Self-Employed
The self-employed form of activity in Russia offers a highly accessible and simplified route to conducting commercial activities. Registration is completed through a simplified procedure via the mobile application “My Tax” or through the taxpayer’s personal account on the State Services portal. No special registration procedure is required, and there is no need to open a special bank account — a personal bank account is sufficient. It is possible to combine self-employment with work under an employment contract, however combining work under a contract with self-employment in the same field is not permitted.
Self-employed status may be applied to individuals and individual entrepreneurs who simultaneously meet the following conditions: they receive income from the independent conduct of activities or from the use of property; while carrying out these activities, the person does not have an employer with whom they have an employment contract; they do not use hired employees under employment contracts for these activities; and the type of activity, the conditions of its implementation, or the amount of income do not fall within the list of exceptions specified in Articles 4 and 6 of Federal Law No. 422-FZ of November 27, 2018. The maximum annual income must not exceed 2.4 million rubles, equivalent to 200,000 rubles per month.
The legal basis for this organizational form is provided by Federal Law No. 422-FZ of November 27, 2018 on Conducting an Experiment on the Establishment of a Special Tax Regime “Tax on Professional Income”, and Federal Law No. 209-FZ of July 24, 2007 on the Development of Small and Medium-Sized Enterprises in the Russian Federation.
Financial Support
All measures of financial support applicable to small and medium-sized businesses are also available to self-employed persons. These include microfinance, concessional microloans, guarantees under microloan contracts, and preferential rental of state and municipal property.
Tax Relief
Self-employed persons benefit from a simplified procedure of tax payment, with no requirement to submit reports or maintain accounting records. A preferential tax regime applies: 4% on income received from individuals and 6% on income received from legal entities and individual entrepreneurs. No other mandatory payments are applicable. Tax is paid in a simplified mode using the mobile application or the taxpayer’s personal account.
Social Security Contributions
There is no obligation for self-employed persons to pay fixed pension insurance contributions. Voluntary pension insurance is available as an option for those who wish to participate.
Public Procurement
Self-employed persons may participate in public procurement under Federal Laws No. 223-FZ and No. 44-FZ. Self-employed status is equated to the status of a small and medium-sized business entity, with the corresponding preferences, including the mandatory share of the order allocated to SMEs.
Educational and Informational Support
Educational and informational support is implemented at both the federal and regional levels. At the federal level, support is provided by the Federal Corporation for the Development of Small and Medium Entrepreneurship (corpmsp.ru). At the regional level, support is available through regional funds for entrepreneurship support. All available support measures can be explored through free consultations at “My Business” centers (mybiznes.rf).
Other Types of Support
Additional support resources are available through the official portal for the development of small and medium-sized businesses (smbn.ru). The infrastructure supporting small and medium-sized businesses includes regional guarantee organizations, a consulting infrastructure, and regional centers of competence. Further information is available at corpmsp.ru/org-infrastruktury-podderzhki.
