A Crimean peninsula is a place where you can safely open and develop your own business. There are many options for areas of activity that will not require large investments and will have fast payback periods.
Benefits of the Crimean Peninsula for Russian Entrepreneurs
In 2019, we can confidently say that business activities on the Crimean peninsula have many prospects. Such information confirms the response of start-up businessmen in the region, who are confident that Crimea will become a very profitable territory for Russia in the future. Its main advantages as a region are:
- Favorable location in relation to other countries.
- Access to the sea.
- The economic base created during the Soviet Union.
Analysts argue that the Crimean peninsula, with its resource base and geographical location, will always be a profitable place to start your own business. Statistics show that a positive economic effect can be obtained in the first six months after the opening of an enterprise. The main task is to correctly determine the scope for business development.
Crimea is the territorial unit of Russia, the development of which is actively supported by the state. The amount of investment in the infrastructure of this region in terms of up to 2020 is about 707 million rubles. There are several indisputable facts that confirm a promising future for small and medium-sized businesses on the Crimean peninsula. Here are some of the main ones:
- The statistics confirm the positive return on investment in the region.
- The income level of the local population is growing and stabilizing.
- The volume of trade increases in proportion to the growth of incomes of the population.
- The demand market is actively growing.
So far, the real data on the development of the region lag behind the planned figures.
The main reasons that make entrepreneurial activity in Crimea promising
There are a number of objective reasons that confirm the attractiveness and prospects of entrepreneurial activity in Crimea:
- Lack of strong competition in the market.
- High and relatively fast payback of invested capital in comparison with other regions of Russia.
- Democratic prices in the real estate market.
- Large market of free specialists and labor force.
- Assistance from representatives of local governments in starting their own business.
In order for entrepreneurial activity to be profitable and promising, it is necessary to choose a business area in which there will definitely be or appear demand.
How to register your business in Crimea?
From March 21, 2019, the SEZ (Free Economic Zone) officially operates in Crimea. Such changes contributed to the reduction of tax rates on property, profits, etc.
From 04/03/2014, Russian law allows the registration of IP in the annexed regions for both Russian citizens and foreigners. To do this, you must have a number of documents, the list of which is provided for by the legislation of the Russian Federation. For a new enterprise, a TIN and PSRN are assigned.
On March 21, 2019, after the introduction of Law No. 6-FKZ into force, it was established that entrepreneurial activity in the territory of the Republic of Crimea must be carried out in accordance with the tax legislation of the Russian Federation. Immediately after registration and registration of an individual entrepreneur or company, all the norms of the Tax Code of the Russian Federation apply to them. There are also registration centers where a taxpayer can register a legal entity and obtain the status of an individual entrepreneur. For the accuracy of all procedures, leading professionals from the relevant authorities from St. Petersburg and Moscow are involved in the registration process.
The process of registering an LLC in the Crimean Republic is carried out in accordance with the current legislation of Russia (namely, Federal Law No. 129). Before starting the preparation of a package of documents, you should carefully read this law, as well as the first part of the Civil Code.
Registration of an LLC in the Russian Federation begins with determining the parameters of the company:
- determining the number of founders;
- appointment of a natural or legal person who will act as a director;
- determining the type of activity of the enterprise;
- assignment of the actual legal address for the company;
- set the amount of starting capital;
- name definitions.
An adult citizen of the Russian Federation or another country can be appointed as the founder. The number of participants can be set from 1 to 50 people.
An adult natural person can be appointed to the position of director (one of the founders has the right to be one). If it is planned to appoint a foreign citizen to the position of director, this must be reported to the migration service without fail.
In the Civil Code, the Law on Registration of Legal Entities and other state documents, you can familiarize yourself with the requirements for the name of an enterprise. No enterprise can be opened without its unique name. In the registration documents, you must specify the full and abbreviated format of the company name. It prohibits the mention of the words Russia or the Russian Federation, otherwise the entrepreneur will receive a fine.
To create a company, it is necessary to declare a minimum authorized capital in the amount of at least 10 thousand rubles. For enterprises whose activities require licensing, the minimum amount of capital may be higher. For example, for an enterprise that is engaged in the retail sale of alcoholic products, the authorized capital must be at least 100 thousand rubles. The required amount can be credited within 4 months after the LLC was officially registered and opened.
In the Republic of Crimea, when registering an LLC, it is necessary to indicate the legal address where you can always find the director. To do this, you can use the address of non-residential premises or the founder. In order to avoid problems with paperwork, to register an LLC at the address of non-residential premises, you must provide letters with a guarantee from its owner.
In OKVED (All-Russian classifier of types of economic activity) you can find a list of areas of activity that can be engaged in the territory of the Russian Federation and its annexed regions.
If an entrepreneur does not have a residence permit in Crimea, he can register his business in this region, confirming that he has reached the age of majority and has Russian citizenship.
When registering an enterprise in Crimea, it is necessary to have written permission to engage in entrepreneurial activities at the place of registration from the owner of this premises.
A firm registered in the name of a foreign entity will be classified as an enterprise with foreign investment. The procedure for registering such an enterprise is no different from the usual one. For them, the amount of fees and terms of registration does not change.
A foreign citizen must obtain a work permit in Russia at the migration service, and then translate his civil passport into Russian and notarize it. If a foreigner is a representative of a country with a visa regime, a company must submit an application to the migration service in order to be able to hire a foreign employee.
If the founder is a foreign company, then it will require a certificate from a notary on the registration of a foreign company.
In Russia, everyone who is a member of the FEZ is provided with tax benefits. Representatives of large businesses are required to invest in the region from 30 million rubles. to enter the SEZ. For medium and small businesses, this amount is 3 million rubles. Below are the tax rates for entrepreneurs in the Republic of Crimea for participants and non-participants of the SEZ under the simplified tax system (STS):
- on income: 3%;
- on income-expenses: 7%.
Under the patent system: 1%.
The package of documents for filing an application with a tax organization is as follows:
- application (f. Р11001);
- two copies of the charter of the enterprise;
- receipts certifying the payment of the state fee;
- minutes of the meeting of the founders.
The application can be written by hand or compiled on a computer. It is necessary to indicate the data of the enterprise about the name, legal address, etc. in it. The founder is the person who is obliged to sign the relevant document. If the application will be submitted by a third party, then it is necessary for him to notarize the power of attorney. In the absence of one or more founders at the time of application, their signatures must be certified by a notary.
The charter is the main document of the enterprise, which indicates all information about the organization of the company’s activities from the moment of opening to its complete liquidation. This document also indicates the rights and obligations of the founders and the director.
The decision to register an enterprise is not certified by a notary but is drawn up in accordance with the requirements specified in Russian legislation. If there is more than one founder of the company, then the minutes from the general meeting are presented in the registration department.
State duty in the amount of 4 thousand rubles. one of the founders has the right to pay, and the name of the enterprise must be indicated in the receipt.
If the legal address of the LLC does not correspond to the address of the director’s residence, in this case a letter of guarantee is submitted.
Documents for registration are submitted to the main registration authority of the Crimean Peninsula IFTS for the city of Simferopol. Entrepreneurs of the city of Sevastopol must submit a document to the registration authority for the city of Sevastopol.
After the documents are received by the tax organization, the founders of the enterprise are issued a receipt, which indicates the name of the company, the date of submission, and the date of receipt of the certificate. This document is signed by the registrar.
The package of documents together with the application will be considered within 5 days after submission (in some cases, these terms may be delayed).
Based on the results of consideration of tax documents, the entrepreneur will receive:
- a document confirming the registration of the LLC;
- a document on the company’s tax registration;
- a copy of the company’s charter;
- a copy of the Record Sheet.
If an enterprise is refused registration, its owners will be issued a document listing the reasons for the refusal. The total cost of registration, taking into account the payment of the state fee and notary services, will be about 4000-7000 rubles. If you register a turnkey enterprise (contact intermediary offices), the entire procedure can cost about 20,000 rubles.
In a letter from the Federal Tax Service dated 04.04. 2019 No. GD-4-3 / 6133, it is indicated that starting from 2019, a taxation system operates on the territory of the Crimean Republic.
Entrepreneurs in Crimea will pay 20% income tax or 2.2% property tax, while VAT will be 0, 10, 15 or 18 percent.
The UTII rate will be paid by entrepreneurs in the amount of 15%, for a simplified taxation system it will be 3% or 7% in Crimea.
An entrepreneur needs to open a bank account, order a unique seal for the company and choose the appropriate tax system (within one month).
12 promising areas for business development in the Republic of Crimea
The main activity of this region is tourism. Everything related to the service and entertainment of visiting guests will certainly be profitable.
Opening of a mini-hotel
A profitable and promising idea for your own business is the opening of a mini-hotel. In the resort regions, rental housing has always been in great demand. Large hotels require huge upfront investments, and their payback period can be delayed. But buying a small room will be much easier. It will not be difficult to make it cozy and advertise it. And if you manage to find a building as close to the sea as possible, then this is a sure guarantee of success.
Since the crisis has not yet ended on the territory of the Russian Federation, the arrival of tourists to the Crimean peninsula is guaranteed. The average cost of a standard room for one person in 2019 in the off-season is about 500 rubles per day.
The second idea for your own business in Crimea is the opening of a bicycle rental. Recently, people around the world have actively begun to switch to a two-wheeled mode of transport. And given the beauty of the peninsula and the opportunity to make interesting routes, bike rental will definitely be in demand. To do this, the entrepreneur will need:
- Buy or rent 6 to 8 bicycles (this will be enough to start). Starting investments will be about 70-112 thousand rubles.
- Find a local guide who will help you come up with original and interesting routes of medium and high difficulty.
- Launch business advertising through social networks.
- Strictly following the compiled route (the life and health of tourists may depend on this).
You can also invest your money in opening your own entertainment center. All the development of this region is now aimed at creating quality infrastructure for tourists. The local population bypasses the issue of opening entertainment complexes. Therefore, the discovery may be promising:
- dance clubs;
- restaurants and cafes;
- establishments with karaoke, etc.
For example, to open a bar you will need:
- register your business, preferably as an LLC;
- find a room for the opening of an institution that will comply with sanitary and safety standards, then make a stylistic repair in it;
- gather staff;
- purchase the necessary equipment;
- advertise the establishment.
The average payback period for such a business is about 2-2.5 years.