4.1 Entrepreneurship and Property

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

Problems

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For entrepreneurs:

- psychological unreceptiveness to full property accountability;

- instability and carelessness of the tax system;

- the problem of protection of private property;

- limited potential (lack of capital) for the acquisition of real estate (land and non-residential premises) and equipment; and

- the orientation of the external environment (banking services, the foreign economic sphere, labour relations, etc.) toward traditional enterprises.

For the authorities:

- complication of tax collection (inevitable loss of taxes if the requisite measures to reorganise the corresponding services are not adopted); and

- the difficulty of preventing potential abuse (use of free registration to create fictitious enterprises, the opening of several bank accounts by proprietors of private enterprises to harbour income and avoid taxes, etc.).

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