9. Individual entrepreneur. Individual entrepreneur registration procedure
Individual entrepreneur is an individual registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity.
Today, anyone who has reached the age of majority and is a citizen of the Russian Federation can be an individual entrepreneur. True, this rule does not apply to state and municipal employees.
Choosing a registration method
There are two ways to register an individual entrepreneur:
Self-registration of individual entrepreneurs. A fairly easy procedure, which essentially consists of preparing a few simple documents. Moreover, at the moment there are convenient free online services, with the help of which all the necessary papers can be prepared automatically and very quickly.
Paid registration of individual entrepreneurs through a specialized company. Suitable for those who want to save time and do not want to delve into the process of registering an individual entrepreneur.
How much does it cost to open a sole proprietorship? Payment of the state fee for registration of individual entrepreneurs - 800 rubles. Making a seal (optional) -500 – 1,000 rubles, Opening a current account for an individual entrepreneur (optional) - 0 – 2,000 rubles.
These expenses can be refunded if you are registered with the employment center as unemployed.
Paid registration of individual entrepreneurs
The cost of paid creation of an individual entrepreneur may depend on the region, but usually ranges from 1,000 to 5,000 rubles. The state fee for registering an individual entrepreneur is not included in this amount. Services for making a seal and opening a current account may sometimes not be provided or may require an additional fee.
Before registration
You must have TIN. If it is not there, then you can fill out an application to receive it, which will need to be taken to the tax service along with other documents. In this case, simultaneously with the registration of an individual entrepreneur, you will be given a TIN, but the time for registration of an individual entrepreneur (5 working days) will increase by the time of registration of the TIN. However, this may not apply to all Federal Tax Service Inspectors (it is better to find out in advance). Therefore, first you can simply apply for a TIN (for example, through the Internet), and then, while you wait, prepare all the documents for registering an individual entrepreneur.
You better decide in advance what tax system will apply to your business.
It is necessary to select types of economic activities ( OKVED codes), which you will presumably deal with and which you will indicate when registering as an individual entrepreneur. The first code you write in the application will become the main one. It will determine the amount of the Social Insurance Fund insurance rate and whether your business belongs to the category of preferential activities (it makes sense only if you plan to hire employees).
Required documents for registration
In order to register as an individual entrepreneur, you need to collect the following documents:
Application for state registration of an individual as an individual entrepreneur in form P21001(sold in 1 copy);
Receipt for payment of state duty for individual entrepreneur registration;
Application for transition to a simplified taxation system in form No. 26.2-1(if you need to go) (surrendered in 2 copies);
Copies of all pages of the passport.
Read more about the documents for individual entrepreneur registration and how to fill them out. on this page.
Registration of individual entrepreneurs with the tax office
In most Federal Tax Service Inspectors, the bulk of documents are submitted and received according to the “one window” principle, i.e. In one place. Therefore, after all the papers have been prepared, you need to go to the tax office that registers you and check the documents with the samples provided. When providing documents in person notarize A signature is not required, therefore, just present your passport and give all the necessary documents.
After the documents are accepted, you will be given a receipt confirming their receipt and a second copy of the application for transition to the simplified tax system. The receipt must have a stamp and a date when you need to come pick up the documents (if you don’t pick them up on that day, they will be sent to you by mail).
If for some reason you are not able to submit the papers to the tax authority yourself, you can entrust this either to someone else (you need to fill out a power of attorney to provide interests to the Federal Tax Service), or send them by mail in a valuable letter with a list of the attachments. In addition, in both cases you will have to notarize a copy of your passport and signature on the application for registration of an individual entrepreneur (300 - 500 rubles). If the documents were sent by mail, they should also arrive back by mail within two to three weeks.
Documents receiving
Upon successful completion of the individual entrepreneur registration procedure, you become an individual entrepreneur and receive the following documents:
Certificate of state registration of an individual as an individual entrepreneur (OGRNIP);
Extract from the Unified State Register of Individual Entrepreneurs (USRIP) - 1 page., 2 pages, 3 pages, 4 pages;
Notification of registration of an individual with the tax authority;
Notification of registration of an individual with the territorial body of the Pension Fund (pension fund) at the place of residence;
Notification of assignment of statistics codes (from Rosstat).
What to do after registering an individual entrepreneur
If your tax service registers individual entrepreneurs on a “one-window” basis, then you can receive all of the above papers at once. However, if one of the last two documents is not given to you, then you will have to register with the relevant organization yourself. Read more about this on the page - Registration with the Pension Fund of Russia and Rospotrebnadzor(registration with Rospotrebnadzor is required only for some types of activities). Besides this you will have to get statistics codes from Rosstat.
You may also find detailed information about:
making a seal;
opening a current account for individual entrepreneurs;
cash register.
Possible reasons for refusal of registration
The reasons why you may be refused to open an individual entrepreneur may be the following:
Failure to submit documents required for registration;
Providing incorrect data, errors or typos;
Providing papers to another tax authority;
Declared bankrupt less than a year ago;
The sentence prohibiting business activity has not expired.
An individual entrepreneur (IP) is a person who is engaged in business officially, but without forming a legal entity. He does not have to keep accounting records and open a bank account, but business risks fall on his personal property.
Any capable citizen (except for civil servants and military personnel) can become an individual entrepreneur. The procedure is quite simple.
How to register an individual entrepreneur
1. Decide on your activities
Do you bake cakes? Do you repair cars? Take a look at the All-Russian Classifier of Types of Economic Activities (OKVED) and find the code that corresponds to your type of occupation.
OKVED codes must be included in the application for registration of individual entrepreneurs: one main and several additional ones.
Additional codes will come in handy if you decide to expand or repurpose your business. It is illegal to make money from something that does not fall under the codes specified during registration.
To engage in some types of activities (medicine, transporting passengers, etc.) a license is required, and a number of areas are closed to individual entrepreneurs. For example, individual entrepreneurs do not have the right to sell alcohol and produce medicines.
2. Choose a tax system
The amount of taxes and the amount of reporting depends on it. Therefore, it is better to decide on it even before opening an individual entrepreneur.
There are currently five tax regimes in Russia.
- General taxation system (OSN or OSNO). Involves payment of VAT (18%), personal income tax (13%) and property tax (if any). This is one of the most complex systems - you can’t do it without an accountant. Suitable for entrepreneurs planning to cooperate with large organizations.
- Simplified taxation system (STS). Allows you to select the object of taxation: income (then the tax rate will be 6%) or income minus expenses (the rate will be from 5 to 15% depending on the region). This is the simplest and most beginner-friendly system. But only individual entrepreneurs who have less than a hundred employees and whose annual profit does not exceed 60 million rubles can use it.
- Patent taxation system (PTS). Introduced specifically for individual entrepreneurs who have less than 15 employees and profits of no more than 60 million rubles per year. Valid only for certain types of activities. An entrepreneur simply buys a patent for a period of 1 to 12 months and keeps a book of income and expenses - no regular payments or declarations.
- Unified tax on imputed income (UTII). Applicable only for selected types of activities (Article 346.26 of the Tax Code of the Russian Federation) and not in all regions. UTII does not depend on profit. The tax is calculated using a special formula, which is influenced by the scale of the business (sales area, number of employees, etc.).
- Unified Agricultural Tax (USAT). Another simplified system without VAT, income and property taxes. Suitable for those who grow, process or sell agricultural products.
When registering an individual entrepreneur, the OSN automatically comes into force. You can switch from it to the simplified tax system or unified agricultural tax within 30 days, to the PSN - within 10, and to the UTII - 5 days. If you are late, you will have to wait for a new reporting period.
3. Prepare a package of documents
To contact the Federal Tax Service (FTS) you will need:
- Application on form P21001.
- Receipt for payment of state duty.
- Passport + its copy.
- Application for transition to the simplified tax system, PSN, UTII or Unified Agricultural Tax (optional).
- TIN (if missing, it will be assigned upon registration of individual entrepreneurs).
You can submit documents to the tax office in person or through a representative, or send them by registered mail with a list of the attachments. In the latter case, a copy of the passport and an application for registration of an individual entrepreneur must be certified by a notary.
4. Submit an application for registration of individual entrepreneurs
Application for state registration of an individual as an individual entrepreneur (form P21001) is the most important document in the entire package. Due to errors in it, they most often refuse to open an individual entrepreneur.
The application must be filled out in capital letters on a computer (font - Courier New, size - 18 pt) or in black ink and block letters by hand. On the first sheet, indicate your full name, gender, date and place of birth, TIN (if any). On the second - registration address and passport details. The code of your subject of the Russian Federation and the code of your identity document can be found in the requirements for document processing, and the postal code can be found on the Russian Post website.
When filling out the application, do not sign on sheet B. This is done in the presence of a tax inspector.
Are you afraid of getting confused in the requirements and making mistakes? Use one of the free document preparation services. There are many of these on the Internet now.
5. Pay the state fee
For this purpose, the Federal Tax Service website has a service “Payment of state duty”. First, select your payment type. Enter the full name and address of the payer. The details of the required tax office will automatically appear on the receipt.
Now you need to specify the payment method. To pay in cash, print and pay a receipt at any bank.
Registration of an individual entrepreneur costs 800 rubles. This is the amount of the state duty.
For non-cash payment, you must have a Taxpayer Identification Number (TIN). You can pay online through a QIWI wallet or a Federal Tax Service partner bank.
6. Submit documents for registration with the tax office
An individual entrepreneur can build a business throughout Russia, but he will have to open an individual entrepreneur at the place of registration (registration).
You can submit documents for individual entrepreneur registration in person by visiting the tax office or MFC, or remotely:
- Through the service “Submission of electronic documents for state registration of legal entities and individual entrepreneurs” (an electronic signature is required).
- Through the service “Submitting an application for state registration of individual entrepreneurs and legal entities.”
The last method is the easiest. You only have to go to the tax office once to pick up documents about opening an individual entrepreneur.
7. Receive an individual entrepreneur registration document
After 3 working days, you will be given an entry sheet in the Unified State Register of Individual Entrepreneurs (USRIP). It will indicate the main state registration number of the individual entrepreneur (OGRNIP).
A paper certificate of registration of individual entrepreneurs is no longer issued.
Be sure to check the information in the received documents. If you find a mistake, ask the inspector to draw up a protocol of disagreements.
8. Register with extra-budgetary funds
The tax inspectorate must notify the Pension Fund (PFR) and Rosstat about the emergence of a new individual entrepreneur in Russia.
A certificate of registration with the Pension Fund and statistics codes will be given to you upon receipt of the Unified State Register of Individual Entrepreneurs (USRIP) sheet or sent by mail. If this does not happen, contact your local Pension Fund office yourself.
You must register with the Social Insurance Fund (SIF) within 30 days from the date of hiring your first employee.
9. Get a stamp, open a bank account, buy a cash register
All this is optional and greatly depends on the type of activity, but:
- Documents sealed have more weight in the minds of clients and partners.
- It is much more convenient to settle accounts with counterparties and pay taxes in non-cash form through an individual entrepreneur’s current account.
- In most cases, you cannot accept cash from customers without issuing a receipt.
That's all. Nine simple steps and you are an individual entrepreneur!
Before you start registering with the Federal Tax Service, make sure that you have all the necessary documents:
- Application form P 21001 (1 copy)
- Application for transition to the simplified tax system (if you plan to use the simplified tax system 3 copies)
- Receipt for payment of state duty
- Copy of the passport
- Copy of TIN (if issued)
Prepare an application in form P 21001.
If you filled out this application manually, then check it again for errors; if you entrusted the filling to an online service, then download the file and print it. Fasten the sheets with a paper clip so that they do not get mixed up, do not sign the document in advance, only in the presence of a Federal Tax Service employee. We recommend preparing 2 copies. The process of preparing an application has many nuances and rules for filling it out. If an error is found in the document, then this is a clear refusal to register an individual entrepreneur and the money that you paid in the form of state duty will not be returned to you. We recommend that you carefully consider the process of filling out form P 21001 or use our service, which will quickly, freely and correctly fill out the form.
Prepare an application for transition to the simplified tax system
If you have chosen a simplified taxation system, then download form No. 26.2-1 and fill it out. You can also use our service to fill out an application for the simplified tax system. Prepare 3 copies of this application.
You can submit this application with all the documents for registration of an individual entrepreneur, or within 30 days from the date of registration you can submit it to the territorial Federal Tax Service. Please note that when submitting form No. 26.2-1 along with all documents, its completion will be different from completion after registration of an individual entrepreneur.
Pay the state fee
You can pay at any bank branch, via the Internet on the Federal Tax Service portal or at the Federal Tax Service terminal when submitting documents. Not every branch has terminals, so it is better to pay the fee in advance.
Save your receipt. Information about payment of state duty is stored in the state information system on state and municipal payments (GIS GMP), and you are not required to present a receipt when submitting documents, but not all tax officials know about this, sometimes it is easier to show a receipt than to argue.
Make a copy of your passport
Make a photocopy of all pages of your passport, although practice shows that in most cases they require 2-3 pages and a page with the last registration stamp, but if an employee asks you for all the pages of your passport, you can provide them to him, this will save you time and nerves. If you have temporary registration, you must make a photocopy of the temporary registration sheet. It is worth noting that if you have a permanent registration stamp and temporary registration, registration will be carried out at the permanent registration address. If you entrust the registration of an individual entrepreneur to your representative, then take care to certify a copy of the passport from a notary in advance.
Make a copy of your TIN
If you do not have a TIN number, the tax office will assign it to you automatically, based on the data specified in the package of documents for individual entrepreneur registration. If suddenly, when submitting a package of documents for registration, you are required to submit an application for assignment of a TIN, then it is allowed to fill it out on the spot. If you were assigned a TIN, but you did not indicate it, this will result in a refusal to register an individual entrepreneur.
Important! Double-sided printing of documents submitted to the registration authority is prohibited.
Step 2. Submit documents
The application is always submitted to the registering Federal Tax Service at the place of residence. You can submit an application to it in different ways, read about it below.
Important! The territorial and registering Federal Tax Service may differ. For individual entrepreneurs, all documents are submitted to the registering Federal Tax Service at the permanent residence address.
To avoid confusion about where to submit documents, use our service, which will automatically determine the territorial and registration Federal Tax Service.
Methods for submitting documents:
- Through the State Services website. The “Public Services” portal has a service that helps you independently submit a package of documents for registration with the tax office, but to use this service you will need to create a personal account and fill out information about yourself. After successfully uploading documents to the electronic application, you must sign it with your electronic digital signature (EDS) and choose the method of receiving registration documents: by mail or in person. You can prepare the necessary package of documents for submission through the State Services portal using our service.
- Online. A fairly convenient and fast way to prepare and send documents for individual entrepreneur registration. Our service provides online IP registration service for residents of Moscow and the Moscow region. All you need to do is enter the required data step by step. The online service will help you avoid mistakes that could lead to refusal of registration. Also, a copy of the documents signed with the electronic signature of the Federal Tax Service will be sent to you by email specified in application P21001.
- MFC. There are such centers in almost every region. When submitting documents through the MFC, please note that the registration time will be increased. You also cannot send documents by mail; documents must be submitted in person (there is no need to notarize the application) or through a representative, in which case you will need to notarize the application and passport. It is also worth considering that an MFC employee is not always competent in filling out documents, and an employee of the Federal Tax Service will be able to point out an error in the documentation.
Important! The centers do not accept applications for switching to the simplified tax system, because this does not apply to the provision of services for registering an entrepreneur. You will need to personally contact the territorial Federal Tax Service with this application.
After submitting the documents, be sure to receive a receipt from the MFC employee confirming their acceptance, which serves as confirmation that you actually submitted the documents. If there is no multifunctional center in your city, then registration should be carried out through the tax service.
- Mail. This method of registration will be relevant for those who do not want and cannot visit the tax office in person, being in another region where they are not registered at their place of residence, but the submitted documents are sent to the place of registration of the person wishing to register an individual entrepreneur. To send documents by mail, you must notarize the signature on the registration application and a photocopy of the entire passport. The postal worker will make an inventory of the documents you provided so that the Federal Tax Service employee, upon receipt, can verify the contents of the registered letter. When submitting documents using this method, you will not be provided with a receipt for the documents and notification of the application of the simplified tax system. When the letter reaches the recipient, you will be notified.
Personally or through a representative. If you decide to personally submit a package of documents for registration, then having a passport is mandatory. In the presence of the inspector, write your last name, first name, patronymic (if any) in your own hand on “Sheet B” of the application and sign. Filling is done with black ink in capital block letters. You can assign the responsibility for submitting documents to your representative; for this, the applicant signs an application for registration of an individual entrepreneur in the presence of a notary, and not in front of a tax inspector; it is also necessary to notarize a copy of the passport.
After receiving the documents, you will be given a receipt of receipt of the documents and one of the copies of the notice of application of the simplified tax system, if you submitted it, with the date and signature of the tax officer.
Step 3. Receive documents
Based on the results of registration, for any method of filing applications, the tax office sends electronic documents signed with an enhanced qualified electronic signature only to the e-mail specified by the applicant when filling out the documents.
Important! You must enter your email address correctly, otherwise there is a risk of not receiving response documents.
At the same time, paper documents confirming the contents of electronic documents can be issued to the applicant or his representative only upon a corresponding request to the Federal Tax Service.
- If documents are submitted to the tax office, by mail or via the Internet, the request must be submitted along with registration documents.
- If documents are submitted through the MFC, then the final documents can be obtained upon request from the MFC. The next day after the deadline for registration expires, the inspection will send electronic documents to the applicant and to the MFC. After this, the applicant can request paper documents from the MFC. The center will make paper documents based on electronic documents received from the inspection.
- If documents are submitted through a notary, then the final documents can be obtained upon request from the same notary through whom the application for registration was submitted. The next day after the deadline for registration expires, the inspection will send electronic documents to the applicant and the notary. After this, the applicant can request paper documents from the notary. The notary will print out the entry sheet and certify that it is equivalent to the electronic document received from the tax office.
- If documents are sent via DHL or PonyExpress, the request must be submitted along with the registration kit. If the delivery service includes receipt of documents upon registration, the courier will receive and deliver them.
Important! This option is only relevant for Moscow, since DHL or PonyExpress have an agreement with MIFTS No. 46.
Important! Please note that methods for obtaining documents based on a request have not yet been established in practice. Therefore, at the moment it is not clear how this will actually work.
At the tax office you will receive:
- Record sheet of the Unified State Register of Individual Entrepreneurs according to form No. P60009.
- Notification of registration of an individual with the tax authority. It indicates the Federal Tax Service to which you will need to report.
- Some inspections immediately issue a Letter from Rosstat. If not, you can print it from the Rosstat website. The letter will be needed to open a current account.
- Certificate of assignment of TIN (if you did not have one)
Important! If you indicated in application R 21001 the method of receiving documents via mail, then a letter with the originals will be sent to the individual entrepreneur’s registration address.
Step 4. Obtain a registration number from the Pension Fund
The tax office itself sends information about the registered individual entrepreneur to the Pension Fund. And the Pension Fund sends you a registration certificate by mail with a registration number. If the certificate has not arrived, you can contact the Pension Fund. But this is not necessary: you only need to find out the registration number.
Step 5. Register the individual entrepreneur with the Social Insurance Fund
If you hire employees, you will need to register with the Social Insurance Fund. Having declared yourself as an employer, submit certified copies of your registration documents by a notary, as well as a copy of the passport, the accepted employee and a copy of the employment contract. You must do this within 30 calendar days from the date of hiring the first employee.
Step 6. Open a current account
In order to make non-cash payments, you must open a bank account. Choose a bank whose tariffs will suit you; you should approach this event responsibly.
Using our free service, you can quickly and easily register an individual entrepreneur, even if you have never done this before
Every extraordinary person, endowed with the ability to make money in a different way than the majority of officially employed people, is mercilessly pressed by society. This is all because “this is not the way we do things,” “everyone works, so should you,” “you will be left without a pension, you are guaranteed a hungry old age,” etc. A way out of the situation is possible: opening an individual entrepreneur, that is, registering with the tax authority as an individual entrepreneur. In this case, the work experience will begin from the date of registration, and social guarantees for a comfortable old age are provided. Ideal option for freelancers.
Opening an individual entrepreneur is also relevant for those people who already have an official place of work: the status of a legal entity provides new business opportunities and allows you to additionally attract third-party capital from investors. There are many advantages, and for each type of activity, for each individual entrepreneur they are different.
We present you with step-by-step instructions for opening an individual entrepreneur from scratch.
Package of documents for opening an individual entrepreneur
By the way, about types of activities. The OKVED classifier contains a complete list of them, and before writing an application you will need to familiarize yourself with it and select several types “for yourself.” It’s better to choose several, with perspective for the future. This foresight will help you save money: in the future, when adding (changing) OKVED codes, you will be required to pay a state fee. The very first OKVED code you choose must correspond to the main type of activity, the rest must be additional or related. If in doubt, you can consult a specialist.
The correct choice of OKVED is not a simple formality: there are a number of types of activities for which an entrepreneur can be provided with some preferential conditions for his business activities. Therefore, it is in your interests to approach this matter with all responsibility.
The application is filled out using form P21001 (can be obtained from the tax office or downloaded on the Internet). Your personal data and pre-selected OKVED codes are entered there. If you submit the application yourself (not by mail or through a proxy), then the signature does not have to be certified by a notary, although in order to avoid errors when filling out (and there can be many of them, despite the apparent simplicity of the document), it is still recommended to contact this specialist . This will cost several hundred rubles: a very reasonable price in exchange for ensuring that the application is accepted the first time. Copies of all pages of the passport should also be certified there.
The state fee for opening an individual entrepreneur is now 800 rubles. This payment can be made at any bank branch, the main thing is not to lose the receipt. So, what does the package of documents submitted to the tax office include:
- Application for registration of individual entrepreneurs;
- Copies of all passport pages (including blank ones);
- Copy of TIN (if any);
- A receipt for payment of a contribution to the treasury, that is, state duty.
If you do not have a TIN, then at the same time you can submit an application for registration, although usually this document is done when the registration of an individual entrepreneur is already underway (within 5 days after submitting the corresponding application), or even after the completion of registration. This point can be clarified with a tax inspector.
Application for registration of individual entrepreneur
Please note: you need to submit documents to the Federal Tax Service according to your registration address, that is, taking into account the territorial affiliation of the tax office. Otherwise, your application will be rejected and you will waste time.
So, the reasons for refusal to register an individual entrepreneur:
- The wrong body of the Federal Tax Service was chosen;
- Documents are drawn up incorrectly;
- Not the entire package of documents is presented;
- One year has not yet passed from the date you were declared bankrupt (for your previous type of business activity);
- The ban imposed on your business activities by the court remains in force.
In addition, for a person who has not reached the age of majority, there must be a conclusion from the court or guardianship authorities, indicating that he has reached a state of full legal capacity. Marriage by a person under 18 years of age is also considered a condition for the possibility of opening an individual entrepreneur.
In all other cases, subject to consultation with a notary regarding filling out an application for registration of an individual entrepreneur, you are guaranteed a positive answer. The deadline for registering an individual entrepreneur with the tax office is five working days. You will receive two documents: OGRNIP and Unified State Register of Individual Entrepreneurs plus TIN, if a corresponding application has been submitted. They can be delivered to you either personally or by post to your place of residence. It is better, of course, to pick up such valuable securities yourself.
Registration of individual entrepreneurs with the tax office
Next, you will need to decide on the tax system. Many individual entrepreneurs choose the simplified tax system (“simplified system”), but please note that since 2013 it has been called the patent tax system. If you plan to work closely with companies that take VAT into account in their prices, then you are better off choosing the OSN (main system). Then the income tax will not be 6%, as in the case of the simplified tax system, but 13%. Plus property tax, personal income tax, VAT and other deductions. However, if you plan to hire more than 15 employees, OSN cannot be avoided. UTII (“imputation”) is now rarely used; this issue is resolved by the municipal authorities.
If you choose the simplified tax system, and at the same time your expenses (according to estimates) will be 60% of income or more, then it makes sense to choose a tax of 5-15% rather than 6%. Then the rate will be calculated individually and multiplied not by the amount of profit, but by the difference between income and expenses. On this issue, it makes sense to consult with an economist.
When choosing a tax system other than the OSN, which is applied by default, you will need to write a corresponding application, and within a few days the procedure will be completed. You will then acquire tax reporting obligations as part of your business activity.
Registration of individual entrepreneurs in the Pension Fund of Russia and the Social Insurance Fund
After receiving the relevant documents, you will need to contact the pension fund. The tax office will inform you about the “birth” of a new entrepreneur immediately, but you will need to come to clarify the amount of mandatory monthly insurance contributions, which will ensure your retirement future. To obtain the necessary details you will need copies of the following documents:
- OGRN;
- EGRIP;
- SNILS;
- Passport.
If you hire employees (become an official employer), then in addition to the Pension Fund you will be provided with an employment contract, work book and SNILS (payer certificate), and in addition, you will also have to register with the Social Insurance Fund. You can register with the Social Insurance Fund (social insurance) even if you personally need vacation, maternity leave, or sick leave. In a word, registration with the Social Insurance Fund provides additional social guarantees. Contributions to both the Pension Fund and the Social Insurance Fund can be paid either every month, or you can immediately pay the amount for the whole year. Our staff will help you calculate it. The total payment is usually just over 1000 rubles.
Do I need a current account for an individual entrepreneur?
Additionally, you will have to register with Rosstat. This will also take a maximum of a few days, and at the end of the procedure you will receive a statement that you will need to present to the bank when opening a current account (s/c) for an individual entrepreneur. Settlement account is not a mandatory condition for registering an individual entrepreneur, however, if you plan to receive significant amounts from counterparties under one agreement, the law obliges you to complete this formality. Yes, and it will be more convenient for you. After opening the account, you will be connected to the client-bank service for convenient making payments (and accepting them) by bank transfer.
How much does it cost to open a sole proprietorship?
If you do everything yourself, then the cost of registering an individual entrepreneur will not exceed more than 2,000 rubles, including state fees and overhead costs (notary, photocopies, etc.). If you open a bank account, add another 800 rubles. A simple seal without a coat of arms will cost 300 rubles.
If you contact an office that will do everything for you, then opening an individual entrepreneur will cost you 5000-7000 rubles.
It is done
After all the formalities have been settled, you can safely begin to exercise your rights as an individual entrepreneur, without forgetting, however, about your responsibilities. If you choose the simplified tax system, it is quite possible to conduct tax reporting yourself, the same applies to UTII, but to work on the main system, entrepreneurs usually hire an accountant. Depending on the chosen system, the duration of the reporting period can be different: once a month, once a quarter or once a year.
Video about step-by-step registration as an individual entrepreneur:
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Hello, dear colleague! There is probably no person who would not dream of having his own business and working for himself. Most of those who move from dreaming to action lean towards becoming a self-employed entrepreneur. The procedure for registering an individual entrepreneur is quite simple and understandable and absolutely anyone can do it. This article provides comprehensive step-by-step instructions for opening an individual entrepreneur from scratch. In addition, in the materials of the article you will find answers to the most frequently asked questions that aspiring entrepreneurs have.
1. Who is an individual entrepreneur (IP)?
According to Article 11 Part 1 of the Tax Code of the Russian Federation, individual entrepreneurs - individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity, heads of peasant (farm) households.
Individuals carrying out entrepreneurial activities without forming a legal entity, but who have not registered as individual entrepreneurs in violation of the requirements of the civil legislation of the Russian Federation, when performing the duties assigned to them by this Code, do not have the right to refer to the fact that they are not individual entrepreneurs.
Also, this wording can be supplemented by the fact that an individual entrepreneur, unlike a legal entity, is not required to have a current account and a legal address, but he is fully responsible for his personal property.
Another frequently asked question: at what age can you open an individual entrepreneur? The answer is simple - according to Russian legislation, a citizen of the Russian Federation who has reached the age of 18 can become an individual entrepreneur.
Is it possible to open an individual entrepreneur if you are officially employed? Yes, you can, if you are not a state or municipal employee.
According to Article 11 Part 1 of the Tax Code of the Russian Federation, an individual entrepreneur is this is an individual . The most important differences between an individual entrepreneur and a legal entity are that the individual entrepreneur does not have a legal address, a mandatory current account, and also that the entrepreneur is responsible for his personal property, while legal entities are responsible for the property registered to this legal entity. face.
Today, in news reports, there is more talk about transferring an individual entrepreneur to the status of a legal entity, but I believe that such changes are not expected in the coming year.
If the individual entrepreneur becomes a legal entity in the foreseeable future, then additional wires and costs for opening and maintaining accounting records will immediately fall on him.
3. What documents are needed to open an individual entrepreneur?
Registration of an individual entrepreneur is quite simple and does not require large time and financial costs. So, how to register an individual entrepreneur?
List of documents for registration:
- Receipt of payment of the state fee (the state fee for registering an individual entrepreneur is 800 rubles);
- TIN (individual taxpayer number);
- Applicant's passport (in this case your passport).
If you do not have a TIN, then you should contact the territorial tax authority with your passport, write an application for a TIN and within 5 working days you will receive a Certificate of Registration with the tax authority.
It is important to note that registration of individual entrepreneurs is carried out exclusively at the place of registration of the applicant.
If you yourself do not have the opportunity to submit an application to the tax office, then you fill out the application, make a copy of your passport and TIN, register these documents notarized, and also make a general power of attorney, notarized for the person you trust to submit documents to the tax office and sign the documents for you.
4. How much does it cost to open an individual entrepreneur?
Opening an individual entrepreneur, unlike any other legal form, is the most low-cost event.
Before submitting an application to the tax office, you need to pay a state fee, the amount of which as of 2016 is 800 rubles.
You can pay the state fee at any Sberbank branch. Some tax offices have specialized terminals through which you can also make payments. Just be sure to keep your receipt. You will need it when submitting documents.
5. Opening an individual entrepreneur: step-by-step instructions for registration
Below I will provide you with step-by-step instructions on how to open an individual entrepreneur on your own in 2016.
Step 1 - Check for TIN availability
If you changed your last name, first name or patronymic and did not change your TIN, be sure to do so. If you do not have a TIN, be sure to contact your territorial tax authority with an application and receive a TIN within 5 business days.
Step 2 - Determine the type of taxation
Read more about tax regimes in section 6 of this article.
Step 3 - Decide on the main activities (OKVED)
To learn how to do this, watch this video:
Note: Currently, the interface of the “My Business” service has changed, but the basic registration algorithm remains the same.
6. Taxation of individual entrepreneurs: what taxes does the individual entrepreneur pay?
The choice of taxation system should be approached in advance and very seriously, because the amount of your costs will depend on which regime you choose, and by choosing the most optimal regime, you can significantly reduce them.
In the Russian Federation, there are various forms of taxation, which also apply to individual entrepreneurs. As of 2016, there are 5 regimes: 1 general taxation regime (OSNO) and 4 special ones (Unified Agricultural Tax, UTII, STS, PSN).
General (standard) taxation system (OSNO) - one of the most complex systems currently existing in Russia. It includes all additional taxes, and also has no restrictions on the number of employees, the amount of profit, etc. This system covers absolutely all registered business entities that have not decided on the tax regime at the time of registration. Remaining in this mode, you will have to pay all additional taxes: VAT (value added tax 18%), personal income tax (personal income tax 13%), property tax, if you have property.
Simplified taxation system (STS) — one of the simplest systems, aimed at small and medium-sized businesses, has two objects of taxation, one of which, when switching to the simplified tax system, you will be required to choose: “income” or “income minus expenses.” When switching to the simplified tax system, an individual entrepreneur must meet several criteria:
- No more than 100 employees;
- No more than 60 million rubles annual income;
- The residual value should not exceed 100 million rubles.
Unified tax on imputed income (UTII) - another tax regime that makes life easier for entrepreneurs. But, unfortunately, it applies only to certain types of activities presented in the Tax Code of the Russian Federation.
The tax amount is fixed and does not depend on your income. The amount of tax depends on the scale of your business - the size of retail space, the number of employees, the number of vehicles, etc. - each type of activity has its own criterion.
UTII can be reduced through insurance premiums to half of what is paid for employees. And organizations and (or) entrepreneurs without employees can reduce tax without restrictions on contributions paid for themselves.
Just like the simplified tax system, UTII also has certain criteria that business entities must meet:
- The company must have no more than 100 employees;
- The share of third parties should not exceed 25%.
Before submitting a notification about the transition to UTII to the territorial tax authority, make sure that this system is valid in your region.
Unified Agricultural Tax (USAT) similar to the simplified taxation system, but is provided only for agricultural producers.
If you grow, process or sell agricultural commodities, then this system is for you.
Entities who have chosen the Unified Agricultural Tax regime are exempt from paying taxes on property and profit of the organization, as well as VAT. Individual entrepreneurs are exempt from paying VAT and personal property tax. persons - personal income tax. Under the unified agricultural tax system, the same exceptions apply as for entities practicing the simplified tax system.
Patent tax system (PTS) was introduced in 2013 and is valid exclusively for individual entrepreneurs. Just like UTII, the patent system can exist simultaneously with the general system (OSNO) and only for certain types of activities provided for by regional legislation.
It is noteworthy that no tax returns are provided. You buy a patent for a period of 1 to 12 months and keep a separate income book for this type of activity. The amount of the patent cannot be reduced by the amount of insurance premiums.
You can read more about which taxation system to choose for individual entrepreneurs and how to combine several modes in my.
In addition to tax payments, individual entrepreneurs will have to pay insurance contributions to the pension fund - this is a fixed amount, which in 2016 is 19,356.48 rubles. If the annual income exceeds 300,000 rubles, then +1% of the annual income, but not more than 154,851.84 rubles. Contributions for compulsory health insurance in 2016 amount to RUB 3,796.85. These payments must be made no later than December 31, 2016. If your income exceeds 300,000 rubles, then 19,356.48 rubles. you pay by December 31, 2016, and the rest no later than April 1, 2017.
More detailed information is presented in the table.
There is also such a thing as a tax holiday for individual entrepreneurs in 2016. The conditions of this benefit are stated in a document such as “Main directions of tax policy for 2016 and the planning period of 2017 and 2018.”
This benefit is valid only for first-time individual entrepreneurs. Unfortunately, the decision to include such a benefit is made by regional authorities for certain types of activities. Tax holidays mean that newly opened individual entrepreneurs are completely exempt from paying taxes for a certain period of time. For more detailed information, I advise you to contact your territorial tax authority.
7. Pros and cons of individual entrepreneurs
Advantages of individual entrepreneurship
- Low amount of state duty in contrast to LLC: 800 rubles instead of 4,000 rubles;
- A simple registration procedure with a small list of documents;
- Fast registration procedure;
- Does not oblige you to have a current account and a seal;
- All money earned by the individual entrepreneur is the individual entrepreneur’s money. They can be transferred to the card or withdrawn. The money of the LLC is the money of the LLC, from which the LLC is obliged to pay quarterly dividends + 13% tax. The director needs to pay a monthly salary and tax of about 30% + personal income tax 13%.
- Individual entrepreneurs do not have to keep accounting records. The LLC is required to maintain complete accounting records;
- If an entrepreneur does not have employees, then he simply submits a tax return once a year (using the simplified tax system). An LLC automatically has an employee - this is a director, and in addition to declarations, the LLC also submits reports to the Pension Fund and the Social Insurance Fund.
- To terminate the activities of an individual entrepreneur, it is enough to pay the state fee and submit an application. Within a week, the individual entrepreneur will be excluded from the register. The liquidation procedure for an LLC is very lengthy and takes about 3-6 months;
- Money in individual entrepreneurs' accounts is insured by the state in the amount of 1.4 million rubles. An LLC does not have this;
- An individual entrepreneur is not required to maintain cash documents;
- An individual entrepreneur can carry out its activities in any place, regardless of the place of registration.
Disadvantages of individual entrepreneurship
- An individual entrepreneur is liable entirely with his property. The LLC is responsible for the property of the LLC;
- An individual entrepreneur does not have the right to engage in certain types of activities, such as wholesale and/or retail trade in alcoholic beverages;
- A sole proprietor cannot split his business. If you are planning a business with a partner, even if you are 300% confident in each other, you should think about opening an LLC and becoming legally full co-founders in shares proportional to your investments.
8. Rights and obligations of individual entrepreneurs
According to clause 3 of Article 25 of the Civil Code of the Russian Federation, an individual entrepreneur enjoys the right to hire employees. Previously, individual entrepreneurs did not have such a right as concluding employment contracts.
According to Article 9 of Chapter II of the Law on the Sanitary and Epidemiological Welfare of the Population, individual entrepreneurs and legal entities have the right:
- receive, in accordance with the legislation of the Russian Federation, from state authorities, local governments, bodies exercising state sanitary and epidemiological supervision, information about the sanitary and epidemiological situation, the state of the habitat, sanitary rules
- take part in the development by federal executive authorities, executive authorities of constituent entities of the Russian Federation, local government bodies of measures to ensure the sanitary and epidemiological well-being of the population;
- for full compensation for damage caused to their property as a result of violations of sanitary legislation by citizens, other individual entrepreneurs and legal entities, as well as during the implementation of sanitary and anti-epidemic (preventive) measures, in the manner established by the legislation of the Russian Federation.
According to Article 11 of Chapter II of the Law on the Sanitary and Epidemiological Welfare of the Population, individual entrepreneurs and legal entities, in accordance with the activities they carry out, are obliged to:
- comply with the requirements of sanitary legislation, as well as regulations, instructions and sanitary-epidemiological conclusions of those implementing;
- state sanitary and epidemiological supervision of officials; develop and carry out sanitary and anti-epidemic (preventive) measures;
- ensure the safety for human health of the work performed and services provided, as well as products for industrial and technical purposes, food products and goods for personal and household needs during their production, transportation, storage, and sale to the population;
- carry out production control, including through laboratory research and testing, over compliance with sanitary rules and carrying out sanitary and anti-epidemic (preventive) measures when performing work and providing services, as well as during the production, transportation, storage and sale of products;
- carry out work to substantiate the safety for humans of new types of products and their production technology, criteria for the safety and (or) harmlessness of environmental factors and develop methods for monitoring environmental factors;
- promptly inform the population, local government bodies, bodies carrying out state sanitary and epidemiological supervision about emergency situations, production stoppages, and violations of technological processes that pose a threat to the sanitary and epidemiological well-being of the population;
- have officially published sanitary rules, methods and techniques for monitoring environmental factors; carry out hygienic training of workers.
In addition, an individual entrepreneur is obliged to:
- conduct its activities in accordance with the list of main types of economic activities specified in the Unified State Register of Individual Entrepreneurs;
- timely submit reports to the Federal Tax Service, Pension Fund, Social Insurance Fund, etc.;
- timely pay taxes and other fees provided for by the legislation of the Russian Federation;
- promptly notify all authorities about the hiring of employees, as well as changes in activities.
This concludes my article. I hope that this information was necessary and useful for you. See you in the next issues.
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