What is Natural Person-Entrepreneur? What are the main advantages of this form of business entity?

A Natural Person-Entrepreneur is one of the simplest form of business entities suitable for those who plan to try themselves in business. This form is characterized by a large number of advantages, which gives an entrepreneur an opportunity to start his/her own business, even with a limited and not particularly large budget. The legislation does not specify the necessary capital amount or any incorporative documents. Such a person has the opportunity to carry out his/her activities without seals. Besides, accounting also takes a minimum of time and does not require any red tape.

By the way, Natural Person-Entrepreneurs can do their job under a simplified taxation system. However, it should be understood that this system should be used only if the businessperson’s annual turnover is no more than UAH 500,000. As for the maximum number of employees, there should be no more than 10 of them. There are also some restrictions on certain types of economic activity that an entrepreneur with a single tax can use. In general, a Natural Person-Entrepreneur is personally responsible for his activities and property.

Among the main advantages of Natural Person-Entrepreneur form of business activity are the following:

  • The easiest and incredibly fast registration procedure;
  • Simple accounting;
  • The possibility of switching to a single tax (for example, legal entities are subject to more stringent requirements);
  • No co-founders and authorized capital;
  • The ability to run a business without the obligatory opening of a bank account and creating your own seals;
  • More loyal attitude of tax structures in comparison with other legal entities.

Features of the Natural Person-Entrepreneur registration procedure

Natural Person-Entrepreneur registration procedure is considered easier and faster. It takes much longer to register a legal entity. For a Natural Person-Entrepreneur, it takes 5 working days on average. It will take about 10 days to get a certificate of a single tax payer.

The package of documents required for successful registration consists of copies of a passport and a TIN certificate, the selected taxation system (simplified or conventional), types of economic activities (you must specify one main type or describe your plan of activity). You can read more about the documentation in the section “Natural Person-Entrepreneur registration”.

In order for the registration to take place as soon as possible, it is recommended that you contact a bona fide notary office, where competent employees work, who properly cope with their duties. Naturally, you can do the registration process yourself, but an incredible amount of time will be spent on long queues and in case, the documents are drawn up incorrectly.

As evidenced in practice, almost no one is able to provide a complete package of documents at the first time. You will constantly need to submit something new. That is why to cooperate with a professional notary agency would be a good thing.