Individual private entrepreneurship is available to any citizen of the country who wants to carry out commercial activities within the framework of the law. This organizational and legal form makes it possible not to form a legal entity, which greatly simplifies and reduces the preparation of the necessary permits and registration documents.
Who can be an individual entrepreneur
The law defines entrepreneurial activity as being carried out independently at one's own peril and risk with the aim of systematically generating income. The activities of individuals who position themselves as individual private entrepreneurs are regulated by Article 23 of the Civil Code of the Russian Federation. It says that in order to carry out such activities, a citizen only needs to go through the registration procedure, after which he can conclude transactions, produce goods or services.
Individual entrepreneurs can be, in fact, any natural person, both those who have reached the age of majority, and minors from a certain age, both residents and citizens of other states, or generally stateless persons. Even a municipal or government employee can become a private entrepreneur and register officially.
A prerequisite for all these categories of citizens is legal capacity, not limited by judicial procedure. In the event that a person under the age of 18 wants to carry out commercial activities, he will need the consent of his parents or guardians, in the absence of such consent, the young entrepreneur may act on the basis of a court decision recognizing his legal capacity. Persons under the age of 18 but already married do not need permission from their parents or guardians.
How is the activity of an individual entrepreneur carried out
After registering with the tax office, which is of a notification nature, the entrepreneur is free to choose the taxation system that will be more convenient and profitable for him. The Tax Code of the Russian Federation describes in detail the current taxation systems, the procedure for calculating and paying taxes, which must be paid to the budget by private entrepreneurs.
In case of non-payment of taxes or non-fulfillment of contractual relations, the entrepreneur is liable, including he may be responsible for his obligations and personal property. Therefore, before starting a commercial activity with the aim of generating income, you should carefully calculate all the possible risks and take the economic side of the matter seriously. It is best to write a business plan and show it to professional economists, it will help you avoid many mistakes and disappointments.
