Professional construction and renovation of houses and apartments is a system of sequential operations to create or restore the functionality of residential premises. The prospects for activity in this area are due to the high demand for relatively inexpensive, but high-quality construction and finishing work. At the same time, the availability of new technologies and good materials makes it possible to start your own business with a small amount of start-up capital, which explains the interest of businessmen in the possibility of opening individual entrepreneurs in construction and repair.

Beginning entrepreneurs often wonder whether an individual entrepreneur can engage in construction and repairs, or whether for business in this area it is necessary to choose another form of business - an LLC. From the perspective of Russian legislation, both forms of entrepreneurship are acceptable, and the choice depends only on the point of view of the person concerned.

In order to decide between an individual entrepreneur and an LLC, you need to understand the pros and cons of these forms of entrepreneurship. It is easier to open an individual entrepreneur, and the entrepreneur manages the income from his activities independently. On the other hand, an individual entrepreneur cannot be sold; it is run only independently and is liable for debts with all its property.

An LLC can be bought or sold, and the liability of its members is proportional to their contributions. However, registration costs are high, and the LLC pays much more taxes.

Both forms of management may be preferable in different situations. Experts say that if an entrepreneur initially does not see much of a difference, it is better and easier to open an individual entrepreneur.

Registration of individual entrepreneurs for construction

Today, registering an individual entrepreneur for construction is a fairly simple procedure, consisting of several interrelated stages:

1. Selection of OKVED corresponding to construction and repair.
2. Choice of taxation regime.
3. Payment of state duty.
4. Submitting a package of documents to the tax office.

The procedure takes from 3 to 5 days, and the exact date of receipt of registration papers is usually indicated in the receipt. After the specified period, the new individual entrepreneur must receive a certificate of tax registration and a record sheet of the Unified State Register of Individual Entrepreneurs in form No. P60009.

Selecting OKVED

The first step in opening an individual entrepreneurship is to select codes for the economic activity that the businessman plans to engage in in the future. Codes are chosen according to the all-Russian classifier: since 2017, only one version has been in force - OKVED-2.

The classification of entrepreneurship according to OKVED is not affected by the size of the initial capital, the form of ownership, or the taxation system. All that matters is the intended activity.

When creating an individual entrepreneur, the OKVED code must be indicated in the application for registration.

OKVED consists of 17 sections (from A to Q), which describe all types of activities performed by entrepreneurs. Construction and repair corresponds to section F. This group includes major and current repairs, as well as new construction; and does not include activities in urban planning, architecture and building design.

Set of OKVED codes “Repair and finishing of turnkey apartments”

The activities of individual entrepreneurs in the field of construction and repair mainly consist of repairs and turnkey finishing of premises. The main code for this activity is , which characterizes the finishing and finishing work.

Individual entrepreneurs can also use additional codes:

• 45.31 – electrical installation work;
• 45.32 – insulation work;
• 45.33 – sanitary and technical work;
• 45.42 – carpentry and carpentry work;
• 45.43 – floor coverings and wall cladding;
• 45.44 – painting and glass work.

An individual entrepreneur has the right to choose several OKVED codes, but the main one must be one. You can read more about codes and their groups in.

Package of documents

In order to register an individual entrepreneur, a citizen of the Russian Federation will need only three documents:

• photocopy of civil passport;
• receipt of payment of state duty;
• application for opening an individual entrepreneur, drawn up according to the current model (P21001).

You can download a sample application at.

If a business is registered with the help of an intermediary, then such a representative must present a power of attorney, as well as a document confirming his identity. A foreigner who wants to open a business in Russia must have a residence permit in the Russian Federation (TRP, residence permit).

Choosing a tax system

The choice of taxation system is a particularly important issue for individual entrepreneurs, since this determines how often it will be necessary to submit reports and how much contributions to pay. There are four systems in use in the construction industry:

• general (OSNO);
• simplified (USN);
• patent (PSN);
• unified tax on imputed income (UTII).

Let's look at their characteristics:

1. OSNO is optimal for large entrepreneurs and for those who need VAT, but it is unprofitable at the beginning of doing business.
2. The simplified tax system is most common among beginner entrepreneurs. It is convenient because instead of 3 general taxes you only need to pay one.
3. PSN applies only to individual entrepreneurs, allowing them to acquire a patent for activities for a period of one month to a year and not pay other taxes during this period.
4. When paying UTII, it does not matter how much income the individual entrepreneur received. Tax is charged only on the amount established by law.

Let us note that of all the listed taxation regimes, experts advise beginning businessmen to choose the simplified one. If desired, the tax regime can be changed later.

Options for registration of individual entrepreneurs

There are several ways to register an individual entrepreneur in the field of construction, repair or any other:

• on one's own;
• online;
• with the help of intermediaries.

The registration period for an individual entrepreneur usually takes no more than 3 days from the moment the necessary papers are submitted to the tax service. It is impossible to reduce this period, regardless of the method of registering the business.

Independent registration of individual entrepreneurs

Setting up a new business on your own is considered optimal because it does not require large expenses and allows a novice entrepreneur to understand the specifics of interaction with authorities. In this case, the citizen simply needs to take the package of documents described above to the tax office.

The process of personal registration is completed by receiving the necessary tax certificates from the same tax office.

Registration of individual entrepreneurs online

Today you can even register an individual entrepreneur remotely. It helps with this by offering businessmen to go through the entire procedure online. A package of documents is literally generated automatically: in the appropriate tabs you need to enter your passport details, TIN, and also fill out an application for registration of an individual entrepreneur. Moreover, you can also pay the state fee remotely – for example, from a mobile phone.

This method of registering a business is suitable for confident PC users who value their time and do not want to waste it in line.

Registration through intermediaries

There is a third option for starting an individual business - through intermediaries. The advantage of this method is that it saves the citizen’s time, but this option is significantly more expensive. In addition to the state fee, you need to pay for the services of the intermediary himself and the notary, who will draw up a power of attorney for him.

The main task of an individual entrepreneur during such registration is to transfer his documents to an intermediary (often they are multifunctional centers). The intermediary will do the rest himself.

How much does it cost to open a sole proprietorship?

The cost of opening an individual entrepreneur varies depending on the registration method. The first two are the cheapest for an entrepreneur: in the case of self-registration or online registration, the only fee is a state fee of 800 rubles.

Registration of an individual entrepreneur through intermediaries will cost several thousand more: notary services (500-1000 rubles) plus additional expenses.

Who should become a member of the SRO

At the moment, there are no restrictions on individual entrepreneurs in construction, and all actions can be performed without obtaining a special license - it was abolished in 2010. Today, construction licensing has been replaced by the approval of a self-regulatory organization (SRO).

The SRO permit is issued for an indefinite period and requires quite large financial costs.

Individual entrepreneurs need to pay one-time compensation and entrance fees, buy an insurance policy if necessary, and also pay monthly membership fees.

Only some types of construction and repair work do not oblige individual entrepreneurs to join the organization. These works include:

• plasterboard finishing;
• plastering;
• excavation;
• painting and tiling works;
• Maintenance.

All other types of activities in this area require the individual entrepreneur to join a self-regulatory organization. Without permission from the SRO, the activities of an individual entrepreneur will not be legal.

Individual entrepreneur reporting in construction

Individual entrepreneurs in the construction industry must submit two types of reports:

1. Reporting of the individual entrepreneur himself. It includes data on the average number of employees, as well as reports and taxes to extra-budgetary funds and the Pension Fund.
2. Reporting submitted by individual entrepreneurs for their employees. It consists of reports to the Social Insurance Fund, the Pension Fund, as well as a report on personal income tax.

According to the law, individual entrepreneurs have 30 days to submit a quarterly report and 100 days to prepare an annual report. Before submitting reports to the tax office, they must be carefully checked to avoid problems and sanctions.

Registering an individual entrepreneur in 7 steps: Video

Even before the start of its operation, an individual entrepreneur must have a clear idea of ​​what he will do.

This is necessary for several reasons:

• to correctly assign the entrepreneur’s occupation to one or another production group; this is done by statistical institutions and is necessary to ensure that the statistical reports they present and the forecasts compiled on the basis of these reports are as accurate as possible;
• in order to find out before starting work whether the individual entrepreneur has the right to engage in the chosen type of activity at all, and whether this requires the issuance of appropriate permits or licenses.

All activities that an individual entrepreneur can engage in can be divided into four large groups.

1. Simple types.

This group includes almost everything that individual entrepreneurs do. Implementation is available immediately after registration and no additional permissions or approvals are required. This includes almost all services provided to the population and most types of production.

The main distinguishing features of ordinary activities that do not require any permits are the absence of danger to the life and health of the consumer and the absence of the need for additional education for the individual entrepreneur himself:

• legal services, consulting, drafting documents, etc.;
• accounting services, preparation and editing of accounting accounts, accounting and consulting on these issues;
• services for the sale, rental of housing, exchange, and so on;
• services related to document management;
• activities related to the manifestation of creative abilities;
• road freight transportation (except for cases when the weight of the transported cargo exceeds 3.5 tons);
• work in the field of printing, advertising and publishing;
• wholesale sales of goods for which there are no restrictions (for example, the sale of alcohol for individual entrepreneurs is prohibited);
• tutoring;
• handicraft and handicraft production;
• other.

1. Types of individual entrepreneur occupations characterized by licensing

Before starting an individual entrepreneur’s activity, you should make sure that the proposed activity does not require a license. If, nevertheless, the planned activity is included in the list of licensed ones, then you must go through the procedure of obtaining a license in order to be able to carry it out legally.

Classifying a type of activity as a licensed activity is due to high requirements for ensuring the safety of consumers, their lives, health, and property safety.

Obtaining a license will require the individual entrepreneur to confirm that he has the necessary funds, knowledge, technologies, and so on. In any case, the intended activity (or the result of this activity) must not pose a danger to the consumer.

These include:

• tourism activities;
• production and sale of pharmaceutical products;
• transportation of goods by non-road transport;
• passenger transportation by road;
• other.

A complete list of occupations that are subject to licensing can be found at the local government agency that issues licenses.

1. Types of occupations for individual entrepreneurs, characterized by prior receipt of permission or approval

These types of activities differ from licensed ones in that obtaining permission or approval of activities is easier than obtaining a license. For example, a permit for street trading can be obtained without any problems from local governments, subject to certain rules.

In most cases, permission to engage in these types of activities is issued by local authorities. Coordination can occur in any of the organizations involved.

1. What is an individual entrepreneur prohibited from doing?

An individual entrepreneur is not entitled to carry out some activities by law. For example, an individual entrepreneur cannot produce and sell alcohol-containing products. It is also prohibited to manufacture any goods that can be used for both peaceful and military purposes.

An individual entrepreneur does not have the right to manufacture, process or sell products with narcotic or psychotropic effects.

A complete list of prohibited activities for individual entrepreneurs is available from the registration authorities.

Individual entrepreneurs should remember that engaging in activities that he did not indicate during registration is prohibited. Therefore, we can advise him to indicate not only those types of activities that he will definitely engage in, but also potential ones. Registration documents allow for the indication of several dozen possible types of activities. Well, naturally, before indicating this or that activity, you should decide which group it belongs to.

Hello everyone and good mood! Today I want to write an article about, or rather, analyze the question when an individual entrepreneur has several types of activities.

In the case when an individual entrepreneur has one type of activity, then everything is clear and no questions arise.

Those types of activities that you do not engage in do not interfere with your activities in any way; you do not need to pay any reports or taxes for them.

It may turn out that you will not be engaged in the main type of activity, but will work as an additional one, there is nothing to worry about and you don’t have to immediately run to the tax office to change your main type of activity. The situation may change. Therefore, you conduct activities only in those types of activities that you consider necessary (provided that you have them open).

If you decide to engage in an activity that is not open to you, then simply go to the tax office.

The procedure for state registration of an individual entrepreneur has now become even simpler; prepare documents for individual entrepreneur registration completely free of charge without leaving your home through the online service I have tested: “Individual entrepreneur registration for free in 15 minutes.”

This is where I will end the article, questions, as always, in the comments, or in my group on the social network VKontakte "

An activity that regularly generates profit is considered entrepreneurial. If you engage in such activities without registering an individual entrepreneur and do not pay taxes, sooner or later you will have to bear responsibility to the state.

Responsibility is provided for in Article 14.1 of the Administrative Code. The fine for trading without registration ranges from 500 rubles to 2,000 rubles, and if the activity was subject to licensing or a special permit was required - from 2,000 to 2,500 rubles with confiscation of tools and products.

Article 116 of the Tax Code provides for another fine for unregistered entrepreneurial activity - 10% of proven income, but not less than 40 thousand rubles.

In addition, the tax office may charge taxes and penalties on the amount of income that can be proven.

Another reason that becomes a decisive factor for many is the blocking of bank accounts. Many unregistered entrepreneurs accept money from clients into an individual’s card account at a bank. Since 2017, banks have been actively blocking accounts for questionable transactions on the basis of Law 115-FZ “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism.”

By registering as an individual entrepreneur, you will be able to accept money from clients into your current account legally and not be afraid of fines from the tax office.

Individual entrepreneur registration

The procedure is quite simple, unlike registering an LLC.

In order to register as an individual entrepreneur, you need to send a package of documents to the tax office:

1. Application on form P21001.
2. Receipt for payment of state duty (800 rubles). From 2019, when submitting registration documents electronically, there will be no need to pay a fee.
3. A copy of your passport.
4. Application for the application of a simplified taxation system (if you plan to apply this regime).

The package of documents can be taken to the tax office in person, transmitted through a representative, sent by mail or sent electronically. You can send documents electronically directly through the Federal Tax Service website, but for this you first need to issue an electronic signature (approximately 1,000 rubles).

The tax office will register you as an individual entrepreneur within 3 working days after receiving the documents. If there are grounds for refusal or errors in the application, you will be denied registration and will have to submit the documents again. You will have three months to resubmit the documents without paying the state fee again. If you do not meet this deadline or make a mistake again, you will have to pay a fee.

Where can an individual entrepreneur do business?

Anywhere in Russia, regardless of where you are registered.

An individual entrepreneur is always registered at his place of registration and is registered with the local tax office to which his registration address belongs. He will have to pay taxes and submit reports to this inspectorate, regardless of where he conducts his business.

For example, if you are registered in St. Petersburg, and your business is in Kazan and Perm, you will pay and report to the St. Petersburg Federal Tax Service.

The exception is business on UTII and PSN. These are special tax regimes, which we will discuss below. If an individual entrepreneur uses these special regimes, he must pay and report to the tax office at the place of business (with some exceptions).

What taxes does an individual entrepreneur pay?

It all depends on which tax system the individual entrepreneur has chosen.

For small businesses in Russia, there are 3 preferential tax regimes that allow individual entrepreneurs to reduce the tax burden and the volume of reporting.

STS – simplified taxation system

The most popular mode among individual entrepreneurs, very simple and profitable.

By choosing this mode, you will pay taxes according to one of the options:

• 6% of all income received;
• 15% of the difference between income and expenses;

and at the same time you will be exempt from personal income tax, property tax (which you use in business) and VAT.

You choose the object of taxation – “Income” or “Income minus expenses” yourself and indicate this in the application. It will be possible to change the object only from the beginning of the next calendar year.

Reporting to the simplified tax system is only one declaration per year.

To start applying the simplified tax system from the first day of work, you need to send a notification to the Federal Tax Service along with registration documents or within 30 days after registration. If you fail to meet this deadline, you will be able to switch to the simplified tax system only from the beginning of the next calendar year.

We described in detail what a simplified taxation system is, under what conditions individual entrepreneurs can apply it, how to pay tax and report, in this article.

UTII – single tax on imputed income

It also provides for the exemption of individual entrepreneurs from personal income tax, property tax and VAT.

It can only be used for certain types of activities and only in those regions where this regime has been introduced by local authorities. To find out whether UTII operates in your region, contact your local Federal Tax Service.

By choosing this mode, you will pay taxes not on actual income, but on estimated income. For each type of activity, the Tax Code specifies a basic profitability, on the basis of which the tax is calculated, taking into account coefficients and physical indicators. How much you actually earn from this activity - more or less - the tax inspectorate will not be interested.

You need to submit UTII reports every quarter.

An individual entrepreneur can transfer his business to UTII at any time. To do this, you need to send an application to the tax office that relates to the address of doing business (or to the Federal Tax Service at the place of registration for some types of activities).

OSNO – general taxation system

If you do not switch to any of the listed special regimes, you will automatically be enrolled in OSNO - the general taxation system. This means that you will be required to pay personal income tax on income from business activities, property tax and VAT.

All this involves a lot of work on accounting and reporting, so before you decide to work with OSNO, make sure that you cannot use one of the special modes, or that OSNO is more profitable for you.

Other taxes for individual entrepreneurs

You will have to pay all other taxes (transport, land, water, etc.) only if there is a corresponding object of taxation. This does not depend on the applied taxation regime.

Insurance premiums for individual entrepreneurs

In addition to taxes, all individual entrepreneurs are required to pay insurance premiums for two types of insurance: pension and medical.

Contributions consist of two parts: fixed and additional.

Fixed insurance premiums for individual entrepreneurs

This is a fixed amount that every registered entrepreneur must pay to the Federal Tax Service during the year.

In 2018, this is 32,385 rubles, of which 26,545 rubles are for pension insurance and 5,840 for medical insurance. The amount is indexed every year.

This amount does not depend on the income of the entrepreneur, or on the tax regime applied, or on whether the entrepreneur is running a business at all or is simply listed as an individual entrepreneur. From January 1 to December 31 of the reporting year, a fixed amount must be paid, in parts or in full.

The fixed payment can be reduced only in one case - if the entrepreneur was in the status of an individual entrepreneur for less than a full year, that is, he either registered an individual entrepreneur in the current year, or, on the contrary, deregistered. Then fixed insurance premiums are calculated in proportion to the time that the businessman was in the status of an individual entrepreneur.

The Tax Code provides for only a few cases when an individual entrepreneur may not pay fixed contributions if he did not conduct business. This includes caring for a child under one and a half years old or a disabled person, military service, going to another country with a diplomatic spouse or to a remote area with a military spouse.

Additional insurance premiums for individual entrepreneurs

This portion of contributions is based on income. If an individual entrepreneur earned more than 300 thousand rubles in a year, he must additionally transfer 1% of the excess amount to the budget. For this purpose, 6 months are allotted after the end of the reporting year.

Reduction of tax on insurance premiums

Due to insurance premiums, you can reduce your tax payments: simplified tax system, UTII, unified agricultural tax or personal income tax. Entrepreneurs who earn up to 500 thousand rubles can thus not pay tax at all, because it will be “covered” by insurance premiums.

The procedure for reducing taxes on contributions depends on the tax regime applied and on whether the entrepreneur has employees.

How to withdraw profits

Entrepreneurs, unlike organizations, have a great advantage. They can freely withdraw profits at any time and in any quantity. All the money that is in the individual entrepreneur’s account or in the cash register belongs to him; he does not have to coordinate its withdrawal from the account with anyone and pay additional taxes on the withdrawn amounts.

But be careful, because... According to Law 115-FZ “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism,” a bank can block a current account if a transaction seems suspicious to them, this happens all the time now. Do not withdraw large sums unless absolutely necessary, give explanations to banks in a timely manner, and, if possible, pay for purchases with a corporate card.

Liquidation of individual entrepreneurs

This procedure is as simple as registration. You just need to pay off tax debts, submit missing reports, pay state fees and fill out an application to close an individual entrepreneur.

If there are employees, you must first dismiss them and deregister them from the funds.

What else do individual entrepreneurs need to know?

1. According to the law, individual entrepreneurs have the right not to keep accounting records, provided that they keep tax records.
2. Individual entrepreneurs are exempt from the obligation to maintain cash discipline.
3. In order to accept payments from clients, some entrepreneurs may need an online cash register. For more information about who needs a cash register, who can do without it, and what other methods of paying clients you can use, read the article “How to accept money from clients.”
4. Individual entrepreneurs face fines for failure to meet deadlines for payments to the budget, submission of reports and other violations. We have collected the most common violations in the article “Top 10 violations of individual entrepreneurs and the amount of fines for them.”
5. In addition to tax reporting, entrepreneurs sometimes have to submit statistical reporting if they are included in the annual Rosstat sample.

Internet accounting “My Business” will help you with accounting, taxes and reports. Feel free to open an individual entrepreneur and register in our service. With us you will do everything right.