Entrepreneurial activity- this is an independent activity carried out at one's own risk, aimed at the systematic extraction of profit from the use of property, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law.
Signs of entrepreneurial activity
aimed at systematic profit
Entrepreneurial activity is systematic and often serves as a source of livelihood for those who carry it out.
associated with risk
In general, this means entrusting the entrepreneur with all possible negative consequences entrepreneurial activity. These include the risks of lack of demand for goods, the result of work, services due to competition, incurring losses due to violation of their obligations by counterparties, changes in the conditions for carrying out activities, including tax legislation and etc.
carried out by persons registered in accordance with the established procedure
Entrepreneurial activity is legal only if it is carried out by persons (individual entrepreneurs, organizations) who have passed the procedure state registration. In other cases, entrepreneurial activity is illegal. Administrative and criminal liability is provided for illegal entrepreneurial activity.
The term "entrepreneurial activity" is synonymous with the concept of "business". Entrepreneurial activity, entrepreneurship, entrepreneur - the concepts used in regulatory legal acts. The concept of "business" is used less frequently in legislation (for example, "gambling business"), and is used mainly in colloquial speech.
Features of entrepreneurial activity
Entrepreneurship as special kind activity implies that the subjects of this activity have a certain way of thinking, special style and type of economic behavior, focus on innovation, the ability to attract and use resources from a wide variety of sources to solve tasks.
Entrepreneurship as independent activity implies the freedom and independence of the subjects of this activity in various directions:
choice of the type and scope of business activity;
choice of directions and methods of this activity;
Adoption business decisions and the choice of means for their implementation;
formation production programs, the choice of sources of financing, suppliers of products and services, sources of obtaining labor resources;
choice of channels and methods of distribution;
establishment of systems and amounts of wages, other types of income of persons working for hire;
setting the level of prices and tariffs for products and services;
disposal of profit (income) from entrepreneurial activity remaining after paying taxes and making other obligatory payments.
Such a concept as illegal entrepreneurial activity is not always clear to those who are just about to start a business. You need to seriously familiarize yourself with the nuances if you don’t want to get in addition to a good income, and also trouble with the law.
We recommend that you read the relevant materials in order to clarify whether it is legal to engage in the activity that interests you. With erroneous conclusions, you can easily fall under the definition of "illegal entrepreneur" - the consequences, as a rule, are not particularly pleasant.
What falls under the definition of "entrepreneurial activity"
From time to time, many people provide some services to others - this may be the sale of clothing, products, real estate. Such transactions do not attract the attention of authorized services, since they are concluded one-time and do not bring significant profit.
When such actions are constantly performed, a person is automatically considered an entrepreneur. This activity is against the law if the appropriate permission is not obtained, and here it is not far from being held accountable.
A person may be held criminally liable for any activity not formalized in accordance with the law, which has become a permanent source of income for him. For example, it can be private transportation services, repair household appliances, construction, massage, nail extension, clothing distribution through social media platforms. Such activity most often begins with the provision of one-time services to friends and acquaintances, but gradually takes on the character of a constant considerable income. At the same time, a person somehow does not have time to think about paperwork, or all the time puts off this important matter “for later”.
A lot of controversy is also raised by the question of how legal it is to freelance. Some of the entrepreneurs conduct illegal activities, deliberately not registering the enterprise properly, others simply do not realize that they are doing something that goes beyond the law. Freelancers are people who periodically take orders and receive payment for their implementation, their services are considered one-time and are more often provided without concluding any contract with the employer.
Despite the fact that the law regards freelancing as an entrepreneurial activity, authorized services have little control over it. The reason is the episodic provision of services and not very large income.
It is necessary to note such a type of earnings as part-time work on the Internet. Online poker and other similar activities do not count as business. But the profit from this kind of activity is taxed, and the person who received the winnings must pay a certain amount in favor of the state, and submit a declaration to the tax authority.
If a player registers as an individual entrepreneur, which gives him the opportunity to enjoy a reduced tax rate, he may be held liable for perjury.
The tax code prohibits the use of "simplified" in relation to those who have chosen for themselves just such an activity.
What can arouse the interest of revenue control authorities
It is unlikely that the tax authorities will be interested in the affairs of a person who receives a small profit.
But if doing business brings a good income, with a high probability they will try to catch such an entrepreneur in carrying out illegal business activities without registration.
The ban also applies to certain types of work, unless there is a special resolution. If there are no licenses and other necessary documentation, offenses may be greater degree seriousness than unregistered business.
Controlling organizations Special attention turn to activities in which the life and health of clients are exposed to increased risk. These can be the services of cosmetologists and masseurs, medical workers, transportation of goods or passengers, development construction projects. A person who does not have business registration can be severely punished if exposed.
What is entrepreneurship in terms of the law
If you turn to the legislation of the Russian Federation, you can get information that entrepreneurship is an activity carried out at your own peril and risk, which is carried out by a citizen and ensures that he receives a constant profit.
These actions are regulated by the following regulations:
- Constitution Russian Federation: all legal acts adopted on the territory of the Russian Federation are subject to this document;
- Civil Code (regulates business relations);
- Tax Code of the Russian Federation;
- Arbitration Procedure Code;
- Code of Administrative Offenses of the Russian Federation together with a number of certain laws.
Citizens engaged in illegal activities for which they cannot provide permits may be held liable under Art. 171 of the Criminal Code of the Russian Federation.
Independent forms of activity on illegal grounds can be as follows:
- sale of products or provision of services without registering an individual entrepreneur;
- violation of the main provisions of registration;
- in the case when documents with information that do not correspond to reality are submitted to the relevant authorities for registration;
- if the work is carried out without a license, which is required for this type of employment.
One-time profit
If a person once rented out his housing or does it periodically, he will not be considered an individual entrepreneur. But in case of non-payment of tax on the proceeds received for this, liability can be incurred in accordance with Art. 198 of the Criminal Code.
Criminal liability occurs if a person is engaged in activities that are prohibited by law. It includes, for example, the production of weapons structures, human trafficking, distribution of narcotic substances. If the deed is contrary to the law, for example, someone else's trademarks are appropriated, article 171 or 180 of the Criminal Code will be the basis for punishment. When buying, storing, manufacturing goods, during transportation, the purpose of which is the sale of goods, the sale of products that do not have labeling, in a certain amount, activities can be qualified as a set of acts prescribed in Art. 171.
When engaging in illegal business, when the health or life of customers may be endangered due to the fact that services or goods do not meet quality standards, Art. 171 and Art. 238. In case of illegal production and use of the state brand, liability is provided for under Art. 171, 181; it is understood that this violation is committed for personal gain.
If the court recognizes that there has been an entrepreneurial activity without state registration, and no profit tax or tax is paid to the state treasury, such actions fall under Art. 171 of the Criminal Code.
Cash, as well as any valuable property that was acquired during the implementation of entrepreneurial activities without registration, can act as material evidence of an established crime. Such property, as a rule, turns into state revenue, and this decision is indicated in the verdict.
An entrepreneur who is not registered will be liable under the law in the event that an inspection was carried out by authorized persons and it is proved that due to the activities of the designated person, damage was caused to other citizens, enterprises or government agencies. The same is true in the case of an unregistered entrepreneur receiving large incomes.
During the control purchase of products, it is, as a rule, carried out on a not particularly a large amount. Finding offenses that can lead to criminal liability will not be so easy. This may be more likely to happen when investigating how legitimate the profit is. Other cases will be considered under Art. 171, which excludes liability under the Criminal Code.
What can be called an administrative offense
If we turn to what the administrative norms state, the responsibility will be expressed in the fact that the entrepreneur will be obliged to pay a fine. This decision is made by the court. The case is considered at the place where entrepreneurial activity was carried out without registration as an action contrary to the law, or at the place where the person who violated the law actually lives.
A protocol on the commission of an offense is drawn up:
- tax inspectors;
- police officers;
- government inspections;
- prosecutor;
- regional institutions of the Ministry of Antimonopoly Policy.
The opening of a case is carried out based on the result of the verification of an individual in the event of a determination illegal activities with his hand. attraction this person liability must be no later than two months from the date of the protocol.
You need to pay close attention to the documentation process. If the protocol is drawn up with violations, everything will be returned to the departmental authorities for revision. If the completion is delayed, and the time limit for considering the case expires, the court may make such a decision, after which the case of the offense will be terminated.
A person who illegally participates in entrepreneurial activity may be punished with a fine or correctional labor. The more damage caused as a result of his actions, the more severe the sanctions. The good reputation of an individual can be taken into account - in this case, it is likely that you will be able to get off with a fine.
In what cases can entrepreneurship not be registered?
The consequences listed above can occur with a person who conducts entrepreneurial activities and has not formalized it legally. The reasons for this may be different. Sometimes the profitability of a business is so small that the payment of taxes exceeds the amount of profit.
If an entrepreneur finds it inappropriate to register a tiny income-generating activity, he should try not to attract the attention of the authorities. To do this, you need to be as attentive as possible to customers, exclude complaints from them, not develop active advertising of your services, and nullify conflicts with potential competitors. This gives, albeit a small, but still guarantee that a person will not be held accountable for illegal business.
When providing services to organizations that are not carried out constantly, but from time to time, these relationships can be documented. A contractor agreement or a one-time contract is concluded, which allows the organization to act as a tax agent and pay an amount for the contractor in favor of the state.
When renting housing on a permanent basis, registration of an individual entrepreneur is not required. It is necessary to conclude an agreement with the tenant, on the basis of which a tax return and pay personal income tax. This way you can eliminate the unnecessary interest of the authorities in the presence of problems with tenants or complaints from neighbors.
But if a person expects to do business for a long time and seriously, you should not delay his registration. In this case, one should hardly be afraid of criminal liability, but few people will like problems from official bodies. This can put an indelible stain on the reputation and it is not known how it will respond in later life.
With a serious attitude to business, entrepreneurs should take care not only of profit, but also take a responsible approach to the documentary base, create an impeccable business reputation and maintain it.
Entrepreneurial activity means the process of independent financial and economic activity aimed at making a profit from the production and / or sale of goods or the provision of any services.
Currently, there are 7 main features of entrepreneurial activity:
1. Systematic. Deadline professional activity, as correctly limited to certain time frames and characterized by the following criteria:
7. Professionalism. Any entrepreneurial activity assumes that the employees of the company have certain skills necessary for the high-quality organization and implementation of the work process. To date, unfortunately, such a requirement applies to only some enterprises and firms. As a rule, the presence of education and other important signs of professionalism is of interest only to those private organizations whose activities involve obtaining special permits. However, it is possible that in the near future, a similar requirement will be put forward to other enterprises and corporations.
In spite of great amount forms of entrepreneurial activity that currently exist, most experts prefer to distinguish two main types of entrepreneurship: industrial and commercial.
Having a desire to do business, it does not hurt to know what an entrepreneur and entrepreneurial activity are.
According to the generally accepted definition, an activity that is aimed at regularly making a profit from following operations: use of property, production and / or sale of goods, performance of work, provision of services. Therefore, an entrepreneur is one who is engaged in this activity and has registered himself in the manner prescribed by law. Entrepreneurial activity is carried out independently and at your own risk.
Another definition of entrepreneurial activity can be formed as follows: entrepreneurial activity is occupation of an intellectual nature, which is inherent in an enterprising and enterprising person who has any resources for the implementation of this activity. The entrepreneur acts in his own financial interests (profit), but at the same time benefits society (creating jobs, producing a product, etc.)
Signs of entrepreneurial activity
1. Independence
It can be property and organizational. The first implies that the entrepreneur has and disposes of his property, which he uses in the course of his entrepreneurial activity.
The second means that the entrepreneur independently makes decisions regarding his business. The independence of an entrepreneur is manifested at all stages of entrepreneurial activity - from the moment a decision is made to carry out a certain activity and ending with the extraction of profit from it. The entrepreneur always acts on his own initiative, and does not obey anyone's orders or orders. This, first of all, distinguishes entrepreneurial activity from labor activity, where the employee fulfills the requirements and instructions of his superiors.
2. Systematic
Entrepreneurial activity is not an action, but a process. And it is carried out over a period of time. Systematicity is one of the main features of entrepreneurial activity, and the main criterion for systematicity is the regularity of profit for a certain reporting period. With this, you can distinguish entrepreneurial activity from any other.
3. Liability
An entrepreneur always risks his property - corporate or/and his own, depending on the legal form in which the company operates.
4. Formality
It is possible to carry out entrepreneurial activity only after passing special registration procedures individual as an entrepreneur and registration of the company itself. Any activity aimed at making a profit, without proper registration, is illegal.
5. Focus on regular profit
Any entrepreneurial activity has as its main goal the systematic receipt of profit (profit = income - expenses). If entrepreneurial activity does not make a profit (due to a crisis situation at an enterprise or in the state), but is still aimed at this, then it can also be called entrepreneurial. If the activity does not set itself the goal of making a profit, then it is not of a commercial nature and therefore cannot be considered entrepreneurial.
6. Risk
Entrepreneurial activity is always associated with various types risks - organizational, economic, financial, etc. Moreover, some types of risks are dependent on the entrepreneur, and some are independent (for example, certain changes in the country's legislation that negatively affected the company's activities). To protect yourself from unforeseen expenses associated with risks, an entrepreneur can insure his entrepreneurial activity, that is, his business. Any kind of risk motivates the entrepreneur to more thoughtful and successful work.
7. Professionalism
This sign means that a person engaged in entrepreneurial activity must have theoretical and practical skills in this area and the appropriate specialized education. However, professionalism is not a prerequisite for all types of business activities, but rather for those that can only be carried out after obtaining the appropriate license (for example,).
8. Continuous search for business resources
The entrepreneur is constantly looking for new resources that can provide him with a successful entrepreneurial activity. It can be cash, technologies, equipment, raw materials, materials, premises, as well as work force, clients and partners. It is unacceptable for an entrepreneur to stand still in the development of his business, otherwise there is a great risk of failure.
Types of entrepreneurial activity
Depending on the sphere of the economy, the content of the work, the methods of carrying out various operations, etc. entrepreneurial activity is divided into the following types:
1. Commercial. This type of business activity is one of the most common. commercial entrepreneurship associated with any form of exchange of goods for money or goods for goods.
2. Production. Industrial entrepreneurial activity is based on the fact that the entrepreneur himself produces various goods with the help of special equipment, technologies and other resources. Of course, the word "himself" does not mean that the entrepreneur does it with his own hands (although in some cases it happens), this is done by the enterprise formed by him.
3. Financial and credit. It is too commercial activity, however, in it the main commodity is money, securities, currency values. It is believed that this type of entrepreneurship is the most difficult and requires the manifestation of an extraordinary mind of an entrepreneur, as well as special skills and abilities.
4. Advisory. It consists in providing different kind services related to the provision of advice, recommendations, analysis, expert assessments, diagnostics, etc. One of the most common types of such entrepreneurship is consulting.
5. Farm. Certain requirements are put forward by law for farming, as a form of individual entrepreneurship: only people who are members of a farm can be participants in one farm. family ties. In some cases, the presence of participants who are not relatives of the head of farming is allowed, but these people can be a maximum of five. The activity of farmers is based on farm management, with the subsequent sale of the grown resources.
6. Mediation. Here the entrepreneur himself does not produce anything and does not sell anything, but acts as a link between sellers and buyers of certain goods.
7. Insurance. Insurance business is rightfully considered the most risky, as it is associated with the occurrence of unforeseen circumstances, as a result of which a certain amount must be paid to the client in accordance with the signed insurance conditions. The profit of insurance companies is formed insurance premiums clients.
8. Venture. Associated with the formation and distribution financial resources to invest in the development of start-ups, new projects and companies. A venture entrepreneur receives profit from the successful implementation of an invested project, however, there is always a risk of non-return of invested funds.
What does this term mean? If we turn to the information prescribed in the civil code, and more precisely, in, then we can find a detailed definition: “Entrepreneurial is an independent activity carried out at one’s own risk, aimed at systematically making a profit from the use of property, the sale of goods, the performance of work or the provision services by persons registered in this capacity in accordance with the procedure established by law.
This definition implies a continuous activity aimed at generating income. Moreover, the phrase "receiving income" does not mean a one-time profit, but a systematic one (which is received more than 2 times).
In order not to create problems with current law, you should not engage in entrepreneurial activity without registration. Otherwise, it may happen that you will have to prove your rights already in court.
Note :
There are criminal, administrative, tax liability for illegal entrepreneurial activities without registering an individual entrepreneur. Moreover, each of these types of liability implies its own rules for fixing a violation.
Keep in mind that the facts that can prove your involvement in entrepreneurial activities are:
- Exhibiting examples and samples of products.
- Purchase of goods in bulk, that is, not in a single quantity.
- Conclusion of lease agreements for non-residential premises.
- Testimony of people who have purchased products from you
- Receipts for receiving funds.
- Advertising your products.
- Statements from your bank account.
The letters of the Ministry of Finance indicate the signs characterizing entrepreneurial activity:
- Accounting for transactions related to the implementation of transactions.
- Communication of all completed transactions for a certain time.
- Constant communication with contractors.
- Acquisition of property, which will later be used for profit.
And some more information on the topic
What is entrepreneurial activity?
If the goal of your activity is to make a profit (even if it has not yet been achieved), then this fact indicates that you are still engaged in entrepreneurial activity.As is known, individual entrepreneur operates under its own responsibility and at its own risk. And if you carry out the instruction of the management, then this activity cannot be called entrepreneurial.
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In tabular form, it is shown that IP or LLC is better. This was done in order to correctly evaluate all the pros, cons and financial risks, advantages and disadvantages of registration of IP and LLC. -
Organizing new business, the entrepreneur, first of all, has to decide on the choice in favor of an individual entrepreneur or LLC. So, it is worthwhile to figure out what IP and LLC are. -
When registering, an individual entrepreneur must choose one of the taxation regimes. The general mode (OSNO) is used by default, but it is also possible to select a patent, USN, UTII or ESHN.