Construction repair individual entrepreneurship. Individual entrepreneur in design and construction
Information on how to open an individual entrepreneur in construction is very important for those who decide to do business in this segment of market relations. Recently, builders do not need to obtain licenses to carry out construction, finishing, design, and repair work. But to carry out certain types of this activity, a business entity must not only be registered in the prescribed manner, but also obtain the appropriate permission to carry out work.
Registration of individual entrepreneurs for construction
To register an individual entrepreneur, keep records and bookkeeping, and also get answers to your questions, a proven and convenient service from our partners, the company “Moe Delo”, will always help you.
Opening an individual business is the easiest way to start your own business. The registration procedure does not cause difficulties if the interested party is not prohibited from conducting such activities (for example, due to a court decision or sentence that has entered into legal force or a recent bankruptcy procedure).
In order to start your own business in the construction industry, it is important to enter information about the entrepreneur in the register. The state registration procedure takes three to five working days. You just need to collect and submit the documents correctly.
Let's look at how to open an individual entrepreneur for construction:
- personal identification document (passport);
- copies of identification number (if available);
- application of the established form.
- receipts for payment of the state fee for registering an entrepreneur (800 rubles).
For construction, we select codes from section 41 “Construction of buildings” of the OKVED 2 classifier, which correspond to activities related to the preparation of construction sites, construction of buildings and structures (real estate), services for the provision of major repairs, and installation of equipment.
Who should become a member of the SRO
Despite the fact that compulsory licensing of construction services has long been abolished, it remains important to obtain special permission. It does not need to be taken if you plan to carry out only repair and finishing work, which includes:
Whether an SRO is needed for finishing work is determined by Order No. 624 of the Ministry of Regional Development of the Russian Federation dated December 30, 2009: it contains a list of all services that can only be performed with SRO approval, and this includes almost all façade and thermal insulation work. Repair and finishing work is not on the list, and no special permit is required for plumbing work.
All other categories of construction entrepreneurs, however, like legal entities, must receive a special permit. But to do this, you must become a member of a self-regulatory organization (abbreviated as SRO). Without permission issued by this organization, the above activities will simply be illegal.
In addition to guaranteeing the quality of work in certain areas of services, which include construction, the task of self-regulatory organizations is to prevent negative consequences from poorly performed work, as well as compensation for damage in such situations. The activities of SRO are regulated by Federal Law No. 315 dated December 1, 2007.
To join an SRO, you need to submit an application to one of the construction self-regulatory organizations in the region. Members of the SRO must make mandatory contributions: entrance (from 3 to 15 thousand rubles) and monthly (from 3 thousand rubles). Their value is determined by the organization itself.
In addition to contributions, it is also important to take out and pay for the entrepreneur’s civil liability insurance. If an individual entrepreneur plans to work independently, without hiring employees, then he himself must have a specialized education, as well as practical experience in construction for at least five years. Although each self-regulatory organization may establish other requirements for its participants. A work permit issued by an SRO is valid throughout the entire territory of the Russian Federation.
vseproip.com
Taxation of an individual entrepreneur
Question:
I plan to open an individual entrepreneur, do construction finishing work, and hire a staff of workers. Tell me what taxes I will have to pay and how much?
An individual entrepreneur who is engaged in the provision of construction services to individuals (citizens) (including repairs, housing construction, except for individual construction), must pay a single tax on imputed income (UTII), if in the territory of the municipal district in which he carries out his activity, this is provided. However, from January 1, 2013 The corresponding changes to the Tax Code of the Russian Federation come into force, according to which organizations and individual entrepreneurs will be able to switch to paying UTII for certain types of activities voluntarily.
If an individual entrepreneur pays UTII, then he is exempt from personal income tax (NDFL) - in terms of income received from engaging in entrepreneurial activities subject to UTII; from property tax for individuals – in relation to the property used in business activities; from value added tax (VAT) – in relation to financial transactions carried out as part of business activities, with the exception of the import of goods into the territory of the Russian Federation. If an individual entrepreneur does not pay UTII, then, accordingly, he retains the obligation to pay all of the above taxes under the general taxation regime or under the simplified system (STS).
You, as an individual entrepreneur, have the right to switch to a simplified tax system according to your application if your income for the year does not exceed 45 million rubles. In this case, the individual entrepreneur must choose the object of taxation: income or income reduced by the amount of expenses. Depending on this, the tax rate will be determined. Entrepreneurs who are on the simplified tax system do not pay personal income tax, personal property tax, and VAT on all property and financial transactions used in the course of business activities. However, he remains a tax agent in relation to his employees.
Since you plan to engage in construction activities, you can use the simplified tax system based on a patent. However, you do not have the right to involve more than five employees in your activities, either under employment or civil law contracts.
If you do not choose any of the above taxation methods, you will need to pay taxes according to the rules of the general taxation regime. In this case, you will need to calculate and pay personal income tax and VAT on income from business activities, personal income tax, land, transport taxes, and also be a tax agent for personal income tax for employees.
In addition, you will be an insured in legal relations of compulsory social insurance and a payer of insurance contributions to state extra-budgetary funds. As stated in Part 3 of Art. 5 of the Law of July 24, 2009 N 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund”, if the policyholder simultaneously belongs to several categories of payers of insurance premiums, he calculates and pays insurance premiums on every basis. Therefore, if you have hired employees, you will have to pay contributions on two bases - both for employees (contributions are calculated at approved interest rates) and for yourself (minimum fixed payment).
Individual entrepreneurs pay insurance contributions to the Pension Fund and the Federal Compulsory Health Insurance Fund in the amount determined based on the cost of the insurance year on income from business activities. At the same time, the individual entrepreneur himself 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 - this can only be done upon your application.
Moscow residents can get legal advice here
Do I need an individual entrepreneur for finishing work?
Bookmarked: 0
The construction business and everything connected with it is a profitable activity. With the right approach to the issue of organization, it can become a stable source of income. The market is saturated with a large number of companies. However, there is still a high demand for construction services for apartment renovation. Therefore, it remains to figure out whether an individual entrepreneur is needed for finishing work this year.
Where to start
Starting a business requires determining the legal form of the activity. You can open an individual entrepreneur for finishing work or register an LLC. The second option expands the list of activities, but increases the number of approvals and permits.
Opening an LLC is advisable if you plan to cover a wide range of work. This will require obtaining a license. The norms of the Federal Law “On licensing of certain types of activities” list a list of finishing and repair works for which it is necessary to obtain permits:
If the main activity is exclusively finishing the premises, then you can choose individual entrepreneurs. Finishing work is not subject to mandatory licensing. Opening an individual entrepreneur for a construction business has become possible since 2010, when the types requiring licensing were differentiated by law.
Therefore, the question of whether an individual entrepreneur needs a license for finishing work was removed at the government level. The only condition for doing business was participation in an SRO (self-regulatory organization).
What is hidden under the abbreviation “SRO”
A self-regulatory organization is a non-profit partnership of business entities in certain areas of production or professional activity of a particular type.
Joining the SRO of builders gives the individual entrepreneur the rights of a full-fledged legal entity in the field of finishing work or activities for insulating apartments. The issuance of a certificate confirming entry into the organization is carried out once, but requires annual renewal.
The state controls the procedure for creating an SRO, and quality control of the work performed and the design carried out falls on the shoulders of the entrepreneur. Additionally, compensation funds are created on the basis of SROs, the funds of which are used to compensate for damage or pay fines.
The provisions of the Town Planning Code enable individual entrepreneurs to carry out construction work (in residential or non-residential premises, for example on farms) if they have an SRO certificate indicating a list of proposed activities.
The full list is contained in Order No. 624 of the Ministry of Regional Development of 2009. In total, the list contains several dozen items related to the provision of services in the field of construction, which allows individual entrepreneurs to engage in a wide range of work.
On video: How to open a construction business in a year and not close it in 6 months, from Kirill Pryadukhin.
The following questions will be addressed:
How to open an individual entrepreneur for finishing work
Opening an individual entrepreneur to run a construction business is no different from the usual registration procedure.
There are several ways to register an individual entrepreneur:
When applying for registration, you will need to provide a number of documents:
Conclusion of a contract
Any activity carried out with the participation of two parties (customer and contractor) requires a written agreement. An individual entrepreneur’s agreement for finishing work is no exception and is required when a relationship arises between individuals and an individual entrepreneur.
The absence of a well-drafted document between individuals, including individual entrepreneurs, can lead to misunderstandings and mutual claims between participants. The customer may face failure to meet deadlines and increase costs. A contractor without signing an agreement with an individual is often faced with a delay in payment, a desire to reduce the cost, or a change in requirements from the client.
A sample contract for finishing works for individual entrepreneurs includes the following points:
- contact details and full name of the contractor and customer;
- clear formulation of the subject of the contract;
- timing of work;
- cost of services;
- the presence and size of penalties for non-compliance with the terms of the contract.
- Moscow City Notary Chamber Internship According to the Moscow Law “On the organization and activities of notaries in the city of Moscow”, the internship period for persons wishing to obtain a Qualification Certificate (License) for the right of notarial activity in the city of Moscow is determined in […]
- Educational and material base of the Laboratories Educational laboratories are the main divisions of the school’s departments, forming in cadets basic knowledge in the field of the fundamentals of constructing analog and digital functional units of radio-electronic equipment and […]
- Single mother: benefits and allowances in 2018 The concept of “single mother” differs in labor and social law. In most cases, the definition of “single mother” means a woman whose father is not indicated in the child’s documents (or is indicated according to her words). Additional […]
- Legislative framework of the Russian Federation Free consultation Federal legislation Home FEDERAL LAW dated December 17, 1997 N 149-FZ (as amended on July 19, 2011) “ON SEED PRODUCTION” The document was not published in this form Document in electronic form FAPSI, STC […]
- Profession lawyer When choosing a future profession, not everyone follows their calling. Many people are looking for themselves where they can try to get a good income in the future. Today, the profession of lawyer is at the peak of popularity. He may later become a lawyer. But for this you need to go through a special [...]
You can download the contract for finishing work for individual entrepreneurs on specialized websites for electronic document management. Mostly the finished form contains all the necessary fields and requires the registration of individual data of the parties.
Choosing a tax system
For most citizens who want to open an individual entrepreneur for finishing work, taxation plays an important role. According to the rules, when registering, an entrepreneur has the right to choose a tax calculation system (UTII, USN, OSNO). Premises decoration, as a type of activity, falls under any category, so the decision should be made based on the expected income and economic feasibility.
If an entrepreneur plans to work under the simplified tax system, then he will be allowed to carry out activities without VAT. But in this way it loses its “attractiveness” for LLCs or large enterprises operating under OSNO. The choice of UTII will be justified when declaring a minimum amount of profit, which will lead to savings for individual entrepreneurs, but may in the future raise certain questions from the tax service.
Nobody forbids an entrepreneur to change the taxation system in the process of carrying out activities, so he himself will be able to decide which option is more profitable this year.
Which taxation system should I choose for a construction company?
Please tell me which taxation system is best to choose when registering an LLC whose field of activity is construction (mainly water supply, ventilation, heat supply). Customers - legal entities faces. What is more profitable than OSNO or simplified tax system for an LLC?
Lawyers' answers (9)
Hello. If the income does not exceed 60 million rubles. for the reporting period, then you can choose the simplified tax system
Article 346.13. Procedure and conditions for the beginning and termination of the application of the simplified taxation system
1. Organizations and individual entrepreneurs who have expressed a desire to switch to a simplified taxation system from the next calendar year, notify the tax authority at the location of the organization or the place of residence of the individual entrepreneur no later than December 31 of the calendar year preceding the calendar year from which they switch to simplified taxation system. The notification indicates the selected object of taxation. Organizations also indicate in the notification the residual value of fixed assets and the amount of income as of October 1 of the year preceding the calendar year from which they switch to a simplified taxation system.
2. A newly created organization and a newly registered individual entrepreneur have the right to notify of the transition to a simplified taxation system no later than 30 calendar days from the date of registration with the tax authority specified in the certificate of registration with the tax authority issued in accordance with paragraph 2 of the article 84 of this Code. In this case, the organization and individual entrepreneur are recognized as taxpayers applying the simplified taxation system from the date of their registration with the tax authority, indicated in the certificate of registration with the tax authority.
Organizations and individual entrepreneurs that have ceased to be taxpayers of the single tax on imputed income have the right, on the basis of a notification, to switch to a simplified taxation system from the beginning of the month in which their obligation to pay the single tax on imputed income was terminated.
3. Taxpayers applying the simplified taxation system do not have the right to switch to a different taxation regime before the end of the tax period, unless otherwise provided by this article.
4. If, at the end of the reporting (tax) period, the taxpayer’s income, determined in accordance with Article 346.15 and subparagraphs 1 and 3 of paragraph 1 of Article 346.25 of this Code, exceeded 60 million rubles and (or) during the reporting (tax) period there was a non-compliance with the requirements established by paragraphs 3 and 4 of Article 346.12 and paragraph 3 of Article 346.14 of this Code, such a taxpayer is considered to have lost the right to apply the simplified taxation system from the beginning of the quarter in which the specified excess and (or) non-compliance with the specified requirements was allowed.
If the taxpayer applies simultaneously the simplified taxation system and the patent taxation system, when determining the amount of income from sales for the purpose of complying with the limitation established by this paragraph, income under both specified special tax regimes is taken into account.(
In this case, the amounts of taxes payable when using a different taxation regime are calculated and paid in the manner prescribed by the legislation of the Russian Federation on taxes and fees for newly created organizations or newly registered individual entrepreneurs. The taxpayers specified in this paragraph do not pay penalties and fines for late payment of monthly payments during the quarter in which these taxpayers switched to a different taxation regime.
The value of the taxpayer's income limit specified in paragraph one of this paragraph, which limits the taxpayer's right to apply the simplified taxation system, is subject to indexation in the manner prescribed by paragraph 2 of Article 346.12 of this Code.
4.1. If, at the end of the tax period, the taxpayer’s income, determined in accordance with Article 346.15 and subparagraphs 1 and 3 of paragraph 1 of Article 346.25 of this Code, did not exceed 60 million rubles and (or) during the tax period there was no non-compliance with the requirements established by paragraphs 3 and 4 of Article 346.12 and paragraph 3 of Article 346.14 of this Code, such a taxpayer has the right to continue using the simplified taxation system in the next tax period.
5. The taxpayer is obliged to inform the tax authority about the transition to a different taxation regime, carried out in accordance with paragraph 4 of this article, within 15 calendar days after the expiration of the reporting (tax) period.
6. A taxpayer applying a simplified taxation system has the right to switch to a different taxation regime from the beginning of the calendar year, notifying the tax authority no later than January 15 of the year in which he intends to switch to a different taxation regime.
7. A taxpayer who has switched from a simplified taxation system to another tax regime has the right to switch again to a simplified taxation system no earlier than one year after he lost the right to use the simplified taxation system.
8. If a taxpayer terminates a business activity in respect of which the simplified taxation system was applied, he is obliged to notify the tax authority at the location of the organization or the place of residence of the individual entrepreneur of the termination of such activity, indicating the date of its termination, no later than 15 days from the date of termination of such activity. activities.
Have a question for a lawyer?
Good afternoon Considering that your customers are legal entities, it is better for you to choose a traditional tax payment scheme (OSNO), in which
The following payments exist for LLCs:
a) VAT payable quarterly, amounting to 18%, in accordance with the invoice.
b) income tax - 20% of income
c) social tax - 26%
d.) property tax - 2.2%
Good afternoon, since you can confirm your construction activity and the expenses incurred, I believe it is advisable to use the simplified tax system “income minus expenses”
Hello, Inna. During construction activities, the LLC has a choice between the general taxation system and the simplified taxation system (simplified system).
The general taxation system means the application of value added tax, profit tax, and corporate property tax.
Application of the simplified tax system by organizations in accordance with clause 2 of Art. 346. 11 Tax Code of the Russian Federation (TC RF) provides their release from duty upon payment n tax on profits of organizations ( with the exception of tax paid on income taxed at the tax rates provided for in paragraphs 3 and 4 of Article 284 of this Code), corporate property tax. Organizations using a simplified taxation system are not recognized as value added tax taxpayers, with the exception of value added tax payable in accordance with this Code when importing goods into the territory of the Russian Federation and other territories under its jurisdiction, as well as value added tax paid in accordance with Article 174.1 of this Code.
According to Art. Art. 346.14, 346.20 Tax Code of the Russian Federation The simplified tax system has two types of taxation objects:
Income - tax rate 6% on income received
Income minus expenses - tax rate from 5 to 15% depending on the region and type of activity.
For a construction organization, of course, it is better to choose an object of income minus expenses.
However, it should be borne in mind that there are restrictions on the use of the simplified tax system.
In the following cases, the simplified tax system cannot be used:
1) sub. 1 clause 3 art. 346.12 of the Tax Code of the Russian Federation - if the organization has branches and representative offices
2) subp. 14 clause 3 art. 346.12 of the Tax Code of the Russian Federation - if the organization has a share of participation of other organizations that is more than 25 percent.
3) sub. 15 clause 3 art. 346.12 of the Tax Code of the Russian Federation - the average number of employees for the tax (reporting) period exceeds 100 people;
4) sub. 16 clause 3 art. 346.12 of the Tax Code of the Russian Federation - the residual value of the organization's fixed assets, determined in accordance with the legislation of the Russian Federation on accounting, exceeds 100 million rubles
5) sub. 18 clause 3 art. 346.12 N of the Russian Federation - foreign organizations do not have the right to use the simplified tax system.
Also, according to paragraph 4 of Art. 346.13 of the Tax Code of the Russian Federation, an organization is considered to have lost the right to use the simplified tax system if its income for the reporting (tax) period exceeds 60 million rubles. In this case, such a taxpayer is considered to have lost the right to apply the simplified taxation system from the beginning of the quarter in which the specified excess was allowed.
If you are not general contractors and do not fall under the above requirements, I would advise you to choose the simplified tax system with the object - income minus expenses, since this system will significantly facilitate tax and accounting. And the tax savings compared to the general taxation system will be significant.
Construction of houses by an individual entrepreneur: what taxes to pay?
Registration with tax authorities
In paragraph 1 of Art. 83 of the Tax Code of the Russian Federation establishes the obligation of an individual to register with the tax authorities, in particular, at the place of residence, location of real estate and vehicles owned by him (see also letters of the Federal Tax Service of Russia for Moscow dated April 3, 2007 No. 09-17/ 030104 and UMNS of Russia for Moscow dated July 30, 2004 No. 09-1-02/3110).
The procedure for registering individuals with the tax authorities is explained in Art. 84 Tax Code of the Russian Federation. State registration of an individual as an individual entrepreneur is carried out taking into account the norms of Art. 22.1 of the Federal Law of 08.08.2001 No. 129-FZ “On state registration of legal entities and individual entrepreneurs”.
Individual entrepreneurs applying the simplified tax system, when determining the object of taxation, take into account income from sales in accordance with Art. 249 of the Tax Code of the Russian Federation and non-operating income - in accordance with Art. 250 of the Tax Code of the Russian Federation (clause 1 of Article 346.15 of the Tax Code of the Russian Federation).
By virtue of paragraph 1 of Art. 249 of the Tax Code, sales income is recognized as revenue, including from the sale of goods (work, services) both of one’s own production and those previously purchased.
Consequently, income received by an individual entrepreneur from the sale of land plots and houses built on them are reflected in the income taken into account when determining the tax base for the tax paid in connection with the application of the simplified taxation system, in the generally established manner.
Advance tax payments are paid no later than the 25th day of the first month following the expired reporting period (Clause 7, Article 346.21 of the Tax Code of the Russian Federation). The reporting periods are the first quarter, half a year and nine months of the calendar year, respectively, advance payments are paid no later than April 25, July 25 and October 25 (clause 2 of Article 346.19 of the Tax Code of the Russian Federation).
The tax based on the results of the tax period (year) is paid no later than the deadline established for submitting a tax return. For an individual entrepreneur, this is April 30 of the year following the expired tax period.
Personal income tax, personal property tax, VAT
In paragraph 3 of Art. 346.11 of the Tax Code states that individual entrepreneurs using the simplified tax system are exempt from the obligation to pay tax on personal income (in relation to income received from business activities, with the exception of tax paid on income taxed at the tax rates provided for in paragraph 2, 4 and 5 of Article 224 of the Tax Code of the Russian Federation), and property tax for individuals (in relation to property used for business activities). Such entrepreneurs 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 using a simplified taxation system in accordance with the legislation on taxes and fees.
Let us note that in terms of VAT, a special norm of the Tax Code provides for an exemption from VAT on operations on the sale of land plots (shares in them) and for payers of this tax (subclause 6, clause 2, article 146 of the Tax Code of the Russian Federation).
Thus, with regard to income received from the sale of land plots and houses built on them, an individual entrepreneur does not have the obligation to pay personal income tax, personal property tax and VAT.
Based on paragraph 1 of Art. 388 and paragraph 1 of Art. 389 of the Tax Code of the Russian Federation, an individual entrepreneur is recognized as a payer of land tax in relation to land plots in his ownership.
The tax period for land tax is a calendar year.
Reporting periods for taxpayers - organizations and individuals who are individual entrepreneurs - I, II and III quarters of the calendar year.
When establishing a tax, the representative body of a municipal formation (legislative (representative) government bodies of federal cities of Moscow and St. Petersburg) has the right not to establish a reporting period (Article 393 of the Tax Code of the Russian Federation).
Taxpayers pay the tax and advance payments thereunder in the manner and within the terms established by the regulatory legal acts of the representative bodies of municipalities (laws of the federal cities of Moscow and St. Petersburg) (clause 1 of Article 397 of the Tax Code of the Russian Federation). At the same time, the tax payment deadline for taxpayers - organizations or individuals who are individual entrepreneurs cannot be set earlier than the deadline provided for in paragraph 3 of Art. 398 Tax Code.
In paragraph 3 of Art. 398 of the Tax Code of the Russian Federation stipulates that taxpayers must submit tax returns no later than February 1 of the year following the expired tax period.
Advance payments for land tax are paid within the time limits provided for by the regulatory legal acts of the representative bodies of municipalities (laws of the federal cities of Moscow and St. Petersburg) on the territory of which the land plots are located.
Since an individual entrepreneur does not have employees, he will pay insurance premiums only on the basis of clause 2, part 1, art. 5 of the Federal Law of July 24, 2009 No. 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund and territorial compulsory medical insurance funds” (hereinafter referred to as Law No. 212-FZ), then eat only for yourself.
Payers of insurance premiums listed in clause 2, part 1, art. 5 of Law No. 212-FZ, pay the appropriate insurance contributions to the Pension Fund of the Russian Federation and compulsory health insurance funds in the amount determined based on the cost of the insurance year (Part 1, Article 14 of Law No. 212-FZ).
In the event that payers of insurance premiums begin to carry out entrepreneurial or other professional activities after the start of the next billing period, the amount of insurance premiums payable by them for this billing period must be determined based on the cost of the insurance year in proportion to the number of calendar months counting from the calendar month of the beginning activities. For an incomplete month of activity, the amount of insurance premiums is calculated in proportion to the number of calendar days of this month. This is indicated in Part 3 of Art. 14 of Law No. 212-FZ.
The calendar month of commencement of activity for an individual entrepreneur is the calendar month in which his state registration as an individual entrepreneur was carried out. Grounds - clause 1, part 4, art. 14 of Law No. 212-FZ.
Thus, the amount of insurance premiums does not depend on the amount of income from the sale of land plots.
The cost of an insurance year for 2011 is 13,509 rubles. 60 kopecks (approved by Decree of the Government of the Russian Federation dated March 31, 2011 No. 238).
Insurance premiums for the billing period must be paid no later than December 31 of the current calendar year (Part 2, Article 16 of Law No. 212-FZ).
Please note: according to Part 5 of Art. 14 of Law No. 212-FZ
individual entrepreneurs who do not make payments to individuals do not calculate and pay insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity to the Social Insurance Fund of the Russian Federation. At the same time, they have the right to voluntarily enter into legal relations under such insurance and pay insurance premiums for themselves to the Social Insurance Fund of Russia in accordance with Federal Law dated December 29, 2006 No. 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity "
Insurance premiums against industrial accidents and occupational diseases
Article 3 of Federal Law No. 125-FZ dated July 24, 1998 “On compulsory social insurance against industrial accidents and occupational diseases” defines the concept of “insured”. This is a legal entity of any organizational and legal form (including a foreign organization operating on the territory of the Russian Federation and employing citizens of the Russian Federation), or an individual employing persons subject to compulsory social insurance against industrial accidents and occupational diseases in accordance with p. 1 tbsp. 5 of this law.
Meanwhile, in the case under consideration, there are no employees with whom labor or civil law contracts were concluded. Therefore, individual entrepreneurs do not pay insurance premiums for industrial accidents and occupational diseases.
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.
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.
Now many businessmen are thinking about how to open a construction individual entrepreneur. In order to start your own business on a legal basis, you must comply with a number of certain conditions and rules. Most often, these rules have their own characteristics depending on the field of activity in which a person wants to engage.
Starting a construction business has a number of conditions to fulfill. Often, to start running an individual business, you need a license to carry out any type of activity. Construction activities are no longer a business that requires a license, but some other documents are required.
How an entrepreneur can open a construction individual entrepreneur
First of all, a future entrepreneur should think about registering his business and its stages.
To register a construction company, you need to decide what form of organization it will belong to. The most common are limited liability companies or simple registration of individual entrepreneurship, but this does not mean that such types of business organization as an open or closed joint-stock company or cooperative are not suitable for a construction company.
How can I open a construction sole proprietorship? If the choice is to register a limited liability company, the following documents will be required:
- copies of passports of all persons who are the founders of the organization;
- a letter guaranteeing ownership of the premises in which the company will be located.
If a legal entity or organization is listed among the founders, you must provide copies of its constituent documents. To register as an individual entrepreneur, you need to make a copy of your passport, which will be certified by a notary. A copy of the taxpayer identification number must be provided, the state fee for registering an entrepreneur must be paid, and a receipt confirming this fact and an application must be provided. Any law firm can tell you in detail about all the intricacies of organizing a construction business.
An important point in opening a construction company is choosing a taxation system. This is necessary for business profitability. You can use a general taxation system or a simplified system. All these issues must be discussed in advance with the persons providing accounting services.
A certificate of ownership of the premises is necessary not only to carry out the activities of the company, but to indicate the legal address of the organization.
Although a license is not required to conduct construction activities, there is another mandatory formality. For those who want to engage in construction activities or design, legislation has introduced the need to join a self-regulatory organization and obtain permission from this self-regulatory organization to carry out construction work.
If construction activities for individual entrepreneurs are construction work and repairs, then you need to proceed as follows. Most services provided by construction companies require membership in a self-regulatory organization. The company can choose which one it will go to on its own by reading the list of organizations in the unified register. If the choice is made, the next step is to contact a representative of an organization located in the same region as the founder and receive a list of all documents required for entry with a sample of how to fill them out.
Return to contents
Required documents
To join the organization of builders, the following documents are required:
- certificate with the main state registration number, taxpayer identification number;
- charter;
- protocol on the election of a leader;
- order for his appointment;
- extract from the unified state register of legal entities;
- diplomas confirming secondary and higher education of engineers;
- papers indicating completion of advanced training courses.
Here you must provide a lease agreement for the premises for the organization or a certificate of ownership of it. A construction company can do without joining a self-regulatory organization if its scope of activity concerns repair and finishing work, installation of light structures for fencing, such as doors or windows.
Of course, the profitability of any organization depends on attracting customers to its services. In order for a client base to appear, a good advertising campaign for the future company is necessary.
Return to contents
Costs of organizing a construction individual entrepreneur
Individual entrepreneurs seeking to work in the construction industry must have an idea of what issues will require financial attention. State registration of the company and registration will require funds. If the entrepreneur’s activities do not concern repair and installation, it is necessary to obtain SRO approval. The company needs premises that will have to be purchased or rented. It is necessary to take care of the accounting of the future organization and the advertising campaign to attract customers.
Of course, money is required to purchase the necessary equipment for the premises, materials for work, and possibly transport. And this does not include wages for construction company employees.
When thinking about the income of a construction business, it is worth paying attention to the area where the company will operate. If it is a large city with a population of millions, it will be difficult to stand out from competing organizations. The business will require a large sum, but if the company can hold on, then the profit will be quite high. If you open a construction company in a small town, you can ensure income stability. It is convenient to start working in the suburbs, gradually gaining clients, and approaching the capital, from where orders can also come.
In order for a start-up company to operate, the following list of personnel is required:
- director;
- accountant;
- foreman;
- estimator;
- at least five workers;
- driver.
Joining a self-regulatory organization also requires costs:
- National tax;
- entrance fee, which is paid once;
- The contribution to the compensation fund is also paid once;
- members of the organization must also make monthly contributions;
- pay for specialist training;
- pay each year the amount for the liability insurance contract.
The organization of material and technical equipment for the company will also require a considerable amount. For a construction company just starting its business, it makes more sense to rent some equipment, especially if they are construction machines.