What types of business activities can you engage in? Which IP is better to open for beginners?

All types of activities that do not require registration of an individual entrepreneur are clearly stated in state legislation, so any person who wants to become financially independent can open their own business without registering an individual entrepreneur. Activities that do not require registration become more popular during periods of economic crisis; in such times, people begin to think more about developing their own business or implementing some small commercial projects.

But at the first stages, the entrepreneur is always little aware of the list of activities that do not require registration. To be competent in this matter, you need to study the list of all permitted activities, the implementation of which does not require registration.

It is worth noting that tax evasion and work without a license are always severely punished by state legislation.

• Business without registration has a number of positive characteristics:
• low level of risk;
• no threat of bankruptcy;
• the ability to combine several types of activities;
• fairly flexible nature of employment;
• minimum investment to start;

Business without registration opens up many opportunities for every person. Even a housewife, a mother on maternity leave or a young student can start developing her own business. The state does not limit people in entrepreneurial development in any way.

Legislative aspects If you decide to do own business

• , then first make sure that the type of employment you have chosen is not a business activity; such a business has the following characteristics:
• purchase or creation of property for subsequent sale for the purpose of obtaining net profit;
• carrying out financial transactions that involve the purchase or sale of goods and services;
• a clear algorithm for the sequence of business transactions;

formal relationships with clients or suppliers, sellers and intermediaries. To fully explain all legislative aspects, you need to look at the Unified state registration individual enterprises (USRIP). If in this classifier

If you don’t find the type of activity you need, then you can safely start implementing your commercial plan. Note!!! For illegal implementation state legislation Russian Federation criminal liability is provided for, which is regulated by Article 171 of the Code.
Be extremely careful at the start, open your business, guided by all legislative aspects. Make sure that you do not need to open an individual entrepreneur so as not to have problems with the law!

Allowed directions

If you do not want to open an individual entrepreneur, then check out the general list of activities that do not require registration:

• work on growing and caring for agricultural plants;
• carrying out work on grinding grain crops;
• tutoring;
• grazing large cattle, caring for him;
• maintenance of premises (cleaning, cleaning);
• caring for people (adults, children);
• help in homework(caring for animals, cleaning and cooking, keeping the house in order, providing food for the family, etc.);
• provision of entertainment services, musical accompaniment, holding special events, weddings, anniversaries, professional dance services, circus performances, organization of dance programs;
• animator services, photo processing, photographer services, professional video filming, design processing of materials, etc.;
• breeding and selling animals, keeping adult animals in the house (applies only to cats and dogs);
• care, maintenance, training and education of domestic animals, with the exception of cattle (farm animals);
• provision of translation services various materials and texts, secretarial services, etc.;
• maintenance of instruments for measuring parameters, height, weight of people;
• maintenance and repair of small leather goods, hats, various accessories, fur and other valuable products;
• provision of real estate for rent (except for long stays - more than fifteen days).

If you have any questions or difficulties in studying the permitted areas of activity, then be sure to contact the tax inspectorate for help. There they will be able to provide you with detailed advice, choose the type of employment and help you open your own business.

Payment of single tax

Despite the fact that the above types of business activities do not require registration, the state tax office you still have to apply in order to start engaging in your chosen activity. You can start your own business without opening an individual entrepreneur only after paying a single tax, so as not to have problems with the law. An entrepreneur without individual entrepreneur registration must contact regional office tax inspectorate at your place of residence and submit the appropriate application so that the authorities can accurately calculate the amount of the single tax in the form of a fixed payment. In the application, in addition to all basic data, you must indicate the selected type of entrepreneurial activity (type of business). The amount of the fixed payment will be influenced by two factors:

• selected type of business activity;
• location of the commercial project.

Note!!! Tax authorities calculate a fixed payment based on an individual request; all regions have different tariffs and standards, so you can only find out the exact amount of the payment at the tax office.

You will be able to open a business only after the government operation is put into effect; you will receive permission to operate after paying a single tax.

Conditions for providing benefits

The legislation of the Russian Federation guarantees state benefits when starting a business without registering an individual entrepreneur for specific social groups. The Tax Inspectorate reduces the fixed payment by twenty percent when registering a business activity for the following population groups:

• individuals who have reached a certain age (after retirement);
• taxpayers who have a disability group;
• individuals who have three or more minor children (parents or adoptive parents);
• taxpayers who support children with a disability group (up to eighteen years of age).

Note!!! Absolutely all pensioners can claim the benefit, regardless of the level of pension paid!

The state provides a twenty percent discount starting from the next month of the accounting period. That is, if you applied for the benefit in December, then it will begin to apply in January.

Immediately after this, you will be able to sell your business at a preferential individual rate, which will be assigned to you forever (or for an immediately determined period). If individual falls immediately under two of the above points, then the tax payment rate will be reduced by forty-five percent. To find out all types of business activities that can be carried out without registering an individual entrepreneur, you will need to contact the tax office for advice.

Having looked at the main types of activities, the implementation of which does not require official registration of an individual entrepreneur, you probably noticed that some of them require certain financial investments. For example, you cannot do photography and editing without a professional camera and processing equipment, and event hosts cannot do without special equipment. You may have a question about what type of employment to choose?

Basically, business using professional equipment and technology is more promising and in demand. Such types of activities are more valued in the market, and besides, you always have the opportunity to create good competitiveness for your business. But it is worth mentioning the risks of this activity, which lie in the level of professionalism. But, if you have already decided to invest money in your favorite business, then you should take care of advertising your services. You can easily find clients even without opening an individual entrepreneur; you can tell people about your services on the Internet or through the media. By investing a small amount Money at the start, you will be able to provide yourself with:

• permanent and stable income;
• the opportunity to do what you love;
• flexible work schedule;
• opportunity for creative development;
• financial independence or additional income.

Types of activities that do not require investment

Open yours today small business maybe even an ordinary housewife or a young student. To start earning money on your own, you don’t have to make any investments; you can provide services even without special knowledge and skills. For example, you can start from scratch the following types of entrepreneurship:

• tutor services;
• caring for animals, walking dogs, raising puppies and kittens;
• cleaning of residential premises, servicing household needs, purchasing food, etc.;
• care for disabled people and children, assistance in agricultural activities.

As you can see, the choice is quite wide, everyone can find something to their liking. Despite the fact that these types of activities are not as promising as the previous ones, they also have a number of significant advantages:

• absence of any risks at the start;
• constant need in the labor market;
• possibility of combining with the main activity;
• absence of barriers to entry into the market;
• relatively low competition in the labor market;
• no need for special knowledge or skills;
• the ability to set individual tariffs for services;
• lack of pressure from government agencies.

As you can see, starting your own business is not at all difficult. But do not forget that even activities that do not require investment need advertising. Building your own business strategy will allow you to easily cope with your competitors and find regular customers who will provide you with a stable income.

Related posts:

No similar entries found.

Individual entrepreneur is an individual entrepreneur or an individual registered with the tax authority as a person carrying out entrepreneurial activities.

Let's consider the advantages of an individual entrepreneur over a society with limited liability(LLC), namely, let's talk about what an individual entrepreneur can do.

Activities

When faced with a choice: to open an LLC or register as an individual entrepreneur, a person thinks about the limitations of both, and in a different way about the possibilities of individual entrepreneurs and LLCs in the field of activity of interest. Take a look at what an individual entrepreneur can do and what unacceptable types of activities exist for him.

According to the law, an individual entrepreneur has a civil legal status equal to that of a legal entity. Accordingly, an individual entrepreneur has the right to conduct any business aimed at regularly making a profit, not prohibited by any law commercial organization. Although there are exceptions, a list of which is given below.

An individual entrepreneur does not have the right:

• to Work with alcoholic products(except beer), that is, produce and sell it;
• develop, test and repair aircraft, namely missiles, airplanes, helicopters;
• engage in pharmaceutical activities;
• develop, produce, dispose of military equipment;
• produce and trade weapons and their main parts, cartridges;
• store, transport and dispose of chemical weapons and nuclear waste;
• engage in private security activities;
• employ citizens of the Russian Federation outside the Russian Federation;
• create non-state pension funds;
• transport goods and passengers by air;
• engage in space activities.

Tax system

An individual entrepreneur can choose fairly simple and convenient taxation systems. In addition to the general taxation system, individual entrepreneurs have the right to choose special regimes: simplified taxation system (simplified tax system), UTII ( single tax on imputed income) or PSN (patent tax system).

• Under the simplified tax system, an individual entrepreneur will not have to pay taxes such as VAT (value added tax), personal income tax (personal income tax), property tax, unified social tax (unified social tax). Also, the individual entrepreneur will be able to choose the object of taxation (income, income reduced by the amount of expenses).
• With UTII, individual entrepreneurs are exempt from the same taxes as with the simplified tax system, but are required to pay a single tax on imputed income, its amount is fixed in regulations.
• PSN is a patent taxation system, when an individual entrepreneur can obtain (buy) a patent for a certain type of activity and will not pay income tax on it.

Wage-earners

Young entrepreneurs often have a question about whether an individual entrepreneur can hire workers, because as the business grows, it becomes more difficult to cope alone. Of course, if an individual entrepreneur needs workers, then he has the right to hire them. But this is not always profitable, since in some cases it is possible to enter into an agreement for the provision of services with other organizations.

It must be remembered that with PSN as a taxation system, individual entrepreneurs can have no more than 15 employees per tax period. If the individual entrepreneur is not on a patent, then the number of staff should not exceed 100 employees.

Submitting reports

An individual entrepreneur can submit reports in one of the following ways:

• Personal visit to the Federal Tax Service Inspectorate (Federal Tax Service Inspectorate), Pension Fund of Russia (Pension Fund of Russia), FSS (Social Insurance Fund) and submitting paper reports. Reports are submitted to the Federal Tax Service at the place of registration of the individual entrepreneur.
• Visit of an authorized representative of an individual entrepreneur. In order for documents to be accepted from him, he must provide a power of attorney. Since October 16, 2013, individual entrepreneurs are required to notarize this power of attorney.
• Sending reports by Russian Post. We recommend sending documents by certified mail with a description of the contents and delivery notification. Thus, as confirmation of the submission of the reports, an inventory with a mail stamp and a notification of delivery will remain in hand.
• Reporting via the Internet using the online reporting service).

The Federal Tax Service must provide:

• Individual entrepreneur on the simplified tax system, a single tax declaration under the simplified tax system until April 30 of the following reporting year;
• Individual entrepreneur on UTII tax declaration on imputed income quarterly until the 20th day of the month following the reporting quarter;
• IP on OSNO ( common system taxation) VAT declarations, 3-NDFL (about income tax), 4-NDFL (about expected income for the next year), a book of income and expenses;
• If there are employees, the individual entrepreneur submits information about average number employees.

The Pension Fund must provide:

• Individual entrepreneur on the simplified tax system and OSNO personalized accounting until March 1 of the next year for the reporting year (information about yourself as an insured person, that is, full name, insurance number and a copy of the payment order);
• If there are employees, the individual entrepreneur submits quarterly RSV-1 (calculation of insurance premiums).
• Personalized accounting

More information about this can be found on the website assessor.ru.

It is necessary to submit report 4a to the Social Insurance Fund - Social Insurance Fund for voluntary insurance.

Cash register

Let's consider whether an individual entrepreneur needs a cash register. Note that by cash desk we mean cash discipline, which any individual entrepreneur who works with cash is required to maintain, but in essence this is documentary cash management. Keeping a cash register is not required from an entrepreneur if he does not use cash at all in his work.

As for the cash register, an individual entrepreneur can do without it, subject to a number of conditions:

1. using UTII as a taxation system and issuing a sales receipt, form strict reporting or receipt if requested by the buyer;
2. work and settlements are carried out only with the population (with the issuance of strict reporting forms), and not with legal entities;
3. sale of medicines in pharmacies rural areas;
4. work as an individual entrepreneur in hard-to-reach areas;
5. the specific nature of the activity makes it difficult to work with cash register(sale of securities, lottery tickets, stamps, religious literature, transport passes, tea on the train, trading from tanks on the street, trading at the market, fair).

Professional construction and renovation of houses and apartments is a system of sequential operations to create or restore the functionality of residential premises. The prospects for activity in this area are due to the high demand for relatively inexpensive, but high-quality construction and finishing work. At the same time, the availability of new technologies and good materials allows, with a small size starting capital start your own business, which explains the interest of businessmen in the possibility of opening an individual entrepreneur in construction and repair.

Beginning entrepreneurs often wonder whether an individual entrepreneur can engage in construction and repairs, or whether for business in this area it is necessary to choose another form of business - an LLC. From the perspective of Russian legislation, both forms of entrepreneurship are acceptable, and the choice depends only on the point of view of the person concerned.

In order to decide between an individual entrepreneur and an LLC, you need to understand the pros and cons of these forms of entrepreneurship. It is easier to open an individual entrepreneur, and the entrepreneur manages the income from his activities independently. On the other hand, an individual entrepreneur cannot be sold; it is run only independently and is liable for debts with all its property.

An LLC can be bought or sold, and the liability of its members is proportional to their contributions. However, registration costs are high and the LLC pays much more taxes.

Both forms of management may be preferable in different situations. Experts say that if an entrepreneur initially does not see much of a difference, it is better and easier to open an individual entrepreneur.

Registration of individual entrepreneurs for construction

Today, registering an individual entrepreneur for construction is a fairly simple procedure, consisting of several interrelated stages:

1. Selection of OKVED corresponding to construction and repair.
2. Choice of taxation regime.
3. Payment of state duty.
4. Submitting a package of documents to the tax office.

The procedure takes from 3 to 5 days, and the exact date of receipt of registration papers is usually indicated in the receipt. After the specified period, the new individual entrepreneur must receive a certificate of tax registration and a record sheet of the Unified State Register of Individual Entrepreneurs in form No. P60009.

Selecting OKVED

The first step in opening individual entrepreneurship is the selection of codes economic activity, which the businessman plans to pursue in the future. Codes are selected according to All-Russian classifier: since 2017, only one version has been in force - OKVED-2.

The classification of entrepreneurship according to OKVED is not affected by the size of the initial capital, the form of ownership, or the taxation system. All that matters is the intended activity.

When creating an individual entrepreneur, the OKVED code must be indicated in the registration application.

OKVED consists of 17 sections (from A to Q), which describe all types of activities performed by entrepreneurs. Construction and repair corresponds to section F. This group includes capital and Maintenance, as well as new construction; and does not include activities in urban planning, architecture and building design.

Set of OKVED codes “Repair and finishing of turnkey apartments”

The activities of individual entrepreneurs in the field of construction and repair primarily consist of repairs and turnkey finishing of premises. The main code for this activity is , which characterizes the finishing and finishing work.

Individual entrepreneurs can also use additional codes:

• 45.31 – electrical installation work;
• 45.32 – insulation work;
• 45.33 – sanitary and technical work;
• 45.42 – carpentry and carpentry work;
• 45.43 – floor coverings and wall cladding;
• 45.44 – painting and glass work.

An individual entrepreneur has the right to choose several OKVED codes, but the main one must be one. You can read more about codes and their groups in.

Package of documents

In order to register an individual entrepreneur, a citizen of the Russian Federation will need only three documents:

• photocopy of civil passport;
• receipt of payment of state duty;
• application for opening an individual entrepreneur, drawn up according to the current model (P21001).

You can download a sample application at.

If a business is registered with the help of an intermediary, then such a representative must present a power of attorney, as well as a document confirming his identity. A foreigner who wants to open a business in Russia must have a residence permit in the Russian Federation (TRP, residence permit).

Choosing a tax system

The choice of taxation system is a particularly important issue for individual entrepreneurs, since this determines how often it will be necessary to submit reports and how much contributions to pay. There are four systems in use in the construction industry:

• general (OSNO);
• simplified (USN);
• patent (PSN);
• unified tax on imputed income (UTII).

Let's look at their characteristics:

1. OSNO is optimal for large entrepreneurs and for those who need VAT, but it is unprofitable at the beginning of doing business.
2. The simplified tax system is most common among beginner entrepreneurs. It is convenient because instead of 3 general taxes you only need to pay one.
3. PSN applies only to individual entrepreneurs, allowing them to acquire a patent for activities for a period of one month to a year and not pay other taxes during this period.
4. When paying UTII, it does not matter how much income the individual entrepreneur received. Tax is charged only on the amount established by law.

Let us note that of all the listed taxation regimes, experts advise beginning businessmen to choose the simplified one. If desired, the tax regime can be changed later.

Options for registration of individual entrepreneurs

There are several ways to register an individual entrepreneur in the field of construction, repair or any other:

• on one's own;
• online;
• with the help of intermediaries.

The registration period for an individual entrepreneur usually takes no more than 3 days from the moment the necessary papers are submitted to the tax service. It is impossible to reduce this period, regardless of the method of registering the business.

Independent registration of individual entrepreneurs

Setting up a new business on your own is considered optimal because it does not require large expenses and allows a novice entrepreneur to understand the peculiarities of interaction with authorities. In this case, the citizen simply needs to take the package of documents described above to the tax office.

The personal registration process is completed by receiving the necessary tax certificates from the same tax office.

Registration of individual entrepreneurs online

Today you can even register an individual entrepreneur remotely. It helps with this by offering businessmen to go through the entire procedure online. A package of documents is literally generated automatically: in the appropriate tabs you need to enter your passport details, TIN, and also fill out an application for registration of an individual entrepreneur. Moreover, you can also pay the state fee remotely – for example, from a mobile phone.

This method of registering a business is suitable for confident PC users who value their time and do not want to waste it in line.

Registration through intermediaries

There is a third option for starting an individual business - through intermediaries. The advantage of this method is that it saves the citizen’s time, but this option is significantly more expensive. Besides state duty, you need to pay for the services of the intermediary and the notary, who will draw up a power of attorney for him.

The main task of an individual entrepreneur during such registration is to transfer his documents to an intermediary (often they are multifunctional centers). The intermediary will do the rest himself.

How much does it cost to open a sole proprietorship?

The cost of opening an individual entrepreneur varies depending on the registration method. The first two are the cheapest for an entrepreneur: in the case of self-registration or online registration, the only fee is a state fee of 800 rubles.

Registration of an individual entrepreneur through intermediaries will cost several thousand more: notary services (500-1000 rubles) plus additional expenses.

Who should become a member of the SRO

On this moment there are no restrictions on individual entrepreneurs in construction, and all actions can be performed without obtaining a special license - it was abolished in 2010. Today, construction licensing has been replaced by the approval of a self-regulatory organization (SRO).

The SRO permit is issued for an indefinite period and requires quite large financial costs.

Individual entrepreneurs need to pay one-time compensation and entrance fees, if necessary, buy an insurance policy, and also pay monthly membership fees.

Only some types of construction and repair work do not oblige individual entrepreneurs to join the organization. These works include:

• plasterboard finishing;
• plastering;
• excavation;
• painting and tiling works;
• Maintenance.

All other types of activities in this area require the individual entrepreneur to enter into self-regulatory organization. Without permission from the SRO, the activities of an individual entrepreneur will not be legal.

Individual entrepreneur reporting in construction

Individual entrepreneurs in the construction industry must submit two types of reports:

1. Reporting of the individual entrepreneur himself. It includes data on the average number of employees, as well as reports and taxes in off-budget funds And Pension Fund.
2. Reporting submitted by individual entrepreneurs for their employees. It consists of reports to the Social Insurance Fund, the Pension Fund, as well as a report on personal income tax.

According to the law, individual entrepreneurs have 30 days to submit a quarterly report and 100 days to prepare annual report. Before submitting reports to the tax office, they must be carefully checked to avoid problems and sanctions.

Registering an individual entrepreneur in 7 steps: Video

To study in Russia legal business, it is not at all necessary to open a company, so many entrepreneurs choose the status to start. This organizational and legal form does have many advantages, but there are also significant restrictions on the types of activities. It is better to find out in advance what an individual entrepreneur can do, so as not to end up in an unpleasant situation later.

Who is an IP

Sometimes the abbreviation IP is deciphered as “individual enterprise,” but in fact we are not talking about an organization, but about an individual. That is, an individual entrepreneur is an individual entrepreneur, a citizen who has received the right to conduct an independent business.

The main advantages of individual entrepreneurial activity include:

• simple tax accounting;
• freely receive profit from your business without additional taxation;
• low amounts of administrative fines;
• quick cessation of business (deregistration with the Federal Tax Service occurs in just five working days);
• additional tax benefits not available to legal entities.

But with all these advantages, the laws establish numerous restrictions for individual entrepreneurs by type of activity. In essence, the state does not allow individual entrepreneurs into large, especially profitable or demanding large investments business.

What causes restrictions for individual entrepreneurs by type of activity?

Why is that? The laws do not directly indicate what types of activities an individual can engage in, and why certain areas are prohibited for individual entrepreneurs. But if we look at the legislative norms, some of them clearly state that only organizations have the right to operate in any area.

It can be assumed that the restrictions for individual entrepreneurs are caused by the fact that activities in these areas require the creation special conditions: equipment, transport, premises, trained personnel. And the state believes entity a more solid structure that is able to fulfill these requirements.

In practice, this is far from true, because there are hundreds of thousands of LLCs with minimal authorized capital And sole founder, who runs his own company. Such small firms may not have a single employee at all, because they do not conduct any profitable activities. And at the same time, there are individual entrepreneurs who have hundreds employees and multi-million dollar turnover. Nevertheless, unreasonable bans for entrepreneurs by type of activity remain in force.

There is no official list that lists all prohibited activities for individual entrepreneurs, so we compiled it ourselves. Basically, these are areas for which you need to obtain a license.

Licensed areas of activity

A license is an official permission from the state to engage in a business that requires the creation of special conditions. But even if an entrepreneur is able to fulfill all licensing requirements, in most cases he will still not be given a license.

The areas that an individual is not entitled to engage in are listed in the laws:

1. Production and circulation of strong alcohol - No. 171-FZ of November 22, 1995;
2. Activities in the field of space - No. 5663-1 dated 08/20/1993;
3. Organization of trading - No. 325-FZ dated November 21, 2011;
4. Activities in the field of atomic energy - No. 170-FZ dated November 21, 1995;
5. Activities of banks (credit organizations) – No. 395-1 dated 12/02/1990;
6. Clearing activities – No. 7-FZ dated 02/07/2011;
7. Insurance activity – No. 4015-1 dated November 27, 1992.

In addition, a special law “On Licensing” was adopted individual species activities" No. 99-FZ dated 05/04/2011, which contains a list of 53 points. For example, this is the provision of communication services, television and radio broadcasting, entrepreneurial activities in the management of apartment buildings, the production of medicines, etc.

Moreover, Law No. 99-FZ also does not directly say that licensed types of activities are not permitted individual entrepreneurs. But when an applicant applies for a license, he learns about the impossibility of engaging in this area after he has registered the business.

Unfortunately, from this entire list, only pharmaceutical, medical, educational, private detective activities, passenger road transportation, production of phonograms, computer programs, and databases are available to individual entrepreneurs.

Areas of business for which permission must be obtained

In addition to licensed ones, there are areas of business for which you must have permission from government agencies. That is, formally they are not prohibited for individual entrepreneurs, but if not formalized necessary documents, that is, the risk of receiving a fine or administrative suspension of activities.

Mainly grocery stores and catering establishments. To work without problems, you need to coordinate the opening of such a business with the SES and Rospozhnadzor. This should also include facilities for which compliance with sanitary conditions and consumer safety is important. These are beauty salons, hairdressers, medical and educational organizations, hotels.

If the business you choose belongs to one of these areas, you must obtain a positive conclusion on compliance with sanitary and fire safety standards before starting it.

Another area where you need to obtain permission is. A taxi permit is different from a taxi license. Passenger Transportation, it is issued by the regional Ministry of Transport or the Department of Roads and Transport.

Prohibition on activities due to an individual’s criminal record

If an entrepreneur has a criminal record, he will not be allowed to engage in these types of business:

• organization of youth tourist camps, mountain tourist centers, children's camps during the holidays;
• education: preschool, general, vocational;
• activities of medical institutions, medical and dental practice;
• activities of paramedical and auxiliary dental personnel;
• activity medical laboratories, emergency medical care institutions;
• provision of social services;
• production and screening of films;
• entertainment and entertainment activities;
• other cultural activities;
• activities in the field of sports and physical education;
• organization of recreation and entertainment.

The tax inspectorate requests a certificate of criminal record from the police on its own. If the fact of criminal prosecution is discovered, then the entrepreneur who declared one of these types of business in form P21001 will simply be denied registration. By the way, a similar rule does not apply to the founders of an LLC, and the presence of a criminal record does not prevent them from engaging in the listed areas.

Prohibitions within the chosen tax system

Restrictions on types of activities associated with the choice of tax system are not actually prohibitions. You just need to take into account that preferential regimes have their own conditions - income limits, employees, retail space, as well as business areas.

For example, if an individual entrepreneur opened a store on UTII or PSN, then he can only trade at retail. If some kind of wholesale delivery is carried out from this store, and not retail, then this income will be taxed under the general or simplified system.

All conditions that must be met to work under preferential tax regimes are specified in the Tax Code of the Russian Federation. We have prepared a table where we have collected the types of activities permitted under specific taxation systems.

If none of the special systems suits you, then you need to work according to the rules of the general system (OSNO), which has no restrictions.

Summary on choosing an individual entrepreneur's activity

1. If you are just planning to apply for business registration, first study the types of activities that are not available to individual entrepreneurs. Most often, an unpleasant surprise for individual entrepreneurs is a ban on the sale of strong alcohol. For unexplained reasons, this type of trading is only allowed to organizations.
2. Check out the list of licensed areas specified in Article 12 of Law No. 99-FZ of 05/04/2011. Make sure that the business you want to do is not on the list of prohibited individuals.
3. Having a criminal record will not allow a future entrepreneur to start in the fields of education, medicine, culture, leisure, sports and social services.
4. When choosing a taxation system, pay attention not only to the low tax burden, but also to the permitted areas. For example, an attempt to trade wholesale using the UTII and PSN regimes will end in fines and additional taxes.

An activity that regularly generates profit is considered entrepreneurial. If you engage in such activities without registering an individual entrepreneur and do not pay taxes, sooner or later you will have to bear responsibility to the state.

Responsibility is provided for in Article 14.1 of the Administrative Code. The fine for trading without registration ranges from 500 rubles to 2,000 rubles, and if the activity was subject to licensing or a special permit was required - from 2,000 to 2,500 rubles with confiscation of tools and products.

Article 116 of the Tax Code provides for another fine for unregistered entrepreneurial activity - 10% of proven income, but not less than 40 thousand rubles.

In addition, the tax office may charge taxes and penalties on the amount of income that can be proven.

Another reason that becomes a decisive factor for many is the blocking of bank accounts. Many unregistered entrepreneurs accept money from clients into an individual’s card account at a bank. Since 2017, banks have been actively blocking accounts for questionable transactions on the basis of Law 115-FZ “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism.”

By registering as an individual entrepreneur, you will be able to accept money from clients into your current account legally and not be afraid of fines from the tax office.

Individual entrepreneur registration

The procedure is quite simple, unlike registering an LLC.

In order to register as an individual entrepreneur, you need to send a package of documents to the tax office:

1. Application on form P21001.
2. Receipt for payment of state duty (800 rubles). From 2019, when submitting registration documents electronically, there will be no need to pay a fee.
3. A copy of your passport.
4. Application for the application of a simplified taxation system (if you plan to apply this regime).

The package of documents can be taken to the tax office in person, transmitted through a representative, sent by mail or sent electronically. You can send documents electronically directly through the Federal Tax Service website, but for this you first need to complete electronic signature(approximately 1,000 rubles).

The tax office will register you as an individual entrepreneur within 3 working days after receiving the documents. If there are grounds for refusal or errors in the application, you will be denied registration and will have to submit the documents again. You will have three months to resubmit the documents without paying the state fee again. If you do not meet this deadline or make a mistake again, you will have to pay a fee.

Where can an individual entrepreneur do business?

Anywhere in Russia, regardless of where you are registered.

An individual entrepreneur is always registered at his place of registration and is registered with the local tax office to which his registration address belongs. He will have to pay taxes and submit reports to this inspectorate, regardless of where he conducts his business.

For example, if you are registered in St. Petersburg, and your business is in Kazan and Perm, you will pay and report to the St. Petersburg Federal Tax Service.

The exception is business on UTII and PSN. These are special tax regimes, which we will discuss below. If an individual entrepreneur uses these special regimes, he must pay and report to the tax office at the place of business (with some exceptions).

What taxes does an individual entrepreneur pay?

It all depends on which tax system the individual entrepreneur has chosen.

For small businesses in Russia, there are 3 preferential tax regimes that allow individual entrepreneurs to reduce the tax burden and the volume of reporting.

STS – simplified taxation system

The most popular mode among individual entrepreneurs, very simple and profitable.

By choosing this mode, you will pay taxes according to one of the options:

• 6% of all income received;
• 15% of the difference between income and expenses;

and at the same time you will be exempt from personal income tax, property tax (which you use in business) and VAT.

You choose the object of taxation – “Income” or “Income minus expenses” yourself and indicate this in the application. It will be possible to change the object only from the beginning of the next calendar year.

Reporting to the simplified tax system is only one declaration per year.

To start applying the simplified tax system from the first day of work, you need to send a notification to the Federal Tax Service along with registration documents or within 30 days after registration. If you fail to meet this deadline, you will be able to switch to the simplified tax system only from the beginning of the next calendar year.

We described in detail what a simplified taxation system is, under what conditions individual entrepreneurs can apply it, how to pay tax and report, in this article.

UTII – single tax on imputed income

It also provides for the exemption of individual entrepreneurs from personal income tax, property tax and VAT.

It can only be used for certain types of activities and only in those regions where this regime has been introduced by local authorities. To find out whether UTII operates in your region, contact your local Federal Tax Service.

By choosing this mode, you will pay taxes not on actual income, but on estimated income. For each type of activity, the Tax Code specifies a basic profitability, on the basis of which the tax is calculated, taking into account coefficients and physical indicators. How much you actually earn from this activity - more or less - the tax inspectorate will not be interested.

You need to submit UTII reports every quarter.

Transfer business to Individual UTII an entrepreneur can at any time. To do this, you need to send an application to the tax office that relates to the address of doing business (or to the Federal Tax Service at the place of registration for some types of activities).

OSNO – general taxation system

If you do not switch to any of the listed special regimes, you will automatically be enrolled in OSNO - the general taxation system. This means that you will be required to pay personal income tax on income from business activities, property tax and VAT.

All this involves a lot of work on accounting and reporting, so before deciding to work with OSNO, make sure that you cannot use one of the special modes, or that OSNO is more profitable for you.

Other taxes for individual entrepreneurs

You will have to pay all other taxes (transport, land, water, etc.) only if there is a corresponding object of taxation. This does not depend on the applied taxation regime.

Insurance premiums for individual entrepreneurs

In addition to taxes, all individual entrepreneurs are required to pay insurance premiums for two types of insurance: pension and medical.

Contributions consist of two parts: fixed and additional.

Fixed insurance premiums for individual entrepreneurs

This is a fixed amount that every registered entrepreneur must pay to the Federal Tax Service during the year.

In 2018, this is 32,385 rubles, of which 26,545 rubles are for pension insurance and 5,840 for medical insurance. The amount is indexed every year.

This amount does not depend on the income of the entrepreneur, or on the tax regime applied, or on whether the entrepreneur is running a business at all or is simply listed as an individual entrepreneur. From January 1 to December 31 of the reporting year, a fixed amount must be paid, in parts or in full.

The fixed payment can be reduced only in one case - if the entrepreneur was in the status of an individual entrepreneur less than a year, that is, either registered an individual entrepreneur in the current year, or, on the contrary, was deregistered. Then fixed insurance premiums are calculated in proportion to the time that the businessman was in the status of an individual entrepreneur.

The Tax Code provides for only a few cases when an individual entrepreneur may not pay fixed contributions if he did not conduct business. This is caring for a child under one and a half years old or a disabled person, military service, traveling to another country with a diplomat spouse or to a remote area with a military spouse.

Additional insurance premiums for individual entrepreneurs

This portion of contributions is based on income. If an individual entrepreneur earned more than 300 thousand rubles in a year, he must additionally transfer 1% of the excess amount to the budget. For this purpose, 6 months are allotted after the end of the reporting year.

Reduction of tax on insurance premiums

Due to insurance premiums, you can reduce your tax payments: simplified tax system, UTII, unified agricultural tax or personal income tax. Entrepreneurs who earn up to 500 thousand rubles can thus not pay tax at all, because it will be “covered” by insurance premiums.

The procedure for reducing taxes on contributions depends on the tax regime applied and on whether the entrepreneur has employees.

How to withdraw profits

Entrepreneurs, unlike organizations, have a great advantage. They can freely withdraw profits at any time and in any quantity. All the money that is in the individual entrepreneur’s account or in the cash register belongs to him; he does not have to coordinate its withdrawal from the account with anyone and pay additional taxes on the withdrawn amounts.

But be careful, because... According to Law 115-FZ “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism,” a bank can block a current account if a transaction seems suspicious to them, this happens all the time now. Do not withdraw large sums unless absolutely necessary, give explanations to banks in a timely manner, and, if possible, pay for purchases with a corporate card.

Liquidation of individual entrepreneurs

This procedure is as simple as registration. You just need to pay off tax debts, submit missing reports, pay state fees and fill out an application to close an individual entrepreneur.

If there are employees, you must first dismiss them and deregister them from the funds.

What else do individual entrepreneurs need to know?

1. According to the law, individual entrepreneurs have the right not to keep accounting records, provided that they keep tax records.
2. Individual entrepreneurs are exempt from the obligation to maintain cash discipline.
3. In order to accept payments from clients, some entrepreneurs may need an online cash register. For more information about who needs a cash register, who can do without it, and what other methods of paying clients you can use, read the article “How to accept money from clients.”
4. Individual entrepreneurs face fines for failure to meet deadlines for payments to the budget, submission of reports and other violations. We have collected the most common violations in the article “Top 10 violations of individual entrepreneurs and the amount of fines for them.”
5. In addition to tax reporting, entrepreneurs sometimes have to submit statistical reporting if they are included in the annual Rosstat sample.

Internet accounting “My Business” will help you with accounting, taxes and reports. Feel free to open an individual entrepreneur and register in our service. With us you will do everything right.