal account.
The state is ready to subsidize an unemployed citizen only if the Central Human Rights Center has not provided the appropriate job. In Moscow, the subsidy amounts to a maximum of 10,200 rubles and is intended to cover the costs of the state registration of a legal person, an independent entrepreneur or a peasant (economy) economy: preparation of registration documents, payment of a notary service, purchase of forms, stamping or marking (fees for actually spent amounts) In addition, future entrepreneurs will be provided with advisory and information support.
Note that such rules, prescribed by Moscow PP on December 19, 2012 N 757-PP, introduced relatively recently: earlier, the financial support for small businesses from TsZN was more significant and amounted to 58,800 rubles. The presence and size of regional subsidies should be established at local employment agencies.
Subsidies provided by local authorities
Unfortunately, state aid from the center of social protection is minimal and insufficient to develop more or less serious work. Of course, you can use your own savings. But what if they do not even have them?
When your business requires a decent investment, contact your local government (by place of residence). In this case you can expect a higher amount. That’s, as a rule, about 300,000 rubles.
What is this in the case of a prospective entrepreneur? It is necessary to prepare the same package of documents as for obtaining subsidies from the employment center of the population. He only served in the department dealing with the Small Business Development Program. The magnitude of local government subsidies is much greater than the size of a branch of the Central Human Rights Department, and thus increases the competition between the applicants. It is very important that you open your own business to become interested in regional authorities in order to have the desire to provide financial support to your small business.
If you have the luck and money you get, you should be prepared for the fact that every month you will have to submit a report on the target cost of the funds allocated. Otherwise, when the funds are used for other purposes, they must be repaid.
During the year the funds allocated and allocated must be used. If this is not done then the unburied balance returns. All costs in the annual report must be documented.
The shortage of subsidies for small businesses
When applying for state support for your own business, keep in mind some nuances, especially:
- if it is planned to carry out real estate, alcohol, tobacco products, for the performance of procurement activities, then it is not necessary to count on the state’s assistance;
- the future entrepreneur should have his own material resources because the state, as mentioned above, is willing to provide him with only partial financial support (usually no more than 40%).
Other types of state aid for small businesses
In addition to direct cash grants to small businesses, government agencies can offer small business representatives of different types.
- Rent non-residential real estate, land, equipment at discounted rates, or even free of charge.
- Also, the state can assist in obtaining a bank loan under favorable conditions.
- Subsidizing the acquisition of long-term assets by leasing companies. This can be the first installment or full payout. The size of the subsidy depends on the OS value. For example, city authorities are willing to subsidize up to 1/3 of the value of property value-added tax (VAT), but not exceeding 5 million rubles.
Moreover, in regions they can run their own support programs and subsidies for small businesses, which the future entrepreneur can learn from the media or get advice from experts directly involved in these issues.
Based on support and assistance resources for small businesses, there are bodies that provide support to entrepreneurs in accounting management and provide legal support to business. This activity is relevant and sought after, as it allows you to reduce the costs of an entrepreneur to attract professionals.
Subsidies for Small Businesses They are a good help for people who are eager not only to start their own business but to continue to develop it for the benefit of their family and society as a whole.
Despite all the difficulties and bureaucratic obstacles, more Russians are trying to become independent and open their own business. For a long time, we have learned that we do not perceive the state as an assistant, but as an insurmountable obstacle to the desired profit. What are the chances that government spending for 2017 will continue to be in your budget?
What kind of help you can count on
It’s been a long time ago when a small company left to itself. Today, the development of this area is a priority in the domestic policy of the state.
According to new legal changes, individual entrepreneurs can count on the following benefits:
- money support;
- covering training costs (often, however, only partially);
- concession lease;
- free or privileged outsourcing services;
- discounts on participation in exhibitions, fairs;
- partial interest payment on loans;
- granting guarantees and guarantees from state funds, which simplifies access to borrowed funds.
It is also worth noting that support for small businesses does not include only state funds. Among those who help newcomers are investment funds, public organizations, business schools and state institutions. They are a link between the state and the entrepreneurs.
Subsidies for beginners PI
The Business Support Provision applies to anyone who has a registration form for inclusion in the system. Those people can apply for financial support.
The main requirement is that a registered company must not be older than two years. This job is considered a beginner and can enjoy the privileges of an entrepreneurship support program.
The amount of assistance is determined depending on the region in which your company is registered. The maximum help available in the capital is 500,000 rubles. In regions, however, they emit no more than 300,000. However, it is worth considering that because of the country’s crisis the money to support small businesses is transferred from the state budget rather slowly, so all funds do not accept subsidy requests.
It is also necessary to understand that SP obtains funds allocated under common investment conditions. It is impossible to organize your company only for public money, it will be necessary to make personal savings.
In addition, the subsidy can only be used for strictly regulated purposes:
- payment of lease space;
- equipping the employees’ jobs;
- purchase of materials and raw materials for production (only 1/5 received assistance can be used).
On how much and where you spent your funds funds, you will need to apply without exception. Certificates, certificates, contracts will be required for verification of the supervisory authority. In addition, you first need to become familiar with the funding conditions in your region so as not to violate the requirements of local legislation.
Government support by the state can be implemented in other ways – through the employment center. To get help, you must first report to the local employment center as an unemployed person. Then it is reasonable to reject all proposed free positions, create a business plan for future activities, and submit it for consideration together with other necessary documents.
If everything is done correctly, you will get funding for the project implementation. The amount of help is of course not too big – 58,800 rubles. But with a viable idea and a great desire for its implementation, it should be enough to begin with.
An important prerequisite for getting this type of assistance is a constant (quarterly) reporting of spending before the Employment Center. If it turns out that the money was not targeted at the goals set out in the business plan, the entrepreneur will have to repay the subsidy. In addition, it will be included in the “black list”, after which it will be useless to expect to receive state aid in the future.
Other help options
There are a number of other possibilities for state support.
The most common cause of business failure is the lack of necessary business knowledge. On the other hand, it is difficult to get them because of the high costs of appropriate educational services. In support of start-ups, the state offers the opportunity to attend various courses, seminars and lectures free of charge.
Discounts for rent
State aid may also be expressed in the form of a discount on rent for office or production space rental. However, such assistance is only possible if the rented building or space is in the balance of the state fund. If you want to get it, be prepared to take part in the competition for the title of the Most Valuable Tenant. If you win, you will be given an attachment to connect all the necessary communications.
Payment for participation in exhibitions
Subsidies for participation at regional, national or international exhibitions and fairs will help promote their products to entrepreneurs. Those who receive such assistance are paid for the costs associated with registration, accommodation, exhibition space organization, site rental, etc.
For each type of state aid that an entrepreneur claims, the main condition for its provision is that its business idea is sustainable so that its implementation leads to the creation of a truly profitable enterprise that not only would profit from its owner, but would use the city or region, supporting a business that is not justified, our country is not ready. If you want to risk, adjust yourself to rely only on your own strength and personal resources.
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