Claim expenses, Receive any types of credits for payment of income tax; intended for legal entities simplified procedure for collection of value-added and excise tax; exemption from profit tax

Has recourse to arbitration Receive preferential credits to protect rights and from special private interests entrepreneurship support funds

(2) Sample instructions for the introduction of free registration

1. Introduction of free registration regulations (self-registration):

a) approval of the relevant Regulations (sample plan: 1. Fundamentals; 2. Procedure; 3. Rights and obligations of the state institutions; 4. Rights and obligations of private individuals and legal entities). b) - the printing and supply of set forms to post offices, executive committee offices, and banks (alternatively, the publication of the Certificate form in newspapers, with authorisation to cut it out and mail); and - preparation of licenses stipulated in the Regulations.

2. Unrestricted commerce by private entrepreneurs:

a) the sale of licenses entitling the Certificate holder to engage in commerce in public places. Permission to set up vendor's stalls, etc., and

b) the internal affairs department's surveillance of the observance of trading rules.

3. Closed auctions (tenders) by proprietors of individual enterprises (and full partnerships) for the sale (or leasing) of non-residential premises and stores:

a) recommendations to state property funds to hold special auctions for proprietors of individual enterprises (or full partnerships).

4. Protection of private property:

a) authorising the internal affairs department to sign contracts with associations or unions of proprietors of individual enterprises (or full partnerships);

b) elaboration by the internal affairs department of Regulations on such contracts; and

c) consideration of the issue of licenses entitling proprietors of private enterprises to carry weapons (gas or conventional).

5. Preferential taxation on proprietors of individual enterprises (or full partnerships):

a) establishment of fees and a procedure for issuing licenses to proprietors of individual enterprises (or full partnerships) for the production and commerce of excise commodities; and

b) recommendation that the tax inspectorate:

- prepare and publish a set of documents on taxation of individual enterprises (and full partnerships);

- simplify the collection of VAT, with a view to gradually removing this tax for individual enterprises (and full partnerships); and

- develop measures for strengthening control over the correct payment of income tax.

6. Bank services to proprietors of individual enterprises (and full partnerships):

a) recommendation that commercial banks open accounts for the proprietors of individual enterprises (and full partnerships), with the same services as other enterprises;

b) recommendation that banks prepare advertising brochures regarding the services for individual enterprises (and full partnerships), and distribute the brochures to registration agencies;

c) approval (after reaching agreement with the banks) of a list of commercial banks which are willing to open settlement accounts and render other services to private entrepreneurs and the publication of this list in the press.

7. Wholesale markets for agricultural produce:

a) allocation of places (or land) for wholesale markets in each region of Nizhni Novgorod (and possibly of other cities); and

b) establishment of fees for market stalls, with the goal of fulfilling the demand. The internal affairs department and the anti-monopolisation committee should prevent monopolies.

8. Credits for private entrepreneurs:

a) a special budget article for support to individual enterprises (and full partnerships); and

b) recommendation that the Entrepreneur Support Fund mainly provide credits to proprietors of individual enterprises (and full partnerships).

(3) Certificate of state registration of an individual enterprise (or full partnership)

(front side of the form)

I, __________________________ (last name, first name, and patronymic of the proprietor of the individual enterprise or one of the members of the full partnership who is listed in the partnership name. For example, for a full partnership: "I, Ivanov Ivan I vanovich, on behalf of the group of individuals listed on the reverse side of this certificate")

RESIDENT AT THE ADDRESS _____________________________ (place of permanent residence permit, or permanent address)

Passport series _______ No. __________ issued _______________________________________, 19

hereby declare the creation of an individual enterprise (or full partnership). Enterprise name: individual enterprise / full partnership _______________________________________ (last name(s) of the proprietor(s))

Principal forms of activity _______________________________________ (proposed)

I (We) am (are) aware that I (we) bear absolute property liability according to the obligations of the enterprise.

I (We) am (are) aware of my (our) liability for: tax evasion as regards the activity of the enterprise; or activity contravened by the legislation.

Signature ____________________________ (to be filled out by an employee of the registration agency or post office)

The registration fee in the amount of __________ roubles has been paid.

Date Signature of the employee accepting the fee

Seal (stamp or cash register mark)

Appendix

Reverse side of the form

Last name, first name, Passport: series, number, Signature and patronymic (in full) place of issue, and of all members of the issuing agency full partnership

(to be filled out at the registration agency upon application by the proprietor of the enterprise)

Registered at _________________________________ (registration agency)

No. __________ dated ______________, 19

Principal forms of activity of the enterprise: ________________________________________

Job Title Signature

Affix seal here: ___________________________

This Certificate is valid only if it includes proof of payment of the registration fee, and only upon presentation of a document (e.g., passport) identifying the proprietor.

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