How to open and register an individual entrepreneur in 3 hours - step-by-step instructions for self-registration of individual entrepreneurship from practice + document forms and illustrative examples
How to open and register an IP on your own? What documents are required for registration of an individual entrepreneur? What form of taxation is better to choose?
Dear friends, my name is Alexander Berezhnov and I am glad to welcome you to this really important article.
You can open an IP on your own or use the capabilities of the Internet accounting "". I use it myself and recommend it to my business friends.
I myself opened the IP 3 times and I know all the subtleties of this procedure.
Most entrepreneurs, starting their own business, do not have large funds and try to open it with. Therefore, if you do not yet have a stable income, and opening an individual business for you is more of a “tick” procedure, then I strongly do not recommend rushing into it.
Here we will analyze in detail how to register an individual entrepreneur and properly conduct business after receiving documents on granting you the status of an individual entrepreneur.
Before I go directly to the essence of the question “How to open an IP”, I want to warn you:
“Before you officially register your activities by opening an IP, remember that this step imposes certain administrative and financial obligations on a person”
1. Who can become an individual entrepreneur
According to the legislation, a citizen of the Russian Federation who has reached the age of 18 can become an individual entrepreneur.
It is important to note that can not be individual entrepreneurs state and municipal employees.
There are still some nuances in the legislation, but in practice they are quite rare, so I will not voice them here.
2. What documents are needed to open an IP and how to fill them out
If you decide to register an individual entrepreneur yourself, then you will need the following documents:
- Application form P21001.
- Receipt of payment of state duty for 800 rubles.
- TIN (individual taxpayer number)
- Applicant's passport (in this case, your passport)
You can significantly simplify the paperwork,
Using the Internet accounting service "".
2.1. Step-by-step instructions for registering an individual entrepreneur
1. Fill out the form Р21001
Note:
After filling out the application, it must be stitched and glued with a small piece of paper like a book, then write the number of sheets, date and put your signature so that it goes on the application.
An example of firmware documents:
2. We pay the state duty in the amount of 800 rubles
3. We take the TIN and passport, make copies of them
4. We carry documents to the registration authority (tax, registration inspection)
5. We wait 5 days and come for ready-made registration documents
In each region, the registration authority has its own name, so specify it, as well as its code, you will need it to fill out an application for registration of an individual entrepreneur.
2.1.1. And now in more detail about each stage
If you do not yet have a TIN, be sure to get it from the tax office at your place of residence.
In order to start filling out the P21001 form, you need to decide on the types of activities that you plan to engage in.
The all-Russian classifier of types of economic activity will help you with this. (OKVED).
In the application in the form P21001 for registering an individual entrepreneur, tips are given on the correct filling in of the digital code by type of activity.
As an example, I will give my extract from the USRIP (Unified State Register of Individual Entrepreneurs).
You will receive an extract from the USRIP after registering an individual entrepreneur along with a certificate of registration.
Please note that in the extract from the USRIP, as well as in your application, the group, subgroup and type of activity are indicated with a digital code and the name of the activity itself.
Note:
If you do not hand over documents for registration in person, for example, by mail or someone does it for you, in this case you will need to notarize your signature on the application.
After you have filled out the application, you pay a state duty of 800 rubles according to the details that you will be given at the registration authority, where you will also submit documents for registering an individual entrepreneur.
Congratulations! Now you are ready to register, but read the article to the end, and you will be able to avoid the mistakes that people make when registering IP for the first time.
3. Delivery of documents and pitfalls when opening an IP. Overview of taxation systems
Before registering an individual entrepreneur, I advise you to get advice from a professional accountant on choosing a taxation system on which you will work.
At the moment there are 3 systems of taxation:
- Classical or general system of taxation (OSNO)
- Simplified taxation system ("Simplified")
- Single tax on imputed income (UTII)
3.1. Classical or general system of taxation (OSNO)
Here you will pay several types of taxes, including personal income tax (personal income tax) and VAT (value added tax)
3.2. Simplified taxation system ("Simplified")
There are two types of simplified taxation system today, and depending on which tax base you choose:
- Type of tax base "Income". In this case, you will pay 6% of the total income (revenue)
- Type of tax base "Income minus expenses (profit 15%)". Here you will pay 15% tax on the difference between income and expenses
3.3. Single tax on imputed income (UTII)
If your activity falls under the payment of UTII, then you will pay a fixed tax for a certain period, regardless of revenue and profit.
Important!
By default, a person who registers as an individual entrepreneur falls into general system of taxation (OSNO) .
If you are going to work under the simplified taxation system, then along with the submission of documents for registration of an individual entrepreneur, you will need to submit an application for switching to a “simplified tax system”.
Application form for the transition to a simplified taxation system (Form No. 26.2-1).
If the activity that you plan to engage in falls under UTII, then from the moment you engage in it, you will need to apply for the transition to UTII in the UTII-2 form.
4. What to do after registering an individual entrepreneur
After you receive all the documents and issue an IP, you can make a seal of an individual entrepreneur. To do this, you will need a certificate of PSRN IP and your TIN. Today, there are quite a lot of companies involved in the manufacture of seals and stamps, so it will not be difficult for you to make a seal.
Attention!
By law, IP can work without printing. One of your handwritten signatures on any contracts and papers and the inscription "Without a seal" or B/P is enough.
Example of my print:
Pension Fund
Now, if you work independently (WITHOUT EMPLOYEES), the Pension Fund notify NOT NECESSARY! You register with the Pension Fund without a statement, that is, automatically.
If you plan to work with non-cash, that is, transfer and receive funds to your IP current account, you need to open it. Now in any bank it will not be difficult to do this. When choosing a bank, I advise you to focus primarily on the percentage of account maintenance.
By law, an individual entrepreneur has the right to work without a current account.
So you will need to open a RS if you plan to receive non-cash payments, especially if you provide services / sell goods to legal entities and other individual entrepreneurs.
Attention, this is very important!
Now (since May 2014, it is NOT NEEDED to submit a notice of opening a current account for an individual entrepreneur to the tax and Pension Fund!
If you plan to work with a cash register, then you will need to purchase it and register it with the tax office. Before doing this, I also advise you to consult with a good lawyer and accountant in order to make this procedure the most effective and less expensive.
After all the above actions, you can fully conduct business activities, most importantly, do not forget to report and pay taxes on time. A good accountant will help you with this, cooperation with which you need to take care of in advance.
You can keep accounts of your individual entrepreneur via the Internet using the appropriate capabilities of the "" service.
Dear reader, now you have all the necessary information on how to register an IP yourself and as you can see, it is not so difficult.
Let's now analyze the nuances of IP.
5. Pros and cons of the legal form of "individual entrepreneurship". Rights and obligations of IP
From the moment you receive the OGRNIP certificate (the main state registration number of an individual entrepreneur), you can engage in all types of business activities that are not prohibited by law. But there are exceptions.
For example, an individual entrepreneur cannot be engaged in the wholesale and retail sale of alcohol, therefore, if you decide to open a grocery store and sell alcohol there, you will have to register as a legal entity.
This limitation is the most common in practice. You can download the full list of activities that are prohibited for individual entrepreneurs to engage in below:
5.1. Pros and cons of the legal form of IP
Here I will touch on the main pros and cons of individual entrepreneurs, I hope that this will broaden your horizons and help you better understand yourself in the status of an individual entrepreneur.
5.1.1. Pros:
1. Ease of registration
It is quite easy to open an individual entrepreneur without even resorting to the help of third-party consulting firms.
I can say with confidence that if I now went to open an individual entrepreneur, then the whole procedure, taking into account the preparation of documents and standing in line for their submission to the tax office, would take me about 2-3 hours.
2. Relatively mild penalties
Individual entrepreneurs are practically not checked by regulatory authorities, they are much less required to comply with various standards and requirements when doing business. The most simple and few reporting. Accordingly, fines are on average 10 times less than for legal entities. I won't go into details here, just so you know:
From the point of view of doing business, IP is the most “sparing” form of doing business in all respects.
3. Great flexibility in operation
Also, from the advantages of such an organizational and legal form as an individual entrepreneur, one can single out the fact that all the proceeds belong to the individual entrepreneur, that is, in this case, to you. Accordingly, you can dispose of this money immediately after receiving it at your own discretion, unlike an LLC.
Also, an individual entrepreneur has the right to work without a seal, in which case he puts his signature on contracts and other documents and writes “B.P.”, which means “without a seal”.
An individual entrepreneur has the right not to have a bank account, working with cash. Then he may need a cash register or strict reporting forms (BSO), but this is if the individual entrepreneur works on a simplified or general taxation system.
If he works on an “imputed” basis, that is, he pays a single tax on imputed income (UTII) or carries out his activities on a “patent”, in this case he simply puts the money he earns into his pocket, paying a fixed tax and insurance contributions.
5.1.2. Minuses
1. The degree of responsibility for obligations
Very important!
According to the legislation, an individual entrepreneur is liable for his obligations with all his property.
This means that if you have debts as a result of doing business, then in this case, in court, your creditors have the right to take almost everything from you: a car, bank deposits, real estate (if it is not the only housing), other material assets .
An individual entrepreneur is obliged to pay insurance contributions to the pension fund, even if he does not operate or even operates at a loss.
For example, in 2013, the amount of mandatory insurance premiums for individual entrepreneurs amounted to 35665 rubles .
That is, even if you don’t earn a penny, every month of the existence of your individual entrepreneur will cost you almost 3,000 rubles.
Do not forget that if you will conduct business, then add to this amount the taxes that you will have to pay.
2. Not being able to name your company
According to the law, an individual entrepreneur, as a business entity, can only write his full name as a name in all official documents.
For example: IP Ivanov N.V.
Unlike individual entrepreneurs, legal entities, such as LLC, have a name.
For example: Pupkin and Partners Limited Liability Company
3. Image moment
It so happened that some companies do not work with individual entrepreneurs, although, in fact, the conduct of commercial activities of an individual entrepreneur and, for example, an LLC are no different.
If you do not yet have experience in doing business, then I advise you to start with an individual entrepreneur, and then, if the need arises, you can open a legal entity.
5.2. Rights and obligations of IP
You can learn more about the rights and obligations of an individual entrepreneur below.