Private Entrepreneurs Diminish in Number :: Charter'97 :: News

In course of one month in 2003 the number of individual entrepreneurs in the Brest region contracted by more than 150 people, now amounting to 28.271, as compared to 28.424 on January 1. Specialists link this fact with the presidential decree #4 “On common tax, levied from individual entrepreneurs and other persons and some measures on regulating the entrepreneurial activities”, which enters into effect on March 1 this year.

Under the new decree, one of the significant changes is the restriction in the number of individuals, who can be hired by private entrepreneurs to work for them. In accordance with the Brest region’s tax inspection, the labor of hired personnel is widely used by 23% of registered individual entrepreneurs. Some hire as many as three people. And now these entrepreneurs got to pass mandatory registration as legal entities.

Over the past five years Brest region witnessed a tendency of the declining number of legal persons. In 1997 there were 1.137 of them, while in 2002 – only 199. This proves that the citizens preferred to carry out economic activities in the small business sphere, through registering as individual entrepreneurs.