How to open an individual entrepreneur and start your own business — step-by-step instructions

The decision to open your own business is the first step towards financial independence, and modern digital services allow you to register an individual entrepreneur independently and as quickly as possible. Izvestia tells us what needs to be done to officially start your own business, and what documents will be required at each stage.

Who can open a sole proprietorship

A fairly wide range of people can become an individual entrepreneur in 2025. First of all, this is any capable citizen of the Russian Federation who has reached the age of majority, that is, 18 years old. However, the legislation also provides for exceptions for younger Russians. Minors starting from the age of 14 also have the right to register as sole proprietors, but for this they will need the notarized consent of their parents.

Foreign citizens and stateless persons also have the right to do business in Russia. A prerequisite for them is the availability of a document confirming the legality of their stay in the country — a residence permit (residence permit) or a temporary residence permit (temporary residence permit).

At the same time, a business in the form of an individual entrepreneur is not suitable for all types of activities. There are a number of limitations. For example, an individual entrepreneur is prohibited from engaging in:

• banking and insurance;
• by air transportation;
• trade in military and space technology;
• production and sale of alcohol (excluding beer, cider and other low-alcohol products);
• production and wholesale of medicines;
• security activities.

What documents are needed to register an individual entrepreneur?

Preparation of a set of documents is a key stage after choosing the direction of professional activity as an individual entrepreneur.

The main document is the passport of a citizen of the Russian Federation. If there is no permanent residence in the passport, but there is a temporary registration, you must provide a document confirming this fact. Foreign citizens and stateless persons must present a residence permit or temporary residence permit, as well as a notarized translation of their passport.

The second important document is a completed application on form no. P21001. It can be done on a computer or by hand, carefully entering all the necessary data. For minors between the ages of 14 and 18, a notarized parental consent for entrepreneurial activity is required.

No state fee is charged when submitting documents electronically. However, if the application is submitted in person or by mail, you will need a receipt for payment of the state fee, which is 800 rubles.

Personal matter: the number of sole proprietors in Russia has grown by 23% in three years

The total number of registrations exceeded 4.5 million

Step-by-step instructions: how to open an individual entrepreneur in 2025

With the development of digital services, the process of registering an individual entrepreneur has become much easier. Meanwhile, in order to avoid common mistakes and get IP status as soon as possible, it is necessary to follow a clear plan.

Step 1: Selection of OKVED codes
It is impossible to register an individual entrepreneur without specifying the codes of the All-Russian Classifier of Economic Activities (OKVED). These codes indicate the areas that the entrepreneur plans to pursue. The minimum number of digits in the registration code is four. If the type of activity changes in the future, the entrepreneur can always submit a new notification with different codes.

Step 2: Preparation and submission of documents
After selecting the OKVED codes and filling out the application on form No. P21001, it is necessary to determine the method of submitting the package of documents to the tax authority. In 2025, there are several options available, each with its own characteristics.

• Personally at the tax office. A Russian citizen with a permanent residence permit applies to the Federal Tax Service at his place of residence. The rest are at the place of temporary registration. The disadvantage of this method is the need to spend time on a visit and the risk of errors in the paper application.

• Sending by mail. It is convenient for those who live far from the inspection. However, the mail can take a long time to arrive, and the risk of error and subsequent failure also remains.

• Through the MFC. Multifunctional centers transfer documents through an electronic document management system, so there is no need to pay state duty. The disadvantage is that not every MFC provides such a service, and it will also take time to visit and wait in line.

• Remotely. This is the most modern and recommended method. You can apply through the services of the Federal Tax Service "State Online Business Registration" or "Start a business online", as well as through the portal "Gosuslugi". This will require a verified account and a qualified electronic signature (UKEP). With this method, the state duty is not paid.

Step 3: Getting the registration documents
After submitting the application, the registration authority reviews it within three working days. Regardless of the submission method, the result will be sent to the email address specified in the application. The package of documents on successful registration includes:

• the electronic record sheet of the Unified State Register of Legal Entities in the form No. 60009;
• notification of tax registration;
• a letter with the statistical codes required to fill out a tax return and open a checking account.

"The share of small businesses in the economy has reached a record 21.7%"

Alexander Isaevich, CEO of SME Corporation, spoke about the changing role of small enterprises, new support measures and high key

Choosing a tax system for sole proprietors in 2025

One of the most important issues that requires careful study is the choice of tax regime. The tax burden and the amount of reporting directly depend on this decision. In 2025, individual entrepreneurs can choose from six systems.

The General Taxation System (GTS) is applied by default if the entrepreneur has not submitted a notification of the transition to another regime. It involves the payment of value added tax (VAT), personal income tax (personal income tax), as well as insurance premiums in the amount of 53,658 rubles for the full year. In addition, 1% of the income exceeding 300 thousand rubles is paid.

The Simplified Taxation System (STS) is the most popular choice for small businesses with fewer than 130 employees and an income of up to 450 million rubles. An entrepreneur can choose one of two possible tax options: 6% of total income or 15% of profit (income minus expenses). An important advantage is simplified reporting and reduced rates.

The Automated Simplified System (ASN) is a new mode designed for microbusiness. It provides a choice of the rate: 8% of income or 20% of profit. The USN is available for businesses with up to five employees and an income of up to 60 million rubles. The system exempts from paying insurance premiums and simplifies reporting even more, but imposes strict restrictions on the number of staff, types of activities and the order of operations.

The Patent Taxation System (PSN) is ideal for certain types of activities. It involves the purchase of a patent for up to one year. The cost of the patent is determined by the regional authorities. The number of staff under this regime is limited to 15 employees.

The Unified Agricultural Tax (UITR) is a special tax regime with a rate of 6%, which was developed and introduced specifically for agricultural producers. However, entrepreneurs who do not produce agricultural products, but only carry out their primary or subsequent processing, do not have the right to apply the ESCN.

The Professional Income Tax (NAP) is a special regime for the self—employed and sole proprietors who work independently, without hired employees, and whose income does not exceed 2.4 million rubles per year. The rate for sole proprietors is 4 or 6%. An important advantage is the exemption from the use of cash register equipment.

Opening a bank account

After successful registration as an individual entrepreneur, two practical issues need to be resolved before starting work: opening a checking account and purchasing a cash register.

Today, many banks offer remote account opening, while they independently notify both the Federal Tax Service and off-budget funds about its opening. Without a checking account, an entrepreneur will be severely limited in his capabilities. Grants, participation in tenders and public procurement, lending and access to the international market will be unavailable to him.

As for cash register equipment, its availability is required for almost all types of settlements with the population. After purchasing the cash register, it is necessary to conclude an agreement with the fiscal data operator (OFD), register the cash register with the tax inspectorate (which can be done remotely) and connect it to the OFD.

Following these procedures will allow an entrepreneur to avoid many problems and start working in full compliance with the requirements of the law.

Earlier, Izvestia reported on the most popular business niches in Russia.

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