Payment of state duty for terminating the activities of an individual entrepreneur

If for some reason you do not want to continue your business activities, then the right decision would be to officially close the business. Our company provides legal services to support the liquidation of individual entrepreneurs on a turnkey basis without increasing the cost at any stage of paperwork. The service includes detailed consultation, delivery and receipt of documents, payment for terminating the activities of an individual entrepreneur in the amount of 160 rubles.

5 reasons to choose us

1. Services without failure;
2. Assistance in collecting a registration package to close an individual entrepreneur without debt;
3. Accompanying the entrepreneur or submitting documents through an authorized person under a notarized power of attorney;
4. Execution of documents by a notary out of turn;
5. Submission and receipt of documents on the termination of the existence of an individual entrepreneur to the Federal Tax Service by proxy.

The liquidation procedure for an individual entrepreneur implies the termination of the existence of an individual entrepreneur in the form of exclusion from the register of information about its activities. Upon completion of the liquidation procedure, the citizen is released from the possibility of exercising the rights and the burden of bearing obligations that are provided for by regulations for merchants and is excluded from the Unified State Register of Individual Entrepreneurs.

Citizens registered as individual entrepreneurs cease their activities for many reasons. Thus, citizens often liquidate their entrepreneur status due to:

• Unprofitability of commercial activities;
• Employment in the public service;
• For a quick transition to a different taxation system;
• The expiration of the contract granting the right to a foreigner to live and work in the territory of the Russian Federation;
• A court decision on a ban on doing business that has entered into legal force;

The procedure for liquidating an individual entrepreneur is much cheaper and faster than closing an LLC. The entrepreneur himself can initiate the voluntary liquidation procedure remotely or through an authorized person under a power of attorney by submitting an application on the liquidation form code P26001. The IP is also terminated in other cases. For example, in the case when an entrepreneur is declared insolvent (bankrupt), due to his own death or forced deprivation of the right to engage in income-generating activities. There is a procedure for temporarily suspending the activities of an entrepreneur if violations have occurred.

Instructions for liquidating an individual entrepreneur in 5 steps

Step 1. Collection of documents and information for closing an individual entrepreneur

To go through the liquidation procedure of an entrepreneur, you will need the following documents:

• Passport data of a citizen of the Russian Federation or a subject of a foreign state;
• OGRNIP certificate for the right to engage in entrepreneurial activity;
• Notices or registration numbers from extra-budgetary funds.
• Seal of an individual entrepreneur (if available).

If the closure of an individual entrepreneur is carried out without the participation of an entrepreneur, the passport details of the authorized person will be needed.

Step 2. Preparation for termination of individual entrepreneur status

Before closing its commercial activities, an individual entrepreneur must perform the following actions:

• Payment of all current payments: taxes, fines to the state (including the Federal Tax Service, Pension Fund, Social Insurance Fund). In order to find out what debts a businessman has, you need to contact the tax inspector at the location of the individual entrepreneur. It is important to note that the entrepreneur is liable for debts with all his property. In addition, the presence of debts to the state may cause arrest for any registration actions.
• Dismissal of employees (if any). The entrepreneur-employer must notify his employees no later than two months before liquidation and make full payments to them. You should also notify the Employment Center two weeks in advance, pay all taxes and fees for employees, provide the necessary reports and deregister with the Social Insurance Fund. Dismissal of employees must be carried out before making a record of termination of activity in the Unified State Register of Individual Entrepreneurs. The regulatory framework of the Russian Federation does not establish the amount of compensation payments when closing an individual entrepreneur, so the need for their implementation and the amount will depend on what is stipulated in the employment contract with the employee.

In practice, the Federal Tax Service may require several more actions. So, before closing, you may need to:

• Payment of taxes and insurance premiums for individual entrepreneurs. The required amount of insurance premiums to be paid can only be determined by knowing the date of termination of the entrepreneur. It would be correct to pay the above payments no later than 15 days from the date of making an entry in the Unified State Register of Entrepreneurs about the closure. At the same time, many local tax authorities make illegal demands for payment of insurance payments before liquidation. The merchant can fulfill this requirement or appeal by filing a complaint with a higher tax authority or court. Since 2011, the inspectorate is also required to independently request a certificate of debt from the pension fund authorities
• Submit tax returns for all tax periods. The fact is that there is no clear deadline for submission, so local tax authorities require them differently. The reporting should indicate the liquidation code of an individual entrepreneur equal to “0”.
• Close bank accounts. It is more correct to close the current account before filing an application to terminate the entrepreneur’s activities. However, you can visit a credit institution both during liquidation and after completion of this procedure. Termination of relations with the entrepreneur’s bank is possible at the bank branch at the place where the current account was opened.
• Deregister the cash register. As for cash registers, recently an entrepreneur is not required to deregister cash registers. The tax office will take these actions for him. However, if you want to alienate cash register equipment, in order to avoid the risks of a potential buyer refusing to purchase a cash register, it is better to submit a form to deregister the cash register, attaching the necessary documents.

Step 3. Preparing a registration package for the liquidation of an individual entrepreneur

To close a business activity you must:

• fill out an application for termination of individual entrepreneur status using a special form P26001.
• pay a small state fee of 160 rubles.

Liquidation application forms are freely available on Internet resources. You can also obtain the form from your local tax office. Application P26001 must be completed in block capitals (either in black and white or in black pen). It must indicate the main registration number of the individual entrepreneur and the entrepreneur’s data, as well as the method of obtaining data on making an entry in the Unified State Register of Entrepreneurs (in person, through an authorized representative or via electronic communication channels). When submitting a package of papers for liquidation of an individual entrepreneur by power of attorney, certification of the authenticity of the applicant’s signature on the application will be required at a notary’s office.

The state fee for closing an individual entrepreneur is very small and amounts to 160 rubles. Its payment is allowed by the representative on the basis of a power of attorney. Details for paying the liquidation duty can be obtained either on the official website nalog.ru or at the tax office at the place of registration of the entrepreneur. It is better to confirm the fact of payment; to do this, you must attach a corresponding receipt to the package of documents for registration of termination of individual entrepreneur status.

You can pay the state fee for liquidation of an entrepreneur:

• on behalf of the entrepreneur;
• by notarized power of attorney (provided that this document contains the appropriate powers for the authorized person).

There are several ways to pay the state duty: you can make the payment at the bank’s cash desk, in a payment terminal, or in the merchant’s personal account on the official website of the tax office.

Some Federal Tax Service Inspectors require a certificate of payment of debts, however, this requirement may not be fulfilled, since the entrepreneur has the right to close an individual entrepreneur with debts. At the same time, after the liquidation of the status of an entrepreneur, a citizen is not released from the obligation to fulfill his debt obligations.

Step 4. Submitting documents to close an individual entrepreneur

To successfully liquidate a legal entity, you should check all the information in the package of documents before submitting it.

You can provide documents on the liquidation of an individual entrepreneur to the Federal Tax Service directly to the entrepreneur, either accompanied by a lawyer, or through an authorized representative under a notarized power of attorney.

The following set of papers is submitted to the tax office:

• Statement P26001;
• Receipt for payment of the state fee for closing an individual entrepreneur in the amount of 160 rubles.

The tax inspector will provide a receipt for receipt of documents, which will indicate the date of receipt of information about the termination of the individual entrepreneur.

On the appointed day to receive documents on the closure of an individual entrepreneur, you should take a receipt and a passport. If necessary, provide a notarized power of attorney certifying the powers of the authorized person (if a notarized power of attorney was submitted to the inspection in the original, then the latter document is not required).

After making a positive decision, the Federal Tax Service issues:

• Record sheet from the Unified State Register of Individual Entrepreneurs on state registration of termination of individual entrepreneurs;
• Notice of deregistration.

Step 5. Actions after liquidation of the individual entrepreneur

As soon as information about the exclusion of your status as an entrepreneur is entered into the Unified State Register of Entrepreneurs and you receive the documents, you have the right to dispose of the documents certifying the activities of the individual entrepreneur and the seal.

If the bank account has not been closed, it should be closed.

The liquidation procedure has been completed. After making a record of the termination of the existence of an individual entrepreneur, you are relieved of the responsibility to bear the burden of entrepreneurship.

A citizen who has terminated his individual entrepreneur status is not released from the obligation to pay insurance premiums for the period when he was an individual entrepreneur.

If necessary, the individual entrepreneur can be reopened immediately after closure (subject to voluntary liquidation). In case of forced liquidation, the status of an entrepreneur cannot be obtained within three years from the date of exclusion from the Unified State Register of Individual Entrepreneurs.

Merchants who have ceased their activities as an individual entrepreneur are required to submit a declaration in form 3NDFL no later than 5 working days from the date of making an entry in the Unified State Register of Individual Entrepreneurs. Income tax must be paid no later than 15 days from the date of submission of the declaration.

The procedure for filling out the 3NDFL declaration when closing an individual entrepreneur

This report for the tax office can be submitted both in paper form and through electronic communication channels. In the “tax period code” column, the value (50) must be indicated, which means that information is provided for the last financial year.

What do you need to fill out when submitting 3NDFL?

• Full name of the entrepreneur;
• Registration address;
• TIN;
• Passport details;
• Contact details;
• Information about income (in rubles).

The 3NDFL declaration may not be accepted by the tax office as a result of partial absence of data, an incorrectly specified tax period code, lack of signatures on some sheets and other data.

Where can I get a current form to fill out?

The receipt form can be obtained from the tax office at the registration address of the individual entrepreneur or LLC or downloaded from the official portal of the department.

To pay, you need to know the details of the Federal Tax Service where the company is registered. They must be clarified so that the payment goes through correctly and reaches the correct recipient.

Articles:

Methods of paying state fees for opening an individual entrepreneur - sample receipt

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Filling out a simplified taxation system declaration upon liquidation of an individual entrepreneur

Termination of the status of an entrepreneur does not cancel the obligation to submit a simplified taxation system (STS) declaration. An individual entrepreneur will need to submit a single simplified tax return upon liquidation if there is no commercial activity, namely:

In the absence of any tax transactions, as well as those involving movement in the bank account and cash register. Movements on the current account are considered:

• payment for services
• rewards
• wages
• rental
• buying something
• erroneous transfer to counterparties.

To avoid negative consequences, it is better to contact the bank where the account was opened and request a statement.

A single simplified tax return is submitted for VAT, income tax, personal income tax, simplified taxation system, and unified agricultural tax for the following four reporting periods:

• Quarter;
• Semester;
• Nine months;
• Of the year.

If a businessman carried out activities under the special tax regime of the simplified tax system, then he only needs to submit a single simplified declaration for the year.

A single simplified declaration is submitted no later than 20 days from the end of the reporting period. The procedure for drawing up a single simplified declaration is established by the Federal Tax Service in Order No. 62n.

The deadline for submitting a single simplified declaration under the simplified tax system is no later than the 25th day of the month following the month of closure of the individual entrepreneur.

There are three ways to submit this tax report: directly to the Federal Tax Service, by mail or via electronic communication channels. The declaration can be completed by hand or using a computer.

The fines for late submission of a single simplified declaration are small. The amount of the fine for failure to submit a simplified tax return is established by the Tax Code of the Russian Federation and is 1000 rubles. If there has been no previously untimely submission of reports, there are no debts to the budget and no economic damage, this fine can be reduced by at least half.

The need to submit reports of the single tax on imputed income (UTII) upon liquidation of an individual entrepreneur

If an entrepreneur is under a special tax regime called UTII, you should pay attention to some nuances when terminating the activities of the entrepreneur. In the case of applying a single tax on imputed income, the merchant should send it to the tax office in the UTII-4 form no later than 5 days from the closing date. The rules for filling out this declaration are contained in the instructions on the official website of the Federal Tax Service. You cannot ignore submitting this report, since without the UTII-4 form, the citizen will be considered continuing his activities, which will be subject to taxes.

Payment through a Sberbank branch

One of the easiest ways to pay the state fee for closing an individual entrepreneur is to visit a Sberbank branch. It is important for the payer to correctly indicate his data and information about the recipient.

The tax service details included in the state duty payment receipt are individual for each department branch. An entrepreneur can check the data by calling the Federal Tax Service. If an error is made when specifying the details, the payment will have to be made again.

The entrepreneur must prove his identity by presenting his passport. If you have any questions about filling out the receipt, a representative of the financial institution will help. For a form filled out by a bank employee, you will need to pay an additional 20 rubles, which is confirmed by a separate check.

Closing an individual entrepreneur with debts

An entrepreneur has the right to close an individual entrepreneur with debts. There are two main types of individual entrepreneurs with debt:

• Before the budget (taxes and fees);
• To contractors and employees (salaries, payments, advances, etc.).

In both cases, according to the provisions of the current legislation, it is possible to terminate the status of an individual entrepreneur without pre-payment of debts. A sole proprietor is not required to publish information about his liquidation in official media or otherwise notify his creditors of the liquidation. Exclusion from the Unified State Register of Individual Entrepreneurs will not free the entrepreneur from his obligations: after the end of liquidation, all debts will be transferred to the citizen. Ignoring debts is grounds for government agencies to turn to the courts to force collection of obligatory payments.

It is also necessary to remember that the personal property of an individual (with the exception of the only place of residence, food and personal belongings) becomes a source of repayment of debts of an individual entrepreneur.

To exclude information about yourself as an entrepreneur from the register of entrepreneurs, it is enough to submit an application to terminate the status of an individual entrepreneur. A document confirming the provision of data to the territorial bodies of the pension fund is optional. Consequently, the current legislation does not establish a ban on the liquidation of an entrepreneur with debts to the Pension Fund. This means that if all the necessary documents and information have been provided in full, the merchant can be liquidated.

The rules for step-by-step liquidation of an individual entrepreneur are not difficult to follow, but often, when closing the status of an entrepreneur without the help of a lawyer, businessmen are faced with a delay in the registration process and incurring additional costs for re-submitting registration documents. This happens because the documents submitted to the Federal Tax Service from the registration file are not returned when the tax authority makes a decision to refuse.

Elimination of the status of a merchant requires specific knowledge in the field of registration, in compliance with all regulatory requirements, deadlines, and features contained in the current legislation.

To order a quick and guaranteed turnkey liquidation of an individual entrepreneur, please seek legal assistance from lawyers. Thorough knowledge of corporate law allows our company to provide a professional approach to each client, with a guarantee and provide high-quality legal services.

We will successfully fulfill our obligations to support the termination of a turnkey individual entrepreneur. The service includes detailed consultation on the liquidation of an entrepreneur, delivery and receipt of documents and payment for termination of registration of an individual entrepreneur in the amount of 160 rubles.

Thanks to the extensive experience of our team of lawyers, the period for closing an individual entrepreneur takes no more than 5 working days. The cost will not increase at any stage of paperwork.

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Payment through Sberbank online

Another convenient option for paying state fees for terminating activities is to contact the Sberbank online service. Payment is also possible through the official website of Sberbank.

To pay the state fee, you will need:

1. Login to the site or application.
2. Go to the tab with payments and transfers.
3. In the name of the recipient structure, indicate the name of the tax department branch.
4. Provide passport details and other information about the payer.
5. Select the type of state duty.

If funds are transferred by non-cash method, the printed receipt must be certified at the branch of the financial institution.

The document is recognized as valid if it has the employee’s signature and the bank’s seal.

This you need to know: How to pay a debt to bailiffs through Sberbank-Online

Cashless payment via the Internet

Online payment of the state duty for terminating the activities of an individual entrepreneur is carried out through the tax service portal.

Procedure:

1. Log in to the official portal of the tax department.
2. Select the section on payment of state duty.
3. Place a dot opposite the line “due to termination of activity” with the amount of 160 rubles.
4. Enter your full name, residential address and Taxpayer Identification Number - the last condition is mandatory if the fee is paid by transfer.
5. After checking the entered data, the payment button is pressed.
6. Select the method of transferring funds - by bank transfer.
7. Click on the icon of Sberbank or other financial organization.
8. Generate a receipt and make a payment by clicking the appropriate confirmation.

A payer who closes an individual entrepreneur and ceases business activities will receive a message on his mobile phone containing a special code. After entering this number, the payment will be processed.

An alternative option is to choose cash payment. In this case, an electronic form of receipt is generated, which should be printed and paid at any financial institution. In this case, you will not have to fill out the form. The businessman will only have to sign in the appropriate boxes, and the remaining information will be filled in automatically.

When choosing a financial organization through which funds are transferred to pay the state fee for closing an individual entrepreneur, the entrepreneur checks the icon of the desired structure.