An individual entrepreneur is a citizen who has the right to enter into business transactions along with organizations. In essence, the functions of an individual entrepreneur are no different from societies, except for various nuances in the field of accounting, taxation, reporting and responsibility.
What are constituent documents for?
In order for an organization to start business, it needs to register with the regulatory authorities and receive a package of constituent documents confirming the legality of the action. What are the constituent documents of an individual entrepreneur and why are they needed? In the process of activity, an individual entrepreneur is expected to confirm the legality of his actions.
The counterparty wants to be sure that his partner does not act as a passerby from the street, but as a businessman on legal grounds. For this reason, counterparties request that an individual entrepreneur submit constituent documents. However, from the point of view of the Civil Code, IP is not a society opened by a group of unknown persons, but a specific person who does not need to confirm his authority. IP constituent documents - are they needed or not?
What is constituent documentation?
To register as an entrepreneur, a citizen needs to go through appropriate registration with supervisory authorities and receive documentation. A duly executed package of constituent documents from an individual entrepreneur has no relation to the creation of a new person from the point of view of the law. After all, an individual entrepreneur does not establish anything, the TIN of an individual does not change, a person simply receives the right to legally do business.
However, for ease of understanding, everyone calls the documentation constituent, bearing in mind that the entrepreneur is registered with the IFTS. What are the constituent documents of an individual entrepreneur? In order to become an individual entrepreneur, a citizen brings to the tax at the place of residence:
- copy of passport;
- application for state registration of an individual as an individual entrepreneur;
- receipt of state duty for registration.
Documents can be submitted in person, or through a representative by proxy. If a person has an electronic digital signature, then he can send documentation through the IFTS website.
After the fiscal authorities adopted the documents, it remains to expect a positive decision. Until this year, a certificate of state registration was issued to the individual entrepreneur. Starting from 2017, the tax inspectorate has been submitting a registration sheet to the EGRIP registry. However, the certificate does not lose its strength and remains a legal document. This document turns an ordinary citizen into an individual entrepreneur.
TIN number and ID
The certificate of TIN assignment also remains in the list of constituent documents of the IP for an individual entrepreneur. Passport is one of the most significant documents of the IP, as it confirms the identity of the owner. In the contract with the IP, passport data is indicated, since the entrepreneur does not need to confirm his own authority with a power of attorney or order. However, these documents are not enough to start an entrepreneurial activity. IP constituent documents - what else is included in them?
Becoming registered as an entrepreneur, a citizen is forced to comply with the rules of reporting and taxation. Additionally, he needs to purchase:
- notice of registration as an insured;
- statistical codes.
Registration as a policyholder
As an entrepreneur, a citizen is required to pay taxes. If the activity is active, then he chooses a tax system to pay for making a profit. Also, a citizen in any case pays insurance premiums, even if entrepreneurial activity is not carried out. This is his provision for future retirement. If there are employees, he must list contributions for them. Previously, the entrepreneur was registered with the Pension Fund, but since 2017 this function has been transferred to the tax authorities.
It is only necessary to register with the social insurance fund if there are employees, since the entrepreneur acts as an employer and must provide social guarantees. A medical policy is valid for the individual entrepreneur, but there is no obligation to pay the fees for himself. A notice of registration as an insured confirms the obligations of a businessman. This is what constitutes the constituent documents of an individual entrepreneur.
Why do IPs need statistics?
Statistics are needed by the entrepreneur to carry out a number of actions:
- Set up a bank account.
- Use as mandatory payment details in instructions.
- Hand over financial, tax and statistical reporting.
- Execute export-import operations.
Statistical codes do not automatically come, so the entrepreneur will have to go to Rosstat for them or make a printout from the official website. Rosstat has recently insisted that interested parties use the printout. But the bank, for example, accepts only codes with a seal and a signature.
Why is OKVED important?
Codes of statistics allow regulatory authorities to group entrepreneurs by type of activity. The most important of them for an individual entrepreneur is OKVED. This code informs supervisors what type of activity the entrepreneur has the right to engage in. When registering, a businessman will have to choose the main type of activity. You can add many additional types to it. However, do not forget that if an entrepreneur decides to change his activity, he must inform the fiscal authorities about this in order to receive a new OKVED. Otherwise, he will have to pay a fine.
You can summarize what are the constituent documents of an individual entrepreneur. An entrepreneur, entering into a business transaction, is required to provide the entire list of the above documents so that the counterparty does not have doubts about the legality of the action.