Today is a rather difficult time when economic and tax reforms significantly complicate life, requiring certain efforts both in the accumulation of funds and in maintaining a high standard of living. Trying to stay afloat, many do not abandon attempts to open their own business and try to find themselves in the business world. This is confirmed by the increasing number of those citizens who express a desire to be registered as individual entrepreneurs (IP). So, what kind of status is this and based on what does the IP operate?
Tax legislation gives the following definition of this status: IP is an individual who undertakes to carry out the activities of an entrepreneur, while not having a legal entity (PBUYL), being registered in the manner established for this.
In accordance with civil law, any individual can have the right to carry out this type of activity, starting from the moment he is registered as an individual entrepreneur.
Let’s try to figure out how an individual can become an individual entrepreneur and on the basis of what IP operates. We will also try to get answers to questions that most often arise when preparing documents for registration, as well as in its very process. It will not be superfluous to know about such details as a package of documents that should be prepared for state registration and where it should be sent. What are the grounds for refusal of registration, as well as what needs to be done to terminate entrepreneurial activity.
The only body that has the authority to register an individual as an entrepreneur and issue a document on state registration, the certificate on which the IP operates is the tax office located at the place of registration of the future entrepreneur.
The registration procedure should begin with the payment of a state duty, the amount of which for those who want to become entrepreneurs is four hundred rubles. Then, an application for registration is drawn up in the prescribed form. In addition, a copy of the passport should be provided.
Five days are allotted for consideration of an application, after which an individual is registered as an individual entrepreneur and becomes the owner of a document (certificate of state registration), which is the main thing for carrying out his activity, the very paper on the basis of which the IP operates.
An individual entrepreneur does not have any constituent documents, due to the fact that he carries out his activities independently, having only hired workers. Partners and equity holders for an individual entrepreneur are not provided by law. Therefore, there is no need to regulate the relations of partners using such documentation. Moreover, only another independent entrepreneur can act as a partner for an individual entrepreneur. Each individual entrepreneur acts on the basis of its state registration document.
At the conclusion of the contract, if the parties are individual entrepreneurs, their documents that will certify their status will be served by just a certificate of state registration, on the basis of which the IP acts in the contract, as well as the TIN certificate.
However, the tax authority is authorized to refuse registration of an entrepreneur. The current legislation provides for a number of reasons, based on which he is entitled to do so. The main ones are an incorrectly completed application or erroneous details on the payment of state duty.
In the event that the entrepreneur has decided to terminate his activity, then he must submit a corresponding application to the tax office. For registration of termination of business, a fee is not taken. Consideration of the application takes no more than five days. The decision of the tax authority on the termination of business will be confirmed by the relevant certificate.