Let's find out, IP on the basis of what acts? A fairly popular topic for discussion among future entrepreneurs, as well as current businessmen when concluding agreements and model contracts, where such data are often required to be indicated. However, the article may be useful to other readers, such as students.
Before answering the question, IP based on what acts, it is important to understand many aspects and give a brief description of this legal form. In particular, we will talk about many features of the work of individual entrepreneurs. The article will address issues of registration, taxation, business areas for which this legal form is suitable, how to obtain a certificate of individual entrepreneur, other, equally important aspects of the work will be touched.
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Any business begins with this action. The first step is to file a tax application for opening an IP. An approximate list of actions will look like this: a future entrepreneur fills in the corresponding forms, OKVED activity codes, indicates his passport data, provides a receipt for paying the state duty, and also chooses a taxation system. You can read more about the latter below.
As for state duties, IP is the cheapest legal form in terms of registration actions. The cost of state duty is 800 rubles. You may have to spend money on help filling out the forms, as well as making a seal, which is done again if desired, and is not something obligatory.
As for the place of registration of the IP, the last action is carried out at the federal tax service at the place of residence.
What you need for registration actions
The list is quite simple, and part of it was presented above. Nevertheless, attention should be paid to the list of necessary documents separately. So, for registration you will need the following:
- application in the form of P21001;
- copy of the passport;
- check on payment of state duty.
In general, the process is quite simple and not laborious. In case of difficulties with filling out the application, you can find qualified specialists who can help.
Features of an individual entrepreneur as a registration form
Before you start listing the pros and cons of IP, on the basis of what it works, it is worth briefly describing its features. The most important aspect - unlike other legal forms, this does not imply the creation of a legal entity. In fact, an individual entrepreneur is an individual who receives the right to legally carry out business activities. Some advantages and disadvantages of this registration form will come from this.
In general, this is a good start for a novice businessman due to the simplicity of registration actions and the management of such a business. However, it is better to talk about the positive and negative points separately.
Pros of IP
The main positive aspects of working as an individual entrepreneur:
- easy to register;
- all profit belongs to the owner;
- just manage;
- less fines;
- tax exemptions available.
It makes sense to describe some theses in more detail, in particular, with regard to income. Unlike, for example, limited liability companies, all profits here belong to the owner.The company has only dividends, at least once every 3 months, as well as many other nuances that complicate the conduct of business, especially for start-up entrepreneurs and with a small starting capital.
If you return to the topic of fines, then everything is quite simple. As described above, an individual entrepreneur is a legal form that is not a legal entity, respectively, various penalties will be much lower, however, as are the requirements. However, you should not bring your business to such problems, and any potential difficulties should be explored in advance.
As for taxes, this will be discussed further in more detail. It is important to emphasize that tax regimes for individual entrepreneurs are much more profitable than legal entities.
Cons IP
Some positive points turn negative. The fact that the profit belongs to one person is a definite plus, especially if the business is small or family. However, this leads to the fact that all property liability lies not with the company (as in LLC), but with the owner of the individual entrepreneur. Based on this, the practice is in force, the essence of which is that an individual entrepreneur in the event of any litigation is liable for his own means. Therefore, it is worth choosing the right business sector, which will exclude the appearance of large debts, various fines and other problems.
The second main drawback of individual enterprises will be the fact that they may not carry out all types of activities. The most commonplace example is obtaining a license to sell alcohol. Such a document is issued only to legal entities, and IP, as described above, is an individual who carries out entrepreneurial activities.
Types of taxation systems for private entrepreneurs
Individual entrepreneurs have the largest choice, in comparison with legal entities. In particular, an individual entrepreneur can choose between a simplified taxation system, a patent and a single tax on imputed income. The choice must be made wisely and choose a system based on a kind of activity. Somewhere, a patent will be profitable, in another case - the so-called simplification. In addition, there is a single agricultural tax, but it, as the name implies, is not suitable for all entrepreneurs.
If at the time of registration the tax regime was not selected, the enterprise will operate on the basis of the general taxation system (OCHN). It is the least profitable, but it can be changed over time. It is also important to note the fact that only the above OSNO is suitable for some activities. For example, if you exceed the annual profit mark of 150 million, or if the individual entrepreneur has more than 100 employees, you will have to switch to a common taxation system.
About Documents
The certificate of state registration of IP is issued by the federal tax service after registration actions. In accordance with the law, the duration of such actions does not exceed 5 business days.
Where can I get an IP certificate? After the expiration of the indicated periods, perhaps a little faster, this document is independently taken by the person who performed the registration actions. It can also be obtained by mail. Issuance of IP certificates is also carried out at the Federal Tax Service.
Some legislative changes
Since 2017, entrepreneurs have not been issued a certificate of state registration of entrepreneurs, since now instead of this document, registration sheets are issued to the register of legal entities and the EGRIP. They will be supporting documents, but the registration procedure has not changed.
It is important to note that all the certificates issued earlier do not need to be changed, they remain valid documents, on the basis of which individual entrepreneurs can carry out their activities.
How many such documents are valid? They are valid until the decision to liquidate the IP, that is, unlimited.
Thus, we can conclude that IP on the basis of the certificate are no different from those that operate on the basis of the registration list of the Unified State Register of Enterprises.
About contracts
Unlike limited liability companies and other legal entities, individual entrepreneurs do not have a charter and a number of other documents. However, the conclusion of an agreement with an individual entrepreneur involves filling out such items as what the organization is acting on. As a rule, this phrase can not be used in the contract, as it is intended for other legal forms. And yet, the IP acts on the basis of a certificate or a new document, which is called the “USRIP record sheet”.
In the process of concluding contracts, basic information about the individual entrepreneur is indicated, and at the end they are stamped and signed, by analogy with most documents.
It is important to note that information such as:
- surname, name and patronymic;
- passport data;
- series and number of IP certificate (or details of the USRIP record sheet);
- by which authority and when the certificate or sheet was issued.
In order to learn how to draw up such agreements competently, you should consult with specialists, since a lot depends on the specifics of the business, contractors and other factors.
For what types of activities is IP suitable?
Despite the fact that the most popular legal form in Russia is a limited liability company, a private entrepreneur will be an ideal start for a novice businessman.
All the pros and cons of this form of registration of a company have been described above, in particular, simplicity and tax breaks. And yet, for what types of activities is IP suitable? As a rule, these are small retail stores, some types of services, in general, everything that is typical for small businesses.
However, as described above, you will not be able to sell alcoholic beverages, open a restaurant or bar, as obtaining a license requires a different legal form.
A little about LLC and joint stock companies
The legal form should be chosen depending on the type of activity, as well as capital. The opportunities and goals are different for everyone, so this information may be relevant.
Limited liability companies are the most popular form of business registration in Russia. Most of the various establishments, supermarkets and cafes work just on the basis of LLC.
The advantages are obvious: greater freedom in choosing an activity, fewer property risks, since the founder does not directly risk his property. Also, status compared to IP will be much higher. Other enterprises are more likely to cooperate specifically with legal entities, since the complexity of the management structure in such firms implies increased reliability.
For a larger business, with a large number of founders, joint stock companies are suitable. The latter have recently been divided into public and ordinary, which were previously called open and closed.
The largest organizations are usually public joint-stock companies (PJSC). These are large resource-mining enterprises, banks, manufacturers. Their peculiarity is that they can issue shares for free circulation, and the securities of such firms can be found on exchanges.
Summary
Thus, we answered the most popular questions on IP. On the basis of what it works, how is the registration, what are the features in the preparation of contracts.
As a result, we can say that this legal form is the simplest and most understandable for a novice entrepreneur. Regarding the conclusion of contracts - much is individual here and will depend on the counterparty, as well as the type of activity.
An important point in creating and registering a business will be what activity you decide to do. It is necessary to study all aspects of this sphere, to make sure that licensing is not required. If a license is nevertheless required, it is necessary to clarify whether it is issued to individual entrepreneurs, and only after that make a decision whether to register an individual entrepreneur or choose a different legal form. This advice is also valid with respect to the choice of a taxation system, since for one type of business a patent taxation system is ideal, for another it will be a simplified tax system or UTII.