How to register an individual entrepreneur on your own

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Step-by-step instructions for those who want to start their own business without law firms and unnecessary expenses.

What is IP

An individual entrepreneur (IE) is a person who is officially engaged in business, but without forming a legal entity. He does not have to keep accounting and open a bank account, but business risks are borne by personal property.

Any capable citizen can become an individual entrepreneur (except for civil servants and the military). The procedure is pretty straightforward.

How to register an individual entrepreneur

1. Decide on the types of activities

Baking cakes? Do you repair cars? Look at the All-Russian Classifier of Economic Activities (OKVED) and find the code corresponding to your occupation.

OKVED codes must be entered in the application for registration of an individual entrepreneur: one main and several additional ones.

Additional codes come in handy if you decide to expand or repurpose your business. It is illegal to earn money that does not fall under the codes specified during registration.

It is necessary to engage in some types of activity (medicine, transportation of passengers, etc.), and a number of areas are closed for individual entrepreneurs. For example, individual entrepreneurs are not allowed to trade in alcohol and manufacture medicines.

2. Choose a taxation system

The amount of taxes and the amount of reporting depends on it. Therefore, it is better to decide on it even before the opening of the IP.

Currently, Russia has five tax regimes.

1. General taxation system (OSN or OSNO). Assumes payment of VAT (18%), personal income tax (13%) and property tax (if any). This is one of the most complex systems - you can't do without an accountant. Suitable for entrepreneurs planning to cooperate with large organizations.
2. Simplified taxation system (STS). Allows you to select the object of taxation: income (then the tax rate will be 6%) or income minus expenses (the rate will be from 5 to 15%, depending on the region). This is the most simple and beginner-friendly system. But it can only be used by individual entrepreneurs who have less than a hundred employees, and the annual profit does not exceed 60 million rubles.
3. Patent taxation system (PSN). Introduced specifically for individual entrepreneurs who have less than 15 employees and a profit of no more than 60 million rubles per year. Valid only for certain types of activities. An entrepreneur simply buys a patent for a period of 1 to 12 months and keeps a book of income and expenses - no regular payments and declarations.
4. Unified tax on imputed income (UTII). Applicable only for selected types of activities (article 346.26 of the Tax Code of the Russian Federation) and not in all regions. UTII does not depend on profit. The tax is calculated according to a special formula, which is influenced by the scale of the business (floor area, number of employees, and so on).
5. Unified Agricultural Tax (UAT). Another simplified system without VAT, income tax and property tax. Suitable for those who grow, process or sell agricultural products.

When registering an individual entrepreneur, the OCH automatically enters into force. You can switch from it to the USN or ESHN within 30 days, to the PSN - within 10, and to the UTII - 5 days. If you are late, you will have to wait for a new billing period.

3. Prepare a package of documents

To contact the Federal Tax Service (FTS) you will need:

1. Application form P21001.
2. Receipt for payment of state duty.
3. Passport + copy of it.
4. Application for the transition to STS, PSN, UTII or ESHN (optional).
5. TIN (if absent, it will be assigned when registering an individual entrepreneur).

You can submit documents to the tax office in person or through a representative by power of attorney, as well as send by registered mail with a list of attachments. In the latter case, a copy of the passport and an application for registration of an individual entrepreneur must be certified by a notary.

4. Make an application for registration of an individual entrepreneur

An application for state registration of an individual as an individual entrepreneur (form P21001) is the most important document in the entire package. Due to errors in it, they most often refuse to open an IP.

The application must be completed in capital letters on a computer (font - Courier New, size - 18 pt) or in black ink and block letters by hand. On the first sheet, indicate your full name, gender, date and place of birth, TIN (if any). On the second - the registration address and passport data. The code of your constituent entity of the Russian Federation and the code of the identity document can be found in the requirements for paperwork, and the postal code can be found on the Russian Post website.

When filling out the application, do not sign on sheet B. This is done in the presence of the tax inspector.

Are you afraid to get confused in the requirements and make mistakes? Use one of the free document preparation services. There are many of them on the Internet now.

5. Pay the state fee

To do this, the FTS website has a service called "Payment of State Duty". First select the type of payment. Enter the full name and address of the payer. The receipt will automatically display the details of the required tax office.

Now you need to specify the payment method. For cash settlement, print and pay the receipt at any bank.

Registration of an individual entrepreneur costs 800 rubles. This is the size of the state duty.

For non-cash payment, you need a TIN number. You can pay online through the QIWI wallet or the partner bank of the Federal Tax Service.

6. Submit documents for registration to the tax

An individual entrepreneur can build a business throughout Russia, but an individual entrepreneur will have to open at the place of registration (registration).

You can submit documents for registration of an individual entrepreneur in person by visiting the tax office or the MFC, or remotely:

1. Through "Submission of electronic documents for state registration of legal entities and individual entrepreneurs" (an electronic signature is required).
2. Through "Submission of an application for state registration of individual entrepreneurs and legal entities."

The last method is the easiest. You will have to go to the tax office only once to pick up the documents on the opening of an individual entrepreneur.

7. Receive a document on registration of an individual entrepreneur

After 3 working days, you will be given an entry sheet in the Unified State Register of Individual Entrepreneurs (USRIP). It will indicate the main state registration number of an individual entrepreneur (OGRNIP).

A paper certificate of registration of an individual entrepreneur is no longer issued.

Be sure to check the data in the received documents. If you find an error, ask the inspector to draw up a protocol of disagreement.

8. Register with off-budget funds

The tax inspectorate must notify the Pension Fund (PFR) and Rosstat of the appearance of a new individual entrepreneur in Russia.

A certificate of registration with the FIU and statistics codes will be issued to you upon receipt of the USRIP sheet or sent by mail. If this does not happen, contact your local Pension Fund office yourself.

You need to register with the Social Insurance Fund (FSS) within 30 days from the date of hiring the first employee.

9. Make a seal, open a bank account, buy a cash register

All this is optional and strongly depends on the type of activity, but:

1. Sealed documents have more weight in the minds of customers and partners.
2. It is much more convenient to settle with counterparties and pay taxes in a non-cash form through the bank account of an individual entrepreneur.
3. In most cases, you cannot accept cash from customers without issuing a check.

That's all. Nine easy steps and you are a self-employed entrepreneur!