Registration with the state as an individual entrepreneur is just the beginning. A new businessman can’t wait to get started, so he rarely thinks about what to do after registering an individual entrepreneur. Has he completed all the required procedures to begin work in order to avoid future fines? Let's look at the most common mistakes that beginning entrepreneurs make, and important steps that should not be forgotten.
Common Mistakes
Most businessmen hardly have a legal education to understand the law well and know exactly what to do next after registering with the tax authority. And you need to know a lot of things here, because the country has a lot of legal acts regulating this or that area of activity of individual entrepreneurs, but there is no single instruction for this. A person often has to study a lot of laws himself, catching the necessary information.
In this regard, representatives of small businesses, especially beginners, make many mistakes at the first stage of their career. The most common situations are:
- The individual entrepreneur violated Government Decree No. 584 of July 16, 2009 “On the notification procedure for carrying out certain types of business activities.”
In our state there are many supervisory authorities that exercise control over various areas of activity. After receiving a certificate of registration of an individual entrepreneur, it is necessary to notify one of these Federal services in the prescribed form. This can be done during a personal visit to the department or through the MFC. The table shows some types of activities and authorities to which notification must be submitted:Kind of activity Federal service name Catering, provision of household services - protection of consumer rights and human well-being Passenger transportation by taxi and route transport - in the field of transport Providing social services, live-in care - on labor and employment Production of fire extinguishing agents - on civil defense matters, emergency situations and disaster relief Gas equipment repair - on environmental, technological and nuclear supervision Production of medicines and medical equipment - in the healthcare sector - The entrepreneur did not submit an application to switch to another tax system on time.
Most often, individual entrepreneurs miss the 30-day deadline for submitting a notification to the simplified tax system after registration. The unpleasant consequence of this will be the use for some time of a complex general tax regime with a bunch of reporting and an increased tax burden. If the deadline for switching to a simplified system has been missed, you can use alternative modes. Thus, the condition for the application of UTII is the submission of a notification of the commencement of taxable activity. This must be done 5 days before the actual launch of the project (Article 346.28 N of the Russian Federation). In practice, tax inspectors are not always able to verify compliance with the conditions. If it is impossible to transfer the business to imputation, it is worth trying to acquire a patent. - The businessman did not register with the funds on time.
This violation occurs only for those entrepreneurs who have hired staff. An individual entrepreneur without employees does not need to register with the funds, since the tax office will provide information on it. With the transfer of administration of insurance premiums to the Federal Tax Service of the Russian Federation, the problem with registration practically ceased to exist. Now entrepreneurs-employers must register by application only with the Federal Social Insurance Fund of the Russian Federation (Article 6 of Law 125-FZ of July 24, 1998, Order of the Ministry of Labor of the Russian Federation No. 202n of April 29, 2016). - The individual entrepreneur neglected the mandatory certification of the product or service.
There is voluntary and mandatory certification of goods. If a product is included in the list requiring mandatory certification, it is important not to miss this stage. - An entrepreneur started work without a license when one is required.
For such a violation, a fine of 4 to 5 thousand rubles is provided. In addition, equipment, goods and tools will be confiscated from an unscrupulous businessman (Article 14.1 of the Code of Administrative Offenses of the Russian Federation).
Previously, businessmen had to register with another department - Rosstat. Now it is not necessary to do this, since the tax office transmits information there too. The only thing that is required of an individual entrepreneur is to submit statistical reports to Rosstat on time, and before that you need to obtain statistical codes. The easiest way to do this is via the Internet.
Important! When submitting documents to these departments, it is best to make 2 copies of applications and notifications. In this case, you must keep one of the copies with a mark and date of receipt. If the application is lost, the businessman will always be able to provide evidence that he did everything on time.
Choosing a tax system
A newly registered entrepreneur “by default” enters the OSNO (general taxation system). An automatic transition to a special tax regime is not provided for anywhere; this procedure is of a declarative nature. Several special modes are available to individual entrepreneurs; he only needs to choose the most appropriate taxation system. This is a legal way to reduce the tax burden. A few words about each mode:
BASIC
Flaws:
- includes several types of taxes: VAT, personal income tax, property taxes (if there is commercial real estate or transport);
- a lot of reporting: in full for each tax, plus maintaining all stages of accounting.
Advantages:
- the opportunity to return personal income tax paid from the budget when purchasing real estate, paying for medical care, medicines, education;
allows you to cooperate with large suppliers who prefer to work with taxpayers who pay VAT;
the right to demand compensation for overpaid VAT from the budget.
The general tax regime is not the simplest, but it is a sign of a large, developed business. As turnover and costs increase, it becomes profitable to use OSN.
simplified tax system
The majority of simplified tax payers are among newcomers. It’s not surprising, because the calculation of the simplified tax system “Income” of 6% is as simple and clear as possible. An entrepreneur must only keep records of his income in a special book and submit a declaration on time.
Another scheme is used under the simplified tax system “Income-Expense” at a rate of 15%. This rate is set by federal law at the maximum amount, but regional authorities often reduce it to 5%. This mode allows expenses to be taken into account, but they must be documented and necessary from an economic point of view.
The first regime under the simplified tax system is suitable for a start-up businessman without employees who does not have significant expenses. The second option is beneficial when the level of expenses increases, for example, when purchasing large quantities of raw materials or paying insurance premiums for several employees.
Attention! A special form 26.2-1 of an application for transition to the simplified tax system can be submitted immediately with documents for state registration of individual entrepreneurs and within 30 days after it. If an entrepreneur is late with this, he will be able to switch to the simplified tax system only from the beginning of next year.
UTII
UTII, or the so-called imputation, is loved by retailers and taxi drivers in those regions where local authorities have established it and have determined a small basic profitability for its calculation. The tax rate is 15%, but the tax base is more difficult to determine than under the simplified tax system; it is proportional to the basic profitability and physical indicator. All this together forms imputed income. You need to switch to UTII within the first 5 days after the start of taxable activity. Registration is carried out at the address where the business is actually conducted. The territorial aspect is very important here. Correction factors depend on the location.
Unified agricultural tax
To support agricultural producers, a very loyal special regime of the Unified Agricultural Tax was created. Until 2019, it looked even more profitable than the simplified tax system “Income-Expenses”, since its rate is not 15% of this difference, but only 6. It can only be used by enterprises whose 70% of their total income comes from production, processing and sales agricultural products.
From January 2019, Unified Agricultural Tax payers will have to keep records of input and output VAT, as well as submit electronic declarations to the inspectorate quarterly.
Patent
In some regions, tax obligations associated with the use of the patent system look more acceptable than those for the simplified tax system and UTII. Individual entrepreneurs on PSN are especially pleased with the lack of tax reporting. A patent can be purchased for 1–12 months, which means this system is perfect at the start, as it allows a businessman to try his hand. The PSN rate is 6%, and the tax base represents potentially receivable income, which is determined by regional authorities. You need to purchase a patent within the first 10 days of starting work. The disadvantage of the regime is the impossibility of reducing contributions to the budget for fixed insurance premiums and fees paid into funds for employees.
Choosing the optimal tax system is one of the first actions in the activities of an individual entrepreneur. Here it is impossible to give a definite answer which one is better; it all depends on the specifics of the work and regional legislation.
Register with the funds and receive statistics codes
Whether or not an entrepreneur needs to make additional visits to funds (Pension and Social Insurance) depends on whether he has employees. Often, a newly opened individual entrepreneur works alone for the first time; in this situation, he does not need to register with the funds, since his tax office will independently send his data there.
The situation changes as soon as a businessman enters into his first contract with an employee; after this date he has 30 days to visit the Social Insurance Fund (Article 6 of Law 125-FZ).
Attention! It is necessary to register with the Social Insurance Fund of the Russian Federation as an employer not only when concluding a full-fledged employment contract, but also if the contract is of a civil law type.
In addition to the usual documents on entrepreneurial activity, the funds must be provided with papers confirming the status of the employer: a copy of the signed employment contract, an extract of the employment order. For late registration, you can be fined from 5 to 10 thousand rubles (Article 26.28 of Law 125-FZ).
As already noted, at the first stage there is no need to visit Rosstat. In the future, to generate statistical reporting, you will need codes such as OKPO, OKATO. You can get them through the official website of Rosstat by filling out the entrepreneur’s details online: TIN and OGRNIP. The first time they are issued free of charge, repeated issuance is subject to a small amount. Codes are also updated free of charge if a businessman’s credentials change.
Important! These codes are needed not only for statistical reporting, but also when opening a current account. Every year, Rosstat publishes on its website lists of selected entrepreneurs who must report to the department. The obligation arises when the businessman is included in the annual monitoring. Continuous observation is carried out at least once every 5 years.
We make a seal
An entrepreneur is not required to have a company seal, but can use it if desired. There are no design or form requirements. The condition for the use of symbols is only authenticity and compliance with basic standards. Prints must not contain false, defamatory information, or obscene language. It is also prohibited to mislead consumers regarding
organizational form and type of business. This attribute is only a matter of prestige for him. As the business expands, printing will, of course, need to be ordered.
We obtain a license, permit, product certificates, notify supervisory services
Another important regulatory act regulates the activities of entrepreneurs in terms of licensing activities: Law No. 99-FZ of 05/04/11. Article 12 provides an exhaustive list of 52 types of work for which a license is required. The list of bodies issuing this document, depending on the type of activity, is determined by Decree of the Government of the Russian Federation of November 21, 2011 N 957. Among them are such well-known services as Rospotrebnadzor, Rostransnadzor, Ministry of Emergency Situations, Ministry of Internal Affairs, Federal Tax Service, FSB.
However, to obtain a license, a businessman will have to organize the fulfillment of mandatory requirements at his enterprise. For example, purchase suitable equipment, hire personnel with the appropriate level of qualifications, organize routine inspections of equipment, etc.
A certificate for a product indicates its compliance with quality standards, which are established in various rules, regulations and regulations. Some products do not need to be certified; the manufacturer can do this on a voluntary basis.
If a product is included in the list approved by Government Decree No. 982 of December 1, 2009, then mandatory certification is provided for it. These may include items such as household appliances, fasteners (bolts, nuts, screws), medicines and medical equipment. Certification of goods is carried out by centers that have received special accreditation.
Open a current account, install and register cash register
Even beginner individual entrepreneurs quickly want to get a current account, although it is not always necessary. Make non-cash transfers to your suppliers, pay taxes and insurance premiums online via the Internet, transfer salaries to employees directly to their cards, all this is very convenient. But this applies mainly to large, well-established businesses, and not to an entrepreneur working alone and providing services to the population.
Attention! A current account is required only in a situation where the transaction amount under one agreement exceeds 100 thousand rubles. In other cases, the individual entrepreneur decides for himself whether he needs this means of mutual settlements and storing money. After opening an account, a businessman no longer needs to report this to the tax authority; the bank will do it for him.
In 2019, the transition to online cash registers will be completed. The old format equipment is no longer registered by the tax service. Most entrepreneurs are now required to transmit fiscal data through operators. From July, only cash payments participants named in Art. 2 of Law 54-FZ of May 22, 2003. These, for example, include businessmen from hard-to-reach areas. They need to work with autonomous devices. In general, ice cream and kvass sellers, nannies and caregivers will not need to buy a cash register.
So most businessmen need to take care of installing new fiscal machines now. Also, do not forget about constant updates. Machines that process data using the FFD 1.0 protocol are considered obsolete in 2019. Modern technology needs to be reprogrammed.
Now you no longer need to think about what documents are needed at the tax office; you can go through this procedure online through the “KKT personal account” service.
We register employees
This stage should be taken very seriously. Contrary to the opinion of many, the law does not provide any relief for an individual entrepreneur; he has the same obligations to employees as a legal entity. Official employment according to the Labor Code consists of:
- in drawing up an employment contract;
- in the entry in the work book;
- in issuing an order for employment;
- in timely payment of advance payments and salaries;
- in payment of employee contributions to the funds.
Attention! Many entrepreneurs try to understate the wages of their employees in official documents, paying them extra “money in envelopes” in order to reduce the amount of insurance premiums. If the official salary level is less than the minimum wage, individual entrepreneurs will often be called to the tax office to give explanations and demand to pay people more.
In 2019, all employers were required to conduct a special labor assessment. The rules are established by Law No. 426-FZ dated December 28, 2023.
Thus, in order to properly launch his business, an entrepreneur needs to perform a number of mandatory actions after registering with the tax office. Entrepreneurs often break the law unintentionally due to their own ignorance, so it is important for a businessman to keep abreast of the latest changes in legislation governing small businesses.
After a person has registered as an individual entrepreneur, he should not think that everything is over and he can start working. There are certain responsibilities of an individual entrepreneur after its registration, which involve various actions, and you need to know where to go next and what to do. This is very important, because, in addition to the tax office, where a person will open an individual entrepreneur, it will be necessary to carry out certain actions to obtain various documents and papers. This is exactly what will be discussed in this publication.
Transition to a simplified taxation system
After the opening of an individual entrepreneur has occurred, such a businessman must carry out a series of actions that will be aimed at obtaining certificates from the pension fund, statistical authorities, opening a bank account, and choosing a taxation system. The most important action in 2019 should be to determine which taxation system an individual entrepreneur will use. To do this, you don’t need to go anywhere, but within 5 days after registering an individual entrepreneur, the entrepreneur must submit an application to the tax authorities and ask to switch to the general taxation system if there is a desire to work according to a simplified system. After this, within 30 days the tax office must give an answer whether it agrees with this or not. This norm remained unchanged in 2019. These are the most important actions that need to be taken after registering an individual entrepreneur.
It is important to know that if an individual entrepreneur, before deciding to switch to a simplified taxation system, worked on a general basis, he must submit such an application in the fourth quarter of 2019. But there is a small nuance. If the entrepreneur fails to arrive on time, he can send his application by mail.
The next step that an individual entrepreneur will have to take, and this is his direct responsibilities in 2019, after opening an individual entrepreneur, is registration with the pension fund. The following documents must be provided there:
- a corresponding statement that the person is an individual entrepreneur;
- identity document - passport and its copy;
- certificate that he was registered as an individual entrepreneur;
- a special extract from the state register of individual entrepreneurs;
- a special notification that he is registered with the tax authority as an individual entrepreneur, which should arrive by mail, but it can also be received by hand;
- a special notification that he is registered with the policyholder’s pension fund and he is paying regular contributions.
After all these documents have been submitted to the pension fund, the entrepreneur must receive a special notification from it that his registration has occurred.
It is important to know that this process is designed for registration with the Pension Fund of the individual entrepreneur himself. If such a businessman decides to hire workers, then the following steps must also be taken:
- an employment contract is concluded with the employee, which is registered with the Pension Fund, and after that the payment of taxes begins;
- If a civil contract is concluded with an employee to perform certain work, you need to know that such an agreement is also subject to registration with the pension fund.
If an individual entrepreneur has registered several employees, then each of them must go through the pension fund.
It is important to know that even if a person is hired for a probationary period, the process of conducting such contracts through the Pension Fund is mandatory.
After the entrepreneur has completed all the steps required to register with the Pension Fund, you can move on to the next stage.
This is not a requirement, but in most cases it is a necessary step. This is due to the fact that in many cases settlements between business entities occur through non-cash payments. Therefore, to open a bank account in 2019, an entrepreneur will need the following documents:
- an application that will be provided at the bank in a special form, but you can also fill out a special form on the bank’s website;
- Attach documents confirming that the person is an individual entrepreneur to the application.
After this, an account will be opened and its holder will be issued a bank card.
You can contact any bank that will provide the most favorable conditions, or you can contact the one with which the entrepreneur has worked previously. There's nothing complicated about it.
https://youtu.be/Zx4pt6ofvOE
Receiving a seal
The conditions for obtaining a seal for individual entrepreneurs have not changed in 2019. In order to obtain it, you need to contact a specialized company that produces them. It won't take much time, and to get it done quickly, you can pay extra money.
To obtain a seal you will need the following documents:
- first of all, this is a certificate that confirms that the person is an individual entrepreneur and a copy;
- citizen's passport and its copy;
- a special individual tax number, which is assigned by the tax office at the place of registration.
After this list is provided, the seal will begin to be produced, but you need to make a reservation right away. The law does not say that an individual entrepreneur must have a seal, so the presence of such an attribute is a personal desire of the businessman.
Obtaining strict reporting forms
This is also an important attribute of entrepreneurial activity. If the work will be carried out without a cash register, then they will be needed, but you can also arrange a cash register. Modern strict reporting forms (SSR) can be developed by individual entrepreneurs independently, but there are some that have a standard form. You can get them from the tax office or buy them at a specialized store.
Extract from the Unified State Register of Individual Entrepreneurs
This statement contains all the information about the individual entrepreneur, including his personal and contact information, as well as his bank account. That is, information by which it can be identified. Such an extract is needed so that those persons who work with such an entrepreneur see that he exists and can carry out certain legal actions that the law allows him. To receive it, you need to come to the tax office and write a corresponding application. You can receive it by mail, but it’s better to do it on purpose. Further, this extract will be provided to all government authorities, and at the request of future clients and partners who will work with such an entrepreneur.
Registration with Rospotrebnadzor
Those entrepreneurs who will carry out their activities related to the provision of any services to the population and citizens are required to register with Rospotrebnadzor. This is also a mandatory requirement, the violation of which can lead to various unpleasant consequences. Those who have worked in the consumer services market know that Rospotrebnadzor can impose various financial sanctions for violating established rules. In order to register there you must submit the following documents:
- application for registration;
- documents confirming that a person is an individual entrepreneur and can perform established legal actions (extract from the Unified State Register of Individual Entrepreneurs).
It is important to know that if government authorities require additional documents, then this is illegal, and such actions can be appealed.
In order to understand what to do after registering an individual entrepreneur, you need to know that from the moment you receive the paper on registration of an individual entrepreneur, all the actions of the entrepreneur do not end. All his subsequent responsibilities are described above, and they must be adhered to without fail. Otherwise, you can get into a lot of troubles associated with the imposition of various financial sanctions, as well as the reluctance of business entities to cooperate with such an individual entrepreneur.
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Starting a commercial business is a responsible time when it is important not to forget anything and do everything right. Therefore, many aspiring entrepreneurs are interested in every step they have to take on the path to starting a business. Therefore, below we will consider the main matters that an individual entrepreneur will have to deal with.
Step No. 1. Choose a tax system
After the future entrepreneur submits it as an individual entrepreneur, he is issued a OGRNIP certificate. And also a notification that he is now registered and an extract from the Unified State Register of Individual Entrepreneurs.
- BASIC. The same basic one that obliges you to fully report and declare income.
- UTII. “Imputed”, as people call her.
- USN. Simplified system.
- PSN. Patent system without declarations and taxes with a single payment for a license.
There is also the Unified Agricultural Tax. But this is a tax for entrepreneurs in the agricultural niche.
As already mentioned, after registration you are automatically placed in the category of individual entrepreneurs working in the main mode. But most often this system is too expensive and complicated for a beginner. That's why many people choose the “simplified” approach. To switch to another taxation system, you need to submit a new application for transfer within a month from the date of receipt of the individual entrepreneur registration certificate. So, in the case of the simplified tax system, this will be an application according to form 26.2-1. For other modes, transition methods also involve statements and a certain time, but are no longer so strictly regulated.
Step No. 2. Find out your own registration number
You will need this number when filing your 3-NDFL declaration. To find out the number of the territorial fund and your own registration number, it is enough to write an application for an extract from the Unified State Register of Individual Entrepreneurs. It is also submitted to the Federal Tax Service department within a month after receiving the certificate. This service is free, and the extract itself does not equate to a document.
Step No. 3. Register with the pension fund
It is important to separate two points here. The first is that if you registered as an individual entrepreneur and do not have hired employees, then you will not have to do anything. Because after the change in regulations, the tax service itself submits all documents to the Pension Fund for you. And you, without appearing there, will be registered.
The second point is if you, as an individual entrepreneur, also become an employer. That is, they hired employees under an employment contract. In this case, you will definitely need to visit the branch of the pension fund and register as an employer. You have a month to do this if you hire an employee immediately after receiving permission to operate from the tax office.
Step No. 4. Register with the Social Insurance Fund
The Social Insurance Fund is the next step after the Pension Fund. And here everything happens exactly the same. In the case when you are just an individual entrepreneur without employees, then you do not need to come to the FSS branch, you will be registered anyway. And when there are workers, come and register.
Step No. 5. Visit the statistics department
You also need to go there after receiving a certificate from the Federal Tax Service. And based on this evidence, the statistics department gives you a letter! Be careful here, because many people think that this document does not carry any semantic meaning and it is better to put it away so that it does not get lost.
But in fact, this letter will contain information that you will definitely need to use when you open your own personal account.
The department code will also be indicated there, which often also has an important function. For example, it will directly affect the amount of transport tax in the trucking business. In general, do not lose this letter.
Step No. 6. Open a current account.
It’s worth mentioning right away that this action is not necessary for an individual entrepreneur. There are many areas of small business where an account is not required.
But, for example, if you plan to carry out activities in the niche of large wholesale trade, or you will need to enter into an agreement with large manufacturing companies, then it is unlikely to do without a current account.
To open an account, any bank branch is suitable. There is nothing to advise here, choose for yourself which one you like best, or which one offers, in your opinion, more favorable conditions.
However, remember this. If you open an account in a regional bank, then prepare for possible difficulties when transferring to foreign accounts. To work with partners from abroad, it is still better to use the services of federal banks.
When you open an account, you will be asked:
- Certificate of registration of individual entrepreneur
- Certificate of registration
- TIN (copy)
- Extract from the Unified State Register of Individual Entrepreneurs
Step No. 7. Register the seal
Again, as in the case of a current account, printing is an optional attribute of an individual entrepreneur. However, it is often necessary. And in the future, when it comes to business growth, you cannot do without printing. And commercial activity without a seal does not look so impressive.
Step No. 8. Get a license
A license must be obtained only for certain types of activities that cannot be carried out without special permission. A list of the types of these activities can be found in 99-FZ (clause 1, article 12).
So, for example, for pharmaceuticals you will need permission from Roszdravnadzor, for the fire safety niche - from the Ministry of Emergency Situations. And so on.
To obtain a license, you will need the same package of documents - certificate, TIN, extract from the register of individual entrepreneurs.
On a note. There are also certain types of activities, the engagement of which must be specifically notified to the state body in accordance with Federal Law 584. This is usually done when it comes to the biomedical field.
Step No. 9. Registering a cash register
Another controversial point that does not impose obligations on individual entrepreneurs in some cases. But here everything will depend on what choice you made at the first step - that is, on the current tax system. On OSNO, on the simplified tax system, on the unified agricultural tax, the entrepreneur is still required to have a cash register.
Moreover, simply buying a device will not be enough; it must also be registered with the Federal Tax Service. You can read more about how to choose, how to buy, what contracts to conclude and how to properly register a cash register in another article on our website.
Bottom line
As you can see, there are few actions that an entrepreneur needs to take after he receives a certificate from the tax service. Some of them are generally optional, especially for beginners.
However, each of these actions has its own nuances. These are often serious time constraints that must be met. Therefore, in order not to run around wondering where you should go next, prepare in advance for these simple procedures. Everything about everything, if you know what to do, will take no more than a week of real time. And it will save nerves for years.
Registration of an individual entrepreneur involves not only contacting the tax office, but also other government agencies.
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Otherwise, the businessman’s activities will be carried out in violation of the law, and various punishments may be applied to him in the future.
Therefore, each individual who decides to become an individual entrepreneur should first familiarize himself with the full list of actions that must be taken after receiving documents from the Federal Tax Service.
Opening order
According to the legislation of the Russian Federation, you can open an individual entrepreneur at the Tax Inspectorate at the place of registration of the individual.
You should contact them after you have prepared a complete package of documents required to be submitted to the Federal Tax Service.
Contacting the Tax Inspectorate
Before contacting the Tax Inspectorate to register an individual entrepreneur, individuals must fill out an application and pay a state fee.
After this, you should submit these documents to the Federal Tax Service office to which the person’s main residence address belongs, supplementing them with a copy of the passport.
Tax officers will consider the application within five working days, after which:
- or a decision will be made to refuse;
- or the individual will be registered as an individual entrepreneur and entered into the state register.
List of documents
In order to obtain a certificate of individual entrepreneur status, individuals must provide the tax office with:
- , which is filled out according to form P21001;
- receipt of payment of duty to the state;
- copies of the first pages of the passport.
When switching to a simplified taxation system, you can immediately notify the tax office of this action using a special application.
Legal regulation
The legislative framework regulating the registration and activities of individual entrepreneurs includes the following regulations:
- The Constitution of the Russian Federation, which stipulates the right of citizens to carry out entrepreneurial activities;
- Civil Code of Russia;
- Tax Code of Russia;
- “On state registration of legal entities and individual entrepreneurs.”
What to do next after registering an individual entrepreneur?
Once an individual has been issued documents from the tax office confirming the registration of the status of an individual entrepreneur, there is no need to relax.
From this moment on, the individual entrepreneur must take a number of actions, for which the state has established clear deadlines.
For violations of the period for contacting the relevant authorities, penalties will be applied to individual entrepreneurs.
Actions after receiving the certificate
After receiving a certificate from the Federal Tax Service and entering it into the state register, an individual must contact the relevant extra-budgetary funds, open a current account and get a stamp.
With the hiring of employees, new responsibilities arise for the individual entrepreneur, who from that moment must register with certain government agencies as an employer.
Transition to the simplified tax system
If you do not know what further actions need to be taken after registering an individual entrepreneur, then pay attention to the choice of taxation system.
Most individual entrepreneurs currently operate under a simplified taxation system.
In order to switch to it, businessmen are given thirty days after registration.
If an individual entrepreneur does not submit a notification to the tax office within the period established by the state, then he automatically works according to the general system.
The opportunity to apply for a transition to a simplified tax system appears only in the fourth quarter, after which the entrepreneur begins to pay taxes under a different scheme from January 1 of the next year.
Contacting Pension and other funds
If you don’t know what to do after registering an individual entrepreneur, then think about extra-budgetary funds.
It is mandatory for a businessman to register with a pension fund, information to which is transmitted by employees of the Tax Inspectorate.
In this case, information about the entrepreneur himself is automatically entered.
After hiring the first employee, he will have to contact the Pension Fund again to:
- register as an employer;
- enter information about your employees.
In addition, individual entrepreneurs are also registered with the social insurance fund. In this case, it is mandatory to contact this extra-budgetary state body only in the case when the first employment contract was concluded.
An entrepreneur registers himself only voluntarily in order to guarantee himself appropriate payments in the event of insured events.
Extract from the Unified State Register of Individual Entrepreneurs
To carry out work and apply to other government agencies, an entrepreneur must obtain an extract from the state register.
It is a document that contains all the basic information about the individual entrepreneur, confirming its status.
In order to receive this paper, a businessman must contact the tax office with an application.
If the document is needed urgently, it can be done in one day, although such requests are usually processed within five business days.
Registration of employees
The legislation defines the procedure for actions that are performed by an individual entrepreneur during the hiring of employees.
All employees can be registered in different ways, depending on the nature of the services they perform. They can be accepted under an employment or civil law contract.
In both cases, after hiring the first subordinate individual entrepreneur, you must:
- register with the Pension Fund within thirty days;
- in the Social Insurance Fund - within ten.
Violation of these deadlines will result in the payment of a fine.
Making a seal
Printing for individual entrepreneurs is carried out by special companies.
The work begins after the individual entrepreneur contacts the company, providing it with the following documents:
- registration certificate;
- passport.
As a rule, the seal is produced within several business days.
Checking account
In order to start work, an individual entrepreneur needs to open a current account. This can be done at any bank, so a businessman can choose the organization that offers the most favorable conditions.
To open an individual entrepreneur account, you must contact a credit institution with an extract from the state register, a passport and an application.
After reviewing these documents, the bank may require additional papers.
After opening a current account, you should provide information about it to the Tax Inspectorate and the Pension Fund.
Cash machine
Currently, individual entrepreneurs can receive income for carrying out their work only by bank transfer, through a cash register or strict reporting forms.
If the application to the tax office during the process of opening an enterprise is approved, then you need to think about what to do after registering an individual entrepreneur. First, you need to check whether all documents have been received from the tax office.
After registration with the tax office you should have:
- certificate of state registration of an individual entrepreneur (OGRN);
- notification of registration with the tax authority (TIN);
- extract from the state register of individual entrepreneurs (USRIP).
Developing a plan, creating a seal and opening an account
It is natural to assume that when submitting documents for registration of an individual entrepreneur, a person thoroughly knows what he will do and how to develop the business. If in doubt, develop a business plan: determine who exactly will become the consumer of your services or product; study similar offers; take into account the presence of competitors and think about how you will suppress them. To be savvy in your business, study the legislation, specialized literature, and experience in operating a similar business.
The priority actions after registering an individual entrepreneur largely depend on the type of business. A novice businessman (in the form of an individual entrepreneur) is not required by law to have a seal, but in practice it is necessary. When there is a stamp on business paper, the attitude towards the participant in the transaction changes radically. Many clients will simply refuse to cooperate with a person whose company does not have a seal.
The next step is to open an individual entrepreneur’s current account in a bank. This does not need to be done immediately after registration. An enterprise (including an individual one) must open an account as soon as it starts operations, since, according to the law, a legal entity - and an individual entrepreneur can be a legal entity - is obliged to keep money in a bank and conduct non-cash settlements with legal entities and individuals. Cash is also possible, but with restrictions. As a rule, the activities of individual entrepreneurs involve accepting cash. This means that you need to purchase a cash register from a specialized organization and register it.
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Taxation system, registration with the Pension Fund and Social Insurance Fund
Some activities require a license or patent. Make sure that your activities are not regulated in this way or obtain the necessary permits. It is important to promptly choose the tax system under which you will work. This can be a general or simplified taxation system. Within a month, you can write an application to the Federal Tax Service to switch to the simplified tax system; it is more profitable for individual entrepreneurs. According to the law, a sole proprietor must account for income and expenses, so keep an appropriate book.
The procedure after registering an individual entrepreneur in the vast majority of cases involves hiring an accountant. Reporting for individual entrepreneurs is not as voluminous as for large enterprises, but still not small. There are penalties for every late or incorrectly completed report. A certified accountant, preferably with experience in your industry, will save you from fines and penalties, as you will report on time and in accordance with the law.
Immediately after opening an individual entrepreneur, the entrepreneur is required to register with the Pension Fund of the Russian Federation and the Social Insurance Fund. This is necessary if you plan to hire employees. If you are currently operating alone, then the tax service will register you with the Pension Fund of the Russian Federation and the Social Insurance Fund when registering you as an individual entrepreneur. Then, along with the registration certificate, the Federal Tax Service will also issue notifications of registration with the funds.
As soon as it is decided to conclude employment or civil contracts with employees, re-registration with the Pension Fund of Russia (its territorial division) will be required. Prepare and submit the necessary documents to the funds, and in a few days you will be issued a Notice of Registration.
Now, legally, an entrepreneur can hire workers, issue appropriate orders, and make entries in work books. Hiring requires compliance with the following rules:
- The contract is concluded in 2 copies (one for the employee);
- a job order is created in the appropriate computer program;
- the job description is filled out and signed by the employee;
- T-2 card is filled out,
- an entry is made in the work book;
- The employee is registered with the Social Insurance Fund and Pension Fund.
From this time on, an obligation arises to submit the required reports for employees.
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Advertising for business promotion
You will have to arrange the premises necessary for the work accordingly, purchase equipment and materials. After the routine work with registration, you can start advertising your business, even if it is small. Advertisements can be given in district (city) newspapers, in specialized advertising publications, on radio, on television, and on the Internet.
It wouldn’t hurt to create your own website and use it wisely to develop your business.
The Internet is the most mobile media. You will be able to quickly tell potential clients who need your services (products) about your offers, speed up sales and receive feedback, which, in turn, will lead to new clients. Order business cards too. Although they are not a mandatory attribute of an individual entrepreneur, they facilitate the conduct of business and help attract clients.
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Common mistakes
To ensure that the first steps after registering an individual entrepreneur do not lead to persistent disappointment and thoughts of quitting the business you have started, you need to become familiar with the typical mistakes of novice entrepreneurs and not allow them in your activities.
Step-by-step instructions to avoid mistakes:
- Certain types of activities have their own taxation system. Choose the right one.
- There is a considerable amount of regulatory documentation regulating the activities of individual entrepreneurs, so you should study it in advance.
- Regulatory authorities monitor the preparation of basic documentation. It is important to do everything right from the beginning.
- It is important to monitor the deadlines for submitting the required reports to avoid unnecessary fines. Tax payment deadlines should not be missed.
- You should be careful when filling out the details of tax recipients.
- You need to work with reliable partners, including trusted banks.
- Do not violate cash discipline.
- Monitor changes in legislation in areas that are relevant to you.