Commercial real estate constitutes the material basis for organizing various businesses. To do this, it is not necessary to buy expensive premises or entire objects, because they can be rented for any period by agreement with the customer. This opportunity is beneficial not only for the entrepreneurs themselves, but also for those who own property intended for rent. As practice shows, in Russia the rental market commercial real estate is extremely developed and every year brings very large sums to the state budget thanks to tax contributions. The All-Russian Classifier of Economic Activities helps track any financial flows in this environment. For example, in accordance with OKVED both in 2016 and now rental non-residential premises located in the section "L" in class 68. Here you can find all the codes necessary for organizing a business.

If you own your own real estate, it is worth knowing that in today's market it is the most valuable asset due to parity with the rate of inflation for many decades. For this reason, you can turn such property into real money without any problems. And you don't have to sell. It is enough to put the property up for short-term or long-term rental. However, in order to fully legalize your activities, you must go through the registration procedure with the relevant authorities to obtain the status of an entrepreneur or legal entity. Otherwise, any income received from rent will be illegal, and you will face administrative liability.

Other forms of work

But not only renting non-residential premises in OKVED in 2016 and currently on one’s own behalf is an accessible type of activity. There are also intermediaries who can act as:

• Private individuals.
• Consultants.
• Subtenants.
• Real estate agency.
• Managers.

The activities of these entrepreneurs are also included in the OKVED list in this class. Moreover, the same realtors may have different functions, from searching for suitable commercial real estate to consulting services. If you want to open your own business in this profile, you should clearly know the codes that meet the requirements of the new classifier.

The second common option for professional employment is real estate management on a piecework basis or for a fee. That is, there are companies that can provide full control over all indicators of the building, carry out repair work and respond to any changes. Often this phenomenon is combined with leasing one’s own real estate; OKVED provides a separate set of codes for work.

There is also such a thing as sublease. The tenant is a kind of intermediary, but acts on his own behalf and at his own expense. The purpose of such events is to find a profitable rental offer, take advantage of it, and then find a client who agrees to rent at a higher cost. In fact, almost the entire market now operates according to this scheme, but the real estate agencies themselves act as subtenants. True, as a benefit, they include their percentage of income in the price.

Classifier codes

If your priority is rent, OKVED will help you select the necessary codes for registering or expanding your core business. Here you will find both employment related to the provision of services as consultants and intermediaries, as well as options for organizing a business based on your own property. In addition, the classifier also provides for such services as leasing of entire commercial buildings, shopping centers and other objects of serious scale. But there are no clear restrictions on the concept of non-residential real estate, so every entrepreneur can interpret it from its advantageous side.

However, if during registration you submit an incorrectly filled out form, no loopholes in the law will help you, so we strongly recommend that before visiting the Federal Tax Service, you carefully prepare for this event and memorize the following algorithm of actions:

1. Select the required codes. If you are interested in renting out non-residential premises, OKVED has a whole selection for this case. Read the information presented on the official website of the Federal Tax Service on the classifier, find the current data there and record it for yourself separately. And don't forget to check if these codes refer to the second edition. If you provide outdated information, this will be considered a violation of the established registration procedure, and you will simply be refused to open a business entity.
2. Fill out the appropriate application form correctly. For legal entities this is No. P11001, and for individual entrepreneurs - P21001. Here, making the slightest mistakes and shortcomings is also regarded as a reason for refusal.
3. Submit your application within the established time frame and pick up the completed document at your place of registration on time.

(two types of codes at the same time)

The new OKVED2 (All-Russian Classifier of Types of Economic Activities) OK 029–2014 differs significantly from the old one in terms of numbers. The codes don't match there. OKVED 2 was introduced on February 1, 2014 (Rosstandart order No. 14-st dated January 31, 2014). The transition period was until 2015, then until 2016. From July 11, 2016, when registering individual entrepreneurs and organizations, it is necessary to apply the new OKVED (OK 029-2014). Relevant for 2017

70 Real estate transactions [old]
68 Real estate transactions [new]

[Old OKVED] 70.1 Preparation for sale, purchase and sale of own real estate
[New OKVED] 68.1 Purchase and sale of own real estate

[Old OKVED] 70.11 Preparation for the sale of your own real estate
[New OKVED] 68.10.1 Preparation for the sale of your own real estate

[Old OKVED] 70.11.1 Preparation for the sale of your own residential real estate
[New OKVED] 10/68/11 Preparation for the sale of your own residential real estate

[Old OKVED] 70.11.2 Preparation for the sale of your own non-residential real estate
[New OKVED] 10/68/12 Preparation for the sale of your own non-residential real estate

[Old OKVED] 70.12 Purchase and sale of own real estate
[New OKVED] 68.10 Purchase and sale of own real estate

[Old OKVED] 70.12.1 Purchase and sale of own residential real estate
[New OKVED] 10.68.21 Purchase and sale of own residential real estate

[Old OKVED] 70.12.2 Purchase and sale of own non-residential buildings and premises
[New OKVED] 10.68.22 Purchase and sale of own non-residential buildings and premises

[Old OKVED] 70.12.3 Purchase and sale of land
[New OKVED] 10.68.23 Purchase and sale of land plots

[Old OKVED] 70.2 Renting your own real estate
[New OKVED] 68.2 Rent and management of own or leased real estate

[Old OKVED] 70.20 Renting out your own real estate
[New OKVED] 68.20 Rent and management of own or leased real estate

[Old OKVED] 70.20.1 Renting your own residential real estate
[New OKVED] 68.20.1 Rent and management of own or leased residential real estate

[Old OKVED] 70.20.2 Renting out your own non-residential real estate
[New OKVED] 68.20.2 Rent and management of own or leased non-residential real estate

[Old OKVED] 70.3 Provision of intermediary services related to real estate
[New OKVED] 68.3 Transactions with real estate for a fee or on a contract basis

[Old OKVED] 70.31 Activities of real estate agencies
[New OKVED] 68.31 Activities of real estate agencies for a fee or on a contract basis

[Old OKVED] 70.31.1 Provision of intermediary services in the purchase, sale and rental of real estate
[New OKVED] 68.31.1 Provision of intermediary services in the purchase and sale of real estate for a fee or on a contractual basis

[more new option] 68.31.2 Provision of intermediary services for the rental of real estate for a fee or on a contractual basis

[another new option] 68.31.3 Provision of consulting services in the purchase and sale of real estate for a fee or on a contractual basis

[another new option] 68.31.4 Provision of consulting services on the rental of real estate for a fee or on a contractual basis

[Old OKVED] 70.31.11 Provision of intermediary services in the purchase, sale and rental of residential real estate
[New OKVED] 68.31.11 Provision of intermediary services in the purchase and sale of residential real estate for a fee or on a contractual basis

[another new option] 68.31.21 Provision of intermediary services for the rental of residential real estate for a fee or on a contractual basis

[another new option] 68.31.31 Provision of consulting services in the purchase and sale of residential real estate for a fee or on a contractual basis

[another new option] 68.31.41 Provision of consulting services on the rental of residential real estate for a fee or on a contractual basis

[Old OKVED] 70.31.12 Provision of intermediary services in the purchase, sale and rental of non-residential real estate
[New OKVED] 68.31.12 Provision of intermediary services in the purchase and sale of non-residential real estate for a fee or on a contractual basis

[another new option] 68.31.22 Provision of intermediary services for the rental of non-residential real estate for a fee or on a contractual basis

[another new option] 68.31.32 Providing consulting services for the purchase and sale of non-residential real estate for a fee or on a contractual basis

[another new option] 68.31.42 Provision of consulting services on the rental of non-residential real estate for a fee or on a contractual basis

[Old OKVED] 70.31.2 Provision of intermediary services in the assessment of real estate
[New OKVED] 68.31.5 Provision of intermediary services in the assessment of real estate for a fee or on a contractual basis

[Old OKVED] 70.31.21 Provision of intermediary services in the assessment of residential real estate
[New OKVED] 68.31.51 Provision of intermediary services in the assessment of residential real estate for a fee or on a contractual basis

[Old OKVED] 70.31.22 Provision of intermediary services in the assessment of non-residential real estate
[New OKVED] 68.31.52 Provision of intermediary services in the assessment of non-residential real estate for a fee or on a contractual basis

[Old OKVED] 70.32 Real estate management

[Old OKVED] 70.32.1 Management of the operation of housing stock
[New OKVED] 68.32.1 Management of the operation of housing stock for a fee or on a contract basis

[Old OKVED] 70.32.2 Management of the operation of non-residential assets
[New OKVED] 68.32.2 Management of the operation of non-residential assets for a fee or on a contract basis

[Old OKVED] 70.32.3 Activities for accounting and technical inventory of real estate
[New OKVED] 68.32 Management of real estate for a fee or on a contract basis

ATTENTION!!! Previously, it was enough to indicate a 3-digit code, but since July 2013 you need 4 digits (in 2019 and 2020 also 4 digits). For example, 52.42 alone is enough, it will include everything that starts with 52.4Х.ХХ

Codes of the All-Russian Classifier of Economic Activities are indicated only for income. For expenses of the organization and performance of work within the organization itself, OKVED is not needed. For example, many organizations have an accountant, but of course they do not need to indicate the accounting code. The same applies to renting premises, purchasing goods, etc.

With help, you can keep tax records on the simplified tax system and UTII, generate payment slips, 4-FSS, Unified Settlement, submit any reports via the Internet, etc. (from 325 rubles/month). 30 days free. For newly created individual entrepreneurs, the first year is now free (free).

Purchasing premises for a business at the initial stage of its creation can be problematic. That is why entrepreneurs prefer to rent real estate. This allows you to reduce one-time expenses. However rental of non-residential premises is associated with a number of features that distinguish the process from the classical one. This leads to a whole list of issues, the inability to quickly resolve which causes delays in the start of activities.

If legal or individual wants to avoid them and speed up the process of renting out non-residential real estate as much as possible, you need to start the procedure with an analysis up-to-date information on this topic. We will talk further about the procedure for carrying out actions, the features that are superimposed on the procedure depending on the status of the tenant and the lessor, as well as the peculiarities of taxation.

Do individuals need to register as individual entrepreneurs to rent non-residential premises?

The right to own residential property is reserved for individuals in Articles 131 and 213 of the Civil Code of the Russian Federation. A person who is recognized as the owner of real estate has the right to dispose of it and use it at his own discretion. A similar possibility is fixed in Article 209 of the Civil Code of the Russian Federation. Moreover, every citizen has the opportunity to rent out non-residential premises. The rule is reflected in Article 608 of the Civil Code of the Russian Federation. An individual can exercise his right to rent out non-residential real estate. However, the articles of the law do not oblige to register as an individual entrepreneur. However, a person is engaged in entrepreneurial activity by renting out real estate, he will need to open an individual entrepreneur.

When is it impossible to avoid opening a private enterprise?

Individuals can begin to carry out entrepreneurial activities only after they have passed the appropriate registration and received the status of an individual entrepreneur. However, the law does not oblige a citizen to become a legal entity. A similar rule is reflected in Article 23 of the Civil Code of the Russian Federation. A number of features distinguish entrepreneurial activity from other manipulations.

Which includes:

• there are stable connections with the tenant of the property;
• during a certain period, transactions are carried out regularly;
• a person keeps records of concluded transactions and completed operations;
• the property was purchased specifically for transactions;
• a person has regular income from the use of real estate.

In order for the process of leasing real estate to be recognized as a business activity and lead to the need to register as an individual entrepreneur, it must be proven that all transactions were concluded with the aim of generating permanent income.

For example, confirmation may be the signing of a lease agreement for one year or more, as well as the conclusion of transactions with the same organizations. In this situation, registration as an individual entrepreneur will be required.

What happens if you fail to register as an individual entrepreneur?

If a person violates the articles of the law and begins to carry out business activities without registration, legal proceedings will be initiated against him. A citizen may be brought to administrative or criminal liability.

One of the following penalties may be applied to him:

• monetary penalty of 500-2000 rubles (Article 14.1 of the Code of Administrative Offenses of the Russian Federation);
• monetary penalty up to 300,000 rubles (Article 171 of the Criminal Code of the Russian Federation);
• involvement in compulsory work lasting 480 hours (Article 171 of the Criminal Code of the Russian Federation);
• arrest for up to six months (Article 171 of the Criminal Code of the Russian Federation);
• a fine in the amount of income for 2 years (Article 171 of the Criminal Code of the Russian Federation).

How is an agreement concluded with legal entities and individuals?

There is no rule in Russian legislation that regulates the rental of non-residential premises from an individual. When drawing up an agreement, it is necessary to rely on the provisions of Chapter 34 of the Civil Code of the Russian Federation. The regulatory legal act contains general information on the provision of property for rent.

Article 606 of the Civil Code of the Russian Federation reflects that the landlord, who is not a legal entity, is obliged to transfer non-residential real estate to the tenant for temporary use and possession after a certain payment has been made.

The lease agreement is drawn up in accordance with the standards contained in Articles 434 and 609 of the Civil Code of the Russian Federation. The parties to the agreement are required to draw up the document in writing. The finished paper is signed by each party.

The contract must contain mandatory information, which includes:

• details of legal entities and individuals;
• information about the object;
• conditions of use of real estate;
• size rent.

The parties have the right to expressly indicate for what period the contract is concluded. If such information is missing, the property is considered to be leased for an indefinite period.

A similar rule is recorded in Article 610 of the Civil Code of the Russian Federation. The text of the contract must indicate the OKVED code. If premises are rented out, code 70.20.2 is used. The rule is only relevant if we're talking about about non-residential premises. When filling out the characteristics of the object in the contract, you must be careful.

The document must reflect the following information:

• inventory number of the premises;
• exact address indicating the floor and location of the premises on it;
• purpose (for example, office, warehouse, etc.);
• The name of a room;
• real estate area.

In accordance with Article 609 of the Civil Code of the Russian Federation, an agreement is considered officially concluded only after it is registered with Rosreestr. If the transaction is concluded for a period of less than 1 year, registration is not required. The agreement can be drawn up in any form. A similar rule applies to extending the contract for the same period.

To undergo state registration, you will need to prepare a package of documents. It should include:

• an application that can be obtained from a notary or other specialist involved in receiving the necessary documents;
• the agreement and all appendices thereto;
• passports of individuals of the transaction;
• check for payment of state duty
• other documentation, if there is a need to provide it.

How is taxation carried out?

If the property produces income, it is taxed. Deadlines for depositing Money and the procedure for making calculations directly depends on the status of the taxpayer. If the calculation is carried out according to the simplified tax system with additional insurance contributions, the amount of deductions to the state will be 6% of the rent amount. A similar rule applies to individual entrepreneurs. By figuring out whether an individual can rent out the premises, it will be possible to find out that such an opportunity exists. However, the citizen will have to pay 13% personal income tax with a one-time payment. The rules are reflected in Article 208 of the Tax Code of the Russian Federation. If a citizen evades paying taxes, he will be subject to criminal liability or an administrative fine.

If the lessor is an organization

A legal entity can also rent out real estate. In accordance with Articles 209, 213 and 608 of the Civil Code of the Russian Federation, organizations have the same right to own, use and dispose of their own property as individuals. However, the law does not impose restrictions on the number of structures owned by a legal entity. A similar rule is reflected in Article 213 of the Civil Code of the Russian Federation. If the premises are leased by a legal entity, the agreement is concluded in accordance with Articles 606 and 670 of the Civil Code of the Russian Federation. In this case, the document must indicate OKVED code 70.20.2.

An agreement with a legal entity must be drawn up in writing. It does not matter for what period the property is provided.

The contract must also contain mandatory information, which includes:

• characteristics of the premises;
• information about legal entities and individuals appearing in the agreement;
• rent;
• features of the use of premises and repairs;
• signatures of the parties to the transaction.

If the lease term is not specified in the agreement, it is considered to be concluded for an indefinite period. This rule is enshrined in Article 610 of the Civil Code of the Russian Federation. The agreement and all annexes to it must also be registered with Rosreestr if non-residential real estate is leased for a period of more than 1 calendar year.

In order for the authorized body to agree to carry out registration, the representative of the legal entity will need to prepare the following documents:

• an application completed in accordance with the rules;
• a completed and signed agreement, as well as an appendix to it;
• real estate cadastral passport;
• papers confirming legal status organizations;
• documents confirming the fact of payment of the state duty;
• additional papers, if required.

If the lessor is an individual

If an individual acts as a lessor, the process of drawing up an agreement and the specifics of the transaction change. So, the document must indicate the address and characteristics of the premises. In this case, targeted payments will not be subject to VAT. It also includes utility bills.

The person who rents commercial premises, can charge the fee to an individual’s bank account or provide it in cash.

Rent changes must be made in accordance with current legislation. Article 614 of the Civil Code of the Russian Federation stipulates that adjustments to the amount of payment should occur no more than once a year. If the contract is concluded for more than one year, the document must be registered with the territorial division of Rosreestr.

Rent of non-residential premises - OKVED 2019 for this type of activity should be found in the OK 029-2014 classifier. Which codes are for non-residential rentals and which for residential premises? Are there separate codes for subletting premises? We will look at the answers to these and other questions in the article.

Which OKVED contains the current codes for leasing property?

Until 2017, in relation to OKVED codes for renting premises, it was necessary to focus on the OK 029-2001 classifier, despite the existence of 2 more later classifiers: OK 029-2007 and OK 029-2014.

Since 2017, the use of the OK 029-2001 and OK 029-2007 classifiers has been discontinued. And the only document used to determine OKVED was the list of types of activities contained in the reference book OK 029-2014, according to which, already from 07/11/2016, when registering legal entities and individual entrepreneurs, codes began to be entered into the Unified State Register of Legal Entities and the Unified State Register of Individual Entrepreneurs (letter of the Federal Tax Service of Russia dated 06/24/2016 No. GD-4-14/11306@).

Thus, in 2019, the determination of OKVED related to the rental of premises is possible only according to the OK 029-2014 classifier.

What OKVED codes correspond to residential rental activities?

According to the OK 029-2014 classifier, the OKVED codes for leasing property are as follows:

• 68.2 (rent and management of own or leased real estate). This code has 2 varieties, corresponding to residential (68.20.1) and non-residential (68.20.2) premises.
• 68.3 (transactions with real estate for a fee or on a contractual basis), which contains a code corresponding to the activities of real estate agencies (68.31), engaged, in particular, in intermediary activities in the rental of real estate (68.31.2). The last code is divided into 2 types, related to residential (68.31.21) and non-residential (68.31.22) premises.
• 68.32 (management of real estate for a fee or on a contract basis), which includes rent collection activities.

According to the OK 029-2014 classifier, the division by type of activity has become more specific compared to the previously used classifier. But at the same time, the division into OKVED for leasing non-residential premises and OKVED for leasing residential real estate has been preserved.

Are there OKVED codes for subletting non-residential premises?

Special OKVED codes for leasing premises on sublease terms are not identified in the classifier. In such a situation, you will have to use the codes specified for rental. At the same time, the division of rental codes into those related to residential and non-residential premises is present in the directory.

Results

When conducting business in 2019 related to the provision of real estate for rent, it is necessary to use the OKVED code for leasing non-residential premises or residential real estate, specified in the OK 029-2014 classifier.

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