First steps to own business: instruction
What do you need to start your own business? Successful business idea, certain investments and desire to work. But that’s not all. There are several important legal points that you need to pay attention to when setting up a business. Today we will talk about how to take the first step – to register a business.
numbering-mal.pngStep 1. Choosing the legal form
The first thing you need to think about before registering your case is its legal form. The law offers two: an individual entrepreneur (IP) and a legal entity (JL). The form in this case directly determines the content of the activity.
If your goal is small trade, work and services that you will do on your own or with a small number of employees, or this is freelance, then the IP form is suitable for you. If you are planning a large business with serious prospects, it is better to organize a legal entity – LLC or JSC.
Individual entrepreneur – a citizen engaged in entrepreneurial activity without forming a legal entity.
Legal entity – an organization that has separate property and meets them for its obligations. As a rule, it is created to unite several persons or companies, each of which contributes money or other property to the authorized capital. JL can be created by one person.
A limited liability company is a business company whose authorized capital is divided into shares of participants. LLC participants are responsible and receive dividends within their shares.
A joint-stock company is a business company whose authorized capital is divided into a certain number of shares. AO participants are liable to the extent of the value of their shares. AOs are divided into public and non-public. Difference: in non-public joint-stock companies distribution of shares is carried out only between their shareholders. For the sale of shares to third parties, the consent of all members of a non-public joint-stock company is required. In public AOs, shares are publicly traded on the market.
The similarity between LLC and AO is that profit and risks are distributed in proportion to the shares or the value of shares in the authorized capital, but here are the differences:
Step 2. Name of the enterprise
1. If the IP form is selected
The legal name of the company is named after the surname and initials of the individual founder. For example – IP Petrov S. M. For individualization and recognition, an entrepreneur can register a trademark. Or come up with a commercial designation. For example – “Photo Studio S. Petrova.” Registration of a commercial designation is not necessary.
2. If the legal entity form is selected
The company may have an abstract name that has nothing to do with the name of the founder. At the same time, the organizational and legal form must be indicated next to the name. For example, Dawn, a limited liability company.
Choosing a name for a legal entity, you need to consider an important nuance: it must be unique. Similarity or coincidence with the name of another legal entity engaged in similar activities and already entered into the Unified State Register of Legal Entities is not allowed.
Step 3. Choosing a Location
When registering both an individual entrepreneur and a legal entity, the address at which it will be possible to contact the company must be indicated.
Place of registration of the IP – address of registration (temporary registration) of the individual founder.
For a legal entity, the term “location of a legal entity” is used – the locality or municipality in whose territory the enterprise is registered. The legal entity registration address is the address at which its head is located. This can be either the home address of the head or the office address.
If you plan to rent an office for your company, then during registration you will need to provide a letter of guarantee from the owner of the premises.
Step 4. Selection of codes of types of activity of OKVED
In the application for registration of the company, the type of its activity is indicated in the form of OKVED code. Codes are grouped. If you specify a group of codes, you will have the right to engage in all types of activities included in it; if you select a specific code from a group, you can carry out only one type of activity.
When choosing codes, please note that some activities are subject to mandatory licensing. And if you plan to use a simplified taxation system, make sure that your chosen activity codes allow this. Do not select “just in case” codes – unnecessary activities assigned to your business can lead to an increase in payments to the Social Insurance Fund.
Step 5. Registration
So we got to the very registration. To register a company, you must submit an appropriate application and a package of documents to the tax office. Documents can be provided:
through a representative by notarized power of attorney;
by mail with declared value and inventory list;
in electronic form through the website of the Federal Tax Service.