What is an individual entrepreneur and how to register it.

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"IP" stands for "individual entrepreneur". According to the laws, an individual entrepreneur is an individual who is legally registered and has the opportunity to conduct business. IE is preferred for small businesses.


To register an individual entrepreneur, you need a state registration procedure with the Federal Tax Service located at your place of residence or registration.


There are two ways to register an individual entrepreneur: independently or with the help of a registrar. It is preferable to register an individual entrepreneur yourself, the registration procedure is not complicated and gives you the opportunity to find out all your rights and obligations related to the registration of an individual entrepreneur with the Federal Tax Service. The second option for registering an individual entrepreneur is suitable for people who are busy or do not want to delve into the process. In this case, you give all the powers to the registrar, who will prepare all the documents for you, without your presence, he can submit documents to the registration authorities of an individual entrepreneur, and they can also consult on taxation. But this method of registration requires extra money and you will not learn in detail the procedure for registering an individual entrepreneur. Also, you give all your data, including passport, in this case and trust a person unknown to you.






When self-registering an individual entrepreneur, the costs will be approximately 1900 rubles, when registering an individual entrepreneur using the services of a registrar - at least 2500 rubles.



The key document for registering an individual entrepreneur is the application form for registering an individual entrepreneur, the form code is P21001 - on the Internet you can find many examples of filling out an application. Registration authorities often refuse precisely because of errors in filling out this document. There are two ways to fill out the P21001 form - manually and electronically. There are many ways to fill out this application and a wide variety of documents using services or software.


In addition to this document, you will need a copy of your passport (the passport must be Russian) and a receipt notifying the payment of the state duty, which is 800 rubles (it can change over time, you can also easily check it on state websites). Note that in case of refusal to register an individual entrepreneur during the registration procedure, the state fee is not refundable!


You can submit documents to the registration authority in person or send them electronically. After submitting the documents within 5 working days, you will be registered as an individual entrepreneur. 







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