Based on what the PI is

Today is a rather difficult time, when economic and tax reforms make life much more difficult, requiring certain efforts both in accumulation of money resources and in maintaining a quality living standard. Trying to stay afloat, many do not give up trying to open their own business and try to find themselves in the business world. What confirms day by day the increasing number of those citizens who want to be registered as individual entrepreneurs (IP). So, what kind of status is this and on what basis does the PI operate?

The tax legislation gives the following definition to this status: a PI is an individual who undertakes to carry out entrepreneurial activities, without having a legal entity (PBOYUL), being registered in the order that is established for this purpose.

In accordance with civil law, any individual can have the right to carry out this type of activity, starting from the moment when he is registered as an IP.

Let's try to understand how an individual can become an individual entrepreneur and on the basis of what an IP acts. Also try to get answers to the questions that most often arise both in the preparation of documents for registration, so in its very process. It is not superfluous to know about such details as a package of documents, which should be prepared for state registration and where it should be sent. What are the grounds for refusal of registration, and also what should be done, stopping entrepreneurial activity.

The only body that has the authority to register an individual as an entrepreneur and issue a document on state registration, then the certificate on the basis of which the IP acts is the tax inspection located at the place of registration of the future entrepreneur.

The procedure of registration should begin with the payment of state duty, the size of which for those wishing to become entrepreneurs will be four hundred rubles. Then an application for registration in accordance with the established form is drawn up. In addition, you should provide a copy of your passport.

The application will be reviewed for five days, after which the individual is registered as an individual entrepreneur and becomes the owner of the document (state registration certificate) that is basic for the performance of its activity, the same paper on which the IP acts.

An individual entrepreneur does not have any constituent documents, in view of the fact that he carries out his activities independently, having only wage workers. Partners and co-investors for an individual entrepreneur are not provided by legislation. Consequently, there is no need to regulate the relations of partners using such documentation. Moreover, only another independent entrepreneur can be a partner for an individual entrepreneur. Each FE acts on the basis of its state registration document.

At the conclusion of the contract, if the parties are individual entrepreneurs, their documents that certify the existing status will serve as evidence of state registration, on the basis of which the IP acts in the contract, as well as the certificate of INN.

However, the tax authority is competent in refusing to register an entrepreneur. The current legislation provides for a number of reasons, on the basis of which he has the right to do so. The main ones are incorrectly filled in application or erroneous requisites for payment of state duty.

In the event that an entrepreneur has decided to terminate his activities, he must submit an application to the tax inspectorate. For registration of the termination of entrepreneurial activity, the duty is not taken. Examination of the application takes no more than five days. The decision of the tax authority on the termination of entrepreneurial activity will be confirmed by an appropriate certificate.