What is an individual entrepreneur. Individual entrepreneur: everything about sole proprietorship, in clear language. Is it necessary to register an individual entrepreneur

Many people sooner or later show a desire to start their own business, to work for themselves. Hence the relevance of the question, how does an individual entrepreneur differ from an emergency. Of course, a lot of different questions arise and one of the main ones: which registration option to choose? To answer this question, you first need to figure out what each answer represents and what is the difference between them.

What is IE: description and advantages

IP - individual entrepreneur- an individual or simply an adult citizen who wanted to practice own business in accordance with the law, for which he submitted a declaration and all documents necessary for registration, certificates and a state duty payment form to the relevant state authorities.

Further, after submitting a package of documents, it is considered by state bodies that control such processes, and the applicant is registered as an individual entrepreneur. Registration means that from this moment the SP is responsible for all actions and obligations, for the failure of which the SP is responsible with his property.

Taxation in this form of business can be in any regime that suits such a legal entity in accordance with the law. Most individual entrepreneurs choose a simplified tax form that is not related to VAT. However, organizations that work on general form taxation, they refuse to work for individual entrepreneurs, since in the process of cooperation with such entrepreneurship they cannot return VAT, whereby they lose impressive figures from the accounts.

When registering an individual business, it is not allowed to obtain licenses such as the sale of alcohol or drugs. But just the fact that a report of all your activities can be kept and notified to the tax service in a simplified form is the advantage of this form of registering your business.

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What is PE: description and pros

At the moment, the term "private entrepreneur" is not used at all, since this type of entrepreneurial activity is no longer spelled out in Russian legislation due to the fact that a law has been adopted to replace private with individual entrepreneurship... But by past standards, a private trader was in the same way responsible for his actions with all his personal property and was active in the market as an independent legal entity. The state of emergency also had a simplified form of taxation, or rather could use it and keep records of all cases and processes in a concise form.

Just like an individual entrepreneur, any citizen of Russia who has reached the age of 18 and submitted an application and appropriate documents to the relevant registering state authorities could become an emergency. Servicemen, persons working in the prosecutor's office, the Ministry of Internal Affairs and other government bodies cannot become entrepreneurs. Dont Have legal right begin entrepreneurial activity and those who are prohibited from this by a court decision for any reason. All these formalities are also inherent in individual entrepreneurship, which at the moment has completely replaced private entrepreneurs at the legal level.

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The difference between private and individual entrepreneurship

Many who decide to register their business, of course, pay attention to the names of various legal forms business. So, in the search for the difference between an individual entrepreneur and an individual entrepreneur, you will not come to anything significant. Considering the fact that the state of emergency in the Russian Federation no longer exists even in the legislation, which means that all the state of emergency were re-registered as an individual entrepreneur. These two forms differ only in name, oddly enough. Only those who are trying to delve into the theoretical history of law will be interested in the differences between IP and PE in depth. Indeed, in general, there are no differences, only a different naming, which does not carry a difference in legal status carrier.

In fact, the general naming of all non-law firms is now easier and more straightforward. After all, "individual" does not evoke ambiguous understanding and does not require significant space when filling business papers and other documents where it is required to decipher the organizational and legal form.

Summing up, we can summarize the fact that there are no differences between private and individual entrepreneurship, the point is only in the legislation, where now one naming is replaced by another.

After that, all businessmen were required to go through the renewal process. Russia through government agencies at the moment registers only an individual form of entrepreneurship, considering that they are starting their own private activities.

That is, in principle, all the nuances that are no longer important in connection with the law on changing the name, so that entrepreneurs will now register in the same way, not paying attention to the details of the name, as it was before: how best to register: as an individual entrepreneur or as a state of emergency, and how does a private entrepreneur differ from an individual? Now it is clear that there are no differences, and they are not relevant according to the current law of the Russian Federation.

Activities that are regularly profitable are considered entrepreneurial. If you engage in such activities without registering an individual entrepreneur and do not pay taxes, sooner or later you will have to bear responsibility to the state.

Liability is provided for in article 14.1 Administrative Code... The fine for trading without registration is from 500 rubles to 2,000 rubles, and if the activity was subject to licensing or a special permit was required - from 2,000 to 2,500 rubles with confiscation of tools and products of production.

Article 116 of the Tax Code provides for another fine for unregistered entrepreneurial activity - 10% of proven income, but not less than 40 thousand rubles.

In addition, the tax office can charge taxes and penalties on the amount of income that can be proved.

Another reason that for many becomes a decisive factor is the blocking of bank accounts. Many unregistered entrepreneurs accept money from clients to an individual's card account in a bank. Since 2017, banks have been actively blocking accounts for suspicious transactions on the basis of Law 115-FZ "On Combating Legalization (Laundering) of Criminally Obtained Incomes and Financing of Terrorism".

By registering as an individual entrepreneur, you can legally accept money from clients to your current account and not be afraid of fines from the tax office.

Registration of individual entrepreneurs

The procedure is quite simple, in contrast to the registration of an LLC.

In order to register as an individual entrepreneur, you need to send to tax office package of documents:

1. Application form P21001.
2. A receipt for payment of the state duty (800 rubles). Since 2019, when submitting registration documents to in electronic format you will not need to pay the fee.
3. A copy of your passport.
4. Application for the application of the simplified taxation system (if it is planned to apply this regime).

The package of documents can be taken to the tax office in person, transferred through a representative, sent by mail or sent electronically. You can send documents in electronic form directly through the FTS website, but for this you first need to issue electronic signature(approximately 1,000 rubles).

The tax office will register you as an individual entrepreneur within 3 working days after receiving the documents. If there are grounds for refusal or errors in the application, your registration will be refused, and you will have to submit your documents again. You will have three months to resubmit your documents without paying the state fee again. If you do not meet this deadline or make a mistake again, you will have to pay the fee.

Where an individual entrepreneur can do business

Anywhere in Russia, regardless of where it is registered.

An individual entrepreneur always registers at the place of registration and registers with the local tax office, to which the address of his registration belongs. He will have to pay taxes and submit reports to this very inspectorate, regardless of where he conducts his business.

For example, if you are registered in St. Petersburg, and your business is in Kazan and Perm, you will pay and report to the St. Petersburg IFTS.

The exception is business on UTII and PSN. These are special tax regimes, which we will discuss below. If an individual entrepreneur applies these special regimes, he must pay and report to the tax office at the place of business (with some exceptions).

What taxes does an individual entrepreneur pay

It all depends on which taxation system the individual entrepreneur has chosen.

For small businesses in Russia, there are 3 preferential tax regimes that allow individual entrepreneurs to reduce the tax burden and the volume of reporting.

STS - simplified taxation system

The most popular mode among individual entrepreneurs, very simple and profitable.

By choosing this mode, you will pay taxes according to one of the options:

• 6% of all income received;
• 15% from the difference between income and expenses;

and at the same time you will be exempt from personal income tax, property tax (which you use in business) and VAT.

The object of taxation - "Income" or "Income minus expenses" you choose yourself and indicate this in the application. It will be possible to change the object only from the beginning of the next calendar year.

Reporting on the STS is just one declaration per year.

To start using the simplified tax system from the first day of work, you need to send a notification to the Federal Tax Service Inspectorate along with registration documents or within 30 days after registration. Do not meet this deadline - you can switch to the simplified tax system only from the beginning of the next calendar year.

In detail about what a simplified taxation system is, under what conditions individual entrepreneurs can apply it, how to pay tax and report, we have described in this article.

UTII - unified tax on imputed income

It also provides for the exemption of individual entrepreneurs from personal income tax, property tax and VAT.

It can be applied only for certain types of activities and only in those regions where this regime has been introduced by local authorities. To find out if UTII is valid in your region, contact your local IFTS.

By choosing this mode, you will pay taxes not on the actual income, but on the estimated one. For each type of activity in the Tax Code, the basic profitability is prescribed, on the basis of which the tax is calculated taking into account the coefficients and physical indicators. How much you actually earn from this activity - more or less - will not be of interest to the tax office.

You need to submit reports on UTII every quarter.

An individual entrepreneur can transfer a business to UTII at any time. To do this, you need to send an application to the tax office that relates to the address of doing business (or to the IFTS at the place of residence for some types of activities).

OSNO - general taxation system

If you do not switch to any of the listed special modes, you will automatically be enrolled in OSNO - common system taxation. This means that you will be required to pay personal income tax on business income, property tax and VAT.

All this involves a lot of work on accounting and reporting, so before deciding to work on OSNO, make sure that you cannot use one of the special modes, or that OSNO is more profitable for you.

Other taxes of individual entrepreneurs

All other taxes (transport, land, water, etc.) you will have to pay only if there is an appropriate object of taxation. This does not depend on the applied tax regime.

Individual entrepreneur insurance premiums

In addition to taxes, all individual entrepreneurs are required to pay insurance premiums for two types of insurance: pension and medical.

Contributions consist of two parts: fixed and additional.

Fixed insurance premiums for individual entrepreneurs

This is a fixed amount that every registered entrepreneur must pay to the IFTS within a year.

In 2018, it is 32,385 rubles, of which 26,545 rubles for pension insurance and 5,840 for medical insurance. The amount is indexed every year.

This amount does not depend on the entrepreneur's income, or on the taxation regime applied, or on whether the entrepreneur runs a business at all or is simply listed as an individual entrepreneur. From January 1 to December 31 of the reporting year, a fixed amount must be paid, in installments or in full.

It is possible to reduce the fixed payment only in one case - if the entrepreneur was in the status of an individual entrepreneur for an incomplete year, that is, he either registered an individual entrepreneur in the current year, or, on the contrary, was deregistered. Then the fixed insurance premiums are calculated in proportion to the time that the businessman was in the status of an individual entrepreneur.

The Tax Code provides for only a few cases when an individual entrepreneur may not pay fixed contributions if he has not been in business. This is caring for a child up to one and a half years old or a disabled person, military service, departure to another country with a diplomat spouse or to a remote area with a military spouse.

Additional insurance premiums for individual entrepreneurs

This part of the contributions depends on income. If an individual entrepreneur earned more than 300 thousand rubles in a year, he must additionally transfer 1% to the budget from the amount of excess. For this, 6 months are allotted after the end of the reporting year.

Reduction of tax on insurance premiums

At the expense of insurance premiums, you can reduce payments for taxes: STS, UTII, ESHN or personal income tax. Entrepreneurs who earn up to 500 thousand rubles may thus not pay tax at all, because it will be "covered" by insurance premiums.

The procedure for reducing taxes on contributions depends on the applicable tax regime and on whether the entrepreneur has employees.

How to withdraw profit

Entrepreneurs have a big advantage over organizations. They can freely withdraw profits at any time and in any quantity. All the money that is on the account of the individual entrepreneur or in the cash desk belongs to him, he should not agree with anyone about their withdrawal from the account and pay additional taxes on the withdrawn amounts.

But be careful as According to Law 115-FZ "On Counteracting Legalization (Laundering) of Criminally Obtained Incomes and Financing of Terrorism", the bank can block the current account if the operation seems suspicious to them, this is now common. Do not withdraw large amounts without urgent need, give explanations to banks in time, and, if possible, pay for purchases with a corporate card.

IP liquidation

This procedure is as simple as registering. You just need to pay off tax debts, submit the missing reports, pay the state duty and fill out an application for closing the IP.

If there are employees, you must first dismiss them and deregister them in the funds.

What else do individual entrepreneurs need to know

1. According to the law, individual entrepreneurs have the right not to keep accounting, provided that they keep tax records.
2. Individual entrepreneurs are exempt from the obligation to observe cash discipline.
3. In order to accept payments from customers, some entrepreneurs may need an online checkout. For more information about who needs a cash register, who can do without it, and what other methods of settlements with clients can be used, see the article "How to accept money from clients."
4. Individual entrepreneurs face fines for failure to comply with the deadlines for payments to the budget, submission of reports and other violations. We have collected the most common violations in the article "Top 10 IP violations and the amount of fines for them."
5. In addition to tax reporting, entrepreneurs sometimes have to submit statistical reports if they are included in the annual sample of Rosstat.

With accounting, taxes and reports, the Internet accounting department "My business" will help you. Feel free to open an IP and register in our service. With us, you will do everything right.

An individual entrepreneur is an individual leading commercial activities independently after state registration with the tax service. Consider what rights a citizen has in this status, what responsibilities are assigned to him, as well as the advantages and disadvantages of registering an individual entrepreneur.

According to the law, the concept of "entrepreneurial activity" in the case of an individual entrepreneur assumes work with a profit for oneself.

An entrepreneur with this status can organize almost any type of business, excluding those that are allowed to be sold only by organizations, namely:

• create, supply, repair special equipment for the Armed Forces and weapons;
• engage in security activities;
• make and sell alcohol;
• be an insurer;
• provide banking services and many others related to finance (pawnshops, private pension funds, investment funds);
• produce drugs, chemicals.

There are other types of businesses that are inaccessible to individual entrepreneurs due to their scale: space development, nuclear power... Any commercial activity should not fall under the Criminal Code of the Russian Federation.

If an individual entrepreneur decides to work with goods for children, food, to provide cosmetology or hairdressing services, permits will be required from supervisory services - firefighters, educational, consumer, environmental. Sometimes permission is not enough, you also need a license. This applies to pharmaceutical, educational, medical activities, transportation different kinds transport.

We register an individual entrepreneur

Who can become an individual entrepreneur

According to the Civil Code of the Russian Federation, almost every capable citizen can be an individual entrepreneur upon reaching the age of 18.

A minor will be able to register an individual entrepreneur with the official guarantee of parents or guardians (from 14 years old) or after marriage (from 16 years old).

In addition to age, there are other restrictions on obtaining the status of an individual entrepreneur. Military, state and municipal employees cannot register their enterprise. Specialists in the budgetary sphere without special powers (teachers, medical workers, psychologists, etc.) are allowed to open an individual entrepreneur.

Who else cannot become an individual entrepreneur:

• citizens deprived of the right to conduct commercial activities by a court decision;
• bankrupt merchants;
• persons with an uncovered criminal record or under investigation.

Anyone who was forced to close a business by a court verdict can open a new business only a year after that. It is possible to create an individual entrepreneur after bankruptcy proceedings in five years. It is also not forbidden to register if the conviction is canceled. But a businessman with a criminal past will not be able to start a business related to education, sports, as well as cultural, socially significant activities.

One more important point. If you have already registered an IP, then you cannot open another one until you close the first... If you wish to engage in other activities, you can make changes to the Unified State Register (USRIP) by specifying new codes from the OKVED list.

Rights and obligations of individual entrepreneurs

An officially registered individual who provides services without forming a commercial structure falls under the definition of an individual entrepreneur. An individual entrepreneur has rights and obligations. These include:

If an individual entrepreneur has changed the data (name, address, type of activity), he must report this to the tax service, extrabudgetary funds, other supervisory authorities.

Advantages and disadvantages of IP

Five pros and five cons of IP

Before opening an individual entrepreneur, it is worth evaluating all the advantages and disadvantages of this form of business.

The main advantages of IP are:

1. The ability to change the type of activity without closing the enterprise.
2. Fast and hassle-free registration with a low state fee (800 rubles).
3. Ease of reporting, relatively low tax burden.
4. Rare, in comparison with legal entities, inspections by supervisory authorities, much smaller fines.
5. Receiving benefits ("tax holidays", reducing the tax rate on some tax regimes), government subsidies.

For beginners, independent sailing in the ocean of business, opening an individual entrepreneur is the best option. Then you can expand and acquire the status of a legal entity.

The main disadvantages of such entrepreneurship include:

1. Conducting business without forming a legal entity, at your own peril and risk. The entrepreneur is liable for personal property, even that which is not used in commerce.
2. Obligatory payment of contributions to extra-budgetary funds, regardless of income.
3. The impossibility to sell or re-register an individual entrepreneur, as well as to come up with a beautiful, memorable name. The company is named by the owner's surname.
4. Difficulty working with major partners- megacorporations consider such partnerships not too prestigious.
5. Certain restrictions on business scaling, income, number of employees, opportunities for obtaining loans.

If a merchant makes a profit without state registration, he faces penalties, administrative, tax or even criminal liability.

If an entrepreneur has accumulated loans and debts in excess of half a million, and is overdue by more than three months, he will be declared bankrupt. The enterprise will be closed, and the entrepreneur's personal property will be put up for auction. In the best case scenario, it will be possible to conclude an amicable agreement with creditors indicating the timing of the debt repayment.

To avoid possible penalties and other problems, an individual entrepreneur is obliged to know the intricacies of tax, pension, antimonopoly legislation. Ignorance will not exempt them from punitive sanctions in case of non-performance. Additionally, an entrepreneur should open a bank account, order a seal. This is optional, but it can greatly facilitate the operation of the enterprise.

Individual entrepreneurship

Individual entrepreneurship - this is a type of private entrepreneurship - it is the initiative activities of citizens aimed at generating income, based on the property of the citizens themselves, and carried out on behalf of citizens for their risk and under their property responsibility.

Individual entrepreneurs are individuals engaged in entrepreneurial activities without forming a legal entity and in the absence of signs of a legal entity.

The legislation in the field of individual entrepreneurship is based on the Constitution of the Republic of Kazakhstan and consists of this law and other regulatory legal acts that do not contradict it.

The Law of the Republic of Kazakhstan "On Protection and Support of Private Entrepreneurship" applies to individual entrepreneurship, taking into account the specifics established by this Law.

This Law regulates relations on the implementation of the activities of notaries and lawyers to the extent not regulated by special legislative acts.

Types of individual entrepreneurship

Personal entrepreneurship is carried out by one citizen independently on the basis of property belonging to him by right of ownership, as well as by virtue of another right allowing the use and (or) disposal of property.

Joint entrepreneurship is carried out by a group of citizens (individual entrepreneurs) on the basis of property belonging to them by right of ownership, as well as by virtue of another right allowing joint use and (or) disposal of property.

Individual entrepreneurs are liable for their obligations with all their property, except for property on which collection cannot be levied in accordance with the current legislation of the Republic of Kazakhstan.

Individual entrepreneurs have the right to carry out any types of entrepreneurial activity, unless otherwise provided by law.

Individual entrepreneurship is carried out on the basis and at the expense of property owned by a citizen on the basis of ownership or other rights that allow the use and (or) disposal of property for entrepreneurship.

Legal entities and citizens have the right, under the conditions established by law, to lease their buildings, structures and premises, including apartments in apartment buildings, for use for business purposes.

An individual entrepreneur is responsible for the quality of his products (works, services).

Products manufactured by an individual entrepreneur must meet the requirements, unless other requirements are established by the contract with the customer.

Products for which state standards are established must comply with these standards.

If it is provided by the established rules, products (works, services) sold by an individual entrepreneur must have quality certificates or a mark of conformity.

Individual entrepreneurs have the right to sell their products, as well as goods purchased for the purpose of sale and in any locality, unless otherwise provided by legislative acts.

Settlements of individual entrepreneurs related to their entrepreneurial activities are made at their discretion, both in cash and by bank transfer, unless otherwise provided by legislative acts.

Individual entrepreneurs have the right to carry out entrepreneurial activities using hired labor.

An individual entrepreneur is engaged in entrepreneurial activity, acquires and exercises rights and obligations under his own name. When making transactions related to entrepreneurial activity, a citizen must indicate that he is acting as an individual entrepreneur, unless this clearly follows from the very environment of the transaction. In carrying out his activities, an individual entrepreneur has the right to use personal forms of documentation, seals, stamps, the texts of which must clearly indicate that this person is an individual entrepreneur.

An individual entrepreneur has the right to assign a firm name to his business and (or) its part allocated as part of the entrepreneur's property. The firm name of the case and (or) its part of an individual entrepreneur is subject to legal protection without the obligatory filing of an application or registration, and regardless of whether it is a part trademark... It is not allowed to use company names belonging to other entrepreneurs without their consent.

An individual entrepreneur has the right to use different systems social security, social health insurance.

The activities of an individual entrepreneur may be terminated on a voluntary or compulsory basis, as well as in the event of the occurrence of the circumstances provided for by this Law.

On a voluntary basis, activities are terminated at any time on the basis of a decision taken independently by an individual entrepreneur - in case of personal entrepreneurship, by all participants jointly - in case of joint entrepreneurship.

Individual entrepreneurship is compulsorily terminated by a court decision in the following cases:

• 1. bankruptcy;
• 2. invalidation of the registration of an individual entrepreneur in connection with violations of the law committed during registration, which are irreparable;
• 3. carrying out activities without a license;
• 4. carrying out activities with repeated or gross violations of the law during a calendar year;
• 5. in other cases stipulated by legislative acts.

The activity of an individual entrepreneur is considered terminated from the moment such an entrepreneur is excluded from the State Register on the basis of his application or a court decision in appropriate cases.

In our country, it is not difficult to start doing business legally. Enough, having previously collected the necessary and studied. According to statistics for 2017, about 4 million individual entrepreneurs are registered in Russia. However, individual entrepreneurs need to remember that they have not only the right to engage in making a profit, but also the corresponding obligations, for failure to comply with which sanctions and fines are imposed. In today's article we will tell you who the individual entrepreneurs are, what they do, and what responsibilities they have.

Page content

An individual entrepreneur is an individual who conducts an independent entrepreneurial activity in order to obtain systematic profit without education, and who has passed the state registration procedure established by law.

Previously, the terms "private entrepreneur" and "entrepreneur without the formation of a legal entity" were used. These terms are now combined in the PI.

Individual entrepreneurs in our country can be:

• capable persons who have reached the age of 18;
• capable minors who have reached the age of 16 (with the consent of their parents or guardians, who have married);
• foreign citizens living in the territory of the Russian Federation.

IMPORTANT: a state or municipal employee cannot be an entrepreneur.

Why register an individual entrepreneur?

In our country, millions of people are engaged in their own business. In principle, there is nothing wrong with this, if you do not engage in prohibited activities, and your "home" business does not require renting premises, concluding contracts with suppliers. Most often, an example is the services provided by self-trained craftsmen, such as: accounting, copyrighting, manicure and hairstyles, massage, renting apartments, taxis with your own car, repairing apartments, cars, computers, and others. Of course, in this case, you are not paying or doing paperwork.

Advantages of registering an individual entrepreneur

• By registering an individual entrepreneur legally, you can conduct business with a clear conscience;
• The procedure is either very simple and quick;
• The range of possible activities carried out is much wider;
• There is a retirement experience, as you are paying to the pension fund;
• You can get a loan for a small business on more favorable terms than an individual.

Cons of registering an individual entrepreneur

• in the event of bankruptcy and the formation of debts, the individual entrepreneur is liable with all his property, that is, the court will take everything that can be taken by law;
• some companies that pay VAT do not want to use the services of individual entrepreneurs because of the collision of taxation systems, which leads to the fact that the “big” company actually pays this tax for the entrepreneur;
• An individual entrepreneur cannot register a business with someone else. He is the sole owner of the business and cannot even hire an employee to be a director;
• An individual entrepreneur is obliged to make social payments in a fixed amount constantly and regularly, regardless of the level of profit (even if the work is at a loss);

The individual entrepreneur pays a fixed payment to the pension fund, which does not depend on the level of his income. The size of the pension contribution in 2020 is 22,261.38 rubles per year plus 1% of income if it exceeds 300,000 rubles.

An individual entrepreneur can carry out activities at a rate of 6%. However, he does not pay 9% of the profit in the form of dividends.

SP is exempt from conducting complex accounting statements... He only conducts tax reporting: USN, 3-NDFL, UTII, KUDIR

If an individual entrepreneur regularly pays pension contributions, then his experience goes from opening an individual entrepreneur to its closure, also regardless of the level of profit.

A female entrepreneur has the right to receive maternity leave if voluntary insurance contributions were made to social insurance.

An individual entrepreneur of any gender can receive child allowance for a child under 1.5 years of age.

An individual entrepreneur can receive sick leave if he made voluntary contributions to social insurance. However, sick leave rates are calculated based on the minimum wages, the size of which is established by law. Therefore, these payments will be insignificant.

IP leave is not allowed.

Thus, along with the rights of the individual entrepreneur, the list of obligations to the state is also extensive. Note that individual entrepreneurship is the most popular type of registration of legal activities in small businesses. As you can see, there are nuances, pros and cons. If you want to start your own business, you have to figure out the nuances and take action.

Remember that ignorance of the laws does not exempt from their execution, and even more from fines. Therefore, you need to know the amount of mandatory payments, the rules for admitting employees, etc. And also for an individual entrepreneur it is desirable, but optional, after registration, and.