Up to May 1 Entrepreneurs of Tatarstan can apply for inclusion in social enterprises catalog of Russia

Since last year, a catalog of small and medium-sized businesses with "Social Enterprise" status has been formed in Russia. Inclusion in the register provides businesses with access to support measures and other services provided for social entrepreneurs. You must apply for recognition of the status by May 1, 2021. 

In the Republic of Tatarstan, the Ministry of Economy of the Republic of Tatarstan and the Business Support Fund of the Republic of Tatarstan, subordinate to the Ministry, carry out work on the recognition of small and medium-sized businesses as social enterprises and on the formation of an appropriate Catalog.

For entrepreneurs included in the Catalog, additional financial support, including grant support, is provided in 2021. It refers to a "Social Entrepreneur" special microfinance product. The loan was developed by the Ministry of Economy of the Republic of Tatarstan and is aimed at helping businesses focused on solving social problems and tasks.  Entrepreneurs who meet the conditions of the program can receive up to 5 million rubles at a rate equal to half the rate of the Central Bank of the Russian Federation for a period of up to 24 months.

It is also planned to introduce grants for social enterprises this year. It is assumed that the grants will be provided for a fairly wide range of purposes.

Submit documents, get a consultation and get additional information at the Center for Social Innovations (CSI) of the Entrepreneurship Support Fund of the Republic of Tatarstan by phone +7-903-342-02-39 or e-mail: adg1981@mail.ru

The set of documents required to apply for inclusion in the Catalog can be found here. 

With the guidelines for filling out the documents: here.

For reference:

Concept of July 26, 2019, Federal Law No. 209-FZ dd. July 24, 2007 "On the Development of Small and Medium-sized Businesses in the Russian Federation" was amended to consolidate the concepts of "social entrepreneurship" and "social enterprise". 

In accordance with Article 24.1 of Federal Law No. 209-FZ dd 24.07.2007 "On the Development of Small and Medium-sized Businesses in the Russian Federation", a social enterprise must meet one or more of the following conditions:

1. An SME entity carries out activities aimed at achieving socially useful goals and contributing to the solution of social problems of society, provided that the share of income from such activities (types of such activities) at the end of the previous calendar year is not less than 50% of the total income of the SMSP, and the share of the net profit received by the SMSP for the previous calendar year, directed to the implementation of such activities (types of such activities) in the current calendar year is not less than 50% of the amount of the specified profit (if there is a net profit for the previous calendar year), from among the following types of activities:

a.activities for the provision of psychological, pedagogical and other services aimed at strengthening the family unit, ensuring family education of children and supporting motherhood and childhood;

b. activities for the organization of recreation and wellness of children;

c. activities for the provision of services in the field of pre-school education and general education, additional education of children;

d. activities to provide psychological, pedagogical, medical and social assistance to students experiencing difficulties in mastering basic general education programs, development and social adaptation;

e. training activities for employees and volunteers of socially oriented non-profit organizations aimed at improving the quality of services provided by such organizations;

f. cultural and educational activities (including the activities of private museums, theaters, libraries, archives, studio schools, creative workshops, botanical and zoological gardens, cultural centers, folk art houses);

g. activities for the provision of services aimed at the development of inter-ethnic cooperation, the preservation and protection of the identity, culture, languages and traditions of the peoples of the Russian Federation;

h. production of periodicals and book products related to education, science and culture, included in the list of types of periodicals and book products related to education, science and culture approved by the Government of the Russian Federation, subject to value-added tax at the rate of 10%.

2. An SME entity provides employment for the following categories of citizens, provided that, according to the results of the previous calendar year, the average number of persons belonging to any of these categories (one or more of these categories) among the employees of the SMSP is at least 50% (but not less than two persons belonging to such categories), and the share of labor costs of persons belonging to any of these categories (one or more of these categories) in labor costs is at least 25%:

a) invalids and persons with health limitations;

b) single and (or) large parents raising minor children, including children with disabilities;

c) pensioners and citizens of pre-retirement age (within five years before the age that entitles them to an old-age insurance pension, including one that is assigned ahead of schedule);

d) graduates of orphanages under the age of twenty-three;

e) persons released from prison and having an unexpunged or outstanding criminal record;

f) refugees and internal refugees;

g) low-income citizens;

h) persons of no fixed abode and occupation;

i) citizens who are not specified in sub - paragraphs "a" - "h" of this paragraph, recognized as in need of social services.

3. An SME entity (with the exception of the SMSP referred to in paragraph 2) ensures the sale of goods (works, services) produced by citizens from among the categories specified in paragraph 2. At the same time, the share of income from such activities based on the results of the previous calendar year should be at least 50% of the total income of the SMSP, and the share of the net profit received by the SMSP for the previous calendar year, directed to the implementation of such activities in the current calendar year, should be at least 50% of the amount of the specified profit (if there is a net profit for the previous calendar year).

4. An SME entity carries out activities for the production of goods (works, services) intended for citizens from among the categories specified in paragraph 2, in order to create conditions for them to overcome or compensate for the limitations of their life activities, as well as opportunities to participate on an equal basis with other citizens in the life of society, provided that the share of income from such activities (types of such activities) in the previous calendar year is not less than 50% of the total income of the SMSP entity, and the share of the net profit received by the SMSP for the previous calendar year, directed to the implementation of such activities (types of such activities) in the current calendar year, is not less than 50% of the amount of the specified profit (if there is a net profit for the previous calendar year), in accordance with the following activities of social enterprises:

a.activities for the provision of social and household services aimed at maintaining an everyday life;

b. activities for the provision of social and medical services aimed at maintaining and preserving health through the organization of care, assistance in conducting health-improving activities, systematic monitoring to identify deviations in the state of health;

c. activities for the provision of social and psychological services that provide assistance in correcting the psychological state for adaptation to the social environment;

d. activities for the provision of social and pedagogical services aimed at the prevention of behavioral disorders;

e. activities for the provision of social and labor services aimed at providing assistance in employment and in solving other problems related to labor adaptation;

f. activities for the provision of services that provide for the improvement of communication potential, rehabilitation and social adaptation, social support services;

g. production and (or) sale of medical equipment, prosthetic and orthopedic products, software, as well as technical means that can be used exclusively for the prevention of disability or rehabilitation (habilitation) of disabled people;

h. activities for the organization of recreation and rehabilitation of disabled people and pensioners;

i. activities for the provision of services in the field of additional education;

k. activities aimed at creating conditions for unhindered access of persons with disabilities to social, engineering, and transport infrastructure facilities and the use of means of transport, communication, and information.