CPI is Registration, taxes, advantages and disadvantages

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Perhaps today, almost every person thought about starting their own business, but there is little knowledge in this regard, and people simply do not know how to open their own business.

One of the most common forms of doing business is the Sole Proprietorship (Sole proprietorship). It is about him that we will discuss below.

What is the HPI?

CHP is an enterprise of a citizen that belongs to him on the right of ownership or to members of his family on the right of common ownership. The budget of such an organization is formed on the basis of the budget of its owner or his income. CPI stands for "individual private enterprise".

You can become the owner of an individual entrepreneurship 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.

CHP is characterized by the fact that its owner is one person who receives all the income from his work, and also bears the full materialresponsibility for the results of their activities. Based on this, it can be said that an individual private enterprise belongs to the individual field of entrepreneurship.

CPI registration

In order to open an individual private enterprise, you need to prepare the following documents:

1. Original passport and 2-3 copies.
2. Application for registration.
3. Document confirming payment of the business 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 the data by mail, while generating a letter with a declared value. You can also send documents by e-mail using the tax company portal, but before that you need to get a certificate key from the registrar company.

Approximately 3-4 days after the submission of documents, the registration of an individual private enterprise will take place. At the same time, a certificate and a sheet for making an entry in the unified register are issued to the entrepreneur. If the company is registered as an individual entrepreneur, then a taxpayer sheet will also be issued.

Benefits

CPI is a form of doing business that has the following benefits:

Registration of an individual private enterprise takes little time. In order to get control of your smallbusiness, you just need to prepare a number of documents and wait 3-4 days

• You do not need to register the legal address of the organization. The place of residence of the owner will act as it.
• As a rule, IPP owners receive discounts in banks, as well as benefits (for example, a preferential package is provided when opening 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 PPI does not need to buy cash registers.
• An individual private entrepreneur is not obliged to report to anyone (except government agencies). All information about expenses and income is a trade secret.

Flaws

Despite many advantages, PPI firms also have the following disadvantages:

• The owner assumes all financial responsibility for the enterprise. Even if the organization was closed, its owner is obliged to pay all debts, credits and loans received by the company.
• Financial responsibility is borne not only by the owner of the business, but also by members of his family. They will be obliged to repay debts even if they did not take any part in the activities of the organization. To pay off the debt, the court may decide to sell any property.
• Regardless of the activities of an individual private enterprise, its owner will be required to contribute toPension fund.

Taxes

For individual entrepreneurs, as a rule, one of the following taxation systems is applied:

1. Single tax.
2. Income tax (IT).
3. Simplified taxation system (STS).

Single tax PIE can pay if the organization is engaged in:

• Retail sale of some items.
• Provides certain services to consumers (for example, in the transport sector, catering, etc.).

Since 2019, an entrepreneur, regardless of whether the activity of his business falls under a single tax, has the right to decide for himself which tax system to use.

The choice of OSN (general taxation 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 OSN (or single tax).

Types of activities of an individual private entrepreneur

IPIs are businesses that engage in one of the following activities:

• Regular. Businesses can engage immediately after registration is completed.
• Licensable. Special permission (license) is required for implementation.

• Requiring permission and/or approval. In this case, a license is not provided, however, for the implementation of such activitiespermission from the regulatory authorities is required.
• Closed to individual entrepreneurs. A businessman cannot engage in this type of activity (development of weapons, transportation of poisons, etc.).