2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Every citizen can become an individual entrepreneur. From the moment of registration, he has not only opportunities and rights, but also certain duties. How to become an entrepreneur, what duties you need to fulfill - all this is described below in the article.
General definition
An individual entrepreneur is an individual registered in the manner prescribed by law, conducting entrepreneurial activities without creating a legal entity. A citizen is officially an individual entrepreneur and can work in this status only after completing registration with state bodies.
Thus, anyone can become an individual entrepreneur and engage in commercial activities. To do this, it is enough to register at the official place of residence. You do not need to have an office.
SPs operate in accordance with the laws that govern their commercial activities. But they are also subject to many of the rights that legal entities have.
Individual entrepreneurs of the Russian Federation are required to comply with the rules of the Civil Code, designating the activitylegal entities, except for those cases when separate regulations have been created for them.
How to register an IP
Registration of an individual entrepreneur includes several steps:
1. Preparation for registration - at this stage, you need to accurately determine the types of activities according to OKVED, select the appropriate type of taxation and pay the fee.
2. Collection of papers. To register an entrepreneur, you must prepare the following documents:
- passport;
- copy of passport and certificate with TIN number;
- receipt of duty payment;
- application for registration of an individual entrepreneur of a certain sample in two copies (if documents are sent by mail, they must be certified by a notary);
- notification for the application of the simplified tax system.
3. Submission of documents to the registration authority. In response, the organization must issue a receipt to the registering person on receipt of the necessary documents and a notification on the application of the simplified tax system with a special mark of the tax service.
4. Documents receiving. The registration authority must issue a certificate of state registration of an entrepreneur with an OGRNIP number, a document on the assignment of a TIN and an extract from the USRIP.
5. Registration of an individual entrepreneur in the Compulsory Medical Insurance Fund and the Pension Fund. The tax office itself sends information about the registration of a new IP to the Pension Fund.
IP rights
1. Possibility of choiceactivities permitted by law.
2. The right to hire workers. The legislation establishes the number of employees who can be registered as an individual entrepreneur.
3. An individual entrepreneur is a businessman who manages his own activities and is responsible for its results.
4. Freedom to choose partners and products. The entrepreneur himself determines the market segment in which he will develop his business.
5. The right to independently determine the cost of goods and services offered. However, the final price of the products should not be significantly lower than those of other entrepreneurs.
6. The individual entrepreneur decides how and how much to pay his employees.
7. The entrepreneur has the right to dispose of the profits as he pleases.
8. IP has the right to act in court as a plaintiff and defendant.
Responsibilities
An individual entrepreneur is a business entity that has certain responsibilities. Namely:
1. All individual entrepreneurs are required to adhere to the norms of the current legislation. An entrepreneur must know tax, pension, antitrust and other types of legislation in order to conduct legal and open activities.
2. All monetary transactions are documented. Such documents include an employment contract, a contract for the supply of goods, etc.
3. To carry out licensed types of business, an entrepreneur must obtain a statepermission - certificate, patent or license.
4. All employees who are hired by an individual entrepreneur must be officially registered. That is, an individual entrepreneur concludes an employment contract with a person, an agreement on the performance of specific work, or other agreements. After completing the documents, the entrepreneur is obliged to make the necessary contributions to the Medical Insurance Fund, the Pension Fund and the Social Insurance Fund.
5. If the activities of an individual entrepreneur cause harm to the environment, he is obliged to take measures to reduce negative impacts. If a businessman cannot resolve this issue on his own, he should contact the environmental service.
6. The entrepreneur is obliged to pay taxes to the state treasury in a timely manner.
7. An individual entrepreneur is a participant in market relations who must always respect the rights of the buyer. There are consumer protection organizations that deal with these complaints.
8. If, for some reason, the IP has changed data (surname, place of registration or residence, type of activity), he is obliged to notify the relevant authorities - the tax office, funds and other institutions.
Licensing
The activity of an individual entrepreneur is strictly controlled by special authorities. They monitor not only the payment of taxes by a businessman and the necessary contributions to funds. There are organizations that control the legality of the actions of individual entrepreneurs and the availability of permissionfor certain types of business.
According to the law, licensed activities include pharmaceuticals, transportation of passengers and goods by sea, rail and air, etc. In addition, an individual entrepreneur cannot engage in closed types of business, such as the development and sale of military products, the production and sale of drugs, poisonous substances, and alcoholic beverages. Also, the entrepreneur does not have the right to engage in insurance, banking, tourism, the production of pyrotechnics, ammunition, the manufacture and repair of military aviation equipment.
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