Registration of individual entrepreneurs: complete instructions in 2021

Over the past two years, the procedure for registering individual entrepreneurs has changed significantly. This was primarily influenced by Federal Law No. 312-FZ of October 30, 2017.

General rules and conditions for individual entrepreneur registration
In 2021, you can open an individual entrepreneur through a mobile application
How else do they plan to simplify the registration of individual entrepreneurs?
New form for registering individual entrepreneurs in 2021
Application methods and list of documents for individual entrepreneur registration in 2021
What documents does the individual entrepreneur receive?
Selecting OKVED codes: expert advice;
What to do after registering an individual entrepreneur
Errors and difficulties in registering individual entrepreneurs

STEP 12. Check the documents and submit them for registration

Collect all the documents, not forgetting to pay the state fee for registering an individual entrepreneur, and submit them to the registering tax office. Before submitting documents, be sure to double-check all documents and the data specified in them. Additionally, we recommend that you familiarize yourself with the reasons for refusal to register an individual entrepreneur.

Compliance with the above rules will help you avoid mistakes when preparing registration documents, but regional specifics cannot be ruled out (when local tax authorities may impose requirements that are not explicitly stated in the laws). A free service of document verification for business registration by 1C specialists is available to our users

Free document verification

When submitting documents to the registration authority, do not forget:

sign the application for registration in form P21001 in the presence of an employee of the registration authority (if he and you forget about this, there will be a refusal);
Get a receipt from a Federal Tax Service employee with a list of documents you submitted.

In 2021, you can open an individual entrepreneur through a mobile application

On November 25, 2021, new regulations for interaction with the registration authority when sending electronic documents for individual entrepreneur registration came into force. It was approved by Order of the Federal Tax Service of the Russian Federation dated October 12, 2020 No. ED-7-14/ [email protected]

What is important to consider:

Documents for registration of individual entrepreneurs can be submitted on the Federal Tax Service website, through the mobile application “Personal Account of an Entrepreneur” or on the government services portal.
Notaries, among other things, can use the interdepartmental electronic interaction system and the unified notary information system connected to it.

Online accounting for self-employed entrepreneurs. A year free for beginners!

Step 6. Open a current account

The law prohibits the use of a personal account for business activities, so you need to open a special current account. We don’t know a single entrepreneur who doesn’t need a current account. Therefore, we recommend that you immediately select a bank to open it when registering an individual entrepreneur. The account is reserved for you immediately, and after successful registration the individual entrepreneur is activated and can be used.

In our “Smart Service” and with the Specialist Service, you can immediately select a bank and receive:

Free account opening.
Service from 0 rubles/month.
24/7 support.
Bonuses up to 300,000 rubles. to develop your business.
And other useful services.

If you don’t plan to use a current account yet, we still recommend opening it with a free tariff so that if necessary, you can quickly use it. If you don’t use the account, you don’t need to pay anything, and you don’t risk anything, but you will protect yourself in the future.

A current account is strictly required if:

You work with other individual entrepreneurs and legal entities by bank transfer.
If you accept payments from buyers or clients by bank cards or transfers using payment terminals or Internet acquiring.
If you make transactions for amounts from 100,000 rubles.
If you participate in government tenders. procurement

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Procedure for submitting documents

The procedure for submitting documents is as follows:

collect a complete package of registration documents;
if you submit documents not in person, but by mail or through a representative, have your signature certified by a notary;
submit documents for registration - in person, by mail or via the Internet;
receive a notification about the acceptance of documents - an employee will issue it at the tax office or MFC; When submitting an electronic application, the system will download it automatically.

Which tax office should I contact?

Documents must be submitted to the tax office located at your place of residence. If you are registering an individual entrepreneur through the MFC, contact the nearest branch - the employees will independently transfer the documents to the tax office to which you are assigned.

Selecting OKVED codes: expert advice

It is worth remembering the need to use codes according to OKVED 2.

Pay attention not only to your current activities, but also to what you plan to do in the future. According to Ilya Sergeev, a lawyer at Modul.Accounting, for convenience, it is best to indicate as many OKVED codes as possible, so that later when you change your type of activity you do not have to supplement them, otherwise you will have to submit documents to the tax office again.
Check to see if the activity you have chosen is subject to licensing.

All entrepreneurs have the right to engage in any activity not prohibited by law, even if the OKVED codes corresponding to this activity are not included in the Unified State Register of Individual Entrepreneurs.
For failure to report activities for which the codes are not included in the Unified State Register of Individual Entrepreneurs, a fine of 5,000 rubles is provided. Most often, errors relate to incorrectly selected OKVEDs. Ilya Sergeev
Lawyer at Modul.Accounting

Select the main OKVED code from which you plan to extract maximum profit. There can be as many additional OKVEDs as you like, but it is better to limit yourself to the list of activities that you will actually be engaged in. The type of activity must contain at least four digits, otherwise the tax office will refuse registration.

Remember that the IRS will penalize you for filling out the form incorrectly, even for adding extra spaces.
There are certain requirements for filling out, but not everyone reads them or often interprets them incorrectly. Kristina Tokareva
Head of Business Registration Department at Urvista
Read also: What taxes must be paid on wages in Russia in 2021?

Pay special attention to the main OKVED code if you plan to hire workers, since insurance premiums are deducted from their salaries.

Contributions “for injuries” depend on the main OKVED code.
The more “risky” it is, the higher the contribution rate will be. Your taxation system, the amount of taxes and the amount of reporting do not depend on the selected OKVED codes. Daria Sergeeva
Internet accounting expert "Kontur.Elba"

Prepare documents for individual entrepreneur registration for free! Find your business with a familiar name, and we will offer suitable OKVEDs.

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What to do after registering an individual entrepreneur

Maria Makeeva, owner of the Fermarevo mini-farm (Novgorod region), explains the algorithm of actions after registering an individual entrepreneur.

Choose a tax system

By default, a general taxation system is established for individual entrepreneurs with the need to submit financial statements and declarations for several types of taxes.

If you want to simplify your task and start small, you will have to immediately notify the tax office of your desire to choose one of the special modes - simplified tax system or PSN. This is given 30 days from the date of registration of the individual entrepreneur. Notification of the choice of simplified taxation system or PSN can be immediately submitted in the package with the application for registration.

Open a current account

A current account is not needed if you plan to receive cash payments from clients and the total amount of transactions does not exceed 100,000 rubles. If you need to accept payments in an online store and through POS terminals from customer cards or transfers from other individual entrepreneurs and legal entities, then you cannot do without a bank account.

There is no need to notify the tax office about opening a current account; credit institutions themselves will provide all information about customer accounts.

Register cash register equipment

A cash register will be required for those whose business is related to trade. But entrepreneurs need to pay attention to Federal Law No. 54-FZ dated May 22, 2003, which, from July 1, 2021, obliges a number of individual entrepreneurs to use online cash registers when making payments to the public, when providing services to the public, as well as those employed in retail and catering.

From July 1, 2021, online cash registers will be required to use individual entrepreneurs without employees in all tax regimes that:

sell goods of their production;
provide services;
perform work.

Control your business remotely: set up notifications about cash register operation, see when cashiers open and close shifts.

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Obtain licenses and necessary permits

A license is required for entrepreneurs to provide taxi services, engage in educational activities with the hiring of teaching staff, and organize private investigation and security. The entire list of licensed activities can be found in Art. 12 of the Federal Law of May 4, 2011 No. 99-FZ.

Other types of activities also need to be coordinated. So, an individual entrepreneur must get the go-ahead from the SES, the Ministry of Emergency Situations, environmental services and other inspectors in order to open a food production facility, a cafe, or sell wholesale children's toys. You need to start processing permits and obtaining approvals before starting work to avoid penalties.

Register with the Pension Fund and the Social Insurance Fund as an employer

You must register with the Social Insurance Fund as an employer-insurant within 30 calendar days after hiring the first employee under an employment contract.

This can be done remotely, electronically, through the government services portal. To do this you need to select . The registration notice will be ready within five business days and can be received in person or by mail.

There is no need to register with the Pension Fund after hiring the first employee. The tax office will become aware of this from quarterly reporting on contributions.

Understand your reporting

In order not to run into a fine, you need to immediately provide for the preservation of all primary documentation, maintain cash discipline, and document any transactions.

Errors and difficulties in registering individual entrepreneurs

The Federal Tax Service may refuse the state registration procedure due to an incorrectly completed application. Therefore, it is necessary to strictly follow the instructions for filling out documents, carefully study the sample form, and if you have any questions, seek advice from the tax service.

The most common errors when filling out an application include grammatical errors, inaccuracies, typos, violation of text formatting rules, failure to fill out the required fields and failure to indicate the Taxpayer Identification Number (TIN) if available..
Alexey Golovchenko
Managing partner of legal

If you, as an individual entrepreneur, intend to carry out certain types of entrepreneurial activities in the field of education, upbringing, development of minors, organization of their recreation and health, medical care, social protection and social services in the field of children's and youth sports, culture and art with the participation of minors, refusal of registration may be associated with a criminal record or criminal prosecution for certain categories of crimes.

In other cases, the refusal to register an individual entrepreneur can be appealed.
It is necessary to familiarize yourself with the reasons for the refusal in the document that will be issued by the tax authority, correct the mistakes made and submit the package of documents again. Airat Akhmetov
Head of the legal department of the Business Services Center

Selecting a tax regime

The question of how to choose the appropriate tax regime must be asked simultaneously with the question of how to open an individual entrepreneur on your own. Your profit depends on the answer: make a mistake and you will overpay the state tens of thousands of rubles.

The classification of existing tax regimes is as follows:

General (OSN, general taxation system) - used by large organizations with high revenues and number of employees. Entrepreneurs on OSN pay VAT and income tax - this takes a lot of money and time (you will have to keep full accounting, calculate payment amounts and file various declarations). It is not recommended for a beginner individual entrepreneur to work on OSN.
Special (Article 18 of the Tax Code of the Russian Federation). You need to know about them in order to answer the question about which individual entrepreneur is better to open for beginners. There are several such modes:

simplified taxation system (STS) - an entrepreneur pays a tax of 15% of the difference between income and expenses or 6% of all income received excluding expenses;
patent taxation system (PTS) - an entrepreneur acquires a patent to carry out a certain type of activity and does not pay other taxes;
unified tax on imputed income (UTII) - the entrepreneur pays tax in the amount established by the state; he is exempt from other tax payments;
professional income tax (PIT) - it can only be applied by those entrepreneurs who do not have employees; from income received from individuals, you must pay 4%, from legal entities - 6%;
Unified Agricultural Tax (USAT) - paid by entrepreneurs working in the agricultural sector.

Why do you need to use this service if you still have to go to the tax office?

This method can save time and save the entrepreneur from one extra trip to the Federal Tax Service:

You submit an application on the tax website.
After 3 working days (if everything was filled out correctly), bring the rest of the documents in person with your passport.
Some time later, on the same day, you receive ready-made constituent documents of the individual entrepreneur.

But be ready

to the fact that if at the stage of submitting the application you make any mistakes or your residence address turns out to be complex (for example, it will contain both a building and a structure), then the tax office will refuse to consider the application and you will lose even more time compared to the usual way of registering an individual entrepreneur.

At the same time, you should not expect help from the technical support of the Federal Tax Service, because most of their employees do not really understand how all these online services should work.

Filling out an application on form P21001

Form P21001 was approved by order of the Federal Tax Service of Russia “On approval...” dated January 25, 2012 No. ММВ-7-6/ [email protected] It is important to fill out this document correctly - if there are errors in it, registration will be denied. On our website you can fill out the form.

The requirements that the legislator sets for completing an application in form P21001 are given in Appendix No. 20 to the order. Let's list the main ones:

The form can be filled out on a computer or manually using black ink.
Form text fields are filled from left to right, starting with the leftmost empty space.
The application must indicate the applicant's email address - the result will be sent to it after reviewing the documents.
Blank sheets are not included in the application sent to the Federal Tax Service.
OKVED codes indicated in the application must have at least four characters, and the name of the code does not need to be indicated.

When registering an individual entrepreneur via the Internet, it is easier to fill out an application - the system will not miss an incorrectly completed document.

Advantages and disadvantages of individual entrepreneurs, rights and obligations

Conducting profit-making activities without the status of an entrepreneur entails liability under Article 171 of the Criminal Code of the Russian Federation.

The creation and activities of individual entrepreneurs are regulated by the following legal acts:

constitution of the Russian Federation;
Federal Law No. 129 FZ “On state registration of legal entities and individual entrepreneurs”;
Civil Code of the Russian Federation;
other laws and government regulations.

Pros of IP:

easy to register and liquidate. If you want to open, say, an LLC, you will have to create a company charter, look for an accountant and director, a legal address and much more. Individual entrepreneurs are exempt from all this. This is the main difference between individual entrepreneurs and LLCs;
small fines. For the same violations, legal entities pay an order of magnitude more;
you can work anywhere in the Russian Federation without registering local branches;
low tax burden;
free management of money from a current account. You can come to the bank at any time and withdraw any amount. Or you can generally work only with cash, and even without printing;
simple document flow. There is no need to keep accounts and describe all activities;
rare inspections by regulatory authorities. The tax authorities and Rospotrebnadzor are often not interested in small shops and salons - they are quite satisfied with large chain stores and retailers.

Disadvantages of IP:

liability for personal property. During lawsuits, an apartment, car, dacha, etc. may be counted toward the debt;
Not every activity can be done. For example, only LLCs can sell strong alcohol, individual entrepreneurs are limited to selling beer and drinks based on it;
You can't choose a nice name. Also, IP cannot be bought or sold;
losses do not reduce contributions to funds and taxes;
Debts are not written off in bankruptcy;
some large companies are in no hurry to cooperate with individual entrepreneurs. But they are happy to withdraw money through them using various schemes.

According to the law, an individual entrepreneur is endowed with rights and responsibilities. Rights of an individual entrepreneur:

choose any area of work permitted by law;
submit an application on your own behalf to courts at various levels;
hire employees and pay them any salary not less than that established by law;
select counterparties - suppliers, partners and bank;
spend the money you earn as you please.

Responsibilities of an individual entrepreneur:

file returns and pay taxes;
pay contributions to funds - social insurance and Pension Fund;
maintain documentation - contracts with suppliers, employment contracts, and so on;
if necessary, buy and use a cash register. In light of the widespread introduction of online cash registers, this issue is especially important;
submit notifications to government agencies, provide premises for inspections in the manner prescribed by law.

What documents does the individual entrepreneur receive?

After registering an individual entrepreneur, the entrepreneur receives a USRIP entry sheet and a notification of tax registration. Additionally, a tax registration certificate may be issued provided that the individual entrepreneur did not receive one before registration.

From January 1, 2021, a certificate of state registration of individual entrepreneurs (OGRNIP) is no longer issued, and a certificate of tax registration (TIN) is issued not on a secure tax form, but on a regular A4 sheet.

They may refuse to register an individual entrepreneur if you have submitted documents to the wrong tax office, submitted an incorrectly completed registration form, or are applying for prohibited activities.
There are, of course, unique refusals: if the individual entrepreneur forgot that he is already an individual entrepreneur and submits documents again, or if the court declared the applicant bankrupt. Kristina Tokareva
Head of Business Registration Department at Urvista

In which tax inspectorate (IFNS) of Voronezh do individual entrepreneurs register?

The completed package of documents must be submitted to the tax office at the place of residence of the individual entrepreneur. In Voronezh, the following is responsible for registering individual entrepreneurs: Interdistrict Inspectorate of the Federal Tax Service of Russia No. 12 for the Voronezh region

Contacts of the registering Federal Tax Service in Voronezh

Name	Interdistrict Inspectorate of the Federal Tax Service No. 12 for the Voronezh Region
Federal Tax Service code	3668
Address	394036, Voronezh, st. K. Marksa, house 46
Unified telephone number in Russia	8-800-222-22-22
Reception	+7
Boss	Eremeev Oleg Nikolaevich

How to register an individual entrepreneur - step-by-step instructions

Registering a business is not difficult. There are four steps in total:

Collect documents, write an application, choose a registration method;
Decide on the OKVED code;
Pay the state fee;
Apply.

In order not to get confused with papers and authorities, we will analyze each step in detail, in a separate paragraph with its own instructions, examples and significant nuances.

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Accounting for individual entrepreneurs

Immediately after registration, think about accounting. If you do not plan to hire an accountant, we recommend that you conduct online accounting through trusted companies.

If you have no desire or you think that you cannot go through the registration procedure on your own, then you can resort to the services of specialists who provide individual entrepreneur registration quickly and on a turnkey basis.