How to determine the type of economic activity

Until 2003, the types of economic activity were determined by the All-Union Classifier of Branches of the National Economy or OKONKh. On January 1, 2003, OKVED was introduced - the All-Russian Classifier of Types of Economic Activities (approved by Decree of the State Standard of Russia of November 6, 2001 N 454-st.). Most often, OKVED has to be addressed to entrepreneurs who have chosen one or another type of business.

Instruction manual

1

To determine the type of economic activity of an economic entity (whether it is an LLC company or individual entrepreneur), refer to the official text of the OKVED. It is available on many sites, for example, on the information and legal portal of the Garant legal system.

2

Clarify for yourself: the basis of the unique reference book is based on European types of economic activity and the hierarchical method of classification. The OKVED provides for the grouping of activities in detail - with the inclusion of five-digit and six-digit codes for certain items.

3

To correctly select the code of the type of activity, you, as a future entrepreneur, need to carefully study all sections of the Classifier, explanations to it and understand the logic of the document.

4

Note: coding comes with a sequential increase in the digital characters of the code - from two to six (section - class - subclass - group - subgroup - view).

5

The OKVED classifier has enlarged sections, such as, for example, "Agriculture, Hunting and Forestry", "Textile and Sewing Production", "Production of Machines and Equipment", "Education", etc. Having selected the main, enlarged section of the desired type of activity, find the specified, detailed wording.

6

Suppose you are an entrepreneur who chooses dairy production as his main activity. This species is assigned the code 15.5. It has subsections "Milk Processing and Cheese Production" (code 15.51) and "Ice Cream Production" (code 15.52). Further specifying subcategories are followed - "Production of whole milk products" (code 15.51.1), "Production of processed liquid milk" (code 15.51.11) etc. Having carefully studied this or that block, you will find the most accurate definition of your type of activity.

note

An indication of OKVED is mandatory when registering an IP (individual entrepreneur). An extract from the Unified State Register of an Individual Entrepreneur provides information on the selected types of economic activity with an indication of their code, name according to OKVED. The type of activities is also determined: primary and secondary. In a number of additional types, those that you plan to deal with even in the distant future are also indicated.

Useful advice

If your activities are in the range of services to the population, then their classification is also regulated by OKUN - the All-Russian Classifier of Services to the Population.

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