Register of Small Technology Companies

2024: Russian Prime Minister Mikhail Mishustin has simplified the accreditation of IT startups. Requirement for 30% share of IT revenue canceled

Prime Minister Mikhail Mishustin signed a decree of August 26, 2024, simplifying the procedure for accrediting IT startups. The changes will allow accreditation and support for young tech companies with minimal revenue, which is expected to help drive their continued development.

IT accreditation allows you to count on state support. In particular, IT startups get the opportunity to pay taxes at a reduced rate; issue a preferential mortgage and a deferral from military service for employees; obtain exemption from inspections of regulatory authorities, as well as on-site tax audits; employ foreign IT specialists in a simplified manner.

source = Website of the Government of the Russian Federation

In accordance with the decree, the verification of the share of income from the IT activities of startups included in the register of small technology companies and created less than three years ago is canceled. Previously, in order to obtain accreditation, the share of this income had to exceed 30% of revenue. The change will contribute to the development of the technological industry in the Russian Federation. In addition, the adopted document provides for a number of other innovations:

· IT companies from new regions (DPR, LPR, Zaporizhzhya and Kherson regions) will be able to receive accreditation regardless of the average monthly amount of payments to employees. This benefit will be valid until July 1, 2025;

· Applications for the annual accreditation confirmation procedure will be accepted only electronically through the Public services portal;

· As part of the confirmation procedure, the salary level check will be carried out for two quarters instead of five;

· If the company received accreditation in the year of its creation, then it may not undergo the planned confirmation procedure this year.^[1]

2023

Ministry of Economic Development: Average revenue of technological startups in Russia for the year - 194 million rubles

The average revenue of technology startups in Russia in 2023 amounted to ₽194 million. This became known from the press service of the Ministry of Economic Development in June 2024. This value is three times higher than that of other small and medium-sized enterprises (SMEs), demonstrating the high efficiency of small technology companies (MTKs) in the Russian economy.

According to the Deputy Minister of Economic Development of Russia Maxim Kolesnikov, small technology companies (MTK) also have a high level of remuneration. The average wage in this sector exceeded ₽170 thousand, which is significantly higher than the national average.

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Freepik

Maxim Kolesnikov stressed that MTKs are considered as key subjects of technological development in Russia. Their role consists both in integration into the production and technological chains of large business, and in the independent deployment of mass production, including export-oriented ones.

In recent years, more than 11 thousand innovative companies have received various forms of assistance from the state as part of state support for the innovative sector. There has been a strategic shift from massive start-up creation to their targeted development and preparation for an IPO.

An important step in the development of the technological sector was the development of the bill "On Technological Policy," submitted to the State Duma. The document is designed to create a single conceptual apparatus and classifier that provides digital traceability from fundamental R&D to their practical application.

The bill also provides for the introduction of national projects of technological sovereignty, determines the powers of the government to develop medium and long-term plans for technological development. Special attention is paid to the mechanisms of guaranteed demand, including at the expense of budgetary funds, which is designed to reduce commercial risks for entrepreneurs in the field of high technologies.^[2]

Mishustin approved the rules for determining small technology companies

Prime Minister Mikhail Mishustin signed a decree approving the rules for determining small technology companies (MTK). Based on this document, startups will be included in a special register and will be able to count on targeted measures of state support, the press service of the Cabinet of Ministers said on November 9, 2023.

According to the approved rules, organizations with revenues of up to 4 billion rubles working in priority sectors, including agriculture, information and communications activities, tourism, education and health, will be able to apply for the status of a small technology company. The document for them provides for more than 90 types of economic activity. Depending on revenue for the preceding calendar year, MTKs are divided into:

• "startups" with a minimum revenue indicator "(revenue not more than 1 million rubles);
• "startups" (revenue of 1-300 million rubles);
• "early companies" (revenue of 300 million - 2 billion rubles);
• "mature companies" (revenue of 2-4 billion rubles).

Mikhail Mishustin

Special centers of expertise will be engaged in assessing applicants for status. They will check the correspondence of revenue, the main type of economic activity, the level of scientific and technical potential, and will also assess the capabilities of the technology company to create innovative technologies.

According to the Deputy Minister of Economic Development of the RFMaxime Kolesnikov, the government intends to develop new support measures for small technology companies. Among the additional support measures, he named the creation of a special tax regime for MTK and changes in procurement legislation to stimulate purchases from MTK.

Our experts estimate that by the end of the year, more than 3 thousand companies will be able to receive the status of MTK, - said the deputy minister on November 9, 2023.[3]

Launching the Small Technology Companies Register

In early November 2023, the register of small technology companies was officially launched. It will be used to provide targeted support measures for companies that are engaged in the development or production of products or the provision of services using innovative technologies).

The register will include enterprises that will be divided into categories and groups. Gradation will take place depending on the volume of annual business revenue. The list should become a tool for targeted receipt of support measures. The register will also become a platform attracting potential private investors.

The register of small technology companies was officially launched

According to First Deputy Prime Minister of the Russian Federation Andrei Belousov, the register is a necessary tool for the development of the venture capital investment market, popularizing the sphere of private financing of technological projects and supporting innovative activities in Russia. The volume of attracted private investment in small technology companies should become the main indicator of the effectiveness of the Ministry of Economic Development and development institutions in ensuring technological sovereignty, he added.

In turn, the head of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin noted that the information system can become an effective platform for attracting investments in the technological sphere, including to solve the problem of radically increasing the level of innovation of the Russian economy.

Market participants interviewed by Rossiyskaya Gazeta believe that a separate register for small companies is hardly necessary. The unified register of software, the import substitution catalog of ARPP "Domestic Software" are already working and efficient sites, adds Dmitry Seryi, deputy director and co-founder of VINTEO.

Usually small market players face the powerful capabilities of large companies - the budgets for promotion, support and development are incomparable. Small companies need significantly more effort and steps for customers to notice them, "Seryi said.[4]

IT startups in Russia will be able to take loans for 1 billion rubles

On October 13, 2023 Ministry of Economic Development Russia , it published a draft resolution, according to which small technology companies (MTK) will be able to receive preferential lending at a rate not exceeding 3% per annum. The proposed changes will allow Russian IT startups to take loans of 1 billion. rubles

Changes are being made to the Decree of the Government of the Russian Federation of March 25, 2022 No. 469 "On Approval of the Rules for the Provision of Subsidies from the Federal Budget to the Joint-Stock Company" Russian Bank for Support of Small and Medium-Sized Businesses "for reimbursement of lost income on loans provided in 2022-2024 to high-tech, innovative small and medium-sized businesses at a preferential rate."

Small technology companies (MTK) will be able to receive preferential lending at a rate not exceeding 3% per annum

MTK will be connected to the current program of lending to high-tech and innovative small and medium-sized businesses. As of October 2023, the limit of funds provided under this initiative is 500 million rubles. For MTK, the maximum loan amount will be twice as much. Such companies, as stated in the draft resolution, the need for financing due to the size of the business, as a rule, is higher than that of small and medium-sized businesses.

IT startups with annual revenues of up to 4 billion rubles, operating under more than 60 codes of economic activity, can apply for the status of MTK. Special centers of expertise will evaluate companies for compliance with the requirements - the Fund for Promoting the Development of Small Forms of Enterprises in the Scientific and Technical Sphere, the Development Fund of the Center for the Development and Commercialization of New Technologies, the ANO Center for Engineering and Innovation Support, and the ANO Platform of the National Technological Initiative. All MTKs will be entered into a special register, which will allow the state to form targeted support measures for them. It is planned to provide financial support to MTK at the expense of existing budget funds.^[5]

Skolkovo startups will be presented in the register of small technology companies of the Ministry of Economic Development to search for investors

First Deputy Prime Minister Andrei Belousov presented to large Russian investors and heads of business associations the project of the information system "Register of Small Technology Companies." Development is supervised by the Ministry of Economic Development. With the help of an information system with a flexible filtering system, investors will be able to choose startups that offer the most optimal solution for business goals. For startups, full background information will be collected on development institutions and their support measures, including the Skolkovo Innovation Center. The Skolkovo Foundation announced this on July 21, 2023.

As of July 2023, over 3.6 thousand startups are residents of Skolkovo; by the end of 2023, their number will approach 4 thousand. The "startup showcase" for such companies is an additional tool for attracting investors, in particular, business angels. I hope that the platform being launched will facilitate the path of Skolkov startups to investors, - commented Igor Drozdov, Chairman of the Board of the Skolkovo Foundation.

In the personal account, representatives of companies and investors will be able to track requests from investors, check how investors see information about their companies, project or product, change contact information and upload additional presentation files.

In the near future, the adoption of a law on the development of small technology companies in Russia is expected. According to it, all small technology companies will be included in a special register, which will become the basis for the formation of targeted support measures, including the search for companies to implement the "growing up" program. In addition, the platform provides great opportunities to attract additional private funding for the implementation of projects. Support for startups is a task set by the President, "said First Deputy Prime Minister Andrei Belousov.

The volume of attracted private investment in small technology companies should become the main indicator of the effectiveness of the Ministry of Economic Development and development institutions in ensuring technological sovereignty. The information system under development will be focused on a large circle of venture investors.

For a startup, getting into the Register will mean automatically obtaining the status of a "small technology company," access to government support measures. And investors will immediately understand that the company is conscientious, has passed inspections and can be invested in it.

The investor will be able to see dozens of key aggregated indicators for the companies represented in the Register, their revenue, the volume of requested and already attracted investments. In addition, for the convenience of investors, startups will be divided into groups by stages of attracting investments. This will allow you to quickly find the startup of interest using filters or a search bar, as well as maintain a list of favorites.

According to Deputy Minister of Economic Development Maxim Kolesnikov, "as of July 2023, 8,800 companies and 9,900 projects are represented in the Register. By the end of 2023, we plan to increase the number of companies in the system to 10 thousand. In parallel, we collect retrospective data on organizations that received support until 2022. This information is an important element in achieving technological sovereignty and strengthening the economy as a whole. "

The initiative to combine data on small technology companies on one platform and provide investors with the opportunity to filter projects according to various parameters looks promising. Previously, investors used tools such as Pitchbook, the coverage of which for Russian startups was not deep. The demand for investments and partnerships with technology companies in Russia is growing, which help their product solutions to close the vertical in a certain technological niche and solve the problems of a large client. Accordingly, the demand for analytical tools for startups is growing, especially during their active redomication to Russia, which is why many chains of information have changed. Sk Capital helps to find and build investment partnerships with technology startups, so the accumulation of everyone on the same site, from our point of view, will allow us to more effectively build the relationship between startups, large technological verticals and investors and contribute to the further growth of the innovation sector in the country, - commented Vladimir Sakovich, CEO of Sk Capital.

The meeting was also attended by Executive Vice President of the Russian Union of Industrialists and Entrepreneurs Maria Glukhova, Deputy Chairman of the Delovaya Rossiya investment club Alexei Shatrov, Managing Director of Sberbank Natalya Magidey, Director of FRIIKirill Varlamov, Executive Director of ANO Platform NTI Andrei Seeling, representatives of the development organizations of the ВЭБ.РФ group - SME Corporation, Skolkovo Foundation and the Innovation Assistance Fund.

2021

Minek has developed rules for issuing grants for "growing" IT startups

In early December 201, it became known about the rules developed by the Ministry of Economic Development for issuing grants for the so-called "growing" startups in Russia. One project can count on state support in the amount of 250 million rubles. Read more here.

Concessional loans and compensation for 50% of IPO costs. Minek has developed a plan to support IT startups

On November 23, 2021, it became known about the plan developed by the Ministry of Economic Development to support technological startups within the framework of the strategic initiative approved by the Government of the Russian Federation. Read more here.

2020: Creation of the state register of IT startups in Russia

On September 21, 2020, it became known about the decision of the Ministry of Economic Development of the Russian Federation to create a register of technological startups. According to the deputy head of the department Oksana Tarasenko, we are talking about a digital platform designed for state support of start-up projects and combining data on companies from information systems of government agencies and organizations.

As Tarasenko told Kommersant, the project assumes that, with the permission of the startup, all interested organizations and development institutions will receive access to its "digital trail," which should speed up the application process and receive state support, and the state will allow to control the work of companies and understand their needs for state support.

Minek is developing a state register of IT startups in Russia

According to the founder and general director of Vera Voice, Vladimir Sveshnikov, the register can simplify the process of obtaining grants. At the same time, the expert notes that industry representatives may not want to share their "digital footprint."

The state will receive more benefit from such a base and will be able to test various hypotheses, for example, whether the "investment elevator" works - state support tools ranked by the startup's life cycle, explains Andrei Sholokhov, deputy general director of Softline for work with national projects. In his opinion, it is a mistake to create a separate database with a rigid structure and information on state support for startups. Such a register will be incomplete, he said.

If the information in the state register of IT startups really contains data on know-how that affects the survival of the company, then this will become a "tidbit for fraudsters," said Viktor Smirnov, head of Digital Processes at CROC.

The main value of startups is data, and companies treat their transfer to third parties with special trepidation, no one wants to be in the next database, where competitors and attackers can learn some secrets or know-how, said Vladimir Sveshnikov.^[6]

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