Illegal entrepreneurship administrative liability. What are the penalties for illegal business? What punishment under the Criminal Code of the Russian Federation can be applied to an entrepreneur?

Carrying out commercial activities without registering with tax authorities prosecuted by law. Therefore, a citizen who regularly provides services or sells goods simply needs to register his business. IN otherwise a person can expect fines and even isolation from society for up to several years.

Definition

Entrepreneurial activity is an activity that is aimed at constant receipt profit from the sale of goods, provision of services or performance of work. In order to prove the fact that a person is engaged in business, two essential circumstances are needed:

• systematic;
• benefit in the form of Money.

If a citizen receives profit more than twice a year from the sale of things or the provision of any services, then, accordingly, he must register with the tax office and pay contributions to the state treasury. Otherwise, such a business will be defined as illegal business activity. In this case, the individual will bear punishment in the form of administrative, tax or criminal liability. Everything will depend on the amounts received and the scale of production.

Violations

If a citizen decides to engage in business, he must obtain a license, if required (for example, banking activities, opening gas station), and also register with the tax office as an individual entrepreneur. If a person does not fulfill these two conditions, then his business will be classified as an illegal business activity. In this case, the individual will be punished in the form of prosecution under Art. 171 of the Code of Crimes.

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Punishment

If a citizen systematically makes a profit from the sale of things and the provision of services, but does not pay contributions to the state income and is not registered as an individual entrepreneur, his business is an illegal entrepreneurial activity.

An individual in this situation may be punished in one of three ways: provided types responsibilities:

• administrative (penalties here range from 500 rubles and reach 2000);
• criminal (isolation from society for certain period, cash payments from the income of the perpetrator, arrest, compulsory labor);
• tax (if violations are detected, mandatory payments of the amounts received in the amount of 10%, but not more than 20,000 rubles, as well as 20% if the business was carried out for more than three months).

Law enforcement agencies

Identify the implementation of unregistered in the prescribed manner business can be carried out by the following authorized government agencies:

• police;
• tax office;
• prosecutor's office;
• antimonopoly service;
• trade inspection.

The fact of violation of the law must be recorded by the inspection authorities in the protocol. In addition, no more than two months must pass from the moment such an offense as illegal business activity is identified and suppressed. An individual in this situation can only be punished by a court decision.

Illegal business as a criminal act

IN in this case a person may be held liable under Art. 171 of the Code of Crimes. It occurs only if law enforcement agencies identify the receipt of income by a person in large sizes, i.e. not less than 250,000 rubles. At the same time, it is quite difficult for the police to convict a person of illegal business, because this requires test purchase for large sums of money, which is quite problematic. That is why, without sufficient evidence to open a case, they will not initiate it.

Criminal liability arises for causing special major damage in the amount of 250,000 or more, and only after that the commerce is defined as illegal business activity. An individual (2016) is punished as follows:

• a fine in the amount of up to 300,000 rubles or from the income of the perpetrator for a period of up to 2 years;
• compulsory work;
• arrest.

If a commercial activity carried out outside the law results in very serious damage large size, then the penalties here range from 100,000 rubles and reach 500,000. In addition, the guilty person may be sentenced to isolation from society for up to five years, but with minimal monetary payments.

These are the consequences that end illegal business(RF). Therefore, it is best for citizens engaged in commercial activities that bring them a permanent income to register with the tax office at their place of residence as an individual entrepreneur and pay business contributions to the state.

Responsibility under the Code of Administrative Offenses

Provides a fine of 500 rubles and up to 2000 for illegal business activities. The case of bringing to administrative liability is considered by a magistrate. This can happen at the place where the offense was committed or on the territory of the citizen’s residence, if he reports it. When a fine is imposed, its size will depend on whether the person has committed an offense for the first time or has already been prosecuted for conducting illegal business.

There are several types of offenses in the Code of Administrative Offenses:

• working without a license and violating the rules of its use;
• commercial activity without tax registration.

Of course, the size of the fine will depend on the specific case. Work without special permission maybe more serious violation law than activities without registration. That is why fines are always imposed by the court when studying and considering the specific circumstances of the case. Law enforcement agencies, trade inspection and antimonopoly service can only identify such an offense as illegal business activity. Physical punishment face of the Code of Administrative Offenses involves a fine that will be paid by a person only on the basis of a court decision.

Sanctions

If a person is engaged in business and has not registered in the prescribed manner as an individual entrepreneur, then the tax authorities consider this as an illegal business activity. An individual (2016) will be punished by paying a fine in the amount of 20,000 rubles to 40,000. If we consider percentage, then this is from 10 to 20% of all income. In case of failure to comply with the deadlines for registration with the inspectorate, an unscrupulous businessman faces a fine of 5,000 to 10,000 rubles.

Protection

If a citizen received material damage from carrying out business that is outside the law, he can personally contact law enforcement agencies so that the violator is brought to justice. First of all, the tax inspectorate is interested in ensuring that there are as few illegal traders as possible. As is already known, the Tax Code of the Russian Federation provides for liability in the form of payment of considerable fines for illegal entrepreneurs who long time run their business without certain documents.

Illegal business activities of an individual are always aimed at obtaining permanent profits from the provision of services or the sale of goods. This business is not registered properly at the tax office. This entails an offensive unpleasant consequences in the form of payment of fines, and special cases and imprisonment for the guilty person. Therefore, citizens who encounter illegal commerce must report this to law enforcement agencies to protect yourself and your loved ones from purchasing low-quality items, products and services.

Registration

In order for the activities of an individual aimed at obtaining a permanent profit to be completely legal, he needs to register with the tax office at his place of residence as an individual entrepreneur. To do this, you must provide the following documents:

• written statement;
• check for payment of state duty;
• passport;
• TIN and its photocopy.

The person also needs to decide on the taxation system. This must be done in order to make paying business fees easier and in a smaller amount. If all documents are collected and submitted to the inspectorate, then issuing an individual entrepreneur certificate will take only a few days. It is necessary for a citizen to perform these actions in order not to pay a fine in the future for illegal business activities, as well as to save his time and money.

Varieties

Not every activity for which citizens pay money can be considered entrepreneurial. A person can receive income from:

• use of your property (this could be renting out housing or transport for a day);
• sales of things - products, household appliances, furniture;
• provision of services - hairdressing, massage, cosmetics.

Even if a woman did her friend’s hair and received money from her for it, she is not obliged to immediately go to the tax office and register as an individual entrepreneur. Now, if this is her permanent occupation, bringing in a stable income, then in this situation she will need to register. Otherwise, such a business is an illegal entrepreneurial activity, the punishment for which can amount to several thousand rubles.

Arbitrage practice

It can be quite difficult and not always possible for law enforcement agencies to identify unregistered businessmen. But sometimes in practice there are situations when buyers who have received defective goods, they themselves come to the police or tax service.

Example from the case file:

The citizen asked her friend to help her make beautiful and modern renovations in the kitchen and bathroom. The latter agreed because she is a professional plasterer-painter and receives a good income for such “shows”, although she does not officially work anywhere and is not registered as an individual entrepreneur.

After the woman completed her job, the customer asked her to whitewash the ceiling again because it was not white and clean enough. The citizen did not agree, took the money and left. The customer applied to the tax office with a request to hold the latter accountable for an unregistered business and provided evidence that apartment renovation is the main income of her friend.

The tax inspectorate drew up a protocol, on the basis of which the court decided to hold the citizen accountable, which entails a fine for an individual for illegal business activities. In addition, the violator had to register as an individual entrepreneur within five days.

IN in this example it is clear that the woman was simply carrying out an illegal commercial activities using your own work skills and abilities. But she did not want to pay taxes to the state, so she was fined by the court for illegal actions.

If a citizen constantly spent poor quality repairs in residential premises, as well as organizations and enterprises where the amount of income was considered impressive and reached, for example, 300 thousand rubles, then the perpetrator could be held accountable for such criminal act, as illegal business activity Art. 171 CC.

Hello dear readers. Today I will answer everyone’s question that I am often asked: “What happens if you conduct business without registration or licenses, or what are the fines for the lack of an individual entrepreneur or license.” This is a serious issue, so I am publishing excerpts from the legislation. We will look at administrative liability and criminal liability below to make it more clear.

Administrative responsibility

So, administrative responsibility for ongoing business activities (if there is no state registration or special permission - license).

1.If business activity is carried out without state registration (either an individual entrepreneur or a legal entity must be registered), then administrative penalty for this type of offense is from 500 to 2000 rubles.

2. If business activity is carried out without special permission(referred to as a license) - if such a permit (such a license) is mandatory - the administrative fine for individuals is from 2000 to 2500 rubles , manufactured products, production tools and raw materials may also be confiscated.

• Officials may be subject to fines from 4000 to 5000 rubles , confiscation of all manufactured products may also be carried out.
• Legal entities may be subject to fines from 40,000 to 50,000 rubles , product confiscation is also an option.

3. If during implementation entrepreneurial activity If the conditions stipulated by a special license (permit) are violated, a warning is issued or an administrative fine is imposed:

• for individuals – from 1500 to 2000 rubles ;
• on officials - from 3000 to 4000 rubles ;
• on legal entities – from 30,000 to 40,000 rubles .

4. If, when carrying out such activities, the conditions provided for by a special license(permit) are grossly violated - an administrative fine follows:

• for persons who have not formed a legal entity – 4000 - 8000 rubles , activities may also be suspended for 3 months;
• for officials – 5000 - 10,000 rubles ;
• for legal entities - 100,000 - 200,000 rubles or suspension of activities for three months.

Note. A gross violation is determined by the Government of the Russian Federation depending on what specific licensed type of activity was violated.

Criminal liability

Some consider themselves to be a budding entrepreneur with a turnover of 10,000 thousand rubles per month, and others consider themselves to be 1 million rubles. So, in order not to fall into the legislative trap, you should remember the criminal liability that may arise if you conduct business illegally. This type of crime is regulated by Article 171 of the Criminal Code of the Russian Federation.

• Firstly, persons over 16 years of age are subject to this type of liability.
• Secondly, if you carried out your activities without registering as a legal entity or individual entrepreneur. And also, if they carried out activities without a license (manufacturing tobacco products; transportation of passengers and cargo, when necessary; tour operator or travel agency activities, private security activities etc).
• Third, size economic transactions must be in a large amount (from 2.25 million rubles) or an especially large amount (from 9 million rubles).

Penalty for large-scale violation:

• fine up to 300 rubles, or in the amount wages, as well as other income that you received within 2 years;
• or compulsory work, the maximum volume of which is 480 hours;
• or six month period arrest.

Economic crimes on an especially large scale have the following types punishments:

• fine from 100 tr. up to 500 TR, or in the amount of the salary/other income that was received from 1 to 3 years;
• or up to 5 years forced labor;
• or up to 5 years of imprisonment in aggregate with a fine of up to 80 thousand rubles or in the amount of wages/other income received during the last 6 months, or without it.

Tax avoidance

In addition to illegal business activities, it is worth saying that not only a legal entity must report on its income, which is logical. Involved in criminal liability individuals who did not report their income. This crime qualifies under Article 198 of the Criminal Code of the Russian Federation as evasion of taxes and fees.

There are two grounds for bringing such liability:

1. failure to submit a declaration;
2. provision false information in a large or especially large amount in the declaration.

Large amount of unpaid taxes: the amount of all taxes and fees for 3 consecutive years is more than 900 tr, provided that the share of unpaid taxes and (or) fees exceeds 10% of the payable amounts of taxes and (or) fees, or exceeds 2.7 million. R.

Types of punishment for large size:

• fine from 100 tr. up to 300 tr. or in the amount of salary (salary) or other income for a period of 1-2 years;
• or forced labor for up to 1 year;
• or arrest for up to 6 months;
• or imprisonment for up to 1 year.

Particularly large amount of unpaid taxes: within three years, the amount of taxes and fees is more than 4.5 million rubles, provided that the share of unpaid taxes and (or) fees exceeds 20% of the amounts of taxes and (or) fees payable, or exceeds 13.5 million. R.

Types of punishment for especially large amounts:

• a fine in the amount of 200 thousand to 500 rubles. or in the amount of wages or other income received for a period from 18 months to 3 years,
• or forced labor for up to 3 years;
• or imprisonment for up to 3 years.

Important! If this is your first time of this kind crime, you may be released from criminal liability, provided full repayment all debts, penalties and fines provided for in this article.

Conclusion

In conclusion to the above, we can conclude that if you are operating without registration or a license and you are caught doing it, then government agencies will figure out what article you fall under. IF IT IS PROVED that during the entire period of your illegal business activity you have generated income in large and especially large amounts (the amounts are indicated above), then you will face criminal liability. If you were able to prove only smaller amounts, then you fall under administrative liability. Basically, everyone falls under administrative law, because it is very difficult to prove all income. The easiest way to get criminal charges is for those who commit major transactions

, because you only need to prove 1 or a few transactions, and not tens, hundreds and thousands. Well main question

, whether to conduct activities with or without registration! It’s better to register and sleep well, although some will say that it’s more profitable to work without registration and it’s better to pay fines. Decide for yourself! In accordance with current legislation Russian Federation as of 2016-2017, an individual is prohibited from engaging in entrepreneurial activities for the purpose of generating income without registering with the tax authorities at the place of residence. According to the interpretation Civil Code

, entrepreneurial activity is considered to be any activity aimed at systematically generating profit. Any type of commerce requires registration of an individual entrepreneur, payment of taxes and fees, and timely reporting to the relevant authorities. Illegal activities

leads to administrative and criminal liability - the imposition of fines, initiation of criminal cases, etc. The degree of responsibility depends on the type of business, the amount of turnover, the timing of activities, and much more.

What activities are considered illegal entrepreneurship in 2016-2017?

Any activity of an individual, the purpose of which is to make a profit (even very small amounts), must be formalized in the form of entrepreneurship. Even if you sell homemade jewelry or roasted seeds, this already falls under the definition of entrepreneurial activity. The degree of responsibility and the amount of fines depend on the type of activity and the amount of income received.

• In 2016-2017, the activities of individuals are regarded as entrepreneurship based on the following criteria:
• wholesale purchases of goods;
• placement of advertisements for the sale of goods and provision of services;
• conclusion of lease agreements for use commercial buildings and premises;
• issuing receipts for receipt of borrowed funds;
• conclusion partnership agreements with suppliers of raw materials, materials, equipment.

If two or three signs from this list are identified, the tax office may interpret the activity of an individual as entrepreneurial. If an individual rents out housing, enters into contracts and carries out large sales transactions and pays personal income tax, this is within the framework of the law. And if trade transactions are repeated several times without registering an individual entrepreneur, such activity is already considered illegal business, for which fines of varying amounts are threatened.

That is, some types of transactions can be carried out by concluding civil contracts, but you cannot advertise your product. In addition, most firms or individual entrepreneurs will not risk being associated with an individual operating illegally.

You can open an individual entrepreneur in another city without registration - at the place of temporary registration, by contacting the relevant tax authorities.

Basic requirements of Russian legislation for registration of individual entrepreneurs in 2016-2017

In order to have the right to carry out commercial activities on the territory of the Russian Federation, you must follow a number of simple steps:

• determine the type of business activity and classify it in accordance with OKVED ( All-Russian classifier types of economic activity);
• register as individual entrepreneur at the tax office at the place of registration;
• make an individual entrepreneur stamp (an optional requirement if you do not open a bank account and work with large companies);
• register in pension fund, funds social insurance etc.;
• if you tear off the retail outlet, you will need a consumer corner (when providing services) or a buyer corner (when selling goods). It is also mandatory to regularly submit reports on your business activities, pay taxes and fees, the amount of which is determined by the type of individual entrepreneur and the amount of income. The big advantage of working with the Federal tax service is the opportunity to submit tax return via the Internet without leaving home. If an entrepreneur hires workers, then he must also calculate income tax from your salary and transfer it to the local budget.

Advice: when registering an individual entrepreneur in 2016-2017, it is better to immediately select wide range types of commerce within which you will engage in business activities. The number of activities affects the amount of taxes only if this type taxed special fee or requires permits or licenses.

On liability for conducting illegal business in 2016-2017

If an individual conducts business illegally, then when such a fact is established he faces administrative or criminal liability.

In what cases is an individual or legal entity brought to administrative responsibility (as of 2016-2017) for illegal business activities:

• Carrying out business activities without registration with the relevant tax authorities entails a fine of 500-2000 rubles.
• Carrying out illegal business without a license (if this activity requires mandatory receipt such permission). An individual faces a fine of 2000-2500 rubles with the possibility of confiscation of manufactured goods, raw materials and equipment. Fines for legal entities operating illegally without a license can range from 40,000 to 50,000 rubles.
• If a special permit or license is violated during illegal business activities, the violating entities may be issued a warning or fines. Individuals face a fine of 1,500-2,500 rubles, legal entities - from 30,000 to 40,000 rubles, officials enterprises - 3000-4000 rubles.
• At gross violation licenses, individuals are punished with fines in the amount of 4,000-8,000 rubles, legal entities with fines from 100,000 to 200,000 rubles or suspension of activities for three months.

Criminal liability for conducting illegal business (regulated by Article 171 of the Criminal Code of the Russian Federation) may entail cases of conducting economic transactions without registering an individual entrepreneur or legal entity with illegally obtaining income over 1,500,000 rubles (large sizes) and 6,000,000 (especially large sizes). The implementation of illegal business in areas requiring a license (sale of tobacco or alcoholic products, security services, transport services, etc.), without obtaining permits.

When committing illegal business activities on a large scale, an individual entrepreneur faces a fine of 300,000 rubles or a penalty of the amount of income that the individual entrepreneur received during two years of carrying out commercial transactions without registering. Another punishment could be being brought to compulsory work for up to 480 hours or arrest for 6 months. In case of illegal business on an especially large scale, the violator faces a fine of 100,000 - 500,000 rubles, recovery of income for 1-3 years, 5 years of forced labor or 5 years of imprisonment with the need to pay 80,000 rubles or 6 months of income.

In addition to individual entrepreneurs and legal entities, submit information about your income to tax office individuals are also obliged. For failure to provide a declaration or unreliability of the specified data, the subject faces a fine or forced labor for 1-3 years (the amount of the penalty and the period of imprisonment or forced labor are determined in accordance with the amount of amounts that were not declared and the type of activity). To avoid criminal liability, in case of violations on a particularly large scale, the violator can pay all amounts of fines and penalties and thus avoid forced labor or imprisonment.

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Even if you just want to sell roasted seeds, sew or knit at home, calmly and legally receiving profit from it, it is better to register as an individual entrepreneur, this way you can avoid many problems - you will not face fines or other administrative penalties. To carry out business activities, you do not have to open a current account for individual entrepreneurs and LLCs, you just need to pay taxes on time and submit an income tax return on time.

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If a person is engaged in entrepreneurial activity, but has not registered legally in a timely manner, and systematically sells goods or services for the purpose of making a profit, he is liable. This kind of activity can only be carried out after registration with government agencies, obtaining a license (for individual species business) and compliance with other legal requirements (and so on, again if necessary).

If the owner of the organization is not registered as or has not considered it necessary to fulfill other requirements in accordance with the laws of the Russian Federation relating to the business activities that he conducts and as a result of which he receives income, he faces criminal, tax, and administrative liability and is subject to a fine for illegal entrepreneurship . In case of illegal business, if the violation is determined criminally, violators are entitled to appropriate punishment individual.

The most common types of illegal business in 2017:

• Production, sale and storage of unlicensed products (this is provided for in Article 171.1 of the Criminal Code of the Russian Federation).
• Providing paid services for the construction, repair and maintenance of cars, household appliances and electronics (the activity is not registered with the tax authorities).
• Providing paid medical or veterinary services without a license.
• Systematic rental of real estate.
• Rental services Vehicle for a certain payment for use without paying taxes on personal income in accordance with form 3-NDFL.
• Activities in the so-called spontaneous markets.
• False information during registration and reporting on the state of affairs of the organization.

How is illegal business defined?

Identify violations of legal registration and licensing requirements goods sold representatives of the tax inspectorate, prosecutor's office. The illegal activities of unregistered companies and individual entrepreneurs can be identified through targeted inspections by both the tax authorities and other authorized bodies.

The legal consequences of violating the procedure for registering or licensing goods sold by an organization determine the sanctions. The chosen penalty for violation of legal requirements regarding illegal activities, as well as in the absence of a license and certificates for products sold, must come into effect after 2 months from the date of their discovery.

Punishments for violation of the rules for conducting and registering a business are applied no later than 2 months from the moment the violations are discovered. The punishment can come into force only if more than 2 months have not passed since the detection of violations, and the fact of the violation itself is documented and promptly submitted to the court. If one of the above conditions is not met, legal force accusations lose their relevance.

Punishment options

If an individual conducts business illegally or circumvents the legal requirements for conducting this activity, he may be subject to punishment of 3 types of liability: administrative, tax, criminal.

The first type of punishment is administrative. Art. 14.1 of the Code of Administrative Offenses of the Russian Federation determines the following measures responsibilities:

• In the absence of legal registration of an organization, a fine is imposed, the amount of which ranges from 500 rubles to 2,000 rubles.
• If there is no license for the products sold or goods that are in warehouse entrepreneur. The amount of fines for individual entrepreneurs is from 2,000 rubles with confiscation of goods; For executives enterprises - from 4,000 rubles.
• If product licensing requirements are ignored, the following penalties are imposed: a fine of 1,500 rubles for individuals and 30,000 rubles for legal entities. Officials are also required to pay a fine if they ignore the rules and regulations for issuing a license or quality certificate for products - in the amount of 3,000 rubles.
• For systematic gross violations of the requirements for obtaining a license for goods, a ban on carrying out activities for the purpose of making a profit is provided for for a period of up to 90 working days or the imposition of penalties: 4-5 thousand rubles for individuals, from 40,000 rubles for legal entities and from 4,000 rubles for officials.

Regarding tax liability when conducting illegal business, as stated in Art. 116 of the Tax Code of the Russian Federation, the following penalties may be imposed:

• At late registration entrepreneur in the tax authorities, the owner is obliged to pay a fine in the amount of 10,000 rubles.
• If the organization does not pass legal registration and conducts business activities, a fine of 10% of the profit received from the date of commencement of activity is imposed, but not less than 40 thousand rubles

Criminal liability is assumed under Art. 171 of the Criminal Code of the Russian Federation, is applied in case of acquisition of profit on a large scale and is punishable by a fine of up to 300 thousand rubles or in the amount of wages for a period of up to 2 years, work for up to 480 hours, or arrest for up to six months. If the illegal act is committed by an organized group:

• A fine of 100 thousand rubles to 500 thousand rubles or wages for the first 3 years of work.
• Community service legally responsible persons for a period of up to 5 years.
• Deprivation of liberty persons for a period of up to 5 years together with or without a fine
• Full responsibility for violating the law and conducting illegal business activities or for violations in the licensing of goods lies exclusively with the owner of the organization. In this case, persons who entered into agreements with an illegal organization are not liable. employment contract about employment, the landlord of the premises that the organization has leased.

Working for yourself means not only freedom from bosses, but also a number of responsibilities. Including paying taxes to the state, obtaining licenses to perform services specified by law or sell certain goods, as well as a number of other obligations that help the state more closely monitor the operation of a business. This is an inevitable evil of business, which you have to come to terms with and comply with the requirements of the law to the fullest. Otherwise, your illegal situation will come to light sooner or later, and then you will definitely be in trouble. We strongly recommend making the right choice!

In accordance with the current legislation of the Russian Federation as of 2016-2017, an individual is prohibited from engaging in entrepreneurial activities for the purpose of generating income without registering with the tax authorities at the place of residence. In accordance with the interpretation of the Civil Code, entrepreneurial activity is considered to be any activity aimed at systematically generating profit.

Any type of commerce requires registration of an individual entrepreneur, payment of taxes and fees, and timely reporting to the relevant authorities. Illegal activities lead to administrative and criminal liability - the imposition of fines, initiation of criminal cases, etc. The degree of liability depends on the type of business, the amount of turnover, the timing of the activity, and much more.

leads to administrative and criminal liability - the imposition of fines, initiation of criminal cases, etc. The degree of responsibility depends on the type of business, the amount of turnover, the timing of activities, and much more.

What activities are considered illegal entrepreneurship in 2016-2017?

Any activity of an individual, the purpose of which is to make a profit (even very small amounts), must be formalized in the form of entrepreneurship. Even if you sell homemade jewelry or roasted seeds, this already falls under the definition of entrepreneurial activity. The degree of responsibility and the amount of fines depend on the type of activity and the amount of income received.

• In 2016-2017, the activities of individuals are regarded as entrepreneurship based on the following criteria:
• wholesale purchases of goods;
• placement of advertisements for the sale of goods and provision of services;
• concluding lease agreements for the use of commercial buildings and premises;
• issuing receipts for receipt of borrowed funds;
• concluding partnership agreements with suppliers of raw materials, materials, and equipment.

If two or three signs from this list are identified, the tax office may interpret the activity of an individual as entrepreneurial. If an individual rents out housing, enters into contracts and carries out large sales transactions and pays personal income tax, this is within the framework of the law. And if trade transactions are repeated several times without registering an individual entrepreneur, such activity is already considered illegal business, for which fines of varying amounts are threatened.

That is, some types of transactions can be carried out through the conclusion of civil contracts, but you cannot advertise your product. In addition, most firms or individual entrepreneurs will not risk being associated with an individual operating illegally.

You can open an individual entrepreneur in another city without registration - at the place of temporary registration, by contacting the relevant tax authorities.

Basic requirements of Russian legislation for registration of individual entrepreneurs in 2016-2017

In order to have the right to carry out commercial activities on the territory of the Russian Federation, you must follow a number of simple steps:

• determine the type of business activity and classify it in accordance with OKVED (all-Russian classifier of types of economic activities);
• register as an individual entrepreneur with the tax office at your place of registration;
• make an individual entrepreneur stamp (an optional requirement if you do not open a bank account and work with large companies);
• register with the pension fund, social insurance funds, etc.;
• if you open a retail outlet, you will need a consumer corner (when providing services) or a buyer corner (when selling goods). It is also mandatory to regularly submit reports on your business activities, pay taxes and fees, the amount of which is determined by the type of individual entrepreneur and the amount of income. A big advantage of the Federal Tax Service is the ability to file a tax return online without leaving your home. If an entrepreneur hires workers, he must also calculate income tax from wages and transfer it to the local budget.

Advice: When registering an individual entrepreneur in 2016-2017, it is better to immediately select a wide range of types of commerce within which you will engage in entrepreneurial activity. The number of types of activity affects the amount of taxes only if this type is subject to a special fee or requires obtaining permits or licenses.

On liability for conducting illegal business in 2016-2017

If an individual conducts business illegally, then when such a fact is established he faces administrative or criminal liability.

In what cases is an individual or legal entity brought to administrative responsibility (as of 2016-2017) for illegal business activities:

• Carrying out business activities without registration with the relevant tax authorities entails a fine of 500-2000 rubles.
• Carrying out illegal business without a license (if this activity requires mandatory receipt of such permission). An individual faces a fine of 2000-2500 rubles with the possibility of confiscation of manufactured goods, raw materials and equipment. Fines for legal entities operating illegally without a license can range from 40,000 to 50,000 rubles.
• If a special permit or license is violated during illegal business activities, the violating entities may be issued a warning or fines. Individuals face a fine of 1,500-2,500 rubles, legal entities - from 30,000 to 40,000 rubles, and officials of enterprises - 3,000-4,000 rubles.
• In case of gross violation of the license, individuals are punished with fines in the amount of 4,000-8,000 rubles, legal entities with fines from 100,000 to 200,000 rubles or suspension of activities for three months.

Criminal liability for conducting illegal business (regulated by Article 171 of the Criminal Code of the Russian Federation) may entail cases of economic transactions without registration of an individual entrepreneur or legal entity with illegal receipt of income in excess of 1,500,000 rubles (large amounts) and 6,000,000 (especially large dimensions). Carrying out illegal business in areas requiring a license (sale of tobacco or alcohol products, security services, transport services, etc.) without obtaining permits can also lead to large administrative penalties and criminal liability.

When committing illegal business activities on a large scale, an individual entrepreneur faces a fine of 300,000 rubles or a penalty of the amount of income that the individual entrepreneur received during two years of conducting commercial operations without registration. Another punishment may be forced labor for up to 480 hours or arrest for 6 months. In case of illegal business on an especially large scale, the violator faces a fine of 100,000 - 500,000 rubles, recovery of income for 1-3 years, 5 years of forced labor or 5 years of imprisonment with the need to pay 80,000 rubles or 6 months of income.

In addition to individual entrepreneurs and legal entities, individuals are also required to submit information about their income to the tax office. For failure to provide a declaration or unreliability of the specified data, the subject faces a fine or forced labor for 1-3 years (the amount of the penalty and the period of imprisonment or forced labor are determined in accordance with the amount of amounts that were not declared and the type of activity). To avoid criminal liability, in case of violations on a particularly large scale, the violator can pay all amounts of fines and penalties and thus avoid forced labor or imprisonment.

Save the article in 2 clicks:

Even if you just want to sell roasted seeds, sew or knit at home, calmly and legally making a profit from it, it is better to register as an individual entrepreneur, this way you can avoid many problems - you will not face fines or other administrative penalties. To carry out business activities, you do not have to open a current account for individual entrepreneurs and LLCs, you just need to pay taxes on time and submit an income tax return on time.

Every businessman will find it useful:

The answer to your question may be here

Add a comment Cancel reply