The registration procedure
- Under article 13 of the Law on the guarantees of the freedom of business activity, registration runs on the one-stop-shop principle and, as a rule, on a notification basis.
- The registration body cannot refuse on grounds of inexpediency, and cannot set extra requirements that the legislation does not give.
- You can appeal a refusal, or a breach of the time limits, to the court.
- The state charges a duty for the registration of an individual entrepreneur (except for the reliefs that the law gives).
Ask the registration body in advance for the list of the documents you need.
The main difference from a limited liability company
Under article 25 of the Civil Code, an individual entrepreneur answers for his obligations with all his property (except the property that the law protects from recovery). A participant in a limited liability company does not answer for the obligations of the company and carries the risk of losses only up to the value of his contribution (article 62). In risky activity this difference decides everything.
Tax
The tax regime follows the type of activity and the turnover. Consult the tax body or a specialist before you choose the regime.
Important
Some types of activity need a licence or a permit. Legislative acts set the types of activity that need a licence (article 14 of the Law on the guarantees of the freedom of business activity). Check the list before you start work.