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Books by Grigory Yavlinsky
Economics and Politics in Russia
The Center for Economic and Political Research (EPIcenter)
Nizhni Novgorod-Moscow, 1992

4.1 Entrepreneurship and Property

4.1.2. "Free" Registration (Self-Registration) of Private Enterprises

Any citizen who is a permanent resident of the oblast may register his/her own enterprise. One only has to a registration fee and fill out the "Certificate for State Registration of Individual Enterprises". The oblast has introduced free registration ("self-registration") of private enterprises, which are not legal entities, in a bid to radically change basic attitudes and approaches to entrepreneurship. It is no longer up to the state to permit individuals to engage in entrepreneurial activity. Now individuals themselves inform the state that they have decided to start up their own businesses.


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All citizens (or groups of citizens) who are permanent residents of the oblast (alternatively, the Russian Federation) may register their own enterprises. It suffices to pay a registration fee of 2,000 roubles (or 1,000 roubles, 500 rubles, or the equival ent of one or two times the minimum wage) and fill out a "Certificate for State Registration of Individual Enterprises (Full Partnerships)". The fees may be paid at: post offices, the registration department of the executive committee office, and banks. The registration is authorised at the office of the executive committee of the appropriate council (according to the declared residential addr ess). The Certificate is filled in duplicate. One copy is kept by the proprietor and the second is maintained at the executive committee office or is sent there by registered mail (if registered at a post office). Both copies should indicate: (a) the date; (b) the amount of the fee; and (c) the signature of the employee who accepted payment (and/or the stamp from the cash register).

For full partnerships, the Certificate is filled out by one of the proprietors, whose name is included in the enterprise name. The communications department (of the bank) sends a postal order with the registration fee and a second copy of the Certificate (for "postal" registration) to the registration agency within three days after the payment of the fee. The Certificate is valid, if it includes:

(a) proof of payment of the fee;

(b) a document identifying the proprietor of the individual enterprise or one of the proprietors of the full partnership (including first name, patronymic, last name, and residenti al address). The applicant is responsible for the validity of the information listed on the Certificate. No corrections may be made to the Certificate. If there are any errors (e.g., discrepancy between the information on the Certificate and the identification document), the Certificate will be withdrawn. A copy of a valid Certificate may be obtained at the registration agency for an additional fee (perhaps 100, 50, or 25 roubles).

The proprietor of the individual enterprise or full partnership may, if he/she has a valid Certificate, may receive permission from the Internal Affairs Ministry to prepare a stamp for the enterprise. The income declaration form, address of the tax inspectorate, its working hours, etc., are mailed in advance to the proprietor(s) of the individual enterprise or full partnership. The latter may also be sent advertising information (lists of banking servi ces, and mediatory and consultancy firms, information on how to acquire packages of legal documentation, etc.). The holder of a Certificate may choose, for an additional fee (300, 200, or 100 roubles) or free of charge, to post certified and stamped information on the registration number and date, at the executive committee office. Certificate holders enjoy all rights granted to enterprises by existing legislation.

The Certificate fulfils the function of an enterprise charter. The proprietor(s) of an enterprise is (are) obliged:

(a) to pay taxes regularly (quarterly or annually); and

(b) to inform the registration agency in due time, if the enterprise is liquidated. The liquidation of an enterprise requires the proprietor's presence at the registration agency (executive committee office).

Liquidation is performed according to the following procedure:

- the proprietor submits to the registration agency a Certificate for Registration or Declaration of Liquidation (a Certificate form may be used, replacing the words "for the creation" by "for the liquidation"; no registration fees apply in this case);

- the executive committee employee verifies the relevant information on the registration certificate and the proprietor's identification document (e.g., passport); and

- the registration certificate is withdrawn, and in its place the certificate of liquidation of the enterprise, with the stamped signature of the employee of the executive committee, is issued. If the declaration of the enterprise's liquidation is not submitted to the appropriate agency, it is assumed that the enterprise is still operating (the proprietors are obliged to pay the established taxes and fees which are set, for example, in fixed amo unts per month, year, etc.).


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