What is IP and why is it necessary to register it?

Individual entrepreneurship (IP) is one of the ways to generate income through their own capabilities and strengths. This is very important, for example, if you are a teacher who is able to engage in tutoring, give individual or group lessons, or an artist, writer, photographer. For people who have land, it is possible to grow vegetables, making a profit from the sale.

The basic concept

Let's look at what an IP is. This is one form of small business. Individual entrepreneurs are individuals who are registered in a certain order, established by law. They can carry out their private activities without forming a legal entity. Earlier in Russia, they used equivalent concepts of PE (private entrepreneur), PBOYUL (without the formation of a legal entity). These days these terms have replaced the concept of IP. What is an IP and why is it necessary to register it? This procedure is very important if you want to earn legally. Registration of an individual entrepreneur takes place at the place of residence of a physical person. However, he can carry out the activity himself at other addresses.

There is one more feature that not everyone knows: a place of residence should not be used for activities that are associated with any industrial production. The fact is that it is intended only for the citizens' residence. But this provision should be interpreted restrictively: it does not prohibit activities in these premises that do not contradict the rights of all persons residing there, neighbors. For example, if your activity is related to intellectual work, for example, collecting data, writing scientific works or drawing, programming, accounting, tutoring, auditing, consulting, then at the place of residence, it can be done without breaking the law. In addition, as noted above, you can live at one address, but conduct your business in another place.

When do people think about entrepreneurship?

Many start to think about what a PI is only when they are not satisfied with something in the work of an ordinary employee at the enterprise. I want more revenue. At the beginning of independent work to achieve a good profit will have to work hard. But if everything turns out, then in the future the person will become independent. It will not be necessary to work for the owner, as you yourself are in this case your own boss. Legislation allows only adults to engage in business. The physical entity that carries out activities as an IP must be registered under its own name. It is an independent subject of business and civil law, as well as any commercial organization. After registration, a person is the owner of a labor force with implements of production, independently can organize his work, dispose of his results. So, what is IP? This is an opportunity to become an independent worker within the law.

New in IP from 2013

Since this year there is no need for individual entrepreneurs to submit the following reports to the tax authorities:

- Quarterly.

- Semi-annual.

- For 9 months of work.

For the IP in 2013, there were other significant changes. The amount of the insurance (fixed) contribution has increased. It is possible to reduce the amount of the single tax on the amount of contributions under the insurance contract. There were new concepts: patent activity and coefficient-deflator. However, many entrepreneurs decided to leave the business this year, as social deductions for them increased almost twofold.

Registration and activity of the IP has a number of risks, but it gives an opportunity to start your own business, which makes it possible to become independent!