Independent opening of IP for trading: step by step instructions

An individual entrepreneur is a natural person who has passed a certain registration procedure and has the right to conduct entrepreneurial activities without forming a legal entity. Any capable citizen has the right to open an IP. Even a teenager can start a trading business, only to register as an entrepreneur he will need permission from his parents or guardians.

For a person who does not have experience of interacting with state institutions, the registration procedure for an individual entrepreneur seems complicated and confusing. For this reason, many novice businessmen use the services of intermediary firms and give extra money for this. These unnecessary expenses can be completely avoided if you prepare all the documents yourself.

In practice, the procedure for registering an individual entrepreneur is one of the easiest compared to those that have yet to be encountered in the process of carrying out trading activities.

Step 1. Determining the type of activity

Before submitting documents, it is necessary to determine under which OKVED code (All-Russian Classification of Economic Activities) the future trading activity of the entrepreneur falls. An individual entrepreneur can trade only in those goods that are reflected in his registration documents.

Individual entrepreneurs are registered according to the version of the classifier OK 029-2001 (NACE Rev. 1), despite the fact that this edition is outdated. This procedure for assigning codes will be valid until January 1, 2016, then the latest edition of OKVED will apply.

Trading operations are classified by the following codes:

• 50 - trade in vehicles and motorcycles.
• 51 - wholesale trade.
• 52 - retail trade.

Within them, the sale of specific types and categories of goods stands out.

When filling out the application, it is allowed to list 20 codes. The code listed very first corresponds to the main activity.

It is more practical to indicate the maximum allowable number of codes during IP registration. This is not binding, but in the future it may be necessary for business development.

Additional codes can be entered after the completion of the registration process, but this service will need to be paid separately.

Step 2. Application for registration of IP

The application form R21001 for registration as an individual entrepreneur can be found on the official website of the Federal Tax Service or you can take printed forms from the tax office. The application form can be completed manually or on a computer. When filling in manually, all words must be written in capital letters. Handwritten inscriptions are not allowed in the application filled out on a computer.

This document must be filled out with the utmost care. Incorrect applications account for the largest percentage of registration denials.

Step 3. Payment of the state duty

The amount of the state duty for registering an individual entrepreneur is 800 rubles. A receipt for its payment can be obtained from the tax office or generated on the website of the Federal Tax Service.

State duty can be paid:

• In the branch of Sberbank.
• Online through a special service of the Federal Tax Service.

Before paying, it is necessary to check the payment details - they must correspond to the tax office where documents will be submitted in the future. In case of refusal to register, the paid state fee is not refundable.

Step 4. Submission of documents to the tax office

You can register an individual entrepreneur only at the place of permanent residence (there are no territorial restrictions on doing business). The address and working hours of the tax inspectorate can be found on the website of the Federal Tax Service by entering the code of the required inspectorate in a special form. It is determined by the TIN number (the first 4 digits of the TIN of an individual are the IFTS code).

When visiting the tax office at the place of his residence, the future businessman must have the following documents with him:

• Completed application form Р21001 in 1 copy.
• Copy of passport (first page and registration).
• Receipt for payment of state duty.
• Copy of TIN.

You must have your original passport and TIN with you. Individual tax inspectorates impose additional requirements on documents (for example, provide copies of all pages of the passport). Therefore, it is better to find out in advance the specific list and requirements for documents in your tax office.

After receiving the documents, the registrar must issue an appropriate receipt. You will need it later, upon receipt of the finished registration documents.

Step 5. Obtaining documents for IP

The process of preparing documents should not take more than 5 working days. On the receipt, which is issued upon receipt of documents, the date of the second visit to the tax office is indicated.

On the appointed day, the entrepreneur needs to go to the inspection with a passport and a receipt, where he will be given ready-made documents:

• OGRNIP - certificate of state registration of an individual as an individual entrepreneur.
• An extract from the USRIP - the Unified State Register of Individual Entrepreneurs.

Upon receipt of the documents, they should be immediately checked for errors and typographical errors. If they are identified, you need to contact the employee who issued the documents and draw up a protocol of disagreements. If errors were made due to the fault of the tax office, they will be corrected free of charge.

Errors identified later will have to be corrected through the procedure for making changes to the information about the individual entrepreneur and paying extra money for this.

If the tax inspectorate works on the principle of "one stop shop", then the entrepreneur will additionally receive a notification from Rosstat on the assignment of statistics codes and on registration with the FIU. Otherwise, you will have to register with these authorities yourself.

Step 6. Registration with the FIU

All individual entrepreneurs are responsible for paying contributions to the Pension Fund (PFR). At least for himself, and if there are employees, then for them. For registration in the territorial department of the PFR, it is necessary to prepare a list of documents:

• Original and copy of the passport.
• Copy of TIN.
• Copy of OGRNIP.
• Extract from EGRIP.
• SNILS.

After the registration procedure is completed, the entrepreneur receives a corresponding notification and the details necessary for the transfer of insurance premiums. They can be paid once a year or quarterly. Payment of contributions is mandatory, regardless of the conduct of activities and profit.

In order for the registration process to be successful, it is necessary to provide the tax office with a complete package of correctly executed documents.

If no reasons for refusal are revealed (submission of false information, previous bankruptcy, errors in filling out the application, etc.), within a week after the first visit, the tax entrepreneur can begin to carry out his activities. The independent opening of an individual entrepreneur will give him the first experience of interacting with regulatory authorities, which will be useful in the future.