How can an individual entrepreneur be deregistered from the Pension Fund and the Social Insurance Fund when closing a business?

The procedure for liquidating a business

The completion of commercial activities is registered with the tax authorities at the place of residence. The legal basis of the procedure is Article 22.3 of Law 129-FZ. An application to close an individual entrepreneur must be submitted using form P26001, approved by order of the Federal Tax Service of Russia No. ММВ-7-6/ [email protected]

Mandatory attachments to the notification will be:

• payment order or check for payment of a fee in the amount of 160 rubles;
• certificate from the Pension Fund on the provision of personalized information.

The absence of a certificate from the Russian Pension Fund as part of the application is not grounds for rejecting the application. The tax authority is obliged to request information about filing reports through interdepartmental channels. The procedure for data exchange is established by government decree No. 1092 of December 22, 2011.

Important! Details for paying the fee can be obtained on the official website of the Federal Tax Service of the Russian Federation. The automatic service generates a receipt free of charge and around the clock.

Thus, the legislator only requires the entrepreneur to submit documents to the registration authority. However, only businessmen without employees will be able to avoid contacts with extra-budgetary funds.

What you shouldn't forget

When closing an individual entrepreneur, it is worth remembering that you should also close your bank account, terminate all contracts that you entered into as an entrepreneur, pay off all employees, etc.

The process of closing an individual entrepreneur, although it looks quite simple, is quite troublesome. Don't believe the advertising, it can't be done in one day. Especially if you have debt.

If necessary, after closing an individual entrepreneur, you can always quickly open it again, and Sovcombank will help you prepare all the documents if you need such assistance.

When is it necessary to deregister?

Entrepreneurs who do not employ hired employees should not turn to extra-budgetary funds during liquidation. The accrual of fixed insurance fees stops from the moment the entry is removed from the Unified State Register of Individual Entrepreneurs.

The employer must notify the FSS of the termination of its activities, and also submit final reports to the Pension Fund. The question of termination of the status of a contribution payer will arise in the following cases:

• termination of employment contracts with all employees;
• complete liquidation of individual entrepreneurs.

The rules for deregistration in funds are not the same. The administration of pension contributions is now handled by the tax service. Employers submit only personalized information to the Pension Fund. There is no need to submit separate liquidation applications. The Social Insurance Fund retained organizational and administrative independence. You will have to notify the territorial division of the dismissal of all individual entrepreneurs' employees.

Procedure for deregistration with the Pension Fund of Russia

All necessary documents will be received by the fund through interdepartmental channels from the tax service. Formally, to terminate the status of an employer, an entrepreneur only needs to terminate employment contracts and liquidate the individual entrepreneur.

However, in fact, deregistration with the Pension Fund will be carried out, because when considering application P26001, the supervisory authority requests a certificate of submission of personalized reporting. There are two forms:

• SZV-M. Information about insured employees is transmitted monthly until the 15th;
• SZV-STAGE. Information is required to be sent annually before the beginning of March. When terminating business activities, a report will need to be submitted no later than the date of application to the tax authority (Article 9 of Law 27-FZ of 04/01/1996).

With the introduction of an interdepartmental electronic system, it is no longer necessary to receive a certificate of fulfillment of duties on paper. However, lawyers recommend making sure that there are no debts on the reports. Otherwise, the likelihood of the liquidation procedure being delayed will be high.

Important! If the number of employees is 25 people or more, the entrepreneur is required to submit personalized accounting data in electronic form. If the documents are received by the fund on paper, the obligation is considered unfulfilled. A businessman can be held administratively liable under Article 17 of Law 27-FZ. The fine is 500 rubles for each insured person.

How to close an individual entrepreneur in 2021 - step-by-step instructions

Closing an individual entrepreneur is an ordinary situation that often occurs in practice. An entrepreneur can make such a decision based on failures that have occurred in the business. Other entities wish to become legal entities by changing an individual entrepreneur to an LLC. It is worth noting that an entrepreneur and a legal entity are not the same thing. Entrepreneurship is a special status obtained by a subject, encumbering it with responsibility for obligations with property at its disposal.

The procedure for closing an individual entrepreneur is not complicated, but a number of factors will need to be completed to bring the matter to completion. The procedure itself varies depending on the characteristics of the entrepreneur’s activities. For example, an individual entrepreneur who does not have employees under him will complete the process faster.

Dismissal of employees upon closure of individual entrepreneurs

Having even one employee significantly complicates the task. Before the full staff reduction begins, the individual entrepreneur is obliged to notify the employment center about the planned event. This obligation is prescribed not by the Labor Code of the Russian Federation, but by current legislation. According to legislative regulations, the employer must notify the employment center no later than two weeks before the start of staff reduction. Notification must be in writing.

The Labor Code of the Russian Federation states that if there is a risk of mass job loss, the individual entrepreneur is obliged to notify the authority competent in these matters no later than 3 months before the event. There is no regulated form of notification to the employment center in the legislation, therefore the document is submitted in the form recommended by Appendices No. 1-2 of the Decree of the Government of the Russian Federation of 02/05/1993 No. 99. This is not an essential requirement.

When drawing up a document in free form, you need to take into account the presence of the following positions for each employee:

• profession;
• job title;
• specialization;
• qualification requirements;
• terms of payment for labor activities.

If the notification is not submitted in a timely manner, the individual entrepreneur will receive a fine in the amount of 300 to 500 rubles. The amount is total and not multiplied by the number of employees for whom notification was required.

In practice, dismissal is carried out under clause 1, part 1, art. 81 Labor Code of the Russian Federation. If you dismiss under Part 1 of Art. 178 of the Labor Code of the Russian Federation, then after termination of the contract due to the liquidation of the company, the employee must receive severance pay equivalent to monthly earnings at the time of employment.

There are clarifications on this point. As indicated by the RF Armed Forces, the employer is obliged to pay severance pay to an employee in connection with dismissal under Art. 81 of the Labor Code of the Russian Federation, provided that there is a reduction in staff in the company. Subjects carrying out labor activities for entrepreneurs who do not have legal status can bypass this rule.

This condition is stated in Art. 307 Labor Code of the Russian Federation. There is no need to make payments, except in cases where such a condition was present in the employment contract.

Then comes the turn of the following events:

1. For each employee, an order is issued in form No. T-8 with the wording: “The employment contract was terminated due to the termination of activities by the individual entrepreneur, clause 1, part 1, art. 81 Labor Code of the Russian Federation."
2. Communicate the information to the staff, make sure they are informed and sign the document.
3. Make an entry in the work book identical to the wording that appeared in the first paragraph of this list.
4. Next, employees are issued the SZV-STAZH form. The document guarantees the existence of insurance experience and a certificate indicating the amount of wages.
5. Add the appropriate notice of dismissal in the employee’s card. He must put his signature.
6. Carry out all settlement transactions with employees, reimburse compensation for annual leave that was not spent.

It is worth mentioning the transition to electronic work books, which began in 2021. An employee who has submitted a written request to receive information about his or her work activities receives a work book from the entrepreneur. The individual entrepreneur is relieved of responsibility for the safety and maintenance of the document. Upon issuance, a corresponding entry is made in the work book, reflecting the request submitted by the employee.

The record of issue must be accompanied by the signature of the entrepreneur or entity responsible for maintaining and storing the document, and there must also be a seal (if any) and the signature of the person requesting the work book.

If the employee no longer refuses to maintain documents in paper format, upon dismissal he must obtain information about the activities performed from his employer.

Forcing people to resign “at their own request” is not an entirely correct approach, as practice shows. This way you can get into several lawsuits to challenge the dismissal.

After staff reduction, you need to move on to deregistering the cash register.

Deregistration of cash registers with the tax authorities

The active introduction of electronic technologies continues in the Russian Federation. Individual entrepreneurs and LLCs are switching to online cash registers, thereby optimizing business management. According to the innovations for 2021, individual entrepreneurs will be required to use cash registers. How to properly deregister them is important information.

An individual entrepreneur applies for deregistration of a cash register in two cases:

• transfer of cash register to another entity;
• loss or theft of cash register.

You must apply for removal of the cash register no later than the next business day after its theft or loss. There is an opinion on the Internet that the liquidation of an individual entrepreneur is accompanied by the mandatory deregistration of the cash register. But this is not completely reliable information.

The legislation stipulates that the CCT will be removed by the tax service without a corresponding application from the entrepreneur. This is possible provided that an entry is made in the Unified State Register of Legal Entities about the termination of the activity of an individual as an individual entrepreneur.

If you have doubts about the success of automatically deregistering a cash register, you can submit an application yourself electronically or in writing. Filing a request for withdrawal is similar to what is done when registering a cash register. As soon as the procedure is completed, the tax service will issue a card indicating that the withdrawal of cash register equipment took place in the form prescribed by law.

If the individual entrepreneur does not have a cash register, you can proceed to the next stage of terminating the activities of the individual.

List of documents for closing an individual entrepreneur

To terminate your activities as an individual entrepreneur, you will need to collect a whole list of documents:

1. Application for state registration of termination by an individual of activities as an individual entrepreneur in connection with the adoption of a decision to terminate this activity. In 2021, form No. P26001 is relevant. The signature does not need to be witnessed by a notary.
2. Payment of a fee of 160 rubles, as well as provision of the corresponding receipt. The state fee is not paid if the documents are submitted in electronic format.
3. A certificate from the Pension Fund indicating that the information was provided to the territorial body of the Pension Fund. The document is not included in the list of mandatory ones and can be requested from the Federal Tax Service. To eliminate possible problems, it is recommended to have this certificate in hand.

The legislation regulates the need for only the three listed certificates in order to close an individual entrepreneur.

It is worth clarifying again that an individual entrepreneur is not a legal entity. Previous tax obligations will remain after the liquidation of the business activity.

The documents mentioned earlier can be submitted in four ways:

• Visit the Federal Tax Service or MFC in person. If a representative is selected to deliver documents to the mentioned organizations, he must have a power of attorney certified by a notary. The individual entrepreneur’s signature must also be notarized. The representative cannot sign documents instead of the entrepreneur; he only submits them to the registry.
• Send via a valuable letter with a description of the attachment. The signature is certified by a notary.
• Submit documents in electronic format through the government services website.
• Send through a notary (the cost will be confirmed at the target office).

Various online accounting agencies can help in providing such a popular service, which not only collect the necessary certificates, but also transmit a package of documents to the relevant authorities. The procedure is implemented in electronic format; a digital signature is required to carry it out.

If everything is done correctly the first time, within 6 working days you will receive a Unified State Register of Individual Entrepreneurs record sheet from the tax office, with a mark indicating the liquidation of the individual entrepreneur. At the request of the applicant, the sheet is sent by mail.

Liquidation of an individual entrepreneur may be refused in exceptional cases prescribed by law. Practice demonstrates the absence of situations in which there was an actual refusal to cancel the status of an entrepreneur.

Note! Deregistration from the Social Insurance Fund is carried out in a similar manner. This procedure is carried out subject to the individual entrepreneur registering with the mentioned organization.

Closing an individual entrepreneur's current account

An entrepreneur, when opening an individual entrepreneur, opens a current account with a bank that provides the corresponding service. What to do with the account upon liquidation of an individual entrepreneur?

The legislation does not stipulate a condition regulating the closure of an account after the liquidation of an individual entrepreneur. A current account that appears during the work of an entrepreneur can be closed both before registration as an individual entrepreneur and after. There is no obligation for individual entrepreneurs to submit a corresponding message to the Federal Tax Service.

Practice demonstrates other realities. A rational approach is to close this account (if there are funds on the balance sheet, they can be transferred to the personal account of an individual) until the application for closure is submitted to the Federal Tax Service. A banking institution may prevent monetary transactions on the account after the individual entrepreneur status is cancelled. The possibility of problems with the funds remaining in the account cannot be ruled out; for example, the ability to transfer funds to a separate account will be blocked.

To close an account, it is enough to contact the banking institution where it was opened. Different credit organizations set individual conditions for filling out an application, carrying out the procedure itself, and implementation deadlines. Some banks provide the opportunity to submit documentation and leave an application to close an account electronically. You can find out whether everything can be done through the organization’s website from the manager. The application processing time ranges from 5 to 8 working days.

Calculation and payment of contributions when closing an individual entrepreneur

It was previously noted that individual entrepreneurs and legal entities are entities with different statuses. Liquidation of individual entrepreneurs is carried out both in the absence of debt and in the presence of it. Debts, upon termination of business activity, are assigned to the individual.

If the status is liquidated, the last tax period for contributions is January 1 of the current calendar year, until the corresponding entry is made in the Unified State Register of Individual Entrepreneurs. It is worth considering that the individual entrepreneur has an obligation to pay fixed insurance premiums for himself, and non-fixed contributions for employees, if any, are also prescribed.

There is no way to avoid paying insurance premiums. Payments will need to be made from the first calendar month to the month in which the individual entrepreneur was liquidated. If one of the months is incomplete, the calculation is made according to the number of calendar days with the entrepreneur’s status still active.

Required insurance premiums must be paid no later than 15 calendar days from the date of recording the entry in the Unified State Register of Individual Entrepreneurs about the completion of activities as an individual entrepreneur.

If the entrepreneur had employees, the repayment period for insurance premiums is still proportional to 15 calendar days, but the report is made from the moment the application for liquidation of the individual entrepreneur is submitted. The calculation is submitted before submitting an application to the Federal Tax Service to terminate business activities.

Filing reports upon liquidation of individual entrepreneurs

The taxation system used in the activities of individual entrepreneurs determines the type of reporting submitted upon liquidation of status. Individual entrepreneurs using SOS are required to submit 3-NDFL and a VAT return.

The corresponding declaration must be submitted to the competent authorities no later than 5 calendar days from the date of recording the cancellation of the entrepreneur’s status. The VAT return is submitted no later than the 25th day of the month following the quarter in which the individual entrepreneur status was cancelled.

When closing, merchants using the simplified tax system as a tax system must submit to the tax service a declaration under the simplified tax system for the entire year in which the individual entrepreneur was liquidated. This procedure is performed before documents are submitted for state registration.

Individual entrepreneurs using a system that implies a tax on professional income are exempt from reporting red tape. You can remove yourself from the regime directly through the NPD payer’s personal account.

Entrepreneurs operating on PSN do not submit a declaration, but do submit reports on the insurance premiums they make.

There are general requirements that do not depend on the taxation system. They apply only to individual entrepreneurs with employees. The following certificates are submitted to the competent authorities:

• 6-NDFL and 2-NDFL for employees (submitted before the calendar day on which the individual entrepreneur is closed);
• calculation of insurance premiums (no later than the day of liquidation of the individual entrepreneur);
• calculation of 4-FSS (no later than the day of liquidation of the individual entrepreneur);
• personal reporting, in particular, SZV-M, SZV-STAZH, DSV-3, SZV-TD (each of the forms has its own reporting deadlines);
• statistical reporting, if the individual entrepreneur is responsible for submitting it.

Paying taxes when closing an individual entrepreneur

The taxation system used in the activities of individual entrepreneurs determines the type of payment of taxes and the established deadlines for completing the required procedures.

Payers of the simplified tax system can pay tax after cancellation of the status of an entrepreneur, but it is more rational to make the required payments earlier in order to eliminate possible problems.

On OSN, personal income tax payment is made no later than 15 calendar days from the submission of 3-NDF. VAT is paid in equal installments (divided into three parts). Due payments must be made before the 20th day of each month of the quarter (after liquidation).

If the first part of the amount is not paid before the status on the PNS is cancelled, the total amount will be recalculated. The due amount must be paid within three months from the start of the patent. all articles

The procedure for deregistration with the Social Insurance Fund

Closing an individual entrepreneur who hired employees will require compliance with special rules. The instructions were approved by order of the Ministry of Labor of Russia No. 202n dated April 29, 2016. The entrepreneur must send a written application to the territorial division of the fund with a copy of the order to terminate the last employment contract. The application form is included in the appendices to the order of the Ministry of Labor of the Russian Federation No. 574n.

Deregistration from the Social Insurance Fund is carried out regardless of the presence of arrears in fees. Fund employees are given 14 working days to complete the registration process. This does not exempt the entrepreneur from repaying the debt. Collection of money is allowed after completion of the procedure.

Important! The regulations do not establish a deadline for filing an application. However, you should not delay in notifying the FSS of the Russian Federation, because having the status of an employer obliges you to submit reports.

Important!

When closing an individual entrepreneur, you are required to submit a declaration. Yes, the declaration is submitted for an incomplete tax period in which you were still a registered entrepreneur. If you had no income, then submit a zero declaration. Otherwise, you not only face tax penalties, but also maximum insurance premiums.

It is possible to close an individual entrepreneur with debts, but the fact of deregistration as an individual entrepreneur does not relieve you of the obligation to pay your debts on taxes and contributions. Moreover, if you have such debts, then you will also have to pay fines and penalties on them. It will be possible to pay all bills as an individual, but there is no option not to pay.

If you do not want to get fined, then you should pay all your remaining insurance premiums when closing your individual entrepreneur no later than 15 calendar days after the date of closing your registration.