Individual entrepreneurs are the same full-fledged participants in the construction market as legal entities. The legal status of individual entrepreneurs in relation to self-regulatory organizations operating in the field of construction is practically no different from LLCs or other organizational and legal forms of legal entities.

The logical consequence of this is a positive answer to the pressing question of whether an individual entrepreneur can obtain an SRO for construction, design or survey.

In other words, individual entrepreneurs are subject to the same rules of operation of self-regulatory organizations as legal entities. They are established by the provisions of No. 315-FZ, supplemented by No. 372-FZ, which came into force in mid-2017.

New rules for the participation of individual entrepreneurs in the work of SROs, established by No. 372-FZ

No. 372-FZ, signed by the President in mid-2016, which came into force almost a year after that, seriously changed the rules of work of self-regulatory organizations operating in the construction sector.

Innovations affected almost all market participants: both in terms of types of activities - builders, designers and prospectors, and the legal form of business entities - LLC, individual entrepreneur, etc.

As a result, the conditions for entry and membership in an SRO for individual entrepreneurs have changed quite a lot.

Among the most important adjustments to the legislation on self-regulatory organizations introduced by No. 372-FZ are the following:

• cancellation of Certificates of admission of SROs to perform certain types of work in construction, design and survey;

a fundamental change in the conditions and requirements that determine the need for membership in an SRO, both for individual entrepreneurs and LLCs;

the introduction of a regional principle in the formation of construction self-regulatory organizations, which has not yet affected designers and surveyors;

creation of two types of compensation funds. The funds of the first of them are intended for possible compensation for damage caused by the SRO participant, and the resources of the second can be used to ensure that the SRO members fulfill their contractual obligations in the field of competitive procurement;

change in the amount of contributions to compensation funds. This innovation affected mainly large market participants, which individual entrepreneurs rarely become.

The need to join an SRO for individual entrepreneurs

A characteristic feature of the amendments introduced by No. 372-FZ is that a significant part of small participants in the construction market, working with small volumes or on subcontract terms, are exempt from the need to compulsorily join a self-regulatory organization.

This circumstance directly concerns the majority of individual entrepreneurs belonging to this category. Today, membership in an SRO is mandatory for individual entrepreneurs only in one of the following situations:

• concluding direct contracts for construction, design or engineering surveys with technical customers, developers, regional operators of various federal programs, as well as organizations operating buildings and structures;

carrying out survey work on land plots owned by the state or municipality (for individual entrepreneurs who are members of the SRO of prospectors);

work as an individual entrepreneur in the status of a developer while independently performing design and construction work (for entrepreneurs who are members of an SRO of builders or designers);

signing and subsequent implementation of a contract in the amount of 3 million rubles (for individual entrepreneurs working in construction).

The above conditions, under which it becomes necessary for an individual entrepreneur to join the corresponding SRO, were introduced by No. 372-FZ. They allow a large number of individual entrepreneurs working under subcontracts or under contracts not exceeding 3 million rubles not to join self-regulatory organizations. Of course, this is one of the most important advantages of the reform of SRO activities in construction.

Requirements for individual entrepreneurs to join an SRO

A positive answer to the question whether an individual entrepreneur can receive an SRO in the field of construction depends entirely on whether the individual entrepreneur meets the requirements of legislation and the rules of a self-regulatory organization or not. They can be divided into three categories - financial, qualification and insurance.

Financial requirements for individual entrepreneurs to join an SRO

To obtain membership in an SRO, an individual entrepreneur must prove that he has sufficient financial resources to bear the following expenses:

• entrance fee. Its size is determined by the internal rules of the SRO, and in some professional associations there is simply no payment upon entry;

regular payment for participation in SRO. The frequency of such payments is established by the self-regulatory organization itself. Typically, monthly or quarterly installments are used;

contributions to compensation funds (CF) of a self-regulatory organization. The most serious type of financial requirements for SRO participants, including those who are individual entrepreneurs. For example, the minimum contribution to the CF for compensation for damage to a construction SRO is 100 thousand rubles. If you want to participate in competitive procurement, you will have to make another payment in the amount of at least 200 thousand rubles. These funds are sent to the CF to ensure contractual obligations.

Qualification requirements for individual entrepreneurs

To join the SRO of builders, designers or surveyors, an individual entrepreneur must have a higher education in a specialty appropriate to the type of upcoming activity. In addition, another mandatory requirement is work experience in one of the specified professions, which is at least 5 years.

At the same time, for membership in an SRO, an individual entrepreneur does not require the presence of 2 specialists included in the National Register among the employees. This is one of the few differences in the requirements for individual entrepreneurs compared to legal entities. However, SRO rules may include this condition as mandatory.

Requirements related to liability insurance

Many self-regulatory organizations include liability insurance as a mandatory requirement for joining the association, regardless of the status of the potential member.

In the previous version of the legislation, the conclusion of an insurance contract, although it was not mandatory from a legal point of view, in fact, an insurance policy was always issued, since this made it possible to significantly reduce the amount of the minimum contribution to the SRO comp fund. In general, a similar situation continued after the introduction of No. 372-FZ, so the clause on obtaining insurance is still included in the rules of most self-regulatory organizations operating today.

List of documentation required for individual entrepreneurs to join the SRO

When answering the question of how an individual entrepreneur can join an SRO, one should not forget about the package of documentation that a potential member of a professional association must prepare and provide. It includes:

• an application for joining the SRO, as well as an information sheet indicating the size of the contracts that the individual entrepreneur plans to conclude;

passport, as a document confirming the identity and place of registration of the entrepreneur;

individual entrepreneur registration documents, including registration certificates;

documents that confirm compliance with the qualification requirements imposed by No. 372-FZ and the rules of the SRO. They can apply both to the individual entrepreneur himself (required) and to the specialists working for him (if necessary);

documents on liability insurance, availability of the required material and technical base, financial capabilities to pay premiums, etc.

The last item of the given list of individual entrepreneurs submitted for joining the SRO of builders, designers or document surveyors is necessary if such a requirement is established by the rules of a self-regulatory organization. Federal legislation does not consider these documents mandatory.

Professional construction and renovation of houses and apartments is a system of sequential operations to create or restore the functionality of residential premises. The prospects for activity in this area are due to the high demand for relatively inexpensive, but high-quality construction and finishing work. At the same time, the availability of new technologies and good materials makes it possible to start your own business with a small amount of start-up capital, which explains the interest of businessmen in the possibility of opening individual entrepreneurs in construction and repair.

Beginning entrepreneurs often wonder whether an individual entrepreneur can engage in construction and repairs, or whether for business in this area it is necessary to choose another form of business - an LLC. From the perspective of Russian legislation, both forms of entrepreneurship are acceptable, and the choice depends only on the point of view of the person concerned.

In order to decide between an individual entrepreneur and an LLC, you need to understand the pros and cons of these forms of entrepreneurship. It is easier to open an individual entrepreneur, and the entrepreneur manages the income from his activities independently. On the other hand, an individual entrepreneur cannot be sold; it is run only independently and is liable for debts with all its property.

An LLC can be bought or sold, and the liability of its members is proportional to their contributions. However, registration costs are high, and the LLC pays much more taxes.

Both forms of management may be preferable in different situations. Experts say that if an entrepreneur initially does not see much of a difference, it is better and easier to open an individual entrepreneur.

Registration of individual entrepreneurs for construction

Today, registering an individual entrepreneur for construction is a fairly simple procedure, consisting of several interrelated stages:

1. Selection of OKVED corresponding to construction and repair.
2. Choice of taxation regime.
3. Payment of state duty.
4. Submitting a package of documents to the tax office.

The procedure takes from 3 to 5 days, and the exact date of receipt of registration papers is usually indicated in the receipt. After the specified period, the new individual entrepreneur must receive a certificate of tax registration and a record sheet of the Unified State Register of Individual Entrepreneurs in form No. P60009.

Selecting OKVED

The first step in opening an individual entrepreneurship is to select codes for the economic activity that the businessman plans to engage in in the future. Codes are chosen according to the all-Russian classifier: since 2017, only one version has been in force - OKVED-2.

The classification of entrepreneurship according to OKVED is not affected by the size of the initial capital, the form of ownership, or the taxation system. All that matters is the intended activity.

When creating an individual entrepreneur, the OKVED code must be indicated in the registration application.

OKVED consists of 17 sections (from A to Q), which describe all types of activities performed by entrepreneurs. Construction and repair corresponds to section F. This group includes major and current repairs, as well as new construction; and does not include activities in urban planning, architecture and building design.

Set of OKVED codes “Repair and finishing of turnkey apartments”

The activities of individual entrepreneurs in the field of construction and repair mainly consist of repairs and turnkey finishing of premises. The main code for this activity is , which characterizes the finishing and finishing work.

Individual entrepreneurs can also use additional codes:

• 45.31 – electrical installation work;
• 45.32 – insulation work;
• 45.33 – sanitary and technical work;
• 45.42 – carpentry and carpentry work;
• 45.43 – floor coverings and wall cladding;
• 45.44 – painting and glass work.

An individual entrepreneur has the right to choose several OKVED codes, but the main one must be one. You can read more about codes and their groups in.

Package of documents

In order to register an individual entrepreneur, a citizen of the Russian Federation will need only three documents:

• photocopy of civil passport;
• receipt of payment of state duty;
• application for opening an individual entrepreneur, drawn up according to the current model (P21001).

You can download a sample application at.

If a business is registered with the help of an intermediary, then such a representative must present a power of attorney, as well as a document confirming his identity. A foreigner who wants to open a business in Russia must have a residence permit in the Russian Federation (TRP, residence permit).

Choosing a tax system

The choice of taxation system is a particularly important issue for individual entrepreneurs, since this determines how often it will be necessary to submit reports and how much contributions to pay. There are four systems in use in the construction industry:

• general (OSNO);
• simplified (USN);
• patent (PSN);
• unified tax on imputed income (UTII).

Let's look at their characteristics:

1. OSNO is optimal for large entrepreneurs and for those who need VAT, but it is unprofitable at the beginning of doing business.
2. The simplified tax system is most common among beginner entrepreneurs. It is convenient because instead of 3 general taxes you only need to pay one.
3. PSN applies only to individual entrepreneurs, allowing them to acquire a patent for activities for a period of one month to a year and not pay other taxes during this period.
4. When paying UTII, it does not matter how much income the individual entrepreneur received. Tax is charged only on the amount established by law.

Let us note that of all the listed taxation regimes, experts advise beginning businessmen to choose the simplified one. If desired, the tax regime can be changed later.

Options for registration of individual entrepreneurs

There are several ways to register an individual entrepreneur in the field of construction, repair or any other:

• on one's own;
• online;
• with the help of intermediaries.

The registration period for an individual entrepreneur usually takes no more than 3 days from the moment the necessary papers are submitted to the tax service. It is impossible to reduce this period, regardless of the method of registering the business.

Independent registration of individual entrepreneurs

Setting up a new business on your own is considered optimal because it does not require large expenses and allows a novice entrepreneur to understand the specifics of interaction with authorities. In this case, the citizen simply needs to take the package of documents described above to the tax office.

The personal registration process is completed by receiving the necessary tax certificates from the same tax office.

Registration of individual entrepreneurs online

Today you can even register an individual entrepreneur remotely. It helps with this by offering businessmen to go through the entire procedure online. A package of documents is literally generated automatically: in the appropriate tabs you need to enter your passport details, TIN, and also fill out an application for registration of an individual entrepreneur. Moreover, you can also pay the state fee remotely – for example, from a mobile phone.

This method of registering a business is suitable for confident PC users who value their time and do not want to waste it in line.

Registration through intermediaries

There is a third option for starting an individual business - through intermediaries. The advantage of this method is that it saves the citizen’s time, but this option is significantly more expensive. In addition to the state fee, you need to pay for the services of the intermediary himself and the notary, who will draw up a power of attorney for him.

The main task of an individual entrepreneur during such registration is to transfer his documents to an intermediary (often they are multifunctional centers). The intermediary will do the rest himself.

How much does it cost to open a sole proprietorship?

The cost of opening an individual entrepreneur varies depending on the registration method. The first two are the cheapest for an entrepreneur: in the case of self-registration or online registration, the only fee is a state fee of 800 rubles.

Registration of an individual entrepreneur through intermediaries will cost several thousand more: notary services (500-1000 rubles) plus additional expenses.

Who should become a member of the SRO

At the moment, there are no restrictions on individual entrepreneurs in construction, and all actions can be performed without obtaining a special license - it was abolished in 2010. Today, construction licensing has been replaced by the approval of a self-regulatory organization (SRO).

The SRO permit is issued for an indefinite period and requires quite large financial costs.

Individual entrepreneurs need to pay one-time compensation and entrance fees, buy an insurance policy if necessary, and also pay monthly membership fees.

Only some types of construction and repair work do not oblige individual entrepreneurs to join the organization. These works include:

• plasterboard finishing;
• plastering;
• excavation;
• painting and tiling works;
• Maintenance.

All other types of activities in this area require the individual entrepreneur to join a self-regulatory organization. Without permission from the SRO, the activities of an individual entrepreneur will not be legal.

Individual entrepreneur reporting in construction

Individual entrepreneurs in the construction industry must submit two types of reports:

1. Reporting of the individual entrepreneur himself. It includes data on the average number of employees, as well as reports and taxes to extra-budgetary funds and the Pension Fund.
2. Reporting submitted by individual entrepreneurs for their employees. It consists of reports to the Social Insurance Fund, the Pension Fund, as well as a report on personal income tax.

According to the law, individual entrepreneurs have 30 days to submit a quarterly report and 100 days to prepare an annual report. Before submitting reports to the tax office, they must be carefully checked to avoid problems and sanctions.

Registering an individual entrepreneur in 7 steps: Video

UTII

First of all, it is necessary to figure out whether an individual entrepreneur must pay a single tax on imputed income (hereinafter - UTII) from the specified type of activity, since currently a special tax regime in the form of UTII for certain types of business activities is mandatory. But from January 1, 2013, organizations and individual entrepreneurs will be able to switch to paying UTII for certain types of activities voluntarily in accordance with the changes made to the Tax Code of the Russian Federation on the basis of paragraphs. "a" clause 22 art. 2 of the Federal Law of June 25, 2012 N 94-FZ "On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation" (letters of the Ministry of Finance of Russia dated August 30, 2012 N 03-11-06/3/65, dated 08/17/2012 N 03-11-11/249).
So, UTII payers are organizations and individual entrepreneurs who carry out business activities subject to a single tax on the territory of a municipal district, city district, federal cities of Moscow and St. Petersburg, in which a single tax has been introduced (clause 1 of Article 346.28 of the Tax Code of the Russian Federation) .
According to paragraph 1 of Art. 346.26 of the Tax Code of the Russian Federation, the taxation system in the form of UTII for certain types of activities is established by the Tax Code of the Russian Federation, put into effect by regulatory legal acts of representative bodies of municipal districts, city districts, laws of federal cities of Moscow and St. Petersburg and is applied along with the general taxation system and other taxation regimes provided for by the legislation of the Russian Federation on taxes and fees.
The taxation system in the form of UTII can be applied on the basis of decisions of representative bodies of municipal districts, city districts (legislative (representative) bodies of state power of federal cities of Moscow and St. Petersburg) in relation to such type of business activity as the provision of household services to the population (clause 2 Article 346.26 of the Tax Code of the Russian Federation).
Household services are understood as paid services provided to individuals (with the exception of pawnshop services and services for repair, maintenance and washing of vehicles), provided for by the All-Russian Classifier of Services to the Population, with the exception of services for the manufacture of furniture, construction of individual houses (Article 346.27 of the Tax Code of the Russian Federation ).
In accordance with the All-Russian Classification of Services to the Population, household services include the repair and construction of housing and other buildings (code 016000).
Thus, if an individual entrepreneur provides services to individuals for the repair and (or) construction of housing and other buildings (except for the construction of individual houses) and if in the territory of the municipal district (urban district) where he carries out this activity, UTII has been introduced in relation to the specified type of activity , then he is obliged (in 2012) to pay UTII (see, for example, letters of the Ministry of Finance of Russia dated 08/30/2010 N 03-11-11/227, dated 01/22/2009 N 03-11-06/3/05, dated 07/09. 2008 N 03-11-04/3/322, Federal Tax Service for Moscow dated 03/31/2009 N 16-15/030023@).
Note that in paragraphs 2.1 and 2.2 of Art. 346.26 of the Tax Code of the Russian Federation lists cases in which an individual entrepreneur is not entitled to pay UTII.
Payment of UTII by an individual entrepreneur provides for exemption from the obligation to pay personal income tax (in relation to income received from business activities subject to UTII) and personal property tax (in relation to property used to carry out business activities subject to UTII). Also, he is not recognized as a VAT payer (in relation to transactions recognized as objects of taxation in accordance with Chapter 21 of the Tax Code of the Russian Federation, carried out within the framework of business activities subject to UTII), with the exception of VAT payable in accordance with the Tax Code of the Russian Federation when importing goods into the territory of the Russian Federation and other territories under its jurisdiction. Calculation and payment of other taxes and fees are carried out by individual entrepreneurs in accordance with other taxation regimes (clause 4 of article 346.26 of the Tax Code of the Russian Federation).
Taxpayers who, along with business activities subject to UTII, carry out other types of business activities, calculate and pay taxes and fees in relation to these types of activities in accordance with other taxation regimes provided for by the Tax Code of the Russian Federation (clause 7 of Article 346.26 of the Tax Code of the Russian Federation).
If the activities carried out by an individual entrepreneur are not subject to UTII, then he must pay taxes in accordance with the general taxation regime or the simplified taxation system (hereinafter referred to as the simplified taxation system).

An individual entrepreneur can switch to a simplified taxation system on a voluntary basis (clause 1 of Article 346.11 of the Tax Code of the Russian Federation). But at the same time, the conditions provided for in paragraphs must be observed. 2 and 3 tbsp. 346.12 Tax Code of the Russian Federation.
Note that according to clause 4 of Art. 346.12 of the Tax Code of the Russian Federation, individual entrepreneurs transferred in accordance with Chapter 26.3 of the Tax Code of the Russian Federation to pay UTII for one or more types of business activity, have the right to apply the simplified tax system in relation to other types of business activity they carry out. At the same time, restrictions on the number of employees and the value of fixed assets and intangible assets established by Ch. 26.2 of the Tax Code of the Russian Federation are determined based on all types of activities carried out by them, and the maximum amount of income established by paragraphs 2, 2.1 346.12 of the Tax Code of the Russian Federation is determined by those types of activities, taxation of which is carried out in accordance with the general taxation regime.
When switching to the simplified tax system, an entrepreneur must choose an object of taxation: income or income reduced by the amount of expenses; the tax rate will depend on this (Article 346.20 of the Tax Code of the Russian Federation).
The application of the simplified tax system by individual entrepreneurs provides for their exemption from the obligation to pay personal income tax (in relation to income received from business activities, with the exception of the tax paid on income taxed at the tax rates provided for in paragraphs 2, 4 and 5 of Article 224 of the Tax Code of the Russian Federation ), property tax for individuals (in relation to property used for business activities). Individual entrepreneurs using the simplified tax system are not recognized as VAT payers, with the exception of VAT payable in accordance with the Tax Code of the Russian Federation when importing goods into the territory of the Russian Federation and other territories under its jurisdiction, as well as VAT payable in accordance with Art. 174.1 Tax Code of the Russian Federation. Other taxes are paid by individual entrepreneurs in accordance with the legislation on taxes and fees (clause 3 of Article 346.11 of the Tax Code of the Russian Federation).
Please note that an individual entrepreneur using the simplified tax system is not exempt from performing the duties of a tax agent provided for by the Tax Code of the Russian Federation (clause 5 of Article 346.11 of the Tax Code of the Russian Federation).
In addition, individual entrepreneurs carrying out repairs and construction of housing and other buildings have the right to switch to a simplified taxation system based on a patent (clause 45, clause 2, article 346.25.1 of the Tax Code of the Russian Federation). But when applying the simplified tax system on the basis of a patent, an individual entrepreneur has the right to attract employees, including under civil contracts, the average number of which, determined in the manner established by the federal executive body authorized in the field of statistics, should not exceed five for the tax period people (clause 2.1 of article 346.25.1 of the Tax Code of the Russian Federation). Let us note that the decision on the possibility of individual entrepreneurs using a simplified taxation system based on a patent in the territories of constituent entities of the Russian Federation is made by the laws of the relevant constituent entities of the Russian Federation (clause 3 of Article 346.25.1 of the Tax Code of the Russian Federation).

General tax regime

An individual entrepreneur who does not necessarily pay UTII for the type of activity carried out and does not apply the simplified tax system must calculate and pay taxes in accordance with the general taxation regime.
This taxation system assumes that an individual entrepreneur calculates and pays from income from his business activities:
- Personal income tax in accordance with the provisions of Ch. 23 Tax Code of the Russian Federation;
- VAT in accordance with the provisions of Ch. 21 Tax Code of the Russian Federation.
Thus, an individual entrepreneur calculates and pays personal income tax on the amount of income received from business activities (clause 1, clause 1, article 227 of the Tax Code of the Russian Federation).
In addition, an individual entrepreneur must fulfill the duties of a tax agent for personal income tax when paying individuals (in particular, employees of this individual entrepreneur) income provided for in paragraph 2 of Art. 226 of the Tax Code of the Russian Federation (clause 1 of Article 226 of the Tax Code of the Russian Federation). Let us remind you that he must also calculate, withhold and pay personal income tax on income paid to employees when applying special regimes (UTII or simplified tax system).
When performing work (providing services, selling goods) related to repairs and construction, the entrepreneur is obliged to calculate and pay the amount of VAT to the budget in the manner prescribed by Chapter 21 of the Tax Code of the Russian Federation.
Let us note that individual entrepreneurs (as well as organizations) have the right to be exempt from fulfilling taxpayer obligations related to the calculation and payment of VAT, in accordance with Art. 145 of the Tax Code of the Russian Federation.
If there are taxable objects, an individual entrepreneur, as an individual, must also pay:
- tax on property of individuals in accordance with the norms of the Law of the Russian Federation of December 9, 1991 N 2003-1 “On taxes on property of individuals”;
- land tax in accordance with the provisions of Ch. 31 Tax Code of the Russian Federation;
- transport tax in accordance with the provisions of Chapter. 28 Tax Code of the Russian Federation.
The specified taxes (personal property tax and land tax) must be put into effect on the territory of the municipal formation by regulatory legal acts of the representative bodies of municipal formations, transport tax - on the territory of the constituent entity of the Russian Federation by the law of the constituent entity of the Russian Federation (clauses 3, 4, article 12 Tax Code of the Russian Federation).

Insurance premiums

The procedure for paying contributions for compulsory pension insurance, for compulsory social insurance in case of temporary disability and in connection with maternity, for compulsory medical insurance is regulated by Federal Law of July 24, 2009 N 212-FZ "On insurance contributions to the Pension Fund of the Russian Federation, Social Insurance Fund Russian Federation, Federal Compulsory Medical Insurance Fund" (hereinafter referred to as Law No. 212-FZ).
According to part 3 of Art. 5 of Law N 212-FZ, if the payer of insurance premiums simultaneously belongs to several categories of payers of insurance premiums, he calculates and pays insurance premiums for each basis. Therefore, an individual entrepreneur, if he has employees, pays contributions on two bases - both from payments in favor of employees and “for himself” (from income from business activities).
In accordance with part 1 of Art. 14 of Law N 212-FZ, individual entrepreneurs pay insurance contributions from income from business activities to the Pension Fund of the Russian Federation and compulsory medical insurance funds in the amount determined based on the cost of the insurance year. Note that an individual entrepreneur is not obliged to calculate and pay insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity in the Federal Social Insurance Fund of the Russian Federation (Part 5 of Article 14 of Law No. 212-FZ).
Payments and other remunerations accrued by individual entrepreneurs in favor of individuals within the framework of labor relations and civil contracts, the subject of which are the performance of work and the provision of services, are recognized as subject to taxation with insurance contributions (Part 1, Article 7 of Law No. 212-FZ). As for the tariffs of insurance premiums, you should pay attention to Articles 58 and 58.2 of Law No. 212-FZ.
In addition, an individual entrepreneur who employs persons subject to compulsory social insurance against industrial accidents and occupational diseases will be required to pay insurance premiums for this type of insurance (Articles 3, 5 of the Federal Law of July 24, 1998 N 125-FZ "On compulsory social insurance against accidents at work and occupational diseases").

Prepared answer:
Expert of the Legal Consulting Service GARANT
auditor, professional accountant Liliya Fedorova

Response quality control:
Reviewer of the Legal Consulting Service GARANT
auditor Melnikova Elena

The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.

SRO (self-regulatory organization) is an association of individual entrepreneurs and legal entities engaged in the same line of activity or with similar professional characteristics. The state, having formed such organizations, transferred part of its own functionality to them, namely, control and supervision over certain categories of work. In other words, government agencies evaluate only the final result. SROs unite engineers, designers, and construction workers. Joining an SRO for individual entrepreneurs in construction is a mandatory procedure. What is needed for this, and what benefits does an entrepreneur receive when he becomes a member of an SRO.

An individual entrepreneur can work in construction on an equal basis with legal entities.

How to open an individual entrepreneur for construction work in 2019 is presented in step-by-step instructions:

1. Select OKVED. The selection is made from the all-Russian classifier OKVED-2, which has been in effect since 2017. The main goal of this stage is to determine a specific direction of activity. The code must be indicated in the registration application. The construction direction corresponds to section F of the Classifier. The section includes different areas of repair (major and current), new construction. Urban planning, architecture and design are not included in this section. The entrepreneur chooses only one main OKVED and an unlimited number of additional ones. The choice of the latter does not mean that the individual entrepreneur will necessarily work in these directions.
2. Choosing a form of taxation. For individual entrepreneurs and organizations in the construction industry, there are 4 modes: OSNO, simplified tax system, UTII, PSN. In the future, you can switch to a different taxation regime by writing a corresponding application.
3. Payment of state duty – 800 rubles.
4. Transfer of documents to the Federal Tax Service. Only 3 documents are required: a passport, a receipt confirming the fact of payment of the duty, an application for registration of form P21001.

The most popular OKVED standards among individual entrepreneurs working in the construction industry:

• 45.31 – electrical installation work;
• 45.32 – insulation work;
• 45.33 – sanitary and technical work;
• 45.42 – carpentry and carpentry work;
• 45.43 – floor coverings and wall cladding;
• 45.44 – painting and glass work.

Registration is considered completed after making an entry in the Unified State Register of Entrepreneurs. The duration of the procedure is 3-5 days. It is worth noting that an entrepreneur can not only personally apply to the Federal Tax Service for registration, but also draw up a power of attorney certified by a notary for the representative. In addition, online registration is available. However, preparation for running a construction business does not end there; individual entrepreneurs need permission from the SRO.

If, upon registration, an individual entrepreneur does not submit an application for the transition to one of the special tax regimes, then OSNO will automatically be applied. Permission to use a special regime is not required; the application is of a notification nature.

Currently, there are no restrictions on the activities of individual entrepreneurs in the construction industry. The business is conducted without obtaining special licenses, which were abolished in 2010. A replacement for licensing is the SRO certificate. Such a document is issued for an unlimited period and is associated with significant financial costs.

However, participants in self-regulatory organizations receive a number of advantages:

It is worth noting that an entrepreneur may lose membership in a self-regulatory organization. As a rule, there are 3 main reasons for this: causing damage to third parties, non-payment of membership fees, and carrying out work without the appropriate permits.

Obtaining SRO approval for an individual entrepreneur to design or perform construction work requires the provision of constituent documents, as well as information about resources (both labor and property). Joining an SRO for individual entrepreneurs also requires payment of a compensation and entrance fee, and then a monthly membership fee. Also, some self-regulatory organizations require purchasing an insurance policy.

There are a number of construction and repair works that do not require entrepreneurs to join an SRO.

These include:

• plastering, painting, facing and excavation work;
• Maintenance;
• plasterboard finishing.

All other areas of the construction business require membership in a self-regulatory organization.

First of all, the activities of the SRO are aimed at monitoring the contractors attracted by the developer. If, during the construction of real estate, the developer engages a third party to organize work on the basis of a general contract, then the approval of the SRO is required for the general contractor. If the developer independently searches for contractors, then he needs to obtain SRO approval.

Obtaining a certificate of admission to perform construction work is preceded by the provision of a set of documents according to the approved list. It is worth noting that the list for obtaining an SRO certificate for individual entrepreneurs in construction and repair can vary significantly depending on the specific organization, as well as the type of SRO.

However, the request from the SRO may not be limited to the standard requirements for the set of documents; the legislation allows for the establishment of additional requirements, which means the set will be expanded.

To obtain admission from most SROs, individual entrepreneurs will need to provide the following documents:

1. OGRNIP certificate with attached certificates or extracts from the Unified State Register of Individual Entrepreneurs on registration of changes. It is enough to provide copies. The entrepreneur himself can assure.
2. A copy of the TIN certified by the entrepreneur.
3. A copy of the notice of registration with the tax authorities certified by the entrepreneur.
4. (a copy of the original or a “fresh” extract from the Rosstat website).
5. An extract from the Unified State Register of Individual Entrepreneurs, which was issued no earlier than 30 days before the date of submission of documents.
6. Passport. The copy is certified by the individual entrepreneur.
7. Information about the qualifications of the individual entrepreneur, as well as employees of the candidate for SRO participants (for example, copies of diplomas, work books, showing work experience in the construction industry of 3 years or more, certified by the individual entrepreneur, documents on advanced training).
8. A free-form list of property required to perform the stated work. It is important to indicate not only the name, but also to make notes whether the equipment is owned or rented.
9. Copies of current licenses or SRO certificates.
10. In a text file: bank details, contact information (telephone, email address, date and place of birth of the entrepreneur, link to the website).
11. The indicated types and subtypes of activities from the SRO classifier that the entrepreneur plans to engage in. The price of document preparation is calculated based on the number of selected types. It is important to note the types and subtypes of activity.

An individual entrepreneur can engage in construction only after passing the inspection procedure. Obtaining SRO approval is required only for those works on the preparation of project documentation that have an impact on ensuring the safety of capital construction. The situation is somewhat different with design, the main stage of construction, the quality of which determines not only the comfort of using the facility and its service life, but also safety. However, the contribution to the designers' compensation fund is 2 times lower than the contribution to the SROS. There are also no requirements for material and technical equipment. Instead, the requirements for personnel qualifications are as strict as possible. Thus, there is a requirement for the number of employees who have a specialized higher education (at least 3), as well as requirements for minimum experience in the profession (from 5 years). In addition, it is necessary to undergo advanced training every 5 years. The main difference in the sets of documents for builders and designers is that the latter have an ISO certificate (for the design of technically complex objects, as well as dangerous and non-standard ones).

Some SROs require all candidates to have liability insurance to third parties.

The higher the SRO status, the greater the requirements for candidates. Full information about the required documents can be obtained by requesting a commercial offer by email.

Activities in the construction business of individual entrepreneurs require the submission of two types of reports:

• according to the chosen taxation regime. The composition depends on the selected mode. The most complete reporting is required for entrepreneurs using the main form of taxation. The simplified tax system and UTII provide for simplified accounting and filing a tax return. The patent does not provide for the filing of a declaration, but requires the maintenance of KUDiR;
• reporting to extra-budgetary funds, Pension Fund. Implies the following types of reports: on the average number of employees, reports to the Pension Fund of the Russian Federation and the Social Insurance Fund, and a report on personal income tax.

According to legislative norms, an entrepreneur is given 30 days to prepare a quarterly report and 100 for an annual report. One of the most common primary documents for entrepreneurs in this area is a contract for construction work performed by individual entrepreneurs. This agreement gives the right to deduct possible expenses from income. It is important for entrepreneurs to draw up a contract correctly in order to avoid legal and other financial costs in the future. The main distinguishing feature of such an agreement is the obligation of the customer to organize conditions for the contractor to perform the work. Acceptance of the results of work is carried out according to the act; if there are disagreements, it is also necessary to draw up a corresponding document.

Individual entrepreneurs must timely submit reports and pay tax payments. Failure to comply with these legal requirements may result in penalties.

Thus, the obligation to join an SRO has significantly improved the quality of construction services due to high requirements for members. SROs are developing regularly and fruitfully. Therefore, despite the need to pay membership fees and impressive requirements for a set of documents, the participating entrepreneur receives significant benefits.

Construction is often chosen by individual entrepreneurs (individual entrepreneurs) as their area of ​​activity. Conducting business activities without forming a legal entity is provided for by the Civil Code of the Russian Federation (Part I). Business in the repair and construction segment can be quite profitable due to the characteristics of the Russian market, where significant cash flows into real estate. Demand for the construction of residential, commercial and industrial facilities is present in all regions, which provides employment to almost all business entities operating in the construction industry.

To carry out business, an individual must register as an individual entrepreneur (IP). Individual entrepreneurs were able to work in the construction business on January 1, 2010, when licenses were no longer required to provide such services. A prerequisite for individual entrepreneurs who decide to develop in the construction industry is membership in a self-regulatory organization (SRO).

It turns out that upon receipt of permission from the SRO of builders to provide services in the field of construction, the status of an individual entrepreneur acquires the rights of a legal entity to engage in activities in the construction business.

In relation to the SRO, the state performs control and supervisory functions, regulating the procedure for its registration. A permit to provide construction services is issued by the SRO once, but its validity must be renewed annually. In case of unforeseen situations that could cause damage during work in the construction field, special compensation funds are created in the SRO.

What to choose: individual entrepreneur or legal entity

One of the very first questions that a novice businessman faces is the choice: to register a legal entity or an individual entrepreneur?

There is a fundamental difference between conducting business on behalf of a legal entity or on behalf of an individual entrepreneur. For example, if a construction organization is represented by an LLC, all its participants have risks proportional to their shares, and each of them bears part of the responsibility. An individual entrepreneur is the only person who bears all the risks and obligations, while investing either his own or borrowed funds in business development.

There are subtleties in starting and ending a business. The responsibility of a legal entity is to open a bank account in which all current monetary transactions take place. For individual entrepreneurs, special regimes for maintaining financial statements are provided. In comparison with a legal entity, the requirements for the formation of statutory documents and initial capital for an individual entrepreneur are reduced.

The procedure for terminating a construction business also seems different. Liquidation of a legal entity will take a much longer time, since it is necessary to protect the interests of all participants in the organization. In this case, all legal relations between the parties are terminated. It is much easier to terminate the activities of an individual entrepreneur, but the closure of a private construction business does not provide grounds for getting rid of property liability.

Organizing activities in the field of repair and construction services as a legal entity provides for the possibility of reorganizing or selling the business, while an individual entrepreneur has the right only to liquidate his business.

Functions of individual entrepreneurs in construction

Construction standards, as well as the relationship between business participants in this area, are set out in the Town Planning Code of the Russian Federation. According to this Code, control over the construction process is carried out by the person providing repair and construction services. Responsibility also falls on the developer. However, Art. 53 The Civil Code of the Russian Federation provides for the possibility of involving a third party in the management issue if the person carrying out the construction does not have a sufficient professional level in construction management. Often, such a function is offered to individual entrepreneurs in construction.

As a general contractor, customer or developer, the individual entrepreneur must monitor the competent and timely implementation of construction work, as well as maintain construction equipment. The main task of the IP when performing this function is to ensure security at the observed facility.

Decisions on the procedure for carrying out construction work are made personally by the entrepreneur and must be documented.

According to the system of regulatory documents in construction, an individual entrepreneur carrying out supervisory functions at a site must control:

• project documentation;
• consumption of materials;
• the process and completion of ongoing construction work;
• terms established by contractual relations.

An individual entrepreneur can act both as a developer and as a general contractor, as stated in Art. 706 of the Civil Code of the Russian Federation.

Being a general contractor, an individual entrepreneur receives permission to carry out all types of work that will be carried out at the construction site.

Another function that an individual entrepreneur can perform is participation in shared construction on an equal basis with individuals, subject to the investment of their own funds. The object of shared construction can be any residential and non-residential real estate.

Construction activities as an individual entrepreneur involve investing in real estate. In the case of investment activities carried out by an individual entrepreneur, the relationship between him and the developer is regulated by the Civil Code of the Russian Federation and the country's regulatory legal acts in this area.

What should an individual entrepreneur know when starting a construction business?

After the state registration of a private builder as an individual entrepreneur has been carried out, you need to decide how he will keep financial records.

The entrepreneur faces the following questions:

• what tax regime it will apply;
• what documentation is needed to submit to the tax office;
• what forms of accounting reporting should he maintain;
• When and how often do you need to submit financial statements?

Carrying out activities in the construction industry provides for the following taxation regimes:

• general;
• simplified;
• UTII (single tax on imputed income);
• patent.

The most common option when choosing a taxation regime for individual entrepreneurs is a simplified scheme.

This system involves filling out nine forms that will need to be submitted to the building department and the tax office.

For example, according to the general taxation system there will be 21 such forms, and the patent system consists of the cost of the purchased patent, which is the amount of tax paid to the state.

Individual entrepreneur reporting in construction

Before submitting your reports, you must check them carefully to avoid problems with the tax office. To do this, you need to be guided by the requirements of current legislation in the field of filling out and submitting financial statements to the regulatory authority.

Tax reporting is not only a necessity, but also carries analytical functions. So, knowing the results of the main income and cost items, you can understand in which direction it is best to develop.

Construction legislation allocates 30 calendar days for drawing up a quarterly report; an annual report can be prepared within 100 days.

An important aspect of business activity that affects the result of its profit is the optimization of tax payments. To do this, first of all, it is necessary to analyze payments of taxes and fees made over several reporting periods. This will allow you to see their dynamics and structure, which will help coordinate business operations using optimal schemes to minimize taxation.

The construction business offers certain tax incentives that can provide significant savings on value added tax payments. But if you want to increase profits by optimizing taxes, you should remember that using illegal methods for this purpose can lead to the application of administrative measures, and in especially severe cases, criminal liability.