How to become an individual entrepreneur in Russia: step by step instructions

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

Individual entrepreneurship (IP) is one of the most popular forms of entrepreneurship today in the Russian Federation, which is a great option for small businesses.

An individual entrepreneur is a citizen registered in accordance with the law and doing business without forming a legal entity. At the moment, many young people, not wanting to work for someone, create their own firms and small businesses, open retail outlets. All of them at some point come to the thought: "I want to become an individual entrepreneur!" But not many people know where to start!

Pluses of self-registration of IP

When opening their own business, a future entrepreneur can use the services of specialized firms that will fully deal with this issue for a certain financial reward. But for those who want to gain invaluable experience and save money, it is better not to resort to the services of professionals, butfigure out how to become a sole proprietor. Indeed, in the future, the businessman will contact the fiscal authorities more than once.

For the most understandable presentation of information, all the steps that must be completed to register are divided into points, each of which explains how to become an entrepreneur. Step by step instructions are given below.

General algorithm of actions

To register a person as an individual entrepreneur, the following steps must be taken:

1. Select the type of activity in accordance with which all further business will be conducted.
2. Choose the most suitable tax system.
3. Prepare all necessary documents.
4. Fill out an application for business registration.
5. Pay the state duty.
6. Submit documents to the Federal Tax Service (Inspectorate of the Federal Tax Service).
7. Receive documents confirming IP status.

This algorithm of actions will help you understand in general terms how to become an individual entrepreneur in Russia. The following points are set out in more detail.

First step: choosing the type of activity

So, how to become a sole trader? Where to begin? Perhaps the first step should be familiarization with OKVED.

When registering a person as an individual entrepreneur in state authorities, his future occupation is specified and fixed. For these purposes, there is OKVED (decoding of the abbreviation -All-Russian classifier of types of economic activity).

Each type of entrepreneurial business is assigned an individual number, which the future individual entrepreneur must indicate when processing documents. The list of OKVED can be found in advance at the departments of the Federal Tax Service or on its website.

Since 2015, OKVED 2 will come into effect by the law of the Russian Federation, which will determine the occupation of individual entrepreneurs and LLCs. This classifier has 21 sections, which are divided into 88 classes.

OKVED code can designate a class, subclass, group, subgroup and type of activity. Accordingly, it can consist of two, three, four, five or six digits. But it is worth noting that in the application for registration of an individual entrepreneur, it cannot be less than four numbers, which means that the entrepreneur must decide on the class, subclass and group.

Individual entrepreneurs can choose several codes (no more than 50), while designating one of them as the main one (revenue from this business must be more than 60% of total income).

It should be noted that OKVED has such codes, by choosing which an entrepreneur must obtain a license. Therefore, the list of licensed occupations is also recommended.

To understand how to become an individual entrepreneur in 2014 and choose the right code for a business, you should refer to the current OKVED, the classifier version is OK 029-2001 (NACE rev. 1).

Second step: choice of taxation

In general, individual entrepreneurs have the opportunity to use one of four taxation regimes: STS(simplified taxation system), USNO on the basis of a patent, a single tax on imputed income (UTII) or a general taxation system in which income is accounted for by payment, and VAT on an accrual basis). Agricultural producers and farmers can use the Single Agricultural Tax.

USNO is the most popular taxation system among individual entrepreneurs. Since when using it, the simplest tax and accounting. In addition, it reduces the tax burden on a private entrepreneur.

USNO is of two types. With the object of taxation, total income (the tax is 6%) or with the object n / a income minus expenses (the tax is 15%). The individual entrepreneur has the right to choose the type of USNO himself.

If an entrepreneur decides to establish a simplified taxation system, he must submit an appropriate application for the transition in two copies to the Federal Tax Service. This can be done both during the registration of an IP, and within thirty calendar days after it.

In the Russian Federation, an individual entrepreneur is obliged to pay contributions to social funds. If he is not an employer and uses the simplified taxation system with the object of taxation of general income or UTII, then the amount of tax can be reduced by the amount of the insurance premium.

On December 29, 2014, the President of the Russian Federation signed a decree on two-year tax holidays for start-up entrepreneurs, according to which, from 2015-01-01, all entrepreneurs are exempt from the tax burden for the first two years of their activity.

Third step: preparing documents

To register an individual entrepreneur, you will need to collect and prepare a number of documents:

1. Passportgeneral civil, as well as copies of its pages.
2. TIN (taxpayer identification number) and its photocopy.
3. Application for the transition to the STS.
4. Application to change the N/A system to patent.

And you will also need an application in form P21001, a receipt for payment of state duty and a copy of it. Documents numbered 3 and 4 are optional. They can be submitted within the time limits established by law or not submitted if there is no need to switch to other methods of taxation.

Copies of which sheets of the passport need to be made should be specified at a specific department of the Federal Tax Service. But if the design goes through an intermediary, then copies should be made from all pages.

There are certain types of activities in which it is mandatory to provide a certificate confirming the absence of a criminal record. They can and should be clarified in advance with the Federal Tax Service.

Fourth step: filling out the application

The fourth step in the instruction "How to become an individual entrepreneur" is to fill out an application. Application for registration of physical individuals as individual entrepreneurs are filled out in the form P21001. Necessarily black pen, capital letters, without errors and corrections. And you can also fill it in block letters on a computer, printing it out on a printer in the future. In this case, using the font Courier New - 18. Double-sided printing is prohibited.

An application form can be taken at any branch of the Federal Tax Service or downloaded from the Internet (on the website of the Federal Tax Service). There is also a sample filling.

The application should be filled out very carefully, as in case of admissionerrors, the following may occur: the Federal Tax Service will not allow the application of a type of taxation convenient for business, will force licensing or even refuse to open an individual entrepreneur.

It is desirable to embroider all sheets of the application and documents, indicate the number of sheets on the embroidering and sign. But according to the letter of the Federal Tax Service dated 25.09. 2013 N SA-3-14 / 3512, this is not a prerequisite for accepting documents. All sheets can simply be stapled or stapled together.

Fifth step: payment of state duty

After the application form P21001 is completed, the future businessman must pay the state fee. This can be done simply and quickly at any branch of a licensed bank. In this case, the form with the necessary details should be taken from the FTS department at the place of registration of the individual entrepreneur. Or at the bank office, but empty, without the details of the required Federal Tax Service. In this case, the form must be filled out manually, specifying them in advance.

Note that starting from March 11, 2014, according to the Order of the Ministry of Finance of Russia dated December 26, 2013 N 139, failure to submit a receipt for payment of the state duty is not a reason to refuse to obtain permission to register an individual entrepreneur. The tax service can check the payment independently through its own information system. Therefore, the entrepreneur can pay the fee through electronic wallets or terminals.

The amount of this fee for 2014 is 800 rubles, and in 2015 its amount will increase to 1300 rubles.

After the stamp dutypaid, you should make a photocopy of the payment receipt and attach it to the rest of the previously collected documents.

Sixth step: filing documents with the Federal Tax Service

The sixth step in the instruction "How to become an individual entrepreneur" is the direct submission of documents to the appropriate service.

In accordance with the legislation of the Russian Federation, IP registration takes place only in the Federal Tax Service at the place of registration of the future entrepreneur. In accordance with this, a person who wants to register himself as an individual entrepreneur must know which division of the Federal Tax Service he belongs to, at what address it is located. You can find out this information on the official website of the Federal Tax Service.

If there is no permanent registration, then a person can submit documents to the Federal Tax Service at the place of temporary registration.

You can submit documents to the relevant authority either independently (by personally coming to the Federal Tax Service), or through a legal representative. Also, a package of documents can be sent to the Federal Tax Service by mail. In this case, a valuable letter with a description of the attachment is sent. Permission to engage in individual entrepreneurship also comes by mail. This method takes more time than the other two above.

If a citizen is in the Federal Tax Service in person, he must provide both copies of documents and originals. If a letter is sent, all papers must be pre-certified by a notary.

If you use outside help, then you need not only legally certified copies of documents, but also the signatures of the applicant and the generalpower of attorney for the right of representation.

You can also apply for an IP using the Internet on the official website of the Federal Tax Service. This method is available starting from January 9, 2013 in all cities of the Russian Federation.

After receiving the documents, the person who submitted them is given a receipt on receipt of the package. If the future individual entrepreneur does not personally provide documents, then this receipt is sent to him by mail (receipts are not issued to representatives).

Seventh step: obtaining ready-made IP registration documents

The seventh step in the "How to Become a Sole Proprietor (2015)" guide is the final one.

Five working days from the day the documents were submitted to the IFTS, the applicant must receive a response by hand or by mail. They will be an extract from the Unified Register of Individual Entrepreneurs and a certificate of state registration. registration of physical persons as individual entrepreneurs (OGRNIP).

The applicant must give a copy of these documents to the tax inspector.

IP registration may be denied in case of:

• insufficient number of submitted documents;
• providing documents to the wrong authority;
• errors or typos in the application;
• the applicant is already registered as an individual entrepreneur;
• applicant has a criminal record;
• applicant declared bankrupt less than a year ago.

IP actions after registration

After registering as an individual entrepreneur, a businessman must doprint, register with the Pension Fund, purchase a cash register if necessary (and register it with the tax office), and open a current account in any bank.

If an individual entrepreneur has changed any data (changed his passport, address of registration, etc.), he is obliged to report this to the registering authority by contacting him again with an application within 3 days from moment of change.

You should register with the FIU and the social insurance fund if the individual entrepreneur intends to use the labor of hired workers. This must be done within 5 working days from the date of hiring the first employee.

Features of individual entrepreneurship in Russia

In the Russian Federation, the registration of individual entrepreneurs is regulated by legislation - the Civil Code of the Russian Federation, government decrees, as well as federal laws, the main of which is N 129-FZ "On State Registration of Legal Entities and Individual Entrepreneurs".

If you ask yourself how to become an individual entrepreneur in St. Petersburg, then you should take into account that the authority dealing with this issue in this city is MIFNS number 15. This organization is located at the address: St. Petersburg, st.. Krasnogo Tekstilshchik, house 10/12 letter O.

If you need information on how to become an individual entrepreneur in Moscow, then you need to know that MIFTS number 46 is involved in registering an individual entrepreneur in the capital. This institution can be found at the address: Moscow, Pokhodny proezd, house 3, building 2.

In conclusion, it is worth noting that after it became clear how to become an individual entrepreneur, it's time to act! Do not be afraid of long queues and paperwork, because all this is experience, and there are many interesting achievements ahead in your own entertaining and profitable business!