If a citizen decides to go into business, the law requires him to go through the registration procedure to obtain the status of an individual entrepreneur. In this case, the data is entered into a special register of individual entrepreneurs, and the citizen is assigned the status of an entrepreneur without forming a legal entity (unincorporated legal entity).
The procedure for assigning the status of a legal entity
In accordance with civil law, any citizen who has passed the procedure for registering him as an entrepreneur without forming a legal entity can carry out entrepreneurial activity. The Federal Tax Inspectorate has the right to register on the basis of a citizen's application and the necessary package of documents prepared by him.
To register an individual entrepreneur, you must pay a tax fee and draw up an application in the prescribed form. It is necessary to fill in all the provided columns, without going beyond the squares provided for each indicator, in printed type. The application must be accompanied by a copy of the passport and a receipt for payment of the state duty.
An employee of the tax inspection draws up an appropriate receipt for accepting documents and issues it to the applicant against signature. According to the law, 5 working days are allocated for the registration of an individual entrepreneur, after which the citizen receives a certificate of state registration and assignment of an OGRNIP number to him. On the basis of this document, an individual entrepreneur will carry out his activities. This document must be referred to when concluding various contracts, issuing licenses, printing an individual entrepreneur, drawing up documents for renting, buying and selling, etc.
The procedure for creating an unincorporated legal entity is simplified as much as possible, since the individual entrepreneur is the full owner of the business he has opened, no co-founders and equity holders are provided for him. Only an entrepreneur, equal in rights, can become a partner for an individual entrepreneur; when concluding contracts, each of them must act on the basis of his personal registration certificate.
When the FTS may refuse to register an individual entrepreneur, the procedure for closing an individual entrepreneur
If, when filling out the application form, a citizen entered the data incorrectly, wrote erroneous information or did not pay the state fee, registration of an unincorporated legal entity may be denied. A similar decision is taken if the applicant's documents, an invalid passport, are in doubt.
Upon termination of business, the procedure is similar to that described above. A citizen should also pay a state fee and write a corresponding statement. In addition, he needs to visit the offices of the Pension Fund and the Social Insurance Fund, sign the responsible persons of these organizations about the absence of debts of the individual entrepreneur to them.
Then you should submit the necessary reports and pay the accrued taxes, fines and penalties. Only after that will the employee of the Federal Tax Service carry out the procedure for removing the entrepreneur from the register. When accepting the application, the employee fills out the corresponding receipt for the acceptance of documents and hands it to the applicant. According to the law, 5 working days are given for the closure of an individual entrepreneur. You can receive a notice of closure in person by presenting a receipt to an employee or by mail.
