If you decide to stop your business activities, you need to go through a procedure such as closing an individual entrepreneur. In order to close an individual entrepreneur, you must perform the following steps::
1. Prepare an application for closing an individual entrepreneur (form r 26001). If you cannot submit the application in person, you must sign it with a notary and prepare a notarized power of attorney for the person who will submit the documents to the tax office.
2. Pay the state fee - 160 rubles. Payment can be made at any branch of Sberbank.
3. Submit the documents to the Unified Registration Center (ERC). You must have a signed and stitched application, a receipt for payment of the state fee and a passport with you. If you are not submitting the documents, your representative must attach a notarized power of attorney.
4. After 5 working days, you must come to the ERC to receive the documents (Certificate of state registration of the termination of the IP activity, extract from the Unified State Register of Legal Entities). If you miss this deadline, the ERC specialists will send them by mail to your registration address.
5. No later than 12 calendar days from the date of closing, you must come to the district department of the Pension Fund.
6. You must have the received Certificate and passport with you. The fund's specialists will calculate the outstanding fixed payments. These payments must be repaid, since in case of late payment, penalties will be charged to you and it is possible to transfer the case to court with further recovery through the bailiff service.
7. Also, after closing, you need to prepare and submit the necessary reports to the tax inspectorate (according to the Unified Tax System), and pay the calculated taxes.
8. You can close the current account opened in the bank both before and after the liquidation of the sole proprietor. It is necessary to inform the tax service and funds (Pension and Social Insurance Funds) about the closure of the settlement account no later than 7 days from the closing date. A fine (5,000 rubles) may be imposed for missing the deadline.
In addition, we recommend that you verify taxes and fees in order to avoid any claims from the tax inspectorate. According to the results of the reconciliation, you will have in your hands a document confirming the absence of tax arrears, which will further protect you from possible unjustified claims from the tax authorities.
The procedure for closing an individual entrepreneur, which seems simple at first glance, actually has many pitfalls. For example, the simplest mistake in the application may be the reason for refusal to register the closure of an individual entrepreneur, as well as an incorrectly paid state fee (for example, an error when filling in the details in the payment receipt). If you get caught up in business, you may miss the deadlines set by law for submitting reports to the district tax inspectorate or funds, forget to pay dues, or notify the account closure. But no one will give you back the time and nerves you've spent.
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