Situations in which an individual entrepreneur decides to say goodbye to his status are quite common in practice. This is not always due to the fact that the business did not work out. Some, having worked as entrepreneurs, find that this form of doing business has both pros and cons. And after that they decide to register an LLC. But at the same time, not everyone knows how to shut down IP activities. The first thing to understand is that, unlike a company, an individual entrepreneur is liable with personal property for all his debts.
If you have previously registered as an individual entrepreneur, while at the moment you do not know how to close the IP, read the information below. Those who are just planning to develop their business will not be amiss to learn about this process, since this is important for choosing the organizational form of a company.
Later in the article we will look at how to close IP. Step-by-step instructions should help you with this.
Where to begin?
So, is it possible to close the IP yourself? Consider all possible sides of this issue in detail.
Probably, many people know that in order to end IP status it is necessary to contact the FMS. And this is actually so. At the same time, in practice, it is still necessary to carry out a huge number of important actions before carrying the corresponding statement to the tax. The algorithm of actions of an individual entrepreneur working independently, as well as an entrepreneur who used hired labor, is different at this pre-tax stage.
The starting point for each of these activities upon completion of activities will in any case be the decision of the entrepreneur. It is desirable to issue it in writing, assuring with a signature, a seal, putting down the date. This document will be the starting point for further closure activities.
How to close an IP: termination of contracts
Closing an IP is simply filing an application to terminate an activity with a tax authority located at the entrepreneur’s place of residence. But first, a person who has the status of an individual entrepreneur is obliged to collect a package of necessary documents, as well as terminate agreements with non-governmental and state funds and bodies.
Then he needs to dismiss employees due to the liquidation of the enterprise, collect medical insurance policies from them, and then return them to the places of issue. Then you need to break the contract with the FMS and the FSS. At the same time, receipts confirming payment of insurance premiums in full and in established amounts should be provided to the last fund.
Completion of activities
The termination of the IP begins with the adoption of an appropriate decision on this. Of course, this can be done by a person who is registered as an individual entrepreneur, although there are other situations when the activity of an individual entrepreneur is terminated. Among them are the following:
- recognition of IP bankrupt in court;
- death of SP;
- court decision to forcibly deprive the entrepreneur of the right to engage in certain activities;
- court decision imposing a temporary ban on the work of SP.
The closing procedure is forcible. All copies of permits are sent by the court to the registration authority that enters the data into the state registry.
What to do with employees
So, we will begin to deal with how to close an IP to an entrepreneur who has employees (at least one). They will need to take a few extra steps.
The first thing that needs to be done by an individual entrepreneur using hired labor is to break employment contracts with them.For this case, the TC has the basis for termination of this agreement - Clause 1, Article 81. Just for its application you will need a document that confirms the decision to complete the activity. On the basis of Clause 1, Article 81, in this case it is permitted to dismiss workers, including pregnant women.
But at the same time, TC no longer allows any concessions. Employees must be warned in advance, at least 2 months in advance, in writing of future dismissal.
Employment notice
It is necessary to send a notice even when one employee is dismissed in the event that the reason is the termination of the entrepreneur. The form of this document has not been formally established.
Although this does not end with preliminary notifications. For example, an entrepreneur who uses hired labor, before submitting a tax application for termination of activity, must send this information to the FSS and the FIU, where they pay all the amounts due.
So, in the FSS it is necessary to submit a calculation in the form of 4-FSS, and in the Pension Fund - in the form of RSV-1. In addition, you need to make the difference between the number of installment payments and those already paid, which takes fifteen calendar days from the moment the above numbers are presented. Although it is also possible to close an IP with debts, but more on that below.
FSS Notification
Immediately after the dismissal of the last employee, you should go to the FSS. It is necessary to include a statement on removing an individual entrepreneur from the register as an employer. It is necessary to attach copies of the order on the dismissal of employees, as well as the staff list.
Account closing
After all the perfect manipulations, you will need to close the current account in the bank, if any, and also receive a document stating that you did this. Then, in the manner prescribed by law, destroy the seal. It will be necessary to pay the state duty, write an application according to the established model, enclose a receipt, a photocopy of the passport, a power of attorney (if the attorney will do this), as well as the seal itself. Everything is transferred to the registration authority, where the seal is destroyed. Then an appropriate entry is made about this.
It should be understood that if the account was closed before the entry was made to the EGRIP about the closure of the IP, this fact must be reported separately (seven business days) to the tax office at the place of registration. If the closure occurred after the loss of status, the taxpayer no longer has this obligation.
In addition, it is necessary to remove the cash register from the register, if one was used.
Cash desk for the liquidation of IP
If the plans of the recent IP include the further sale of the cash register, it is better, of course, to remove it from the register. It is possible to sell KKT, which is still registered, exclusively for spare parts, since without a mark on this, the new owner of the device simply will not be able to register it.
Reports and taxes
An individual, even after the closure of the IP, is responsible for his own activities as an individual entrepreneur. It’s not so important, it decided to close the IP on UTII or in another taxation system. Therefore, it is necessary to prepare reports in advance, as well as pay taxes for the full period of activity, including debt, if any, in order to avoid problems in the future.
Moreover, if income taxes can be paid after the closure of the IP, then it is better to pay deductions to the Pension Fund before submitting an application to complete the activity. To avoid refusals to close and misunderstandings, you should contact the PF inspector with a request to calculate the exact amount to be paid.
It should be borne in mind that a certificate of repayment of debts to the Pension Fund in the package of documents required for closure was previously mandatory. Today, IP can be closed with debts of the PFR. But in this case, you need to understand that they will not get anywhere from you, and they still need to be repaid.
Closing IP for debt
There are cases when an individual entrepreneur wants to cease his activity, while he has a debt to the PF. Of course, the following question immediately arises: "How to close the IP in the presence of debts?". It requires detailed consideration. It’s not worth it to let things slip. If you do not close the IP until the entrepreneur pays the debt, a new amount will accumulate, since making fixed payments is mandatory, including when the business is temporarily suspended.
It used to be a little harder to close the IP. The FIU was required to obtain certificate of absence of debt, and only then go to the tax office. At the present moment, it is possible to deregister an individual entrepreneur with debts. Of course, they will not go anywhere, and you will still be credited with the same amount, but now as an individual. And at some point it will still need to be paid.
If you fail to appear in the FIU at the appointed time, you will be wanted to pay the full amount of the debt. It must be understood that if the entrepreneur has already closed the IP, the Pension Fund will still require the missing amount from it.
Necessary papers, as well as the procedure for their collection
In order to close the IP, the documents must be collected as follows:
- applicant's passport and a photocopy of it;
- a written application written by the applicant in person;
- Applicant's TIN with photocopy;
- a certificate from the FIU confirming the absence of debts and payment of contributions to the Pension Fund;
- extract from the USRIP and OGRNIP certificate;
- receipt of state duty in the amount of 160 rubles.
When collecting this package of documents, one should take into account such a moment: the PF will issue a certificate of absence of debts only if there is a notarized application for completion of activities. You can also bring along receipts for the payment of various contributions to speed up the process of checking for debts. Moreover, the preparation of this certificate can take from a couple of hours to a week.
Termination Registration
As soon as the entire package of documents is collected, it is transferred to the registration authority located at the place of residence. This can be done in person or by sending the entire package by mail. In the latter case, the application itself is notarized, as well as all photocopies of documents (excluding certificates from the Pension Fund and receipts of payment of state duty, since they are transmitted in the original). Consider how much it costs to close the IP.
You will need to pay a fee (150 rubles), mailing if necessary (about 100 rubles), as well as the services of specialized companies, which by proxy will do everything for you if necessary (from 3000 to 10000 rubles).
From the moment of receiving the papers, the process of removing an individual entrepreneur from the register takes five business days. Next, you will need to come for a package of documents (or, upon delivery, make a note of the desire to receive it by mail), confirming that you are no longer an individual entrepreneur.
Close IP over the Internet
On the website of the Federal Tax Service there is the opportunity to use a free specialized program for preparing documents that are used when registering IP. They can be sent both by notaries and by the applicants themselves.
If documents have been received by the tax authority via the Internet, then a receipt that they have been received is sent within the next business day in the form of an email to the address indicated by the applicant.
Within five days from the date of receipt of the securities, the tax authority is required to make a record of the completion of activities in the USRIP, and then issue the appropriate certificate to the individual.
After the closure of the IP
From the moment of making an entry in the Unified State Register on the Termination of Business, each entrepreneur officially loses his status. But at the same time, the liquidation procedure is not yet completed. Within twelve business days, a settlement is submitted to the Pension Fund (Form RSV-2).If, when filling in, the amounts payable are reflected, they must be paid within fifteen days from the date of submission of the calculation.
But basically, such amounts for a surcharge are not found in the entrepreneur, since all calculations were already made before applying to the tax. At the same time, the penalty for failure to submit a report (given that there are no amounts payable) is only 100 rubles. That is why many former businessmen prefer to “forget” about it than to contact the FIU again.
Finally, we recall once again that the loss of IP status does not mean the termination of all obligations that arose under previously concluded contracts. Consequently, the former entrepreneur continues to respond to them to the same extent. Have you decided to close the IP? The instructions in this article are designed to help you avoid difficulties in this matter.
