What is individual entrepreneurship, who is the subject of IE and what are the conditions for the functioning of individual entrepreneurship, read on.
Individual entrepreneurship is an independent, initiative activity of citizens of the Republic of Kazakhstan, kandases, aimed at obtaining a net income, based on the property of individuals themselves and carried out on behalf of individuals, for their risk and under their property responsibility.
Other individuals are prohibited from carrying out individual entrepreneurship.
Individual entrepreneurship is carried out in the form of:
- personal;
- joint entrepreneurship.
Personal entrepreneurship
Personal entrepreneurship is carried out by one individual independently on the basis of property owned by him on the right of ownership, and also by virtue of another right permitting the use and (or) disposal of property.
To carry out personal entrepreneurship by a natural person who is married, consent of the spouse is not required.
In cases where the physical person uses the common property of the spouses for personal entrepreneurship, the notarized consent of the other spouse for such use is required unless otherwise provided by laws or a marriage contract or other agreement between the spouses.
Personal entrepreneurship can be implemented using the form of farming.
Joint entrepreneurship
Joint entrepreneurship is carried out by a group of individuals (individual entrepreneurs) on the basis of property owned by them on the right of common ownership, and also by virtue of another right that allows joint use and (or) disposal of property.
Forms of joint entrepreneurship
- entrepreneurship of spouses, carried out on the basis of common joint property of spouses;
- family business, carried out on the basis of common joint ownership of the peasant farm or common joint ownership of the privatized dwelling;
- a simple partnership in which private entrepreneurship is carried out on the basis of common shared ownership;
- other forms in accordance with the laws of the Republic of Kazakhstan.
In the activity of the spouses' business in the business turnover on behalf of the spouses, one spouse is acting with the consent of the other spouse, which can be confirmed:
- when registering an individual entrepreneur;
- or expressed in writing and notarially certified in cases when the activity of an individual entrepreneur is carried out without state registration.
In the absence of the consent of one of the spouses to the speech of the other spouse in the business turnover on their behalf, it is assumed that the spouse, acting in business turnover, carries out individual entrepreneurship in the form of personal entrepreneurship.
Individual entrepreneurship under their own name
Individual entrepreneur:
- is engaged in entrepreneurial activity;
- acquires and exercises rights and obligations under his own name.
Citizen, kandas, when making transactions related to his entrepreneurial activity, should indicate that he acts as an individual entrepreneur.
The absence of such an instruction does not relieve an individual entrepreneur of the risk and responsibility that an individual entrepreneur is liable for his obligations.
When carrying out its activities, an individual entrepreneur is entitled to use personal business forms, seals, stamps, the texts of which must clearly indicate that the person is an individual entrepreneur.
An individual entrepreneur is entitled to use:
- personal business forms
- printing
- stamps, the texts of which must clearly indicate that this person is an individual entrepreneur.
State registration of individual entrepreneurs
The state registration of individuals engaged in private business without the formation of a legal entity is to be registered as an individual entrepreneur in the state revenue body at the location declared as an individual entrepreneur at the state registration.
Obligatory state registration as an individual entrepreneur is subject to natural persons who meet one of the following conditions:
- use the work of hired workers on an ongoing basis;
- have from the private enterprise an annual income calculated in accordance with the tax legislation of the Republic of Kazakhstan in the amount exceeding 12 times the minimum wage established by the law on the republican budget and effective as of January 1 of the corresponding fiscal year.
The activities of these individual entrepreneurs without state
registration is prohibited, except for the persons indicated below in the text.
The order of state registration of an individual entrepreneur
For the state registration of the individual entrepreneur is a natural person directly to the authority of the State Revenue or the state information system of permits and notifications notification form, approved by the authorized body in the field of authorization and notification.
In case of registration of joint individual entrepreneurship, an authorized person of joint individual entrepreneurship shall issue a power of attorney signed on behalf of all participants of joint business.
If the applicant has not reached the age of majority, the consent of the legal representatives is attached to the notification, and in the absence of such consent, a copy of the marriage certificate or the decision of the guardianship authority or the court decision declaring the minor fully capable.
Reclamation of other documents is prohibited.
A natural person shall have the right not to register as an individual entrepreneur when receiving the following income:
- income subject to taxation at the source of payment;
- property income;
- income from sources outside the Republic of Kazakhstan;
- incomes of domestic workers in accordance with the labor legislation of the Republic of Kazakhstan, receiving income from persons who are not tax agents;
- incomes of citizens of the Republic of Kazakhstan under employment agreements (contracts) and/or contracts of civil law, concluded with diplomatic missions and foreign representations equal to them, consular institutions of a foreign state accredited in the Republic of Kazakhstan that are not tax agents;
- income of citizens of the Republic of Kazakhstan under employment agreements (contracts) and/or contracts of a civil-law nature concluded with international and state organizations, foreign and Kazakhstani non-governmental public organizations and funds released from the obligation to calculate, withhold and transfer individual income tax at the source of payment in accordance with international treaties ratified by the Republic of Kazakhstan;
- income of immigrant immigrant workers received (receivable) under employment contracts concluded in accordance with the labor legislation of the Republic of Kazakhstan on the basis of a permit to a labor immigrant;
- income of mediators, with the exception of professional mediators in accordance with the Law of the Republic of Kazakhstan "On Mediation", received from persons who are not tax agents;
- income from personal subsidiary farming, recorded in the book of economic accounting in accordance with the legislation of the Republic of Kazakhstan, subject to taxation, for which the individual income tax was not withheld from the source of payment in connection with the submission of false information to the tax agent by a person engaged in personal subsidiary farms.
Termination of the activities of an individual entrepreneur
The activity of an individual entrepreneur can be terminated in the following cases:
- in a voluntary order;
- in a forced order;
- in the event of the occurrence of circumstances provided by the Entrepreneurial Code.
Voluntary order
Voluntarily, the activity of an IP ceases at any time on the basis of a decision taken independently by the individual entrepreneur in the course of personal entrepreneurship, by all the participants jointly - in joint entrepreneurship.
In this case, the individual entrepreneur submits to the state revenue body an application for termination of entrepreneurial activity in the manner prescribed by Articles 65, 66, 67 of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget (Tax Code)".
The decision to terminate a joint venture is considered adopted if at least half of its participants voted for it.
Forced order
In compulsory order, the activity of an individual entrepreneur is terminated by a court decision in the following cases:
- recognition of his bankruptcy;
- recognition of the invalid registration of an individual entrepreneur in connection with the violations of the legislation of the Republic of Kazakhstan, which are unrecoverable;
- carrying out activities with repeated ones during a calendar year or gross violations of the legislation of the Republic of Kazakhstan;
- declaring him dead;
- put into effect inclusion in the list of organizations and entities associated with the financing of terrorism and extremism, in accordance with the legislation of the Republic of Kazakhstan;
- recognition of his missing;
- established by the Tax Code, providing for the termination of activities under compulsion.
The activity of an individual entrepreneur is terminated from the moment he is removed from the register as an individual entrepreneur in the state revenue body based on his application or a decision of the court that entered into legal force, as well as in cases provided for by paragraph 3 of Article 38 of the Business Code.
The procedure for bankruptcy of an individual entrepreneur is carried out in accordance with the procedure established by the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy.
