Who is an individual entrepreneur
Who can be an individual entrepreneur
The law defines entrepreneurial activity as being carried out independently at your own peril and risk in order to systematically generate income. The activities of individuals who position themselves as individual private entrepreneurs are governed by article 23 of the Civil Code of the Russian Federation. It says that in order to carry out such activities, a citizen only needs to go through the registration procedure, after which he can enter into transactions, produce goods or services.
Individual entrepreneurs can be, in fact, any physical person, who has reached the age of majority, as well as minors from a certain age, both residents and citizens of other states or people with no citizenship at all. Even a municipal or state employee can become a private entrepreneur and register in an official way.
A prerequisite for all these categories of citizens is capacity, not limited in court. In the case when a person under the age of 18 wants to carry out commercial activities, he will need the consent of his parents or guardians. Persons under the age of 18, who are already married, do not need permission from their parents or guardians.
How is the activity of an individual entrepreneur?
After registering with the tax inspectorate, which is of a notification nature, the entrepreneur is free to choose the tax system that will be more convenient and profitable for him. The Tax Code of the Russian Federation describes in detail the current taxation systems, the procedure for calculating and paying taxes that private entrepreneurs must transfer to the budget.
In the event of non-payment of taxes or non-fulfillment of contractual relations, the entrepreneur is liable, including that he may be liable for his obligations and personal property.Therefore, before starting a commercial activity in order to generate income, you should be well aware of all possible risks and take the economic side seriously. It is best to make a business plan and show it to professional economists, it will help you avoid many mistakes and disappointments.
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