Each citizen can become an individual entrepreneur. From the moment of registration, he has not only opportunities and rights, but also certain responsibilities. How to become an entrepreneur, what responsibilities you need to perform - all this is described below in the article.
General definition
An individual entrepreneur is an individual registered in the manner prescribed by law, conducting entrepreneurial activity without creating a legal entity. A citizen is officially an individual entrepreneur and can work in this status only after completion of registration with state bodies.
Thus, anyone can become an individual entrepreneur and engage in commercial activities. For this, it is enough to register at the official place of residence. You don’t have to have an office.
Individual entrepreneurs act in accordance with the laws that govern their business activities. But they are also subject to many of the rights vested in legal entities.
Individual entrepreneurs of the Russian Federation are required to comply with the rules of the Civil Code, denoting the activities of legal entities, except in cases where separate regulatory acts have been created for them.
How to register IP
Registration of an individual entrepreneur involves several steps:
1. Preparation for registration - at this stage, you need to accurately determine the types of activities for OKVED, choose the appropriate type of taxation and pay a fee.
2. Collection of papers. To register an entrepreneur, it is necessary to prepare the following documents:
- passport;
- copy of passport and certificate with TIN number;
- duty receipt;
- Application for registration of a specific type of IP in duplicate (if documents are sent by mail, they must be certified by a notary);
- notice on the application of the simplified tax system.
3. Submission of documents to the registration authority. In response, the organization must issue to the registrar a receipt on receipt of the necessary documents and a notice on the application of the simplified tax system with a special mark of the tax service.
4. Obtaining documents. The registration body must issue a certificate of state registration of the entrepreneur with the registration number, a document on the assignment of the TIN and an extract from the USRIP.
5. Registration of an individual entrepreneur in the Compulsory Health Insurance Fund and in the Pension Fund. The tax inspectorate itself sends to the PF information about the registration of a new IP.
IP rights
1. The ability to choose the types of activities permitted by law.
2. The right to hire workers. The legislation establishes the number of employees who can be formalized as an individual entrepreneur.
3. An individual entrepreneur is a businessman who manages his activities and is responsible for its results.
4. Freedom to choose partners and goods. The entrepreneur himself determines the market segment in which he will develop his business.
5. The right to independently determine the value of the goods and services offered. However, the final price of products should not be significantly lower than that of other entrepreneurs.
6. The individual entrepreneur decides how and how much to pay his employees.
7. The entrepreneur has the right to dispose of the profit received at any time.
8. An individual entrepreneur has the right to appear in court as a plaintiff and defendant.
Responsibilities
An individual entrepreneur is a business entity that has certain responsibilities. Namely:
1. All entrepreneurs are required to adhere to applicable law. An entrepreneur must know the tax, pension, antitrust and other types of legislation in order to conduct a lawful and open business.
2. All monetary transactions are documented. Such documents include an employment contract, a contract for the supply of goods, etc.
3. To carry out licensed types of business, an entrepreneur must obtain state permission - a certificate, patent or license.
4. All employees who are hired by an individual entrepreneur must be officially registered. That is, an individual entrepreneur concludes an employment contract with a person, an agreement on the performance of specific works or other agreements. After processing the documents, the entrepreneur is obliged to make the necessary contributions to the Health Insurance Fund, the Pension Fund and the Social Insurance Fund.
5. If the activity of an individual entrepreneur causes harm to the environment, he is obliged to take measures to reduce the negative impacts. If a businessman cannot resolve this issue on his own, he must contact the environmental service.
6. The entrepreneur is obliged to pay taxes to the state treasury in a timely manner.
7. An individual entrepreneur is a participant in market relations, who must always respect the rights of the buyer. There are consumer protection organizations that handle complaints.
8. If, for some reason, the IP has changed data (surname, place of residence or residence, type of activity), he is obliged to notify the relevant authorities - the tax inspectorate, funds and other institutions.
Licensing
The activities of an individual entrepreneur are strictly controlled by special bodies. They monitor not only the payment by a businessman of taxes and necessary deductions to funds. There are organizations that control the legality of IP activities and the availability of permission to conduct certain types of business.
According to the legislation, licensed activities include pharmaceuticals, transportation of passengers and goods by sea, rail and air, etc. In addition, IP cannot engage in closed businesses, such as the development and sale of military products, the production and sale of drugs, toxic substances, alcoholic beverages. Also, an entrepreneur does not have the right to engage in insurance, banking, tourism, the production of pyrotechnics, ammunition, and the manufacture and repair of military aircraft.