Individual entrepreneurship

Individual entrepreneurship - this is a type of private entrepreneurship - this is an initiative activity of citizens aimed at generating income, based on the property of the citizens themselves and carried out on behalf of citizens at their risk and under their property responsibility.

The subjects of individual entrepreneurship are individuals engaged in entrepreneurial activities without forming a legal entity and in the absence of signs of a legal entity.

Legislation in the field of individual entrepreneurship is based on the Constitution of the Republic of Kazakhstan and consists of this law and other regulatory legal acts that do not contradict it.

The Law of the Republic of Kazakhstan "On the Protection and Support of Private Entrepreneurship" applies to individual entrepreneurship, taking into account the specifics established by this Law.

This Law governs relations on the implementation of the activities of notaries and lawyers to the extent not regulated by special legislative acts.

Types of individual entrepreneurship

Personal entrepreneurship is carried out by one citizen independently on the basis of property belonging to him by the right of ownership, as well as by virtue of another right that allows the use and (or) disposal of property.

Joint entrepreneurship is carried out by a group of citizens (individual entrepreneurs) on the basis of property belonging to them by the right of ownership, as well as by virtue of another right that allows joint use and (or) disposal of property.

Individual entrepreneurs are liable for their obligations with all their property, with the exception of property, which cannot be levied in accordance with the current legislation of the Republic of Kazakhstan.

Individual entrepreneurs have the right to carry out any types of entrepreneurial activity, unless otherwise provided by law.

Individual entrepreneurship is carried out on the basis and at the expense of property owned by a citizen on the basis of ownership or other rights that allow the use and (or) disposal of property for entrepreneurship.

Legal entities and citizens have the right, under the conditions established by law, to lease their buildings, structures and premises, including apartments in apartment buildings, for use in business activities.

An individual entrepreneur is responsible for the quality of his products (works, services).

Products manufactured by an individual entrepreneur must meet the requirements, unless otherwise specified by the contract with the customer.

Products for which state standards are established must comply with these standards.

If it is provided for by the established rules, products (works, services) sold by an individual entrepreneur must have quality certificates or a mark of conformity.

Individual entrepreneurs have the right to sell their products, as well as goods purchased for the purpose of sale and in any locality, unless otherwise provided by legislative acts.

Settlements of individual entrepreneurs related to their entrepreneurial activities are made at their discretion, both in cash and in a non-cash manner, unless otherwise established by legislative acts.

Individual entrepreneurs have the right to carry out entrepreneurial activities using hired labor.

An individual entrepreneur is engaged in entrepreneurial activities, acquires and exercises rights and obligations under his own name. A citizen, when making transactions related to entrepreneurial activity, must indicate that he acts as an individual entrepreneur, unless this obviously follows from the very situation of the transactions. When carrying out its activities, an individual entrepreneur has the right to use personal forms of documentation, seals, stamps, the texts of which must clearly indicate that this person is an individual entrepreneur.

An individual entrepreneur has the right to assign a company name to his business and (or) its part, separated as part of the entrepreneur's property. The trade name of the case and (or) its part of an individual entrepreneur is subject to legal protection without the obligatory filing of an application for this or registration and regardless of whether it is part of a trademark. It is not allowed to use company names belonging to other entrepreneurs without their consent.

An individual entrepreneur has the right to use various systems of social security, social health insurance.

The activities of an individual entrepreneur may be terminated voluntarily or involuntarily, as well as in the event of the occurrence of circumstances provided for by this Law.

On a voluntary basis, activities are terminated at any time on the basis of a decision taken independently by an individual entrepreneur - in case of personal entrepreneurship, by all participants jointly - in case of joint entrepreneurship.

Forcibly, individual entrepreneurship is terminated by a court decision in the following cases:

• 1. bankruptcy;
• 2. invalidation of the registration of an individual entrepreneur in connection with violations of the law committed during registration, which are irreparable;
• 3. carrying out activities without a license;
• 4. carrying out activities with repeated during the calendar year or gross violations of the law;
• 5. in other cases provided for by legislative acts.

The activity of an individual entrepreneur is considered terminated from the moment such an entrepreneur is excluded from the State Register on the basis of his application or a court decision, in appropriate cases.

Who is a sole trader? In economically prosperous states, entrepreneurship is very developed, which not only provides regular income to the country's budget, but also allows the population to independently extract the income that it considers worthy for itself. Individual entrepreneurship in Russia has not yet exhausted its opportunities for further growth; less than 4 million Russians are engaged in it.

There is a common misconception that a sole trader is a legal entity, while an individual can do business as a sole trader. This is a delusion, the reason for which is that such "experts" simply did not bother to take a little time to get acquainted with the changes in the current legislation.

The definition of this term is as follows. Under the individual entrepreneur (IP), the legislator understands an individual who has registered an enterprise in the prescribed manner and who is engaged in entrepreneurial activities, while it does not form a legal entity. Previously, before the amendments, the law used other designations of this concept, which directly indicated that an individual entrepreneur is an individual.

Therefore, it is just as incorrect to consider an individual entrepreneur as a legal entity, as it is to consider a state of emergency as such. Any capable citizen can become an individual entrepreneur. As soon as he is registered in the prescribed manner, he receives a certain status, which allows him to engage in entrepreneurial activities.

They mistakenly believe that to obtain this status, at least an office is needed, but it is better to have some kind of enterprise, warehouse, kiosk. All this is not required from an individual who has expressed a desire to do business. He may have neither the means of production nor premises, but at the same time have the status of an individual entrepreneur. This is precisely the status that can be registered at the place of residence.

The current Russian Civil Code (CC RF) allows citizens to engage in entrepreneurship without having to form legal entities. An important point to remember! Registration of an individual entrepreneur can only be carried out at the place of registration of a citizen, even if he carries out his activities in another city, he has an office and means of production there. For example, if a person is engaged in business in Moscow, and he is registered in Kazan, he needs to register in Kazan, and not in the capital's state institutions.

Signs of IP

What are the main features of individual entrepreneurship? Individual entrepreneurial activity has the following features:

• it can be any citizen of Russia, a foreigner or a stateless person;
• the activity is of an entrepreneurial nature;
• state registration.

As for age requirements, individual entrepreneurship is available to citizens from the moment they come of age, that is, from the age of 18. But the legislator admits that full legal capacity may come earlier if a person has entered into marriage before he reaches 18 years of age.

In addition, if a person has a desire to start an individual entrepreneurship before this age, in this case, the legislator gives him the right to register an individual entrepreneur from the age of 16. After registration, he is considered an adult. Foreign citizens who stay on the territory of the Russian Federation on the basis of a visa can be registered as an individual entrepreneur, but only for the period while the visa is valid.

Features of individual entrepreneurship is that it should be characterized by:

• systematic;
• legality;
• riskiness;
• its purpose is to make a profit;
• carried out at your own risk.

The legislator has not established any clear criteria for systematicity. The tax service believes that if entrepreneurial activity was carried out twice, it can be classified as systematic. It is impossible to register an individual entrepreneur if his activity is initially assumed to be illegal, for example, the distribution of pornographic materials.

Self-employment does not have to be profitable. That is, it is understood that this is the goal, but, like any other, it may not be achieved. This is not a reason for forced closure.

The riskiness lies in the fact that a person carries out activities at his own peril and risk, is responsible to the state and partners with his property. Important point! If an individual entrepreneur has gone bankrupt, has become bankrupt, not all property is confiscated from him. If he has the only apartment in which he lives with his family, it is not subject to confiscation, as well as his belongings, as well as means of production. The list of such property is established by civil procedural legislation.

It's important to know! Two individual entrepreneurs have the right to create any types of business partnerships and companies. This allows you to scale a successful business, the development and form of which makes a businessman go beyond the scope of an individual entrepreneur.

What is regulated and are there any restrictions?

Not only self-employed,

but the registration procedure is also carried out in accordance with the provisions specified in the Federal Law of the Russian Federation “On State Registration of Legal Entities and Individual Entrepreneurs” No. 129-FZ, as well as in accordance with the norms of the Civil Code of the Russian Federation. In addition, this activity is regulated by the regulatory legal acts of the subjects of the federation. The Russian government periodically issues decrees that relate to the activities of the IP.

Despite the fact that every citizen living in Russia can become an individual entrepreneur, there are some restrictions that apply not only to incapacitated persons. It is forbidden to engage in entrepreneurial activities of state and municipal employees who are endowed with state functions. Among them are the following categories:

• employees of the Ministry of Internal Affairs;
• FSB officers;
• tax officials;
• military personnel;
• officials;
• school principals;
• university rectors;
• employees of the FSS and the FIU.

But state employees who are not endowed with such powers, who are not called upon to perform the functions of the state, can be engaged in doing business as an individual entrepreneur. This applies to the following categories:

• doctors;
• teachers;
• university teachers.

The legislator is especially concerned with persons who have been convicted of criminal offenses. This does not mean that these persons cannot become individual entrepreneurs if their criminal record is not cleared. They are allowed by law to engage in business, unless there is a court order to do so. But for certain types of criminal record, they may be prohibited from engaging in business that involves working with minors.

For some types of activities, it is not enough to register as an individual entrepreneur. After that, you still need to get a license. This applies to the pharmacy business or if the transportation of citizens and goods is envisaged. For those who plan to engage in private investigation, it is also necessary to obtain a license for this type of activity.

The difference and features of an individual entrepreneur from a legal entity is that there are types of activities that an individual entrepreneur will not be able to engage in. This applies to the development and sale of weapons, ammunition, drug or poison trafficking. An individual entrepreneur will not be able to engage in the production or sale of alcoholic beverages.

That is why those who plan to open a restaurant or bar that provides for the sale of alcoholic beverages should immediately think about registering an enterprise in the form of a legal entity. Those who want to provide banking services, produce medicines, etc. will have to do the same.

What is the most important thing?

Often, novice businessmen perceive the fact of registration as an individual entrepreneur as something outstanding. And only later, when he has more than one open and closed enterprise behind him, the fact of registration is perceived as ordinary.

The fact is that the certificate of registration is only a tool that needs to be used correctly. The mistake of many is that they do not single out the main thing in the activity of a businessman - sales. Their presence or absence can either make a project successful or bankrupt it.

Having decided to start a project, it is strongly recommended to gain experience in this area, for which you will have to get a job in an existing company. Your best bet is to go to the sales department. It is not difficult to find someone who will do the work itself, make a product or provide a service. It is much more difficult to sell this product or service. Having learned how to promote a product or service well, you can think about your own business - you have already mastered the main thing in it!

Important point! It is erroneously believed that you need to start your own business with the output of a product or service that has no analogues. Their introduction to the market requires the formation of demand, which requires multimillion-dollar investments. Therefore, it is necessary to start projects in those areas that are already developing, but which are not oversaturated.

An individual entrepreneur may be declared bankrupt.

He can do this on his own, if he voluntarily declares his inability to continue to satisfy the requirements of creditors, or he can be recognized by the appropriate decision of the arbitration court.

A statement of claim is filed with the court by both the debtor and the creditor. Such an application may be submitted by a tax authority or other authorized person with requirements for mandatory payments. As soon as the court declares the IP bankrupt by its decision, its registration becomes invalid, the issued licenses are canceled.

Starting a business legally is not difficult. To do this, it is enough to register as an individual entrepreneur. However, an individual entrepreneur has not only the right to carry out entrepreneurial activities, but also all the obligations associated with this activity.

And there are many of them and it is better to know them, otherwise you will have to pay significant fines. In this article, we will talk about what should be taken into account when creating and running your own business as an individual entrepreneur (sometimes an individual entrepreneur is called a private entrepreneur or a private entrepreneur, an entrepreneur without a legal entity or PBOYUL) in order to avoid mistakes that you will have to pay for later.

Pay your taxes and sleep well...

Before registering an individual entrepreneur, it is advisable to think about the taxation system according to which you are going to pay taxes to the state. It's better to do it in advance. So, many entrepreneurs make a choice in favor of a simplified taxation system. It is necessary to report to the state less often than under the general regime, the burden of taxes is not so heavy, and their number is less (instead of personal income tax, VAT, property tax, a single tax is paid). In addition, the single tax can be reduced by the amount of paid insurance premiums.

But so that from the moment of registration of the IP, a notification of the transition to the simplified tax system must be submitted within 30 days from the date of registration. If you miss the deadline, then you can switch to the simplified tax system later, but from next year.

Unlike the simplified tax system, it is possible at almost any time during the year.

Each mode (common mode,, , , ESHN) has its advantages and disadvantages, about which.

Usually, when choosing a taxation system, they are guided by the size of the tax burden, the volume of reporting, and take into account the range of potential customers. So, if your main clients are legal entities for which it is important to be able to deduct VAT, then special regimes (STS, UTII, patent taxation system, UAT) may not be suitable for you. IP does not pay VAT on special modes, so you can lose customers.

The choice of taxation system can be made using a new service on the website of the Federal Tax Service. will help in a few minutes to compare the benefits of different tax regimes and calculate the size of the tax burden.

Space premiums

Starting from this year, the state decided to significantly (more than double) increase fees from entrepreneurs for the needs of compulsory insurance. The amount of insurance premiums that must be paid depends on the income of the entrepreneur.

Significant things have happened since 2017. Now they will be collected by the tax authorities. Reporting, CBC, etc. are changing.

Read about how IP contributions are paid in 2019 - 2020. It is now possible to calculate insurance premiums payable by individual entrepreneurs using a special service of the Federal Tax Service, which is publicly available and free of charge -.

Responsibility of an individual entrepreneur

One of the disadvantages of doing business in the form of an IP is the unlimited liability of an IP. For example, if an individual entrepreneur took a loan from a bank, but did not repay the debt or caused losses to another economic entity, then almost all of his property (including vehicles, real estate) can be foreclosed.

On the other hand, the amount of fines for individual entrepreneurs, as a rule, is much less than the amount of fines for legal entities for similar offenses. For example, for violation of cash discipline, an individual entrepreneur will be fined a maximum of 5,000 rubles, but a legal entity - 50,000 rubles.

Also, a rule is provided for entrepreneurs, according to which the first fine can be replaced by a warning.

Reporting on time

Many entrepreneurs, when creating a business, have no idea that they are, first of all, in front of the tax and extra-budgetary funds (Pension Fund, FFOMS, FSS of Russia). But in vain! After all, a declaration or information not submitted at the time is a fine. Moreover, the obligation to report remains even when the individual entrepreneur does not actually conduct activities or does not receive any income from it. In the latter case, null declarations are submitted. If an individual entrepreneur has employees, then reporting must also be submitted for employees. At the same time, the individual entrepreneur must also perform functions, that is, calculate, withhold and pay taxes and contributions for their employees.

In addition to submitting declarations and information to the tax inspectorate and off-budget funds, entrepreneurs must ensure tax accounting of income, expenses and physical indicators for tax purposes. But if an individual entrepreneur has tax records, then he is exempted from the obligation to maintain. This allows you to save individual entrepreneurs and not spend money on an accountant or accounting support for your activities.

Be disciplined...

Do not forget about cash discipline. Disciplined individual entrepreneur follows a series, namely:

• does not exceed the amount of cash settlements with counterparties in one transaction established by the Central Bank (in 2019, still no more than 100,000 rubles),
• establishes and hands over the information stored at the cash desk to the bank for crediting to your current account,
• in settlements uses or issues documents confirming the receipt of cash. Do not forget that when using IP in calculations, you need to acquire.

Otherwise, as usual, fine.

IP can also make settlements with clients and counterparties in a cashless manner by opening. The opening/closing of such accounts must be notified to the tax authorities. Otherwise, a fine.

For more information about cash discipline, you can see other articles on the site.

Note! From 06/01/2014, the procedure for cash transactions. Many duties have been cancelled.

Another important innovation is the introduction, which will affect many entrepreneurs, including those previously exempted from using cash registers in settlements.

Be careful! For making payments without using online cash desks, a very sensitive administrative responsibility has been established. The amount of the fine for not using the online cash desk in the calculations may be under Art. 14.5 of the Code of Administrative Offenses of the Russian Federation from 3/4 to 1 of the calculation amount. You can find out who needs to use CRE in calculations using a special service of the Federal Tax Service.

Help for business

Individual entrepreneurs in a number of regions can still count on. For these purposes, programs of self-employment of the population were mainly used. But since 2012, funding for the program has been discontinued at the federal level, so now supporting entrepreneurship is entirely the concern of the regional authorities. You can find out if you have any programs in your region by contacting the employment agency and other authorities of the constituent entity of the Russian Federation (committees for entrepreneurship development, ministries of economy, etc.).

IP opening and closing

If these difficulties do not scare you, and you are ready to open a business, then for this you need to register an individual entrepreneur and inspect at the place of residence. You can also see how to register an individual entrepreneur in the following video, which shows how to do this for free using a special service of the Federal Tax Service of Russia on the website of the tax service.

If you decide, then it's not difficult either. Complications can arise if the individual entrepreneur has debts for taxes and insurance premiums. The brochure below, prepared by specialists from the Federal Tax Service of Russia, explains step by step how to register an individual entrepreneur, how to choose a taxation regime and many other important issues.

Coffee break: why is the sequence of numbers like this?

The definition of entrepreneurial activity is provided by Article 2 of the Civil Code of the Russian Federation. It states that entrepreneurial activities to make a profit are carried out independently at their own risk and the entrepreneur is responsible for the failure to fulfill obligations with his property. Legal relations in the field of entrepreneurship are regulated by the Constitution of the Russian Federation, the Civil Code of the Russian Federation, the Tax Code of the Russian Federation and other federal laws and legal acts of the Russian Federation.

Obtaining the legal status of an individual entrepreneur, an individual assumes an even greater duty and responsibility, now he acts not only as a citizen, but also as a taxpayer, employer and business entity. What rights and obligations a natural person has without forming a legal entity will be analyzed in the article.

Obligations of an individual entrepreneur

1. Tax liabilities:

- First of all, you need to register your commercial activities with the Federal Tax Service Inspectorate. Unfortunately, many begin to provide services and sell goods without formalizing the activity, but actions for illegal entrepreneurial activity entail an administrative fine, and if your activity has caused damage to the state and citizens, then criminal liability.
- Also, unregistered entrepreneurs will not be able to advertise in the media, and the trust of the townsfolk is more caused by organizations that have a legal status;
– If the selected activity is subject to licensing, then a necessary condition is to obtain documents confirming the permission to engage in the selected work;
— Quarterly or annually submit reports to the tax office, pension fund, social insurance fund, health insurance fund;
— Pay insurance premiums and taxes quarterly or at the end of the year in accordance with the chosen taxation system;
- Provide documents for a desk audit at the request of the tax inspectorate.

2. Business obligations:

— Conduct legal business activities;
– Take into account the interests of customers and comply with the Consumer Protection Law;
- Take responsibility for obligations.

The responsibility of the entrepreneur as an employer:

— Conclude employment contracts with employees;
— Timely pay wages to employees, if any;
— Pay insurance, medical contributions for employees.

3. Civil liability:

- Do not harm the environment with your activities.

Rights of an individual entrepreneur

1. The rights of an individual entrepreneur as a participant in economic relations.

— IP has the right to carry out commercial activities throughout the Russian Federation;
- Independently manage their profits;
— Use own property for economic benefit;
– The entrepreneur has the right to his seal and trademark;
- Individual entrepreneurs can take advantage of state support for small businesses;
— An integral part of the rights is the protection of legitimate interests;
- Independently coordinate their activities;
— Select clients and business partners;
- Make decisions to close your business;
- Hire employees.

2. Rights in the field of tax relations.

— Receive information on taxes and fees at the place of registration for free;
— Challenging the illegal actions of the tax service;
— Choose the system of taxation, unless otherwise prescribed by law;
- Enjoy tax and duty benefits.

3. Rights of an individual entrepreneur as an employer.

- The employer, for its part, has the right to demand from employees the proper performance of the employment contract;
- Demand damages from the employee if the latter is guilty of this.

An individual entrepreneur has a special legal status of a natural person, but with the obligations of a legal entity, and therefore an individual entrepreneur has such rights and obligations that are inherent only to this subject of legal relations. For example, the patent system of taxation is allowed for use only by individual entrepreneurs. Payment of insurance premiums for oneself is made regardless of whether there was a profit. An individual entrepreneur can exercise his rights and obligations personally and through a representative by proxy, but in any case, the entrepreneur will be liable for the illegal actions of the authorized person.

We have a video on the topic “What is a sole trader?”

I am writing an article for those who want to start their own business, but do not know how or do not have enough time to do it...

Let's take a look at what IP is for a start!

The abbreviation IP is very common today everywhere, after the crisis and at the time of the crisis, many "retired of their own free will", because. employers did not pay wages or did not want to do so. Not the point ... The main thing at this moment, many people, out of the hopelessness of the situation, began to "move their brains" where to get money ?, what to live on? what to eat? etc. And many tried to make money on what they knew how, and in order not to break the law and not be afraid of prosecution by supervisory authorities, they formalized their actions in a legal way by registering an individual entrepreneur.

Why Sole Proprietor and not LLC?

What is an IP? An individual entrepreneur (individual entrepreneur) is an individual endowed with the rights of a legal entity but without forming a legal entity, having the right to engage in entrepreneurial activities (buy, sell, provide services, and even engage in production, construction, etc.), hire employees and etc.

Here's how Wikipedia defines it: Individual entrepreneurs- individuals registered in the manner prescribed by law and carrying out entrepreneurial activities without forming a legal entity.

Individuals engaged in entrepreneurial activities without forming a legal entity, but not registered as individual entrepreneurs in violation of the requirements of the civil legislation of the Russian Federation, in the performance of duties assigned to them by the Tax Code, are not entitled to refer to the fact that they are not individual entrepreneurs

More or less clear what is IP .....

Let's get back to the question then: "Why IP, not LLC?"

Here is the table below to answer this question:

IP or LLC? difference and difference

Based on the data in the table, it is beneficial to open an IP when you are engaged in a small (simple) business.

By the way, if you are engaged in any business and have not registered an individual entrepreneur, LLC, etc., you can get big!

For doing business without registering as an individual entrepreneur, administrative, tax and criminal liability is provided. Each of the types of liability implies its own rules for fixing a violation, drawing up documents and actually bringing to responsibility.

According to the Civil Code of the Russian Federation, entrepreneurial activity is an independent activity carried out at one's own risk, aimed at systematically making a profit from the use of property, the sale of goods, and the provision of services.

To confirm the conduct of activities, it is necessary to prove two circumstances: systematic and profit. Systematic activity is considered if it is carried out two or more times a year. When a citizen once sold any property or rendered a service to someone, from this he will not be considered to be engaged in entrepreneurial activity. Similarly, if a person sells goods, including systematically (that is, more than twice), but for the same money for which he bought them, or cheaper, the transactions will not be considered entrepreneurial activity. Because there is no profit.

Let's start with administrative responsibility. It is provided for by Part 1 of Art. 14.1 of the RF Code of Administrative Offenses. The possible fine is from 500 to 2000 rubles.

The decision to prosecute is made by the justice of the peace (Article 23.1 of the Code of Administrative Offenses of the Russian Federation). The case may be considered either at the place where the offense was committed, or at the place of residence of an individual (if he files a petition for consideration of the case at his place of residence). A protocol on violation, that is, conducting activities without registration, is entitled to draw up: the police, the tax inspectorate, the territorial bodies of the ministry for antimonopoly policy, the state inspectorate for trade, the quality of goods and consumer protection (Article 28.3 of the Code of Administrative Offenses of the Russian Federation). In addition, a prosecutor can initiate a case on an administrative offense (Article 28.4 of the Code of Administrative Offenses of the Russian Federation). Usually, employees of one of the listed departments come to an individual with an inspection, inspect the premises or test purchase, find that the individual is operating illegally, that is, without registering as an individual entrepreneur, after which a protocol is drawn up.

Operating without registering as a sole trader is a continuing offence. It is possible to bring a citizen to responsibility only within two months from the date of drawing up the protocol.

Note. For the implementation of entrepreneurial activities without registration as an individual entrepreneur, administrative, tax and criminal liability is provided.

When the protocol is drawn up incorrectly, there are contradictions in it, the judge must return the document to the department by which it was drawn up for revision. Two months is a fairly short period, and while the protocol is being finalized, the period often has time to expire. If the case is not considered by the judge within two months from the date of drawing up the protocol, the judge will issue a decision to terminate the proceedings on the case of an administrative offense.

Criminal Code of the Russian Federation

Criminal liability for illegal business is provided for in Art. 171 of the Criminal Code. It occurs if, as a result of an audit conducted by the police or the prosecutor's office, it is proved that either the infliction of large damage to citizens, organizations or the state, or the receipt of income on a large scale, that is, in the amount of at least 250 thousand rubles. (Note to Article 169 of the Criminal Code of the Russian Federation).

Considering that test purchases are usually carried out for small amounts, it is unlikely that such a criminal offense will be detected as part of a test purchase. Cases of illegal entrepreneurship are usually discovered during the investigation of cases on the legalization of proceeds from crime. The rest of unregistered entrepreneurs should not worry about criminal liability, because to prove the receipt of income in the amount of more than 250 thousand rubles. difficult, so the police usually open cases under Art. 171 of the Criminal Code, if he does not have evidence of receiving income on a large scale.

Liability for illegal business causing damage from 250 thousand rubles. up to 1 million rubles (that is, on a large scale) as follows: a fine of up to 300 thousand rubles. or in the amount of the salary (other income) of the convicted person for a period of up to two years, or compulsory work for a period of 180 to 240 hours, or arrest for a period of four to six months.

For illegal entrepreneurship with causing damage or deriving income on an especially large scale, a fine of 100 to 500 thousand rubles is provided. or in the amount of the salary (other income) of the convicted person for a period of one to three years, or imprisonment for up to five years with a fine of up to 80 thousand rubles. or in the amount of the salary (other income) of the convicted person for a period of up to six months. Damage or income exceeding 1 million rubles is considered especially large.

If a citizen is brought to criminal responsibility for the first time, and even positively characterized by neighbors, at the place of work, is not a malicious violator of public order, then most likely he will be awarded only a fine.

Owners of residential premises, renting them out, must bear in mind that for renting out residential premises to be held criminally liable under Art. 171 of the Criminal Code is impossible, regardless of the amount of rent that the investigator can prove. This was announced by the Supreme Court of the Russian Federation in the Decree of the Plenum of the Supreme Court of the Russian Federation of November 18, 2004 N 23.

tax code

In the Tax Code, liability for activities without registration is provided for in two articles at once: 116 and 117. For evading registration with the inspection, a fine of 10 percent of the income received, but not less than 20 thousand rubles, is threatened. In the case when the activity was carried out for more than 90 calendar days, the fine will be 20 percent of the amount of income, but not less than 40 thousand rubles. (Article 117 of the Tax Code of the Russian Federation). For violation of the deadline for registration with the inspection, the fine will be 5 thousand rubles. or 10 thousand rubles, if the delay is more than 90 calendar days (Article 116 of the Tax Code of the Russian Federation). Only one of the articles can be punished. Let's see when each of them applies.

A citizen must register with the inspection before he begins to receive income from activities. Therefore, the periods of delay for the application of the above articles should be counted from the moment of the first proven case of receipt of proceeds. According to Art. 116 will be fined if an application for state registration is submitted before the tax audit report is drawn up, but later than the day the first revenue is received. If, as of the date of drawing up the tax audit report, the application has not yet been submitted, liability arises under Art. 117 of the Tax Code.

In addition to the fine for the lack of state registration, inspectors have the right to charge additional taxes by calculation. A failed merchant will be charged additional personal income tax and contributions to extra-budgetary funds. And if in the region where the individual entrepreneur works, the activity is transferred to UTII, and the activity of the entrepreneur falls under this regime, then instead of income tax, controllers will calculate UTII. Penalties for late payment will be added to the amount of taxes calculated by the inspectors. In addition, a fine of 20 percent of the amount of additionally assessed taxes and penalties is established for non-payment of taxes (Article 122 of the Tax Code of the Russian Federation).

Note. In addition to the fine for the lack of state registration, inspectors have the right to charge additional taxes by calculation, as well as set penalties and a fine for their late payment.

Taxes and fines from individuals are collected in court according to the rules provided for by the Code of Civil Procedure, in a court of general jurisdiction. So the decision of the controllers or the protocol alone is not enough, the perpetrator will pay the fine only on the basis of a court decision.

We pointed out possible sanctions that threaten individuals who carry out activities without registration. The final verdict depends on the situation, the facts and the decision of the court. The most effective method of protection against inspectors is not to let them into your territory, especially if the activity is carried out by a citizen at home. Inspectors have the right to enter the residential premises only by a court decision. But inspectors can get information about the conduct of illegal activities not only during the audit. Of course, there is the possibility of an accidental visit, but it is small. Basically, controllers come after receiving messages from the businessman's competitors or complaints from offended buyers. Tax inspections collect information about unregistered entrepreneurs. Having accumulated information, they can appoint an on-site inspection, inspect the premises and territories used to generate income. Other departments (police, prosecutor's office, Rospotrebnadzor) will come to check an unregistered entrepreneur, most likely in connection with complaints received by deceived buyers.