Doing business legally is much easier than it might seem at first glance. Modern legislation greatly simplifies the registration of a citizen as an individual entrepreneur, and the digitalization of society allows you to save a lot of your time.
Let’s try together to figure out how to issue an IP yourself.
Who has the right to be an individual entrepreneur
In fact, almost any person can issue an IP. The legislation has only a few requirements in this regard:
- coming of age / emancipation;
- full legal capacity;
- the presence of Russian citizenship or the fact of permanent residence in the territory of the state.
That's all. More the state does not require anything.
How to issue an IP: where to start?
First, you should refer to the list of documents established by law that is necessary for the registration of an individual entrepreneur.
These include:
- application in the form No. P21001;
- copy of an identity document in the territory of the Russian Federation ;
- receipt of state duty. For the current year, it is 800 rubles.
It is worth noting that the bureaucratic apparatus is not asleep and the list of necessary documents may change at any time, and therefore it is necessary to clarify operational information on the resources of the Federal Tax Service, which is why, before issuing an IP, the step-by-step instruction of 2018 is required to be read.
At present, it is quite easy to find the necessary information on how to open an IP; step-by-step instructions may not be required. However, let's touch on the pitfalls of registration in more detail.
Filling out an application for registration of an individual entrepreneur
Form No. P21001 provides for the inclusion in the application of the basic personal data of a person and a citizen. The statement is nothing complicated for those who remember their name, surname, middle name, TIN, date of birth and gender.
You can fill out the application either electronically or by hand in block letters.
Long gone are the days when a lot depended on the arbitrariness of a tax official, but since then a lot of beliefs have remained. For example, it is believed that the application must be filled with a black ballpoint pen, that the letters must be strictly printed. Fortunately, all this is not so important.
What to pay special attention to when filling out the first pages of a document:
- the application must be filled out either with a pen or on a computer: you cannot fill in part of the sheets by hand, and the other using the electronic version;
- there should not be free cells in the application; a dash should be put in them;
- when filling out the application, blots and descriptions should not be allowed;
- write in legible block letters, it is important to remember that the registrar is a living person who can begin to look for a reason to return documents if the application is illegible;
- a foreign citizen needs to enter the code of his state in the application, it is indicated in accordance with the All-Russian Classifier of the World (ACSM).
In any case, one should not be afraid of difficulties in preparing documents. The application form is quite simple to fill out. How to issue an IP? A sample statement is presented below.
Entrepreneur activity codes
The most difficult thing in an application for registration of an individual entrepreneur is filling out the OKVED codes. The problem is that many simply do not know what it is.
OKVED is a list of activities approved by the legislator that a businessman can engage in. This list is very detailed, but still does not keep pace with the modern market. For example, if a copywriter or an SMM specialist tries to draw up an IP on their own, then the activity code will be problematic to choose.
That is why each type of activity is combined into fairly broad subgroups, which allows a generalized adjustment to any type of business.
What you should especially pay attention to when filling out the application is the relevance of the list of codes. Such regulatory legal acts have the ability to periodically change, and their relevance can be clarified on the resources of the Federal Tax Service.
Where to get an IP
Registration of an individual entrepreneur, exactly like other commercial organizations, is entrusted to the territorial bodies of the Federal Tax Service of the Russian Federation. In each city, the organization of registration processes is arranged in its own way. In most settlements with a population of less than 1 million people, there is one central branch of the Federal Tax Service, where you can file documents. In general, a specific place needs to be clarified on the website of the tax service or by calling the hotline.
Among other things, the development of high technology does not stop for a minute and today you can issue an IP without getting up off the couch. The State Services portal allows not only to submit the necessary documents, but also to communicate with the state solely online. The Federal Tax Service even recommends filing documents remotely, including through the electronic resources of the Federal Tax Service.
Necessary papers can also be submitted through the multifunctional centers "My Documents". Fortunately, there are many of them in each city, and the lines in them disappear every day. MFC employees, as a rule, without any problems check the quality of the prepared documents before issuing an IP, step-by-step instructions for correcting errors can also be obtained from the registrar.
So, there are a lot of options. Perhaps the state finally decided that there are enough obstacles to small business without endless queues for the tax.
What is simplified?
For a novice businessman, the legislator has provided several tax systems. If the entrepreneur’s turnover is small and the state does not require serious control over the activity, then the businessman can switch to the tax payment regime “on trust”.
In the case of choosing a simplified system, the individual entrepreneur pays taxes either in the amount of 6% of income, or 5-15% of the difference between income and expense. In the latter case, the businessman will have to document all his expenses, which is often difficult. Indeed, in small business it is customary to make the majority of purchases on their own, without laying the majority of the waste in the calculations of the enterprise.
Why is simplified woman so popular among IPs? There are many reasons for this:
- the businessman himself chooses the tax base (income tax or income tax minus expenses);
- the tax period is one calendar year, respectively, the declaration is submitted only once in 12 months;
- insurance payments and trading fees can be deducted from the tax base;
- the entrepreneur is exempt from VAT and personal income tax;
- simplified accounting.
A nice feature is also that the tax authorities rarely arrange field and desk audits for business with low income, located on a simplified tax system.
How to choose a tax system
Anyone who decides to transfer their business to legal space and register an IP, taxes are haunted. This is because few people understand which tax system to choose.
How to issue IP for simplification? For this, it is necessary that the businessman meets two important criteria:
- the average number of employees per year should not exceed 100 people;
- income for the year should not exceed 150 million rubles.
If no one is working for a beginner businessman, and incomes are not commensurate with millions, then no one will forbid you to apply for a transition to a simplified tax system.
Entrepreneurs who:
- produce excisable goods;
- they extract and sell minerals (except chalk, clay, and other ubiquitous ones).
In most cases, simplification is more convenient and profitable for small businesses. Indeed, at the stage of formation of any enterprise, it can be difficult to simply keep afloat in the market, and tax upheavals are not what you want to think about when, for example, there is nothing to pay for the rental of premises or there are not enough funds to settle with contractors.
How to switch to a simplified tax system
What is the best way to arrange an IP, we have already figured it out. Now it remains to clarify how to switch to simplified.
If an individual entrepreneur has just passed the registration procedure, then he has 30 days to submit an application to the territorial body of the Federal Tax Service on the transition to a simplified tax system. If this deadline is missed, the IP will automatically fall under the general taxation system.
If the entrepreneur is already conducting entrepreneurial activities, then you can switch to simplification every year until December 31.
It is recommended to apply immediately with a set of documents for registration of IP. Recently, the tax authorities have developed the practice of refusing to accept such an application with a general registration package. If you have a lot of free time, you can come again. If not, then be aware that officials have no legitimate reason to refuse to accept an application for transfer to the general public.
Obtaining a certificate of registration
Documents filed, receipt of receipt by the Federal Tax Service or the MFC in our hands, so what next?
And then you just have to wait. Today, the Federal Tax Service has a deadline of 3 business days. After their expiration, the tax authority must either refuse to open an IP, or register the applicant as an individual entrepreneur.
An important point is that since 2017, the Federal Tax Service has not issued a certificate of registration of IP. This is due to the too high volume of applications and the attempt by government agencies to refuse paper media.
However, in confirmation of registration, the applicant is issued a record sheet in the unified state register of individual entrepreneurs. In this document, all necessary details will be indicated, including the main state registration number of the entrepreneur. This number will be needed to open a bank account, payment transactions and drafting contracts.
The rejection of the certificate greatly simplified the life of novice businessmen, eliminating the extra bureaucratic barrier in the form of an additional document.
What pitfalls await a novice entrepreneur
So, you managed to issue the IP yourself, the step-by-step instruction was completed completely, but this does not mean that the difficulties are over. Unfortunately, the state system is preparing many unpleasant pitfalls for the businessman.
Let's consider some of them:
- Opening a bank account. Today, a businessman will find many obstacles when communicating with a bank. Some financial institutions require a long list of notarized documents. However, this practice is gradually disappearing. Separately, it is worth noting that now the legislator does not require IP to notify the Federal Tax Service about the opening of a current account, as it was before. However, if a businessman decides to start a relationship with a bank located outside the territory of the Russian Federation, then this will be possible only with prior notification of the tax service. The law establishes a period of 30 calendar days for this.
- Registration in funds. If hired labor is needed in a new business, then this draws another bureaucratic chain. Firstly, an individual entrepreneur must register with the Social Insurance Fund and the Health Insurance Fund within 10 days. Secondly, up to one month, you must register with the Pension Fund of the Russian Federation. Failure to comply with these requirements entails a fine of 5 thousand rubles. Then the registration period will be extended to 3 months. If you do not register and during this time, then the fine grows to 10 thousand rubles.
- Hiring employees. This is an extensive topic for individual material. In short, the employer is required to notify the Pension Fund of the hiring of the employee, as well as to pay the statutory contributions. If this is not done, then the case may result in a lawsuit and the imposition of unpleasant fines.
- Notification of the beginning of activity. If you plan to provide any services to the population, then before the start of the activity it is necessary to notify the territorial body of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare. This is done to include a new business in the audit plan by government agencies. But you should not worry, the first years will not touch you if there are no complaints from consumers.
It is important to remember: the wording “before the start of activity” is rather vague. That is, if you want to engage in the sale of travel packages, open an IP, but previously decided to go on vacation, then the activity has not yet begun and you do not need to notify anyone. However, if the notification is not filed, then Rospotrebnadzor will contact itself. With a high degree of probability, a beginner will receive a letter demanding to pay a substantial fine. In this case, it is necessary to come to the territorial authority and submit an application stating that no entrepreneurial activity is ongoing, and also indicate the reasons for this misunderstanding.
- Obtaining a license. If your business carries out activities related to licensed types, then we must not forget about registration with the relevant authorities. In Russia, the FSB is engaged in this, and the procedure for interaction on this issue is described in detail on its electronic resources. In this case, it is worth preparing a package of documents before issuing an IP, 2018 promises to be a year of strengthening licensing control. Therefore, this issue should be taken with full responsibility.
Open a current account or not?
The law requires a businessman to open a current account if:
- IP provides not only cash;
- the amount of each concluded agreement exceeds 100 thousand rubles.
In other cases, opening a current account is a personal decision of the entrepreneur. Is it necessary or not? Common sense and business practice say what is needed.
Firstly, only cash payment in the conditions of the modern market is impossible. Everyone will be tempted to use their personal card before issuing the IP correctly.
Secondly, banks really do not like such a scheme and are waging a stubborn struggle with it. Already today, you can find cases where Sberbank blocks counterparty accounts if business activity is suspected until the circumstances are clarified.
Thirdly, the bank may terminate relations with the individual entrepreneur, and the latter will have to look for another financial institution to open a current account, as it should.
Fourth, if the Federal Tax Service finds out that the funds received on your personal card are income from entrepreneurial activity, then this income can be taxed with the most prosaic income tax for individuals - 13%, and this more than doubles your tax base. Among other things, the sophisticated mind of the tax authorities can be directed personally at the individual entrepreneur, which will lead to a lengthy administrative case. And it will be possible to get rid of the consequences of increased attention of the tax service only through a court.
Failure to open a current account will spend more time and money than opening it. Therefore, it is better to go the path checked by other entrepreneurs.