How To Determine The Type Of Economic Activity

Table of contents:

How To Determine The Type Of Economic Activity
How To Determine The Type Of Economic Activity

Video: How To Determine The Type Of Economic Activity

Video: How To Determine The Type Of Economic Activity
Video: Economic and Non-Economic Activities - An Introduction | Class 11 Economics - Statistics 2024, December
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Until 2003, the types of economic activities were determined by the All-Union Classifier of National Economy Sectors or OKONKh. On January 1, 2003, OKVED was introduced - the All-Russian classifier of types of economic activity (approved by the Resolution of the State Standard of Russia dated November 6, 2001 N 454-st.). Most often, entrepreneurs who have chosen one or another type of business have to turn to OKVED.

How to determine the type of economic activity
How to determine the type of economic activity

Instructions

Step 1

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

Step 2

Clarify for yourself: the unique guide is based on European economic activities 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 individual items.

Step 3

For the correct choice of the code for 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.

Step 4

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

Step 5

The OKVED classifier has enlarged sections, such as, for example, "Agriculture, hunting and forestry", "Textile and clothing production", "Production of machinery and equipment", "Education", etc. Having chosen the main, enlarged section of the desired type of activity, find its specified, detailed wording.

Step 6

Suppose you are an entrepreneur who chooses the production of dairy products as your main activity. This species has been assigned the code 15.5. It has subsections "Milk processing and cheese production" (code 15.51) and "Ice cream production" (code 15.52). Further there are specifying subcategories - "Whole milk products production" (code 15.51.1), "Processed liquid milk production" (code 15.51.11), etc. Having carefully studied this or that block, you will find the most accurate definition of your type of activity.

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