Highlights of IP Closing

Individual entrepreneurship is the most popular form of running your own business. In the event of termination of such activities, the entrepreneur must undergo a special legal procedure - liquidation (closing). Closing an IP is the termination of any activity of an individual entrepreneur with mandatory state registration. To complete its entrepreneurial activities, the enterprise with the form of ownership "IP" can for various reasons stipulated in the Russian legislation:

1. voluntary decision to close the IP,
2. death of the entrepreneur,
3. court decision (deprivation of the right of entrepreneurial activity, prohibition of residence in the RF to foreign citizens registered as IP)

Completing the entrepreneurial activity is easier than the activities of a legal entity. There are many enterprises that help in closing such enterprises. The cost of liquidation of the IP will directly depend on the state of affairs in the firm: it is much easier to close the IP without debts than with debts. We need a competent assessment of the situation by a lawyer and an accountant in order to observe the correct sequence of liquidation and avoid unpleasant situations for the entrepreneur. If the IP has debts, it is possible to apply the bankruptcy procedure.

Closing the IP is in the event that the enterprise no longer conducts real economic activity, and it does not generate revenue. Because regardless of whether the enterprise brings income and whether there was any activity during the year, you will have to pay an annual fixed amount of insurance premiums to the Pension Fund. After the liquidation of an IP such a duty is canceled.

You can independently go through all the procedures for the liquidation of IP on the following items:
1. payment of state duty for the closure of IP in any accessible way;
2. submission of the application and other documents on the liquidation of the IP to the tax inspection;
3. notification of the PF about the closure of the IP;
4. repayment of debts for all available debts.

To close the IP you will need to collect the following package of documents:
• reporting,
• certificate of state registration of an individual entrepreneur,
• his passport,
• Certificate of TIN (copy),
• Notices from the FSS, MHIF, PF.

After the activity of the IP is terminated and the termination record is entered in the register (EGRIP), the entrepreneur is issued a certificate of state registration of termination of an entrepreneurial activity by an individual. But even despite the successful liquidation of the entrepreneur, the entrepreneur will be responsible for the remaining debts of the enterprise with his own property.