SPD - what is it? Registration of SPD

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-07 20:55

Entrepreneurial activity is considered to be the main driving force of the market economy. The realization of one's own interests, which in the vast majority of cases are regular income and great freedom of action, involves not only hard work, but also many formalities. The entrepreneur is both the owner of the business and, often, the manager, accountant, lawyer, manager. And at first it can be quite difficult to understand many of the nuances.

SPD and other forms of economic activity

Entrepreneurial activity (SPE) is a legal concept denoting a form of economic activity that combines several types of entrepreneurship. The term is used in the legislation of Ukraine. In the Russian Federation, the concept of “subject of entrepreneurial activity” is not enshrined in law (the law singles out separatelyprivate entrepreneurs and legal entities), but is found in legal literature.

In the legal field of Ukraine, two forms of SPD are also distinguished - this is individual entrepreneurship and legal entities. The second category of business entities includes private and public joint stock companies, a limited liability company, a limited partnership and a general partnership.

Most often, an entrepreneur opens SPD-FL (SPD-FLP), which stands for “entrepreneurial entity - an individual (individual entrepreneur)”, or FOP - “physical person entrepreneur” from the Ukrainian language. It is this form of SPD that will be considered in this material.

Who is eligible to become an entrepreneur?

Able-capable persons who are citizens of Ukraine, other states or stateless persons can officially register as an individual entrepreneur. At the same time, a potential SPD must be legally located on the territory of Ukraine, be of legal age (for persons from 16 to 18 years of age, additional permission from parents or legal guardians is required), be registered at the place of residence and receive an identification number.

The current legislation does not allow everyone to engage in economic activities. Registration may be denied to those who are already registered in the Unified State Register, provided an incomplete set or false documents, if there is a court decision to prohibit doing business, or if the person, according to the law, does notmay engage in business activities. The last category includes:

• incompetent citizens;

• employees of the state apparatus or local governments, deputies;

• prosecutors, notaries, auditors;
• officials of the court, internal affairs, state security, prosecutor's office.

What are the responsibilities of a business entity?

The SPD system is not only about generating systematic income, self-management and freedom of action, but also with a number of responsibilities. So, a private entrepreneur must:

• notify the relevant authorities of any changes to the information provided in personal documents;
• to ensure the high quality of goods and services provided, to preserve the rights and interests of the consumer;
• avoid violations of applicable law;
• comply with sanitary requirements, observe fire safety;
• keep records of the results of business activities and submit reports to tax and other authorities in a timely manner.

Procedure for state registration of an entrepreneur

SPD is a form of economic activity that is subject to mandatory registration. The procedure involves several stages, is associated with some tedious formalities, but with a responsible approach and desireyou can register in five working days.

Registration of SPD provides for the payment of a registration fee, the provision of a package of documents and applications to the registration authorities, registration as a taxpayer and in a pension fund. Additional procedures (obtaining a license, making a seal, opening a business bank account, etc.) are carried out by a private entrepreneur if necessary.

What documents do I need to register as an SPD?

To the state registration authorities, local administration or a notary, a potential sole proprietor personally or through an authorized person must provide:

• registration card, which can be obtained (along with a sample filling) from the registrar;
• certificate of assigning an identification code to an individual;
• passport of a person who wants to become an entrepreneur.

According to the law, the registrar is prohibited from demanding other papers from a potential FOP. It is important that the package of documents must be completed in the state language and provided at the place of residence of the future entrepreneur.

The package of documents is minimal - opening a SPD is not difficult. The conditions for conducting business activities have been simplified as much as possible, but this does not mean at all that the registration process and subsequent activities should be treated as “sleeveless”.

Taxation system for sole trader

The SPD tax is most often single, i.e. onsimplified taxation system. The only restriction is that such a system cannot be used by individuals, non-residents of Ukraine.

Single tax payers are divided into three groups according to income for the calendar year, number of employees, rate, form of accounting, frequency of reporting (annually or quarterly) and registration as a VAT payer. Below are the main indicators for the entrepreneur to select a group.

Registration with the Pension Fund of Ukraine

SPD (decryption - business entity) can register at the city or district branch of the pension fund. You will need to provide the following documents:

• copy of the certificate of state registration of a business entity, certified by a notary;
• certificate with the number assigned to the entrepreneur in the state register of private entrepreneurs - individuals.

Within the next ten working days, the entrepreneur will receive a statement from the pension fund with an identification number, which should be indicated later when submitting reports.

Seal and bank account: are they necessary?

Entrepreneurial bank account and stamp are not required for SPD-FOP (SPD-FL, SPD-FLP), but are required in some cases. The seal is mandatory only for VAT payers, a bank account is opened only for the convenience of the entrepreneur himself in the process of carrying out activities,for example, if an LDS network is organized.

Who needs VAT status?

The status of a VAT payer must be obtained by an individual entrepreneur who:

• receives a total income of over UAH 300,000 for the last twelve calendar months;
• sells confiscated property;
• delivers goods using global networks;
• is an importer of goods;
• expresses a voluntary desire to become a VAT payer.

The main advantage of being a VAT payer is that such entrepreneurs have the opportunity to reduce the cost of doing business by obtaining a tax credit for value added tax paid as part of the full cost of goods.

Do I need a license to do business?

Private entrepreneurs cannot engage in certain activities, and for certain areas there are restrictions expressed in the need to obtain a license.

• Individual entrepreneurs are not allowed to engage in the following types of business activities:
• protection of individual objects;
• distribution and trafficking of narcotic substances;
• manufacture of gasoline, oils;
• insurance activities;
• banking;
• securities issue;
• organization of radio andbroadcast.

SPD form requires a license to trade, exchange value, provide services in the field of gambling and gaming in general, as well as some other activities.

Process for closing a business entity

The process of closing an SPD is the opposite of registration, and involves almost the same steps. In order to liquidate entrepreneurship, a business entity must submit an appropriate application to the state registrar and pass a check for the absence of debt obligations in the tax and pension fund. If a bank account has been opened or any other agreements (Internet, utility bills, etc.) have been concluded, they should also be terminated in order to avoid pen alties.