Perhaps today, almost everyone thought about starting a business, but there is little knowledge in this regard, and people simply do not know how to open their own company.
One of the most common forms of doing business is PPI (individual private enterprise). It is about him that will be discussed below.
What is PPI?
PPI is the enterprise of a citizen, which belongs to him by right of ownership or to members of his family by right of common ownership. The budget of such an organization is formed on the basis of the budget of its owner or his income. Deciphering the PPI sounds like an “individual private enterprise”.
You can become the owner of an IPP by acquiring a state or municipal enterprise. Each private enterprise receives an individual name taking into account the form of ownership, as well as indicating the name of its owner.
PPI is characterized by the fact that its owner is one person who receives all income from his work, and also bears full financial responsibility for the results of his activities. Based on this, we can say that an individual private enterprise belongs to the individual sphere of entrepreneurship.
Registration of PPI
In order to open an individual private enterprise, you need to prepare the following documents:
- Original passport and 2-3 copies.
- Application for registration.
- A document confirming the payment of the registration fee.
In the event that the submission of documents will be carried out not by the future entrepreneur himself, but by a third party, then photocopies of the passport will need to be certified by a notary. Only after that documents can be submitted to the local tax authority.
It is possible to send all data by mail, having formed a letter with declared value. You can also send documents by e-mail using the portal of the tax company, but before that you need to get a key certificate from the registrar company.
Approximately 3-4 days after the filing of the documents, an individual private enterprise will be registered. In this case, a certificate and a sheet for making entries in a single register are issued to the entrepreneur. If the company is registered as an IP, then a taxpayer sheet will also be issued.
Benefits
PPI is a form of business that has the following advantages:
- Registration of an individual private enterprise takes little time. In order to get your small business under management, you only need to prepare a series of documents and wait 3-4 days.
- No need to register the legal address of the organization. As it will be the place of residence of the owner.
- As a rule, owners of PPIs receive discounts at banks, as well as benefits (for example, a preferential package is provided for a current account).
- If an entrepreneur decides to install cash registers at his enterprise, then he will not need to spend money on making a seal (the exception is work on government orders).
- Often, the PPI does not need to purchase cash registers.
- An individual entrepreneur is not obliged to report to anyone (except for state bodies). All information about expenses and income is a trade secret.
disadvantages
Despite the large number of advantages, firms in the IPP also have the following disadvantages:
- The owner assumes all financial responsibility for the enterprise. Even if the organization was closed, its owner must pay all debts, loans and borrowings received by the company.
- Not only the business owner, but also members of his family bear financial responsibility. They will be required to repay debts even if they did not take any part in the organization. To repay the debt, the court may decide on the sale of any property.
- Regardless of the activities of an individual private enterprise, its owner will be required to make contributions to the Pension Fund.
Taxes
For individual private entrepreneurs, as a rule, one of the following taxation systems is applied:
- Single tax.
- Income tax (DOS).
- Simplified tax system (STS).
The single tax can be paid by the PPI if the organization is engaged in:
- Retail sale of some goods.
- It provides consumers with certain services (for example, in the transport sector, catering, etc.).
Since 2019, an entrepreneur, regardless of whether his business is subject to a single tax, has the right to decide for himself which taxation system to use.
The choice of DOS (general tax system) or STS depends on revenue. If its size for the last 9 months of activity does not exceed 315,000 rubles, then the entrepreneur has the right to switch to the simplified tax system. If this amount is exceeded, then the entrepreneur will be charged with DOS (or single tax).
Types of activity of an individual private entrepreneur
PPIs are enterprises that conduct one of the following activities:
- Normal. Businesses can engage immediately after registration.
- Licensed. Implementation requires a special permit (license).
- Requiring permission and / or approval. A license is not provided in this case, however, for the implementation of such activities, permission is required from supervisory authorities.
- Closed to individual entrepreneurs. A businessman cannot engage in this type of activity (developing weapons, transporting poisons, etc.).