An individual entrepreneur is who? Rights and duties of an individual entrepreneur

Every citizen can become an individual entrepreneur. From the moment of registration, he has not only opportunities and rights, but also certain duties. How to become an entrepreneur, what duties you need to perform - all this is described below in the article.

General Definition

An individual entrepreneur is an individual who is registered in accordance with the procedure established by law and who conducts entrepreneurial activity without creating a legal entity. A citizen is officially an individual entrepreneur and can work in this status only after completing registration with state bodies.

Thus, any person can become an entrepreneur and engage in commercial activities. To do this, it is enough to register at the official place of residence. In this case, do not have an office.

IP act according to the laws that regulate their commercial activities. But they are also subject to many rights that legal entities are entitled to.

Individual entrepreneurs of the Russian Federation are obliged to observe the rules of the Civil Code, which designate the activities of legal entities, except for cases when separate normative acts have been created for them.

How to register an IP

Registration of an individual entrepreneur includes several steps:

1. Preparing for registration - at this stage it is necessary to determine precisely the types of activity for OKVED, choose the appropriate type of taxation and pay a fee.

2. Collection of papers. To register an entrepreneur, it is necessary to prepare such documents:

• passport;
• A copy of the passport and certificates with the TIN number;
• A receipt for payment of the fee;
• An application for the registration of a certain type of IP in two copies (if the documents are sent by mail, they must necessarily be certified by a notary);
• Notice for the application of the simplified tax system.

3. Delivery of documents to the registration authority. In response, the organization must issue to the registrant a receipt for the receipt of necessary documents and a notice for the application of the simplified tax system with a special note of the tax service.

4. Obtaining documents. The registration authority must issue a certificate of state registration of the entrepreneur with the number of the OGRN, a document certifying the TIN and an extract from the EGRIP.

5. Registration of an individual entrepreneur in the Mandatory Health Insurance Fund and in the Pension Fund. The tax inspection itself sends information to the PF about the registration of the new PI.

Rights of individual entrepreneurs

1. The possibility of choosing the types of activities permitted by law.

2. The right to hire employees. Legislation establishes the number of employees who can be registered as an individual entrepreneur.

3. An individual entrepreneur is a businessman who himself manages his activities and is responsible for its results.

4. Freedom to choose partners and goods. The entrepreneur himself determines the segment of the market in which he will develop his business.

5. The right to independently determine the value of the proposed goods and services. However, the final price for products should not be significantly lower than that of other entrepreneurs.

6. The IP itself decides how and how much to pay to its employees.

7. An entrepreneur may arbitrarily dispose of the profits received.

8. The IP has the right to appear in court as a plaintiff and a defendant.

Duties

An individual entrepreneur is a subject of commercial activity that has certain responsibilities. Namely:

1. All PIs are obliged to adhere to the norms of the current legislation. An entrepreneur must know the tax, pension, antimonopoly and other types of legislation in order to conduct lawful and open activities.

2. All cash transactions are documented. Such documents include the labor contract, the contract for the supply of goods, etc.

3. To carry out licensed types of business, an entrepreneur must obtain a state permit - a certificate, a patent or a license.

4. All employees who are employed by an individual entrepreneur must be officially registered. That is, the IP concludes a labor contract with a person, an agreement on the performance of specific works or other agreements. After registration of documents, the entrepreneur is obliged to make the necessary deductions to the Health Insurance Fund, the Pension Fund and the Social Insurance Fund.

5. If the activities of an IP inflict harm on the environment, it is required to carry out activities to reduce negative impacts. If a businessman can not solve this issue on his own, he must apply to the environmental service.

6. An entrepreneur is obliged to pay taxes in time to the state treasury.

7. An individual entrepreneur is a participant in market relations, which must always respect the rights of the buyer. There are organizations for the protection of consumer rights, which consider the relevant complaints.

8. If, for some reason, the IP has exchanged data (name, place of residence or residence, type of activity), it must notify the relevant authorities - the tax inspection, funds and other institutions.

Licensing

The activities of an individual entrepreneur are strictly controlled by special bodies. They monitor not only the payment of taxes by the businessman and the necessary deductions to the funds. There are organizations that control the legality of the actions of the IP and the availability of permission to conduct certain types of business.

According to the law, the licensed activities include pharmaceuticals, passenger and cargo transportation by sea, rail and air transport, etc. In addition, IP can not engage in closed business, such as the development and sale of military products, the production and sale of drugs, poisonous substances, alcoholic beverages. Also, the entrepreneur has no right to engage in insurance, banking, tourism, production of pyrotechnics, ammunition, manufacturing and repair of military aircraft.