In the Article dated 13.07.2021, the Information Agency Credinform informed, that according to the Federal Law of 11.06.2021 No.174-FZ, the Federal State Statistics Service (Rosstat) was obligated to form the Enterprise Group Register. The Law imposes a duty to give information on subsidiaries and their investment activity on group head companies.
The list of information on investment activity of group companies was defined by the Rosstat Order of 16.09.2021 No. 566.
Among these data:
- the amount of equity investment, which includes the cost of construction, purchase of machinery, equipment and transport, production and household inventory;
- the amount of investment in intellectual property and cultivated biological resources;
- distribution of equity investment by funding source.
It was also defined, that the data should be submitted every year starting from 2022 and no later than June 15 as the form of federal statistical monitoring over the investment activity of group companies.
According to the Federal Tax Service of the Russian Federation (FTS of Russia), there are 3,3 million active legal entities in Russia as of 01.10.2021.
Here are the facts, showing the general portrait of the Russian companies: business in Russia continues to be closed, non-public legal forms lie at the core of it; every tenth company is engaged in commodity production and one third of them meet the requirements of Strong/Medium Solvency index Globas.
There are almost 2,7 million (82%) profit-making enterprises among active legal entities.
Limited liability company (74%) is the most popular legal form. Joint-stock companies are far less popular – only 1,5%. The share of non-profit enterprises amounts to 14%.
Individuals are represented as owners (shareholders, founders) in 89% of companies. Among them: 6% - companies with participation of foreign resident and 1,2% - foreign residents with 100% capital. Legal entities are represented as shareholders in 15% of companies, including the foreign ones – 0,9%, and with 100% foreign capital – 0,4%.
Individuals manage 99,5% of companies, 2,4% of them have foreign CEOs. Legal entities manage 0,5% of companies, share of foreign managers among them is negligibly small 0,002%.
0,9% of companies have subsidiaries, only 0,01% of them are located abroad. 1,4% companies have separate subdivisions.
Regions of registration
Moscow stays a leader by the number of the legal entities. The share of Moscow and Saint Petersburg amounts to 26%, and almost 48% of active enterprises are registered in 10 largest regions of Russia (Picture 1).
The largest number of companies is engaged in wholesale (17%) and retail (6%) trade. There are 11% of construction companies, and almost 10% of companies work in real estate business. 5% of companies work in commodity production and 3% - in agriculture (Picture 2).
3% of companies are the trademark owners. 20% perform activities having compulsory licenses and 6% - are the members of self-regulatory organizations.
Authorized capital of the three quarters of companies doesn’t exceed RUB 100 hundred and of 1,5% - is more than RUB 1 billion.
Annual revenue of 65% companies, having reported to the FTS of Russia on its financial results for 2020, amounts to less than RUB 10 million and of 1% - to more than RUB 1 billion. Annual profit of 29% of companies amounts to more than RUB 1 million, of 0,1% - to more than RUB 1 billion.
As of 10.10.2021 there are almost 2,3 million legal entities (70% of the total number of the active companies) registered in the Register of Small and Medium-sized Enterprises of the FTS of Russia. The majority of them (91%) are micro enterprises, where more than 5,2 million employees work. Most of small business companies are engaged in construction.
According to the Information and Analytical system Globas, the financial position of 3% of companies is stable, of 8% - is critical. The major part of companies (38%) have an average one. Adequate / Weak Solvency index is given to 49% of companies (Picture 3).