Article for the newspaper “Pristolichie”. It is published on 04/18/2014.
Probably many of you have thought about your own business, but not everyone was able to decide on this crucial step. First of all because of the uncertainty that everything will turn out. And this uncertainty arises because of the lack of necessary information. So where do you start?
It all starts with an idea. Someone works at the enterprise, accumulates experience, contacts, and then decides to do the same thing, but it’s better, taking into account the mistakes of management or the accompanying business that could help the “parent” company. Someone’s idea is not related to professional activity, and hobbies and hobbies become a source of income. There are only two fundamentally different ways to achieve success: do only what nobody else does except you, or do the same as others, but better than others. Both approaches are an attempt to form competitive advantages, that is, it will be beneficial to distinguish you from competitors.
So, you are ready to start your own business, but do not know where to start. It is important to know that it is necessary to officially declare your intention in the authorized bodies – this is the way to legalizing income and avoiding trouble with inspection bodies.
The legislation of the Republic of Belarus provides for activities not related to business. These include tutoring, cleaning and cleaning of living quarters, day care for children, renting out of dwellings (except for providing places for short-term residency), grazing, rendering services for growing agricultural products and other types provided for in Article 1 of the Civil Code The Republic of Belarus. This does not require registration as a business entity (individual entrepreneur or organization – a legal entity), but it is required to inform the tax authority in the place of residence. In this case, you will pay an annual fixed tax in the amount established by law (Appendix 25 to the Tax Code of the Republic of Belarus).
Also non-entrepreneurial refers to craft activities and activities to provide services in the field of agroecotourism.
“Handicraft” means non-entrepreneurial activity of individuals in the manufacture and sale of goods, the performance of work and the provision of services using manual labor and tools, including electrical, carried out independently, without the involvement of individuals on labor and (or) civil contracts and aimed at satisfying the everyday needs of citizens. Types of craft activities are determined by the Decree of the President of the Republic of Belarus of 16.05.2005 № 225. Here are some of them: making products from straw, wild plants (vines, canes, lindens and others) except furniture; production of wooden barrels, vats, tubs and other cooperage products; bath brooms; manufacture of hand crocheted products, knitting needles; manufacturing of hand weaving products; lace making, macrame; making decorative flowers and compositions of them; making candles; woodcarving and others. Artisans pay an annual fee in the amount of 1 basic value to the tax authority at the place of residence before the beginning of such activity (from 01.04.2014 1 bv = 150000 rubles).
Agroecotourism is a temporary stay of citizens (including foreigners) in the rural areas of the Republic of Belarus for recreation, health improvement, familiarization with nature, national culture. The stay is carried out on the basis of the contract, which is concluded by the parties. Individuals permanently residing in rural areas, small urban settlements and leading personal subsidiary plots, as well as agricultural organizations, can carry out activities to provide services in the field of agroecotourism. For the performance of such activities, an annual fee of 1 basic amount is paid, and it is also necessary to submit an annual report to the tax authority in accordance with the established form. Decree of the President of the Republic of Belarus of June 2, 2006 No. 372 “On measures for the development of agroecotourism in the Republic of Belarus” established the conditions for the implementation of such activities.
If the implementation of your idea does not fit into any of the above activities, registration in the form of a business entity is required. The simplest form – individual entrepreneur (hereinafter referred to as IP) is a citizen who has the right to engage in entrepreneurial activity from the moment of state registration. Registration as an IP occurs in the local executive bodies (Minsk City Executive Committee, Minsk City Council, etc.) upon application of the citizen with payment of the state fee (currently at the rate of 0.5 base units), also a photo must be provided. Registration as an individual entrepreneur takes place on the principle of “one window”, that is, with automatic registration with the tax and other services. After receiving the certificate of state registration, you will need to open a bank account in order to effect non-cash payments. Acceptance of cash is fixed using tear-off coupons, cash receipts or cash register. Details on processing cash proceeds can be obtained from the tax office at the place of registration as an IP. Getting acquainted with your tax inspector is important after registration, as it is necessary to perform a number of administrative procedures, for example, preparing a book of comments and suggestions and a book of accounting checks.
It is important to know that the PI has subsidiary responsibility, that is, full responsibility for the results of its activities and, in the event of debt to creditors, is liable with all of its property until its confiscation. In addition, the IP has the right to hire no more than 3 close relatives.
Within 20 days from the date of state registration, it is necessary to determine the form of taxation. By default, you will use the general form in which the object of taxation is the difference between income and expenses recorded in the book of income and expenditure. The rate of income tax in this case is 12%. Suitable for PIs engaged in wholesale trade.
Also, the legislator provides for a single tax on individual entrepreneurs and other individuals. The list of activities in the implementation of which a single tax is paid, as well as the basic rates of the single tax, is defined by Chapter 35 of the Tax Code of the Republic of Belarus.
For those IPs that provide services or perform work, it is recommended to use the simplified taxation system (hereinafter referred to as “USN”) with payment of 5% of the tax from the whole amount of revenue received for the services rendered (works performed). In this case, you do not need to keep a record. If you chose USN – within 20 days, file an application with the tax office, otherwise you will have to wait for next year to switch to USN.
Individual entrepreneurs report on their income and paid taxes to the tax inspection at the place of registration quarterly.
In the case of hiring employees who are not relatives, or engaging in activities that require licensing under the Decree of the President of the Republic of Belarus of 01.09.2010, No. 450, it is necessary to register a commercial organization.
A commercial organization is a legal entity pursuing the extraction of profit as the main objective of its activity and (or) distributing profit among the participants. The most common commercial organizations, mainly used by small enterprises, are unitary enterprises, business entities (limited liability companies – LLCs or companies with additional responsibilities – ODL), and in agriculture – peasant (farm) farms.
A unitary enterprise is created by only one person, usually the next step after an individual entrepreneur, the founder also carries a subsidiary liability, but the enterprise is not limited in the number of employees and can use the simplified tax system. LLC and ODO – business companies created by two or more persons, here the founders limit the subsidiary liability for the company’s debts within the statutory fund, but not less than the amount equivalent to 50 basic units.
Starting your own business, keep in mind that investing a large amount of capital at the initial stage does not guarantee success to you, but, on the contrary, can lead to bankruptcy. Do not rush to take loans, loans, now is not the best time for them. Interest rates are so high that virtually no business idea can be repaid through borrowing. Therefore, choose an idea with minimal investment, try to exclude financial risks, optimize your costs. And remember, entrepreneurial activities are activities related to the systematic extraction of profits. Good luck and success to you!
Marina Naidovich
Director of the Directorate of the Small Business Incubator
CJSC “MAP CJSC” Minsk district, as well as Kolodishchi
