Preferential change into private unitary enterprise cost private entrepreneur $2.085

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A jitney entrepreneur has to pay first and then his cars will not be able to resume work for a week.

This sum was paid by a private entrepreneur Yury working in the jitney business. He is desperate: Yury will lose 1.5 thousand dollars during the week when his two cars will not be allowed to work. You also have to add taxes and lawyers’ serviced there, so a sum of 2085 dollars comes up.

Yury has two jitneys and three drivers. He will change his status starting from the New Year. We asked Yury why he decided to become a legal entity and he replied that he could not ignore the President’s decree: if he remains a private entrepreneur none of his cars will start work on January 1. He took a long time to take the decision and sent documents for reregistration on November 9. He cannot remain a private entrepreneur because neither his wife nor relatives can drive.

Yury: Who should I hire? I can’t hire my wife and I don’t even know who they mean by relatives – brother, father of the son-in-law or maybe brother-in-law.

There is one more way – he can start driving himself and return to the garage after 8 hours of work. The private entrepreneur will be able to resume his work only after an 8-hour break. Yury is not satisfied with this variant.

He already doubts whether his unitary enterprise is able to survive but he sent documents for reregistration.

Yury: Old cars are unprofitable for a unitary enterprise because you have to pay taxes according to all the money you get. For example if I earn 10 millions I will have to pay 4 millions for fuel, 4 millions for repair and spares and the rest will be used for taxes. It turns out that I practically gain nothing. I will not be able to work according to the President’s decree, we are forced to.

The preferential reregistration will cost Yury rather a lot: he will have to pay double taxes for the month of reregistration (taxes for private entrepreneurs and taxes for unitary enterprises (+100 euro); a week of idle time will mean 1.5 thousand dollars and 30 euro for the lawyer’s services and other things. So it turns out that a preferential reregistration costs 2085 thousand dollars. One more thing that upsets him is that the fact that the flat he lives in will become his legal address will mean that his household running costs will double.

One more jitney entrepreneur Valery Hrusheuski is creating a family unitary enterprise: he, his daughter and son-in-law will create three private unitary enterprises in December. Valery Hrusheuski sent documents for reregistration and they were ready on November 20 but he is taking his time to receive them. Valery will not be able to remake his settlement account, seal, cash register and license card so he is going to remain a private entrepreneur for one more month to avoid paying doubles taxes for November and December (+200 euro). In spite of it he does not regret having sent the documents for reregistration before November 10 because you have to pay a thousand dollars more now.

He will become a private unitary enterprise together with his daughter and son-in-law but everyone will do it separately. Otherwise they will not be able to work.

Valery Hrusheuskі: My daughter, son-in-law and me are three private entrepreneurs now. There is no problem if we want to make one PUE but they cannot leave us our quotas. If my son-in-law becomes the owner of the PUE then my and my daughter’s quotas will not be given to him. When I asked them why it was impossible to leave those quotas to us they said that it was illegal according to the President’s decree. So I have to register three PUEs instead of one.

The head of the Belarusian Union of Entrepreneurs Alyaksandr Patupa described ERB the scheme that would allow a private entrepreneur continue working: he could drive his jitney till the afternoon and then another entrepreneur could “rent” his car which is not forbidden by the law.

ERB tried to find out how many private entrepreneurs decided to turn into PUES after November 10. It turned out that nobody counted them. According to the head of the state registration department of the Ministry of Justice Nina Dubovik, nobody was taking stock of them. It is only known that 747 PUEs were created during 16 days but it does not mean that all of them were created by private entrepreneurs.