How to become an entrepreneur - six registration chips
An employee is a person who receives a fixed amount of salary. A private entrepreneur, by contrast, can earn as much as he wants. And a year later, riding a new "Jeep." How to become an entrepreneur?
Self-employed: the whole truth about competition
According to statistics from the State Fiscal Service, in 2015, those wishing to become entrepreneurs decreased by almost 5%. This is in comparison with 2014 year. The good news is that you will have fewer competitors, because in times of crisis, people are in no hurry to think about how to become an entrepreneur and register their own business.
Over 21,000 private entrepreneurs have registered their individual activities in the last three months of 2015. But still, if you trust the statistics, the majority of those who already maintain it, reports on zero income. The beginner has every chance to arrange a FOP, strive for prosperity and now think about where to invest money.
FOP clearance procedure
The FOP, or the “person-friendly company”, or the SPD (business entity) can register very quickly - within three to four days. To do this, you need to go to the city executive committee at the place of your registration and ask for a list of documents for obtaining private entrepreneurship. To save time, preview information on the Internet, how to become an entrepreneur. In order not to confuse concepts, it is worth explaining right away: FOP and SPD are one and the same.
What documents need to be prepared?
1. Card for state registration (information about you will be entered into the Unified Register of Entrepreneurs, by which anyone can check it).
2. It is necessary to choose the types of QVED - statistics codes that indicate what the entrepreneur is doing. For example, retail.
3. It is also important to choose the type of taxation, according to which you will pay taxes.
4. Pay the registration fee at the bank and bring a receipt of this to the state registrar. The amount of the collection and details you write to the executive committee.
5. You will need a passport and ID code.
If you have any questions, you can ask them to the state registrar on the spot.And also contact the Foundation for the Promotion of Entrepreneurship, which must necessarily advise newcomers and experienced FOPs at any local level. They know better than others how to become an entrepreneur.
What about the Pension Fund?
Answering the question how to become an entrepreneur without registering with the Pension Fund, we immediately disappoint: it will not work. Even if you are barely 21 and you are still far from retirement, you still need to register with these government bodies. This must be done within 10 days from the moment you receive the Certificate of Registration of the FOP (SPD).
To become an entrepreneur completely and irrevocably (we are joking, there is also a closing process), you need to write an application on the model that you will be provided in the Pension Fund at your place of residence. Also, provide the standard gentleman's kit: a passport and ID code, as well as a certified copy of the PDS Registration Certificate (Extract).
If you plan to become an entrepreneur and use hired labor, you need to sign employment contracts through the Employment Center with the people who will work for you. You will pay deductions for them in the Pension Fund.Copies of these contracts must be submitted to the Pension Fund at the place of registration. In a few days you will receive an official document, evidence of your registration in the Pension Fund.
Do not be afraid to get confused and do something wrong at first. And in the tax inspectorate, and in the Pension Fund, and in the Employment Center you will have an inspector assigned specifically for you. Call him as needed and do not hesitate to use personal advice. Representatives of such bodies like when businessmen are “friends” with them. And they will be happy to tell you what to do and how.
Typically, a private entrepreneur submits it once a quarter, once every six months and then at the end of the year, for the entire annual reporting period. Regardless of whether you have income or not, you must file reports on time, otherwise you will face fines. They are small (from 120 UAH), but unpleasant. In addition, discredit you in the eyes of the tax, and why is it necessary for a beginner businessman?
Thinking about how to become an entrepreneur, immediately get a notebook and ask the tax inspector when you should submit reports and what form is needed for this.If you do not do it yourself, contact an experienced accountant.
There is a category such as "coming", that is, providing their services remotely and when you need it. For example, in the period of delivery of tax reports. It will be inexpensive, and the benefits will bring the sea.
If you have enough money and do not save on accounting, contact a professional accounting company that will conduct all your financial activities. A formal contract will guarantee that the selected company is responsible for each step before you.
Single tax and single social contribution
The private entrepreneur pays these two payments, regardless of whether he has income or not. True, there are exceptions. They depend on what form of taxation you choose (general or simplified) and which business group you have open.
Today, according to the legislation of Ukraine, a private entrepreneur can choose one of three groups of simplified taxation (there were six of them before the 2015 amendments).
- First group- FOP, not using wage labor; single tax rate - 121.8 UAH (per month).
- Second group- FOP using up to 10 employees; single tax rate - 243.6 UAH (per month).
- Third group- FOP using any amount of hired labor; VAT defaulters pay 4% tax on revenues, VAT payers pay 2% of revenues to the tax authorities.
Individual entrepreneurs who are on the general system of taxation pay a fixed percentage of the tax according to their income. In contrast to simplified entrepreneurs, the general system is simple: there is no income - there are no tax payments. As for the contribution to the Pension Fund "for yourself", today its minimum size is 436.18 hryvnia.
How to become an entrepreneur? Bill Gates and Oprah Winfrey, creators of one of the most expensive Ukrainian startups Max Metz and Nikolay Bohun, Facebook inspirer Mark Tsukenberg thought about this question. So go ahead and write us about your personal experience.