Individual entrepreneurs have the right to officially engage in business. Often, entrepreneurial activity is of interest not only to Russian citizens, but also to foreigners who wish to receive income in the territory of the Russian Federation. It is allowed by law to issue an IP to a foreign citizen, but some specific requirements are imposed on this process. Foreigners who are official entrepreneurs in the Russian Federation are vested with the same rights and obligations as Russian businessmen. Individual entrepreneurs do not have the right to form a legal entity in the future.
Can a foreign citizen open an IP?
Based on the requirements of Russian legislation, any adult person who may not be a Russian citizen may act as an individual entrepreneur. Accordingly, the following persons can open IP:
- Russian citizens
- Foreigners;
- stateless people.
The procedure for registering an IP is practically the same for Russians and foreigners, but there are some differences. You can open an IP for a foreign citizen only at the place of registration, so first a person will have to find a place for permanent residence in Russia. A residence permit or a temporary residence permit is allowed.
Is it possible to register IP without temporary registration?
Registration of IE by a foreign citizen is possible only with temporary registration. Otherwise, the person will be refused.
Therefore, a foreigner will first have to take care of finding a place where he can arrange a temporary residence permit.
What documents are collected?
Opening an IP by a foreign citizen is possible only after preparing the necessary documentation. The following papers belong to it:
- passport and its copy;
- TIN, which can be obtained at the Department of the Federal Tax Service;
- receipt confirming payment of registration fee;
- a statement drawn up in Russian and containing a request to open an IP;
- notice of the transition to any simplified tax regime.
If you select the direction of activity for which a license is required, then you will additionally have to submit an application for its receipt.
How is the process performed?
Registration of IE by a foreign citizen should be implemented while taking into account the requirements of the law. Therefore, the provisions of the Federal Law No. 129. are preliminarily studied. This normative act lists the instructions on how registration is performed. Therefore, the following rules are taken into account:
- registration actions are performed in the department of the Federal Tax Service at the place of temporary registration of a foreigner;
- a person must correctly fill out an application in the form P21001, and the procedure is performed only in Russian, so if necessary, you will have to turn to a notary for help;
- documentation must be prepared confirming that the person is legally located in the Russian Federation, and this usually requires a temporary residence permit;
- The state duty for foreigners, as well as for Russian citizens, is 800 rubles.
Samples of various documents can be studied directly at the tax office, and you can also go to the official website of this institution to download the application form or other documentation.
How are documents transmitted?
Registering an IP for a foreign citizen is quite simple. Documents for these purposes can be transferred to the department of the Federal Tax Service on their own, and you can also send them by mail.
Even a foreigner can use the help of a trustee, but at the same time, the representative must have a power of attorney certified by a notary. Additionally, a notary's office certifies the application for registration of IE by a foreign citizen.
Process features
Opening an IP for a foreign citizen in Russia is quite simple. If the foreigner is not a resident, then the registration conditions will be a little complicated in comparison with the registration of an individual citizen by a Russian citizen. The state seeks to support small and medium-sized businesses, therefore, no specific obstacles are created for foreign entrepreneurs.
The only important condition is that a foreigner must have a place to stay in the Russian Federation before submitting documentation. To do this, you will have to apply for a residence permit or obtain a temporary residence permit. Without confirmation of an official stay in Russia, it will not be possible to register an IP for a foreign citizen.
How are language issues resolved?
A significant difficulty in doing business in Russia for foreigners is the lack of knowledge of the Russian language. It is quite easy to issue an IP to a foreign citizen, but the application and other documents should be made only in Russian.
Therefore, a foreigner will have to pay a certain amount of funds for a competent translation of all documentation. Additionally, such papers are notarized. Translation is carried out by specialized companies that charge a fairly high fee for their services. In addition, notaries for the certification of such documentation charge a significant amount from clients.
Therefore, in addition to paying the state duty, the future entrepreneur will have to spend a lot of money on preparing the necessary documents. Although the documents for a foreign citizen's IP are standard, all of them must be in Russian. Otherwise, the specialists of the Federal Tax Service will simply refuse to register.
What documents are issued?
A foreign citizen of IE in the Russian Federation may engage in any permitted type of activity. But for this you need to officially register with the Federal Tax Service. As a result, a person will receive the following papers:
- registration certificate;
- certificate of registration with the Federal Tax Service;
- extract from OGRIP.
The registration procedure takes a maximum of 5 days, after which the foreigner can apply to the department of the Federal Tax Service for the above documentation. It is the specialists of the Federal Tax Service that transmit information about the new entrepreneur to the PF and FFOMS. But sometimes, for various reasons, information does not reach these funds, so a foreigner must independently apply to these organizations to notify their employees about registration as an individual entrepreneur.
What to do next?
Many citizens of other countries think about whether it is possible for a foreign citizen to open an IP in Russia. In fact, the process is considered simple and fast, but it is important not only to understand its implementation, but also what actions will have to be performed further. Foreigners must fulfill some of the duties that are established for Russians. These include:
- the optimal taxation regime is selected that is suitable for the chosen line of work, after which the Federal Tax Service gives a notice of transition if it has not been transferred to this institution in the process of submitting documents for registration of IP;
- a current account is opened, with which you can pay taxes or make settlements with contractors and employees;
- Based on the selected taxation system, taxes are calculated and paid;
- the foreigner must take care that tax returns and other reports are submitted to the FTS office in a timely manner, since if he simply does not know about the requirements of the law, this is still not a reason to be released from liability for violations that have been revealed;
- for himself, a foreign citizen of IE must pay taxes and insurance contributions to the PF;
- if he draws up hired specialists on the basis of an official labor contract, then he will have to not only pay people salaries in a timely manner, but also pay contributions to them to the PF and the Federal Tax Service;
- if the entrepreneur is an official employer, then he needs to register with the FSS;
- foreigners are registered with the PF and the Federal Tax Service as employers immediately after registration of the individual entrepreneur;
- if the chosen area of activity requires a license, then you will have to deal with obtaining permits, for example, such a license is required if the foreigner plans to carry passengers or provide educational services.
You can open an IP to a foreign citizen at any time. Moreover, such an entrepreneur can enjoy all the benefits and exemptions that are offered to Russian businessmen. Although entrepreneurs are faced with a serious administrative burden, if they have a good understanding of the rules of work, then there will be no difficulty in doing business.
Can I use preferential treatment?
Foreigners who are official entrepreneurs can use any taxation regime offered in Russia. Based on this mode, IP taxes are paid. A foreign citizen can choose the following systems for work:
- if the activity is related to agriculture, then you can choose USHN;
- it is allowed to use the simplified regime, in which 6% of revenue or 15% of profit is paid in the form of tax, but to switch to this system you need to send an appropriate notification to the Federal Tax Service within 30 days after registration of the individual entrepreneur;
- for certain types of activities, it is possible to use PSN, but a notification to the Federal Tax Service is transmitted 10 days before the date on which the validity of the selected patent begins;
- if UTII is chosen, then it is necessary to send a notification of the transition within 5 days from the moment of starting the activity.
The choice of a specific tax system depends on the direction in which the entrepreneur plans to work. Additionally, his knowledge in these modes is taken into account, but usually foreigners prefer to immediately use the help of consultants or hire an experienced accountant who can tell which system is considered optimal for a new business.
Do I need to open a current account?
Opening an IP for a foreign citizen in the Russian Federation is quite simple, but often foreigners question whether they need to open a current account in a Russian bank. For Russian and foreign entrepreneurs, the same rules apply for bank accounts and seals.
On the basis of Russian law, entrepreneurs do not have to open a current account without fail. If they work exclusively with private clients who pay for goods or services in cash, then they may not have a bank account.
A bank account is required in the following situations:
- major transactions are planned with clients or partners that exceed 100 thousand rubles .;
- The entrepreneur wishes to pay taxes through wire transfers.
If a foreigner really plans to carry out large cash transactions, then it is advisable for him to pre-select a suitable banking institution in which a current account is opened on favorable terms. Since it is impossible to predict exactly how a new business will develop, experienced entrepreneurs recommend choosing a good bank in advance.
Do I need a print?
Printing is not a mandatory element for foreign or Russian entrepreneurs. But if you plan to open a checking account, then employees of many banks may require businessmen to present a stamp.
In addition, printing may be required by counterparties in the process of concluding formal agreements. Therefore, it is advisable to take care of its creation in advance. To do this, contact specialized offices. The entrepreneur independently chooses what size and appearance the print will have. The official details of the IP are applied to it. With its help, optimal protection of official documentation is provided, which the entrepreneur uses in the process of work.
What rights and obligations are vested in a foreign businessman?
Foreign entrepreneurs who have officially registered as entrepreneurs in the Russian Federation have the same rights and obligations as Russian businessmen. They can apply simplified modes.
When conducting business, they should be guided exclusively by the Russian requirements of the law, which may differ from the requirements of another state. Therefore, it is preferable to carefully study the numerous provisions of the Tax Code and the Customs Code. Under such conditions, a foreigner will be prepared for various unforeseen situations.
How to get the right to reside in the Russian Federation?
A foreigner can open an IP only with a residence permit in the territory of the Russian Federation. Therefore, before starting registration, it is important to remember the following important points:
- the future entrepreneur must have a temporary residence permit in Russia, which can be replaced by a residence permit;
- it is impossible to obtain entrepreneurial status for people who live in the territory of the Russian Federation with refugee status or have a visa;
- the period for which the IP is executed depends on how long the RVP or residence permit will operate;
- if the documentation on the basis of which the foreigner is located on the territory of Russia is canceled, then the registration of a person as an individual entrepreneur ceases to be valid, therefore, after that he can no longer engage in official entrepreneurial activity in the chosen direction.
If a foreigner violates the requirements of the law, he will have to bear administrative or other responsibility. If he conducts illegal entrepreneurial activity, then this threatens not only with large fines, but also with possible deportation from Russia.
Reasons for denial of registration
Foreign citizens who submit documents to the Federal Tax Service for registration of individual entrepreneurs may face a negative decision. It may be due to various reasons, but usually foreigners are denied registration of IP status for the following reasons:
- all the necessary documents are not transferred to the employees of the Federal Tax Service;
- tax specialists find out that a foreigner does not have the right to be officially on the territory of the Russian Federation;
- it is established that fake documents have been transmitted;
- the foreigner has not paid the fee;
- The documentation is not properly executed, for example, a statement translated into Russian was not certified by a notary;
- Errors in the transferred documents are revealed;
- previously, a foreigner was already registered as an individual entrepreneur in the territory of the Russian Federation;
- previously, a decision was made on the forced suspension of the entrepreneur;
- the term established after the entrepreneur is declared bankrupt has not expired;
- Russian court decided to deprive a person of the right to engage in entrepreneurial activity in Russia.
Employees of the Federal Tax Service send an official denial to a foreigner. This document spells out the exact reason the negative decision was made.
Conclusion
Even foreigners can officially engage in entrepreneurial activity in Russia. To do this, they can register as an individual entrepreneur. They are subject to almost the same requirements as for Russian citizens. For registration, you need to prepare the necessary package of documents, which is transmitted to the Federal Tax Service.
Denial of registration may be due to various reasons. Most often they are related to the fact that foreigners cannot understand the rules of registration. Therefore, it is advisable for them to enlist the support of a consulting firm or an experienced notary.