Entrepreneurial activity of citizens: highlights

Whoever even had the idea to start his own (albeit small) enterprise, at least once, to open up his business, start working not for "his uncle", but only for himself? But not everyone decided on this. There were many reasons, and not the last place was bureaucratic delay, the complexity of registration, incomprehensible reporting. However, it should be understood that if a citizen is engaged in entrepreneurial activity, this does not mean that he organized some JSC, CJSC or any other organization (legal entity). He may well be an individual entrepreneur.

Individual entrepreneurial activity of citizens is registered in the bodies of the Federal Tax Service on more simplified grounds than registration of a legal entity. For this, it is necessary to submit an application written in the prescribed form, as well as documents confirming payment of the state fee.

As for the age at which the entrepreneurial activity of citizens can be formalized, there is no precise indication in the Civil Code of the Russian Federation. The key moment is that a citizen must have legal capacity and capacity. It can be said that a person who has reached the age of 14 can become an individual entrepreneur . Of course, the consent of the parents must be granted to the tax inspection during registration.

Entrepreneurial activity of citizens is considered to be registered from the moment of entering the necessary entry into the EGRIP (single state register of individual entrepreneurs). Accordingly, information about any changes, as well as the liquidation of IP, must also be included in this register.

As for the types of activities, the individual entrepreneurial activity of citizens has some limitations. This includes banking and insurance, nuclear energy, arms trade and a number of other areas. In some cases, an individual entrepreneur must necessarily obtain a license that authorizes him to engage in a particular type of activity.

If the entrepreneurial activity of citizens is carried out without a license in cases when it is necessary, or at all without registration and entering information in the EGRIP, then it is considered illegal, and therefore can lead to criminal punishment.

In some cases, a citizen may be denied registration of IP.

1. A person submitting an application can not become an individual entrepreneur at the moment , if he is already registered in this capacity. Thus, double registration is not allowed.

2. If a person has already been registered as an IP, but has been declared bankrupt, and his activity was forcibly terminated, he can reapply for at least a year.

3. For a number of reasons, a court may prohibit a citizen from engaging in entrepreneurial activity during any period. Until the end of this period, registration of IP will be refused.

Entrepreneurial activity of citizens may be terminated in the following cases:

• death;
• An independent solution;
• Court decision or recognition of bankruptcy;
• The expiration of the validity period of documents authorizing residence in the territory of the Russian Federation.

As for reporting, it will depend on the form of taxation chosen by the citizen at the time of registration.