Currently, the most popular forms of doing business in the Russian Federation are LLC (Limited Liability Company) and IP (Individual Entrepreneur).
Since an LLC is the most complex form in terms of doing business, submitting reports, preparing primary documentation, and also arouses more interest from the tax authority, many try to register an individual entrepreneur to conduct business activities.
Migrants from different countries work on the territory of the Russian Federation and not everyone wants to work under labor and civil law contracts; many want to carry out entrepreneurial activities. Let us consider in detail the registration of an individual entrepreneur as a Belarusian in Russia.
Documents for registering an individual entrepreneur for a citizen of Belarus
- Application for registration of individual entrepreneurs according to form No. P21001;
- Original and photocopy of a Belarusian passport (a notarized translation of a foreign passport is not required, since a Belarusian passport already has a translation into Russian (similarly for registering an individual entrepreneur for a citizen of Ukraine);
- Receipt of payment of the state fee for registering an individual entrepreneur (in the event that we submit documents to the registering authority in person);
- TIN (required if available);
- SNILS (if we submit documents to the registration authority in electronic form using an electronic digital signature);
- A document confirming the right to long-term stay of a Belarusian on the territory of the Russian Federation - a temporary residence permit or residence permit (the most important document for registering an individual entrepreneur for a citizen of Belarus in the Russian Federation)!
Opening an individual entrepreneur by a foreign citizen
To open an individual entrepreneur, a foreign citizen or stateless person needs to obtain a temporary residence permit in Russia or a residence permit.
- Foreign citizens. A temporary residence permit is issued in the form of a special mark in the foreign citizen’s identity document. On the reverse side of the sheet where the mark is made, a stamp indicating registration at the place of temporary residence is placed. If this cannot be done on both sides of one sheet, the registration stamp is simply applied to a blank page. If a foreign citizen receives a residence permit, then the registration stamp is affixed to the residence permit.
- Stateless persons. A procedure similar to the one described above is provided for them. The only exception is that the document proving their identity is the actual residence permit or an identity card with a temporary residence permit stamp.
A visa does not replace a residence permit or a temporary residence permit stamp and does not allow a foreign citizen to open an individual entrepreneur. It simply confirms that the person is on Russian territory legally. However, there are some oddities: there have been situations when tax documents were assessed incorrectly, and a foreigner still became an individual entrepreneur. It is interesting that if the error subsequently comes to light, the individual entrepreneur does not threaten to be “closed” for the sole reason that he does not have a legal basis to reside in the territory of the Russian Federation. FAS is on the side of the entrepreneur.
Keep in mind that we are talking about the exception to the rule. In general, the rule is this: opening an individual entrepreneur is impossible for a foreign citizen if he does not have a residence permit or temporary residence permit in the country. Otherwise, the procedure for obtaining the status of an individual entrepreneur by a foreign citizen does not differ from how it happens for Russians. The general scenario is approved by Law No. 129-FZ “On State Registration”. The tax office expects a relatively modest package of documents from the applicant, regardless of citizenship.
The list of documents submitted by a foreigner wishing to become an individual entrepreneur is as follows:
- Application for registration of an individual as an individual entrepreneur in form P21001.
- A copy of the identity document of the applicant.
- A photocopy of the birth certificate or other document that confirms the applicant’s place and date of birth (will be needed if a copy of the identity document does not provide such information).
- Photocopy of residence permit or RVP stamp.
- A photocopy of the document with registration (registration) in the Russian Federation.
- Receipt of payment of the fee for registration of individual entrepreneurs in the amount of 800 rubles
Applications in form P21001 are accepted in Russian. Documents in a foreign language must be accompanied by an official translation ordered from a Russian agency. An indispensable condition is notarization of such a translation. When submitting a package of documents, the applicant submits not only photocopies, but also original papers - the inspector will verify the information and return them immediately.
Can a foreigner open an individual entrepreneur by mail? The methods for submitting documents to the registration authority for foreigners are as varied as for Russians:
- Personal submission.
- Submission through an intermediary, whose authority is confirmed by a notarized power of attorney.
- Postal service with a description of the attachment.
An employee of the registration authority will check the completeness of the documents and issue a receipt for their receipt. The receipt will indicate the date - the day when you can come for the result. From 2021, registration of individual entrepreneurs must be completed within three working days from the date of submission of documents.
In the case of a positive decision, the foreigner will receive a certificate of state registration; in the case of a negative decision, a decision on refusal indicating a specific reason: such and such a document is missing; application P21001 was filled out incorrectly; documents were submitted to the wrong registration authority; there is no notarization, etc. It happens that registration of an individual entrepreneur of a foreign citizen is impossible, because the court previously deprived him of such a right. There may be other problems.
An unjustified refusal of state registration can be challenged in a higher tax office or court, but it is better to immediately approach the issue of preparing documents with full responsibility. A good way is to use our free service for registering an individual entrepreneur.
Thinking about starting a business? Don’t forget about the current account - it will simplify doing business, paying taxes and insurance premiums. Moreover, now many banks offer favorable conditions for opening and maintaining a current account. You can view the offers on our website.
Documents giving the right to long-term stay of a Belarusian on the territory of the Russian Federation
There are 2 types of documents according to which foreign citizens (not only citizens of Belarus) can stay on the territory of the Russian Federation for a long time (so to speak, reside in Russia), namely:
- Temporary residence permit (TRP);
- Residence permit (residence permit).
For these documents, foreign citizens must contact the Migration Service of the Russian Federation.
Before obtaining a residence permit, you must first obtain a temporary residence permit. However, due to the close ties between Russia and Belarus, citizens of Belarus are allowed to immediately apply for a residence permit.
Registration of individual entrepreneurs without trips to the tax office and without visiting a notary Cost - 5,000 rubles (all inclusive, no additional payments, selection and approval of OKVED codes, preparation of all required documents including an application for the transition to a simplified taxation system, online filing with the tax office, opening a bank account, making a seal, obtaining statistics codes and delivery of the finished kit) Guaranteed successful registration! (in case of refusal for any reason, we will re-submit for free). Registration period - 5 days Read more... |
When registering an individual entrepreneur in Russia, Belarusians often have a question: do they need registration in Russia? The answer is clear: it is necessary! Since it is indicated (prescribed) in the temporary residence permit and residence permit.
Regulatory regulation of individual entrepreneur registration
Tax Code of the Russian Federation (TC RF) July 31, 1998 N 146-FZ defines the concept of an individual entrepreneur and determines the procedure for registration and payment of taxes
Order of the Ministry of Finance of Russia dated September 30, 2016 N 169n “On approval of the Administrative Regulations for the provision by the Federal Tax Service of state services for state registration of legal entities, individuals as individual entrepreneurs and peasant (farm) farms” determines the procedure for registering individual entrepreneurs
Federal Law “On Enforcement Proceedings” dated October 2, 2007 N 229-FZ Article 69.1 Peculiarities of foreclosure when introducing against a debtor - a citizen, including an individual entrepreneur, procedures applied in the case of his insolvency (bankruptcy)
The Civil Code of the Russian Federation (Civil Code of the Russian Federation) November 30, 1994 N 51-FZ provides the right to engage in entrepreneurial activities
The Federal Law “On State Registration of Legal Entities and Individual Entrepreneurs” dated 08.08.2001 N 129-FZ regulates the procedure for registering individual entrepreneurs
Decree of the Government of the Russian Federation of December 22, 2011 N 1092 “On the procedure for submitting to the registering authority by other state bodies information in electronic form necessary for the state registration of legal entities and individual entrepreneurs, as well as for maintaining unified state registers of legal entities and individual entrepreneurs”
“Labor Code of the Russian Federation” dated December 30, 2001 N 197-FZ defines the parties to labor relations
“Code of the Russian Federation on Administrative Offenses” dated December 30, 2001 N 195-FZ Article 14.1. determines administrative punishment in the field of individual entrepreneurs
“The Agreement between the Russian Federation and the Republic of Belarus on ensuring equal rights of citizens of the Russian Federation and the Republic of Belarus to freedom of movement, choice of place of stay and residence in the territories of the member states of the Union State” (Concluded in St. Petersburg on January 24, 2006) guarantees equal rights citizens of these countries.
Agreement between the Russian Federation and the Republic of Belarus dated December 8, 1999 “On the creation of the Union State”
Step-by-step instructions for registering an individual entrepreneur via the Internet
Before you do so, you should register an account on the Federal Tax Service website. Registration can be done here.
Then proceed according to the instructions:
- Go to the “Individual Entrepreneurs” tab on the Federal Tax Service website.
- Select the “Submit a new application” button.
- Give your consent to the processing of your personal data. And among the required application forms, select P21001
- Fill out the registration field at your place of residence.
- Insert your individual taxpayer number. If you don’t remember it, then after filling out the remaining fields, you can click “Find out TIN”, the number will be added automatically. If you do not have a TIN, the field remains empty.
- Fill out basic information about yourself.
- Select your main and additional activities.
Click "Next". - Three ways to obtain documents will appear. Select the method you prefer and click “Next”.
- The service will independently check the information. When it confirms that the verification was successful, click Next.
- After this, you must pay a state fee. (Keep the receipt for submission to the tax authorities).
If you want to pay in cash, select “Generate payment document”.You can pay this receipt at any Sberbank branch.
To pay online, select the logo of your bank or payment system.
When you have made the payment, fill in the “date of payment” and “Bank BIC” fields.
Click “Next”.
- As a method of submitting an application, you must select “Electronically, without an electronic signature.”
- Click Next.
- Click "Submit"
That’s it – the electronic application for registration of an individual entrepreneur has been submitted. Within three working days, the applicant will receive an invitation from the tax service to the email address specified when registering on the website. When visiting the tax office, you must have originals and copies of the above documents with you.
Find out more about registration.
Documents for a Belarusian to register an individual entrepreneur
To open an individual entrepreneur in Russia for a citizen of Belarus, a Belarusian prepares and submits to the tax office a package of documents provided for in Article 22.1 of the Registration Law:
2.1 Application for registration of individual entrepreneurs by a Belarusian (form)
The application must indicate the TIN. Filling out the application itself is not difficult. But what is a TIN, is a Belarusian required to obtain a TIN? TIN is a taxpayer identification number or, more simply, an individual citizen number in the tax system. It is necessary to pay tax on any income received in the Russian Federation, and in order to track the payment of taxes and repayment of debts, tax numbering of citizens was introduced. Read more in the article “What is a TIN and how to get it.” When applying to engage in entrepreneurship, both Russians and Belarusians need a TIN. We don't say obliged. The laws of the Russian Federation do not provide for such an obligation. We say it is necessary. Like a car for a resident in a big city. Moreover, you cannot use the TIN of your country (UNP RB or IIN of Kazakhstan). The rationale here is simple. Logical - TIN is needed to identify a citizen. It happens like this:
- A foreign citizen working on the territory of the Russian Federation independently registers at his place of residence with the migration service;
- The tax inspectorate registers foreign citizens on the basis of information that it receives from the Federal Migration Service of Russia (clause 3 of Article 85 of the Tax Code of the Russian Federation) within 5 (five) days;
- The foreign citizen receives a Certificate of Registration, which will indicate the Russian Taxpayer Identification Number (TIN), after a request to the Federal Tax Service. To do this, he must submit a number of documents, usually an application and a passport, to the tax office at his place of residence (stay).
Before this, we recommend that you check whether individuals have a TIN or not, using the Federal Tax Service Inspectorate’s “Find out TIN” service.
Original and copy of a document recognized in accordance with an international treaty of the Russian Federation as an identity document of a foreign citizen. For Belarusians, this is a copy of all pages of the passport. The basis is Article 14 of the Treaty of December 8, 1999 “On the Creation of a Union State,” ratified by the Russian Federation and the Republic of Belarus. In accordance with this norm, until the introduction of a unified standard of identification documents for a citizen of the Union State, documents issued by state bodies and local government bodies of the participating states will be recognized on its territory.
2.2 Receipt for payment of state duty
2.3 TRP (temporary residence permit) or residence permit (residence permit) - what is it?
Read more about these two documents
A temporary residence permit confirms the right of foreigners to temporarily reside in the Russian Federation until they receive a residence permit (Article 2 115-FZ). It is a mark in the passport of a foreign citizen. Issued for 3 (three) years.
A residence permit is a separate document confirming the right to permanently reside in the Russian Federation and freely cross the border of the Russian Federation. Issued for a period of 5 (five) years. A residence permit allows Belarusians to: move around the Russian Federation without notifying the FMS, receive education for children, medical care and pensions, the opportunity to receive loans, open an individual entrepreneur. In this case, there is no loss of previous citizenship and allows you to obtain citizenship.
As can be seen from the definitions, these two documents differ in appearance, in the scope of rights and validity period. The permit is the initial legalization. Residence permits are issued to foreign citizens who have lived in Russia for at least a year and have a temporary residence permit. A citizen of Belarus can immediately obtain a residence permit, bypassing the permit. Or maybe go the common route.
What are the main obstacles to obtaining a residence permit?
Limited number of permits. The issuance is carried out within the quotas established annually by the Government of the Russian Federation. There are exceptions to this rule. They apply to those born on the territory of the RSFSR, married to citizens of the Russian Federation and some other categories of foreign citizens. The full list can be viewed on the website of any territorial Federal Migration Service. Obviously, if the quota is exhausted, then permits are not issued.
Significant expenditure of time, money and nerves on collecting documents. For example, a Belarusian will need a notification of arrival with a note on migration registration; certificate of absence of HIV infection; certificate of absence of dangerous infectious diseases issued by an authorized medical institution of the Russian Federation. And these are only three positions out of eleven. And also long lines and wonderful officials... Similar difficulties await a citizen of Belarus when obtaining a residence permit.
A foreigner who has a temporary residence permit is required to annually personally submit a notification to the FMS confirming his residence in the Russian Federation. In addition to the notification, a citizen of Belarus must bring a copy of the income certificate or tax return for the past year, a copy of the passport and a number of other documents.
And finally, the need to confirm the subsistence level when applying for a residence permit. This means that the citizen attaches to the application a document confirming that he has funds sufficient to provide a living wage for him and his family members. Let us explain with an example for an able-bodied Belarusian who arrived without a family. According to official information, the cost of living in the Smolensk region in 2021 is 11,201 rubles. We multiply it by 12 and get 134,412 RUR. A citizen of Belarus must confirm the presence of this amount with an account statement or a certificate from his place of work when submitting an application for a residence permit.
Taxes and contributions for self-employment in the Russian Federation
For self-employed persons, two tax rates are established: 4% for settlements with individuals and 6% for legal entities and individual entrepreneurs. Self-employed people do not have to maintain any special reporting, and tax is calculated and paid automatically.
Read the review article by portal experts on taxes and contributions of self-employed citizens in Russia by following the link.
Basis for registration of individual entrepreneur of a citizen of Belarus
The state registration of individuals as individual entrepreneurs is handled by the Federal Tax Service of Russia. When registering individuals as individual entrepreneurs, based on the results of reviewing documents, the following is provided: a document confirming the fact of making an entry in the Unified State Register of Entrepreneurs or a decision to refuse state registration. International treaties between the Russian Federation and the Republic of Belarus provide for the mutual possibility of conducting business activities on the territory of these countries.
Information on state registration of individual entrepreneurs is posted on the official website of the Federal Tax Service of Russia on the Internet daily (in accordance with Order of the Ministry of Finance of Russia dated December 5, 2013 N 115n).
Who are “self-employed persons” in Russia?
Self-employment is understood as a form of employment in which a citizen receives income from activities related to the sale of goods, works or services produced by him, in the implementation of which he does not have an employer or employees.
Read the review article by the portal's experts on self-employment and the peculiarities of doing business as a self-employed citizen in Russia at the link.
In the legislation of the Russian Federation there is no unambiguous definition of self-employment, therefore those citizens whose activities are regulated by clause 70 of Art. 217 of the Tax Code of the Russian Federation, and those who use the special tax regime of the NPD (professional income tax). It is about the self-employed who pay NAP that we will tell you in more detail.