OKVED codes for IP

The code OKVED for IP is a certain combination of figures, in which the type of entrepreneur's activity is encrypted . A knowledgeable person can immediately understand what a particular firm does: construction, trade or other activities.

What is OKVED?

OKVED for IP literally stands for All-Russian classifier of economic activities. Its main goal - the coding of the type of activity for convenience, as well as obtaining quick information about this or that entrepreneur.

In the classifier, information on the organizational and legal form, the form of ownership and on departmental subordination is encrypted.

By the way, according to OKVED it is impossible to understand the commercial or non-commercial activities carried out by the organization or by what trade it engages - external or internal. This is reflected solely in the company's Charter.

For OKVED the hierarchical method of classification is chosen. Encryption of activity occurs consistently.

How to choose OKVED?

When the future entrepreneur decided to open his own business, first of all he must decide in which area he will work. For example, he decided to open his online store. Hence, it is necessary for him to consider OKVED codes for IP in the section "trade". Some owners of online stores make the mistake of specifying the code "courier services" and forgetting that their main profit comes from sales, and not from delivery services.

If an entrepreneur has only one main line of business, and other activities bring him only a minimal income, then he does not have to specify it in the tax service and this is not considered any violation. However, if a person still decided to develop several areas of services, then it is recommended that he carefully study the list of classifiers and choose those that he needs.

Where is OKVED used?

What are these codes for and where can they be found? This issue is of interest to many beginning entrepreneurs.

The first time with the codes can be encountered when filling out an application with the tax service for registration. There it is necessary to specify codes OKVED for IP with decoding. It is interesting that their number is not limited by law, but it is from the main activity that the amount of mandatory contributions for entrepreneurs depends.

Also with OKVED you can find in:

• Various normative documents;
• State register (there is a full account of the activities of all registered organizations and entrepreneurs);
• Other international documents;
• The organization's charter.

Another entrepreneur can repeatedly encounter a list of codes in case they are added or deleted. This happens, for example, in those situations when the company decided to change the main direction of its activities or completely stop it.

OKVED and taxation systems

1. The general taxation system (OECD) includes absolutely all types of OKVED for IP. The same codes are used for LLC.
2. Simplified taxation system (STS) includes the largest list of classifiers. It is worth noting that for CSS, it is impossible to specify the codes 65.2X, as well as 66.0, 66.02, 67.12 and 66.22.6.
3. Unified agricultural tax (ESKH). Such a system of taxation is suitable only for a narrow range of activities. Classifiers for ESKN fit only certain, or rather, only those that begin with 01.
4. Single tax on temporary income (UTII) and patent. For this system of taxation there are no classifiers. It is interesting that an entrepreneur can choose the UTII and a patent, but he does not have the right to indicate the code.

Which OKVED for IP exist?

In the Russian Federation and in the tax system there is a huge list of classifiers. They are divided into categories, but, as mentioned above, not all categories are suitable for the activities of individual entrepreneurs.

It is important for a novice businessman to know which codes are suitable for the types of IP activity. OKVED for them can be found in the existing list OK 029-2001.

The most common categories for entrepreneurs were recognized as:

• Commercial activities and consulting services;
• Design in the advertising field and on the Internet;
• Translations;
• marketing;
• Architecture, interior design;
• website promotion;
• Lease of real estate;
• Realtor activity ;
• journalism.

Activities from these categories are most often indicated as the main direction of work of the entrepreneur. Also, the same classifiers can be indicated as additional activities.

How does the amount of these OKVED affect insurance premiums?

If an entrepreneur decided to specify several OKVED codes for IP, then, naturally, it will be interesting for him, does their number affect the amount of insurance premiums?

So, each classifier has its own class of professional risk. According to Article 1 of the Federal Law 356-FZ of 30.11.2011, depending on this class, the amount of compulsory insurance contributions for entrepreneurs is regulated.

Directly the very number of these OKVED will not in any way affect the amount of insurance premiums for the entrepreneur, however they will vary depending on the class of occupational risk that is established for this or that classifier. The higher the risk class, the higher the premiums.

Choice of core business

As it was said above, in order to determine exactly the choice of the classifier, it is necessary to study suitable OKVED lists for IP with decoding. The main type of activity is the one from which the entrepreneur will receive his basic income. Also, the main type of activity must necessarily be suitable for the chosen taxation system. Non-compliance with these requirements threatens the entrepreneur with a solid fine.

In addition, if it turns out that the classifier does not correspond to the main type of activity, then the entrepreneur will be interested in the relevant services, including the FSS, which establishes a class of occupational risk.

If it becomes known that an entrepreneur is trying to reduce the size of his insurance premiums, and employees at his enterprise are at the same time at risk of developing occupational diseases, then the IP can not avoid a fine or even a stoppage of activities.

Specification of additional OKVED codes

Of course, an entrepreneur can specify only one activity code - the main one, but experts recommend not to be limited to this, otherwise the question arises later: how to add OKVED for IP?

So, an entrepreneur can really indicate an unlimited number of classifiers. Moreover, as it was mentioned above, it can carry out activities without specifying OKVED, but only if profit from it is considered insignificant. If an entrepreneur decides to provide other services, then he must apply to the tax authority, add the classifier to his list of activities and report this to the social insurance fund to recalculate compulsory insurance contributions.

Despite the fact that visually it seems that this procedure is not at all complicated, it is not quite so. The fact is that some activities are licensed. When passing this procedure, it is necessary to specify all the classifiers and if later the entrepreneur decides to add another type of activity, then he should re-pass all the licensing, which takes a very long time and requires financial investments.

Full decoding of the classifier

If a person still faced OKVED for IP, how can he understand what kind of activities an entrepreneur is engaged in, because some documents do not require a complete decoding of the classifier.

So, the code can consist of 2-6 digits. The structure of the classifier can be represented in the form of such a model:

• XX. - class;
• XX.X is a subclass;
• ХХ.ХХ. - Group;
• XX.XX.X is a subgroup;
• XX.XX.XX is a view.

Entrepreneur does not need to specify the full decoding of his activities (that is, all six figures), but insufficient number of them can serve as a reason for registration of an entrepreneur in the tax authority.

In order for an entrepreneur to register, he must specify at least the first three digits of OKVED, that is, a subclass. For example, if a person decides to open his clothing store, he has the right to specify only the code 52.4 (other retail trade in specialized stores), but he can decipher his type of activity and specify the subgroup - 52.42.7 (headwear retail).