To officially conduct business (and the provision of services by digital specialists also falls under this concept), you must register. FOP - one of the options.
Lawyer, advisor to the law firm "Bargen" Tatiana Petrenko told readers of Genius Marketing why to register a private individual and how to do it right.
Why register a sole proprietorship
To officially conduct business. When a person provides services to someone and receives money - it is the income of an individual. By law, such income is taxed in 18%. If a person operates without a sole proprietorship, he faces administrative and financial penalties. Tax m can collect 18% of unpaid personal income tax (personal income tax) + 10-25% from the amount of tax.
At repeated infringements within 1095 days the size of collecting increases:
Second time: 18% of unpaid PIT + 50% from the amount of tax;
Third time: 18% unpaid PIT + 75% from the amount of tax.
Moreover, conducting business activities without the establishment of a sole proprietorship and intentional tax evasion is subject to criminal liability.
If you do not pay taxes in the amount of more than 960.5 thousand UAH (one thousand non-taxable minimums), Article 212 of the Criminal Code of Ukraine provides for the following penalties:
Fine from 300 to 500 non-taxable minimums (at the time of writing it is from 288.18 thousand UAH to 480.25 thousand UAH);
Prohibition to hold certain positions or engage in certain activities for up to three years.
How to correctly: you need to declare income and voluntarily pay from the amount of 18% PIT + 1.5% military tax.
To work correctly with contractors (customers). The customer always has a logical question: "How to pay for the services of the contractor?". If the latter offers to transfer money to him as an individual, the following taxes must be paid: 18% PIT + 22% SSC (single social contribution) + 1.5% military tax. Total - 41.5%. That is why it is more profitable for customers to work with contractors as sole proprietors or legal entities.
How to register a sole proprietorship
- It is necessary to determine what will be the amount of income
FOP has two systems of taxation: general and single tax (simplified).
General. Once a year, all income is deducted, minus expenses and a tax is paid on the amount received (net income): 18% PIT + 22% SSC + 1.5% military tax.
This option is suitable for entrepreneurs with large productions: a large turnover, but the percentage of net profit from it is small.
Single tax (simplified system). In this case, you do not need to bother with costs and revenues. The tax is paid on all money that came into the account. There is also an option in which a fixed amount of tax is paid.
There are three groups:
The first. Retail market. The limit of annual income is UAH 300,000. There can be no employees.
Another. Fixed monthly tax - 20% from the minimum wage + SDR (1752 UAH at the time of writing). The limit of annual income is UAH 1.5 million. There can be up to ten employees.
Third. 5% from all the money that goes into the account. Annual income limit - UAH 5 million. There can be an unlimited number of employees.
In case of exceeding the annual income limit, a person automatically takes off from the single tax and must pay the amount of the difference according to the general system.
For example, the entrepreneur was in the second group and for a year received income of UAH 2 million with a limit of UAH 1.5 million. For "extra" 500 thousand UAH he has to say goodbye to 41,5% from this sum. There may be additional penalties and fines.
Check from time to time if you are counted in register of single tax payers. If a person is deprived of the status of a single tax payer, and the notice comes late (for example, two months later), from the income for this period he will have to pay 41.5% taxes.
- Select NACE (classifier of economic activities)
Before registering a sole proprietorship, it is necessary to determine the code of activity according to the NACE. There are a lot of them many, you can choose as many as you want (it is possible to add or remove them at any time). One code needs to be made basic. For example, if you provide marketing services, it makes sense to take 62.01, 62.02, and 62.09 to give the status of the main.
When submitting the report, indicate from which type of activity the money came.
There are codes that can not go to a single tax. It will not be accepted if it is about auditing, sale of special metals and so on.
When concluding a contract with a legal entity, the latter checks whether the executor has a NACE, under which he provides services. If it is missing, questions will arise.
- Register a sole proprietorship at the place of residence or online
At the place of residence. You go to the state registrar at the place of residence, apply for registration of a sole proprietorship and for a single tax (freelancers, IT specialists, usually on it). The data is entered into the database - and the person immediately appears in the registry.
Within three days the tax will automatically take into account. You will need to come to the branch to get an "Extract from the register of single taxpayers."
You also need to register an income book - just apply in any form. You can buy it in stationery stores, and pick it up after "activation" will work in ten days.
This is a regular book with margins - you need to enter the date of arrival of money and the amount. If the income is in foreign currency, it is necessary to prescribe the exchange rate difference. There is, of course, an option to hire an accountant, but if a freelancer has three receipts a month, you can also figure it out yourself.
Nobody checks the book. The tax will ask her only in case of liquidation of the private individual. If it is not, you will have to pay a fine of 170 UAH and still fill.
Extracts on the state registration of sole proprietors and from the register of single tax payers, as well as the book of income accounting - the main documents confirming the registration of sole proprietors.
Online. You can register a self-employed person on the Internet on the website Ministry of Justice of Ukrainefollowing the instructions. This will require an EDS (electronic digital signature). You can get it in the tax, "Privat24", "ACSK Ukraine»Or any other accredited centers.
EDS is also required for electronic reporting through "Payer's personal account».
In it you can submit reports, receive receipts that it is submitted, send a letter to the tax and conduct all communication.
- Open an account to keep finances
You can open an account for a sole proprietorship in any bank of Ukraine. And there can be as many accounts as you want.
They are of different types. First you need to open an entrepreneur's account (code 2600). Then you can issue a corporate card (code 2605) - it will be directly at the expense of FOP.
The corporate card is convenient in the event that there is no desire to delay with sending of details to clients. You can just throw the card number, and the money on it will "fall" as to the account of the private individual.
You can open a card of an individual and transfer funds to it from account 2600.
To open such a bank account, you need documents confirming the registration of a sole proprietorship: passport, code, extract on the registration of a sole proprietorship and from the register of single tax payers.
The bank will issue instructions on activating the client-bank - a service where you can perform various operations on the account and exchange documents and other information with the financial institution.
Each bank has its own system. Some use electronic keys to log in. In this case, it is important not to confuse them with the keys to log in to the "Personal account of the payer".
All. After that, relations with the state are legalized - you can safely conduct business.
The article was published on GeniusMarketing