Illegal business activity per year. What is illegal business? What fine for illegal entrepreneurship will have to be paid according to the Tax Code of the Russian Federation

The population of our country is not too respectful of the requirements of the law in any area, ranging from rules traffic and ending with the Criminal Code. The Civil and Tax Codes, which provide for the rules for maintaining entrepreneurial activity on Russian territory.

A large number of citizens in different areas does not declare its income and does not enter into relations with the tax inspectorate, as it does not think or does not want to think about the fact that the legislation provides for liability for illegal entrepreneurship and the limits of this liability are expressed in significant amounts.

What is illegal business activity

To determine illegal actions in the field of entrepreneurship, it is necessary to proceed from the definition of what falls into the scope of entrepreneurial activity. Full definition given in Art. 2 of the Civil Code of the Russian Federation.

Based on the text of the article, entrepreneurial activity is considered:

• independent acts, i.e. without availability labor relations fixed in contracts, but carried out from own name and to satisfy their own interests;
• operations carried out at one's own risk, for example, involving one's own property and Money;
• aimed at making a profit, which does not mean the fact of making a profit, but only the stated purpose of the activity, for example, a submitted advertisement or a concluded service agreement;
• systematic actions, taking into account the fact that repetition begins after two similar actions within one period, in particular, three facts of selling a car during the year - this is already a systematic activity;
• the sphere of entrepreneurship includes works, services, sales and operations with property, i.e. all possible types activities.

Entrepreneurial business is allowed only by registered persons. Thus, liability for illegal entrepreneurial activity occurs in the absence of state registration, since any activity, as a result of which repeated receipt of income is expected, is considered illegal business.

Forms of illegal business

From the point of view of legislation, entrepreneurial activity is considered illegal for various reasons. Non-compliance with laws is equated to the absence of registration or permit documents for conducting a certain business, or the performance of actions that are not provided for in the documents received.

All forms of violation of laws in this area are divided into the following groups:

1. without state registration;
2. without obtaining a license for licensed activities;
3. in violation of the terms of the license.

Entrepreneurial activity without registration includes the following facts:

• carrying out commercial activities of operations, services and works, in the absence of registration in the unified state registers of legal entities and entrepreneurs;
• starting to engage in commercial activities before the registration is carried out or after the registration is canceled for any reason;
• conducting activities not specified when registering in tax office, or which was not reported within 2 months after the actual change of specialization of the enterprise or entrepreneur.

Read also: Governmental support small business in Russia in 2019 - benefits and subsidies

In each identified case, a fine is due for illegal entrepreneurial activity.

The next form of infringement is work without a license, if one is required by the licensing law. The legislation provides for about 50 various kinds licenses, each covering broad scope works and services. If an individual or legal entity performs work from the list without having a license in hand, then its activity is recognized as illegal, and liability should be brought. It is also considered a violation of the law if the deadlines do not match, i.e. if the license was obtained later, and the first operations in the controlled area were recorded before the date specified in the document.

Activities that violate license requirements are also considered illegal business. For example, in order to obtain a license to operate a pharmacy, you must have ownership or a lease agreement for premises for a period of at least 12 months, in the absence this document at the time of verification, the licensing authorities may revoke the license, and commercial activity recognized as illegal with the corresponding consequences.

How to prove illegal business activity

Revealing illegal activities is a complex issue, which in most cases is considered and proven in the judiciary.

Detection functions are assigned to:

• law enforcement agencies, including the prosecutor's office;
• the federal tax service, including the tax police;
• Rospotrebnadzor;
• antimonopoly service;
• licensing authorities.

Violators can be detected as a result of:

• conducting scheduled and unscheduled inspections, as well as inspections of persons working with them;
• preventive measures in the markets and other places of mass trade;
• received complaints from the public.

The difficulty lies in the fact that any fact of illegal activity must be documented. The inspectors record this in the acts of verification, drawn up protocols. Citizens filing a complaint are required to present supporting documents (receipts for receiving money, concluded agreements for the lease of property or the provision of services, and so on).

Persons who are accused of illegal activities may appeal against the protocol drawn up in court before it is considered and a decision is made on the application of fines.

A responsibility

Measures of responsibility for violators are provided for in the Criminal and Tax Codes, as well as the Code of Administrative Offenses. Each of the listed normative acts deals with certain types of violations. For illegal entrepreneurial activity, the punishment is imposed in the form of:

• fines;
• withdrawal of income;
• deprivation of liberty;
• forced labor.

tax

In the Tax Code of the Russian Federation Art. 116 is devoted to penalties for the following actions:

• state registration was made later than the activity actually started - penalties in the amount of 10,000 rubles;
• activities are carried out without registration - if the income received is fixed, then a fine is imposed within 10% of its size, but in any case, the minimum amount of the fine is 40,000 rubles;
• all income received is subject to taxes (personal income tax, VAT, property, and so on), as well as fines and penalties for non-payment and penalties for failure to submit reports from the fixed date of commencement of activity to the date of drawing up the act.

In accordance with the current legislation of the Russian Federation as of 2016-2017, an individual is prohibited from engaging in entrepreneurial activities in order to generate income without registering in tax authorities at the place of residence. In accordance with the interpretation of the Civil Code, entrepreneurial activity is any activity aimed at systematic profit.

Any type of commerce requires registration of an individual entrepreneur, payment of taxes and fees, timely reporting to the relevant authorities. Illegal activities lead to administrative and criminal liability - imposition of fines, initiation of criminal cases, etc. The degree of responsibility depends on the type of business, the amount of turnover, the timing of the activity, and much more.

What activities are classified as illegal entrepreneurship in 2016-2017?

Any activity of an individual, the purpose of which is to make a profit (even very small amounts), must be formalized as an entrepreneurship. Even if you sell homemade jewelry or roasted sunflower seeds, this already falls under the definition of entrepreneurial activity. The degree of liability and the amount of fines depend on the type of activity and the amount of income received.

In 2016-2017, the activities of individuals are regarded as entrepreneurship on the following grounds:

• wholesale purchases of goods;
• certificates of persons who paid for the purchase of goods or the provision of services;
• placement of advertisements for the sale of goods, the provision of services;
• conclusion of lease agreements for the use of commercial buildings and premises;
• issuance of receipts on receipt of borrowed funds;
• conclusion of partnership agreements with suppliers of raw materials, materials, equipment.

If two or three signs from this list are identified, the tax inspectorate can interpret the activity of an individual as entrepreneurial. If a individual rents out housing, concludes contracts and carries out large sales transactions and pays personal income tax, this is within the law. And if trade transactions are repeated several times without registering an IP, such activity is already considered illegal business, which is subject to fines in various sizes.

That is, some types of transactions can be carried out by concluding civil law contracts, but you can't advertise your product. In addition, most firms or individual entrepreneurs will not risk being contacted by an individual doing business illegally.

You can open an individual entrepreneur in another city without a residence permit - at the place of temporary registration, by contacting the relevant tax authorities.

The main requirements of Russian legislation for the registration of IP in 2016-2017

In order to have the right to carry out commercial activities on the territory of the Russian Federation, it is necessary to follow a number of simple steps:

• determine the type of entrepreneurial activity and classify it in accordance with OKVED (all-Russian classifier of types of economic activity);
• register as individual entrepreneur at the tax office at the place of registration;
• make an IP seal (an optional requirement if you do not open a bank account and work with large companies);
• register with a pension fund, social insurance funds, etc.;
• if you are running a retail outlet, you will need a consumer corner (when providing services) or a customer corner (when selling goods). It is also mandatory to regularly submit reports on your business activities, pay taxes and fees, the amount of which is determined by the type of individual entrepreneur and the amount of income. A big advantage of the work of the Federal Tax Service is the ability to file tax return via the Internet without leaving home. If an entrepreneur employs workers, then he must also calculate income tax from wages and transfer it to the local budget.

Advice: when registering an individual entrepreneur in 2016-2017, it is better to immediately choose a wide range of types of commerce, within which you will be engaged in entrepreneurial activities. The number of activities affects the amount of taxes only if this species subject to a special fee or require permits or licenses.

On responsibility for conducting illegal business in 2016-2017

If an individual conducts entrepreneurial activities illegally, then upon establishing such a fact, he faces administrative or criminal liability.

In what cases is an individual or legal entity brought to administrative responsibility (as of 2016-2017) for illegal business activities:

• Carrying out entrepreneurial activities without registration with the relevant tax authorities entails a fine in the amount of 500-2000 rubles.
• Carrying out illegal business without a license (if this activity required to obtain such permission). An individual faces a fine of 2000-2500 rubles with the possibility of confiscation of manufactured goods, raw materials and materials, equipment. Fines for legal entities illegally operating without a license can range from 40,000 to 50,000 rubles.
• In case of violation of a special permit or license during the implementation of illegal business activities, violating entities may be issued a warning or fined. Individuals face a fine of 1500-2500 rubles, legal entities - from 30,000 to 40,000 rubles, officials of enterprises - 3000-4000 rubles.
• In case of gross violation of the license, individuals are punished with fines in the amount of 4,000-8,000 rubles, legal entities with fines from 100,000 to 200,000 rubles or suspension of activities for three months.

The onset of criminal liability for conducting illegal business (regulated by Article 171 of the Criminal Code of the Russian Federation) may entail cases of conducting economic transactions without registering an individual entrepreneur or legal entity with illegal receipt of income over 1,500,000 rubles (large amounts) and 6,000,000 (especially large amounts). Large administrative penalties and criminal liability may also result from the implementation of illegal entrepreneurship in areas requiring a license (sale of tobacco or alcohol products, security services, transport services, etc.), without obtaining permits.

When committing illegal entrepreneurial activities on a large scale, an individual entrepreneur faces a fine of 300,000 rubles or a penalty for the amount of income that the individual entrepreneur received during two years of conducting commercial operations without registration. Another punishment may be compulsory work for up to 480 hours or arrest for 6 months. In case of illegal entrepreneurship on an especially large scale, the violator faces a fine of 100,000 - 500,000 rubles, recovery of income for 1-3 years, 5 years of forced labor or 5 years of imprisonment with the need to pay 80,000 rubles or 6 months of income.

In addition to individual entrepreneurs and legal entities, individuals are also required to submit information about their income to the tax office. For failure to provide a declaration or the inaccuracy of the specified data, the subject is threatened with a fine or forced labor for 1-3 years (the amount of the penalty and the term of imprisonment or forced labor are determined in accordance with the amounts that were not declared and the type of activity). In order to avoid criminal liability, in case of violations on a particularly large scale, the violator can pay all amounts of fines and penalties and thus avoid forced labor or imprisonment.

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Even if you just want to sell fried seeds, sew or knit at home, quietly and legally making a profit from it, it is better to register as an individual entrepreneur, so you can avoid many problems - you will not face fines or other administrative penalties. To carry out entrepreneurial activities, you do not need to open a current account for individual entrepreneurs and LLCs, you just need to pay taxes on time and submit income declarations on time.

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From time to time, many of us sell something, provide paid services, make things for a fee on orders from friends and acquaintances. Such transactions, which are of a one-time nature, are a private matter of one or more individuals. However, if such actions are carried out regularly and begin to acquire a commercial scale, liability for illegal business may arise.

For example, if you start by selling clothes that your child has grown out of, you go further and order children's clothes from China and sell them through a group in in social networks... Once you successfully helped a colleague to make repairs for a small fee and decided to earn extra money by placing an ad in a newspaper? Do you do massage at home or build nails? Do you repair household appliances or are you a private driver? If your activity is purposefully conducted to generate income and put on stream, you must understand that you are in this case unregistered entrepreneur.

Of course, if your "job" brings a modest irregular income, it is unlikely that anyone will convict you of illegal commercial activities. If your business has clearly gone beyond the scope of a small “side job” and has begun to bring in significant profits, not only the tax office, but also the police and other official bodies may well be interested in your income.

In addition, the law prohibits certain types of work without special permission (for example, medical and cosmetic services, design work, cargo and Passenger Transportation and so on). Running such a business without a license and other permits is an even more serious offense than unregistered business.

Entrepreneurship and law

In accordance with the Civil Code, independent activity, which is carried out at one's own risk for the systematic receipt of profit, is called entrepreneurial. Profit can be derived from the provision of paid services, the implementation of work on a reimbursable basis, the sale of goods or the use of property. A citizen conducting commercial activities is required to officially register as an entrepreneur.

Thus, the main hallmark entrepreneurship from an ordinary private transaction is a combination of systematic activity, and profit from it.

For example, a one-time provision of a service for a fee or a one-time transaction for the sale of goods is not yet entrepreneurship. The same actions, but performed two or more times in a year, will be considered as having a systematic character. But if the goods are sold for the same or less value for which they were purchased, there is no fact of making a profit, and the sale is considered private, regardless of the number of such transactions. Under other conditions, the activity will already be commercial.

Consider cases in which doing business does not comply with the law.

In Russian law, illegal business refers to:

1. unregistered commercial activity (without registration of an individual entrepreneur or legal entity); or issued with violations or with the provision of false information in the registration documents;
2. entrepreneurship without compulsory licensing of certain types of activities;
3. conducting business in violation (including gross) of licensing requirements.

Under the law, illegal business conduct entails three types of liability: administrative, criminal and tax.

Learn more about these types of liability.

Illegal business in administrative law

The Code of Administrative Offenses provides for penalties for carrying out illegal commercial activities.

1) A fine from 500 to 2000 rubles is imposed on a citizen who has not registered his activity as an individual entrepreneur or legal entity.

2) The implementation of licensed types of activities without issuing an appropriate permit entails:

• for individuals - a fine from 2,000 to 2,500 rubles with the possibility of confiscation of means of production and products;
• for officials - a fine from 4,000 to 5,000 rubles with possible confiscation;
• for legal entities - a fine in the amount of 40,000 - 50,000 rubles with or without confiscation.

3) Violation of the requirements and conditions of the license is punishable by an administrative fine:

• for citizens - 1500 - 2500 rubles;
• for officials - 3000 - 4000 rubles;
• for organizations - 30,000 - 40,000 rubles.

4) Gross violation of the terms of licensing is punishable by suspension of illegal business for up to 90 days or by fine:

• private individuals - 4000 - 5000 rubles;
• officials - 4000 - 5000 rubles;
• legal entities - 40,000 - 50,000 rubles.

Establishing the fact of illegal business is the responsibility of the police, the tax office, the antimonopoly committee, the consumer market supervisory authorities, and the prosecutor's office. A protocol on the offense is drawn up by them in the course of verification activities: conducting a test purchase, inspecting the premises and other necessary actions. The reason for the check can be a complaint from a dissatisfied client or any signal received that a citizen is illegally doing business without registration or commits violations in work.

Cases on bringing illegal entrepreneurs to administrative responsibility are dealt with by a justice of the peace at the place where the activity of an individual is carried out or at the place of his residence. case of administrative offense must be considered within two months after the protocol is drawn up. Otherwise, the judge is obliged to make a decision to terminate the proceedings. An incorrectly executed protocol, the presence of inaccuracies or contradictions in it often allows the violator to avoid punishment. While the protocol is being re-executed in the body that compiled it, the period allotted by law for bringing a citizen to administrative responsibility may expire.

Criminal liability for illegal business

In some cases, criminal liability is also provided for illegal entrepreneurial activity. It occurs if an illegal businessman caused major damage to the state, organizations or individuals, and also earned a large amount of income. In this case, a large amount means an amount from 250,000 rubles, especially large - over 1 million rubles.

The Criminal Code provides for the following penalties for illegal business.

1) For causing damage on a large scale:

• a fine of up to 300,000 rubles or in the amount of two years of earnings of the violator;
• from 180 to 240 hours of compulsory work;
• imprisonment for 4-6 months.

2) For damage caused on an especially large scale or an act committed by a group of persons:

• a fine in the amount of 100,000 - 500,000 rubles or equal to three years of the perpetrator's income;
• imprisonment up to 5 years with a fine of up to 80,000 rubles or in the amount of six months of the convicted person's income.

The burden of proving the facts of extracting large income or causing damage to third parties lies with the police or the prosecutor's office. It is practically impossible to detect an offense that falls under the criminal code in its gravity, since control purchases by inspection bodies are carried out for limited amounts. Therefore, as a rule, they are not able to prove the receipt of significant income from the business. Most often, individuals are prosecuted in cases of involvement in the laundering of proceeds from crime.

Responsibility for illegal activities carried out commercial organization, is assigned to its leader.

The following are not subject to criminal liability:

• citizens performing duties under an employment contract concluded with an illegal entrepreneur;
• owners of leased real estate, regardless of the amount of income received.

Circumstances mitigating criminal punishment are a single fact of bringing a citizen to responsibility and existing positive characteristics guilty.

Illegal entrepreneurial activity may be associated with other criminally punishable acts in the field of entrepreneurship:

• illegal use of other people's trademarks, deliberately false indication of the place of origin of goods;
• production, purchase and circulation of counterfeit products, excisable goods, goods marked special characters counterfeit-proof.

In this case, measures of responsibility for the totality of these crimes are provided.

Illegal business and tax authorities

Articles 116 and 117 of the Tax Code define the sanctions for commercial activity without registration, in the form of collection of taxes not received by the state and fines for tax evasion.

1. An entrepreneur who is not registered with the tax office is punished with a fine - 10% of the income received by him, at least 20,000 rubles. The penalty is applied if, at the time of the tax audit, an application for registering an entrepreneur was not submitted to the inspection at all.
2. The actual conduct of unregistered business activities for more than 90 days is punishable by a fine of 20% of the income earned by the citizen, but not less than 40,000 rubles.
3. For delay in registering a business with the tax office, the fine is 5,000 rubles. In case of delay in registration for a period of more than 90 days - a fine of 10,000 rubles. The delay is considered from the moment of establishing the first fact of revenue. A late fee applies if the registration documents were submitted after the receipt of the first revenue, but before the tax audit.

In addition to fines for the absence and delay of state registration, tax authorities have the right to charge additional taxes unpaid by a citizen. In this case, the illegal entrepreneur undertakes to pay personal income tax accrued on the entire amount of income proven by the inspection authorities. This also adds penalties for overdue taxes and a fine for non-payment in the amount of 20% of total amount additional charges.

The sanctions provided for by the laws on taxes and fees are imposed on the violator only by a court decision in accordance with the Code of Civil Procedure.

So we have considered possible consequences that may arise for a person conducting illegal business activities. Sometimes business income is so small that the official registration and payment of all necessary taxes and mandatory payments eats up all the profits. Such entrepreneurs who consider it inappropriate to register their activities can be advised to draw as little attention as possible to themselves from official bodies. Eliminate complaints and claims from customers, do not conflict with potential competitors, do not conduct active advertising activities. However, this does not give any guarantees that it will be possible to avoid liability for illegal entrepreneurship. Tax inspections, as a rule, are actively involved in collecting information about unregistered businessmen.

If you periodically provide services to organizations, it makes sense to document relations with them (contract, one-time labor contract). In this case, the organization will be able to act as a tax agent and pay for you obligations to the state.

If you rent housing on a permanent basis, you do not have to register as an individual entrepreneur, it is enough to file a tax return annually on the basis of an agreement with a tenant and pay personal income tax. Thus, protect yourself from unnecessary interest on the part of official bodies, which may arise in the event of problems with residents or a complaint received from neighbors.

If you intend to do business seriously and for a long time, then you should not delay registering it. Of course, it is unlikely that you will be overtaken by criminal liability. Yes, and administrative punishment may not seem so significant, but any problems with government agencies can do a disservice in the future. For a serious entrepreneur, it is important not only to maximize profit, but also to take a responsible attitude to your business, create and maintain an impeccable business reputation.

In accordance with the current legislation of the Russian Federation as of 2016-2017, an individual is prohibited from engaging in entrepreneurial activities in order to generate income without registering with the tax authorities at the place of residence. In accordance with the interpretation of the Civil Code, entrepreneurial activity is any activity aimed at systematic profit.

Any type of commerce requires registration of an individual entrepreneur, payment of taxes and fees, timely reporting to the relevant authorities. Illegal activities lead to administrative and criminal liability - imposition of fines, initiation of criminal cases, etc. The degree of responsibility depends on the type of business, the amount of turnover, the timing of the activity, and much more.

What activities are classified as illegal entrepreneurship in 2016-2017?

Any activity of an individual, the purpose of which is to make a profit (even very small amounts), must be formalized as an entrepreneurship. Even if you sell homemade jewelry or roasted seeds, this already falls under the definition of entrepreneurial activity. The degree of liability and the amount of fines depend on the type of activity and the amount of income received.

In 2016-2017, the activities of individuals are regarded as entrepreneurship on the following grounds:

• wholesale purchases of goods;
• certificates of persons who paid for the purchase of goods or the provision of services;
• placement of advertisements for the sale of goods, the provision of services;
• conclusion of lease agreements for the use of commercial buildings and premises;
• issuance of receipts on receipt of borrowed funds;
• conclusion of partnership agreements with suppliers of raw materials, materials, equipment.

If two or three signs from this list are identified, the tax inspectorate can interpret the activity of an individual as entrepreneurial. If an individual rents out housing, enters into contracts and carries out large sales transactions and pays personal income tax, this is within the law. And if trade transactions are repeated several times without registering an IP, such activity is already considered illegal business, for which fines of various sizes are threatened.

That is, some types of transactions can be carried out by concluding civil law contracts, but you cannot advertise your product. In addition, most firms or individual entrepreneurs will not risk being contacted by an individual doing business illegally.

You can open an individual entrepreneur in another city without a residence permit - at the place of temporary registration, by contacting the relevant tax authorities.

The main requirements of Russian legislation for the registration of IP in 2016-2017

In order to have the right to carry out commercial activities on the territory of the Russian Federation, it is necessary to follow a number of simple steps:

• determine the type of entrepreneurial activity and classify it in accordance with OKVED (all-Russian classifier of types of economic activity);
• register as an individual entrepreneur in the tax office at the place of registration;
• make an IP seal (an optional requirement if you do not open a bank account and work with large companies);
• register with a pension fund, social insurance funds, etc.;
• if you are running a retail outlet, you will need a consumer corner (when providing services) or a customer corner (when selling goods). It is also mandatory to regularly submit reports on your business activities, pay taxes and fees, the amount of which is determined by the type of individual entrepreneur and the amount of income. A big advantage of the work of the Federal Tax Service is the ability to file a tax return via the Internet without leaving home. If an entrepreneur employs workers, then he must also calculate income tax from wages and transfer it to the local budget.

Advice: when registering an individual entrepreneur in 2016-2017, it is better to immediately choose a wide range of types of commerce, within which you will be engaged in entrepreneurial activities. The number of activities affects the amount of taxes only if this type is subject to a special fee or requires obtaining permits or licenses.

On responsibility for conducting illegal business in 2016-2017

If an individual conducts entrepreneurial activities illegally, then upon establishing such a fact, he faces administrative or criminal liability.

In what cases is an individual or legal entity brought to administrative responsibility (as of 2016-2017) for illegal business activities:

• Carrying out entrepreneurial activities without registration with the relevant tax authorities entails a fine in the amount of 500-2000 rubles.
• Carrying out illegal business without a license (if this activity requires the obligatory receipt of such a permit). An individual faces a fine of 2000-2500 rubles with the possibility of confiscation of manufactured goods, raw materials and materials, equipment. Fines for legal entities illegally operating without a license can range from 40,000 to 50,000 rubles.


• In case of violation of a special permit or license during the implementation of illegal business activities, violating entities may be issued a warning or fined. Individuals face a fine of 1500-2500 rubles, legal entities - from 30,000 to 40,000 rubles, officials of enterprises - 3000-4000 rubles.
• In case of gross violation of the license, individuals are punished with fines in the amount of 4,000-8,000 rubles, legal entities with fines from 100,000 to 200,000 rubles or suspension of activities for three months.

The onset of criminal liability for conducting illegal business (regulated by Article 171 of the Criminal Code of the Russian Federation) may entail cases of conducting economic transactions without registering an individual entrepreneur or legal entity with illegal income in excess of 1,500,000 rubles (large amounts) and 6,000,000 (especially large dimensions). The implementation of illegal business in areas requiring a license (sale of tobacco or alcohol products, security services, transport services, etc.) without obtaining permits can also lead to large administrative penalties and criminal liability.

When committing illegal entrepreneurial activities on a large scale, an individual entrepreneur faces a fine of 300,000 rubles or a penalty for the amount of income that the individual entrepreneur received during two years of conducting commercial operations without registration. Another punishment may be compulsory work for up to 480 hours or arrest for 6 months. In case of illegal entrepreneurship on an especially large scale, the violator faces a fine of 100,000 - 500,000 rubles, recovery of income for 1-3 years, 5 years of forced labor or 5 years of imprisonment with the need to pay 80,000 rubles or 6 months of income.

In addition to individual entrepreneurs and legal entities, individuals are also required to submit information about their income to the tax office. For failure to provide a declaration or the inaccuracy of the specified data, the subject is threatened with a fine or forced labor for 1-3 years (the amount of the penalty and the term of imprisonment or forced labor are determined in accordance with the amounts that were not declared and the type of activity). In order to avoid criminal liability, in case of violations on a particularly large scale, the violator can pay all amounts of fines and penalties and thus avoid forced labor or imprisonment.

Even if you just want to sell fried seeds, sew or knit at home, quietly and legally making a profit from it, it is better to register as an individual entrepreneur, so you can avoid many problems - you will not face fines or other administrative penalties. To carry out entrepreneurial activities, you do not need to open a current account for individual entrepreneurs and LLCs, you just need to pay taxes on time and submit income declarations on time.

megaidei.ru

Reasons for recognizing illegal business

If a person is engaged in entrepreneurial activities, but did not register legally in time, while systematically selling goods or services for profit, he is liable. It is possible to conduct such activities only after registering with state bodies, obtaining a license (for certain types of business) and fulfilling other requirements of the law (joining an SRO, etc., again, if necessary).

If the owner of the organization is not registered as an individual entrepreneur or LLC and did not consider it necessary to fulfill other requirements in accordance with the laws of the Russian Federation relating to the entrepreneurial activities that he conducts and as a result of which he receives income, he faces criminal, tax, as well as administrative liability and is subject to a fine for illegal business. In case of illegal entrepreneurship, if the violation is determined in a criminal procedure, the violators are entitled to the appropriate punishment of the individual.

The most common types of illegal business for 2017:

• Production, sale and storage of unlicensed products (this is provided for by Article 171.1 of the Criminal Code of the Russian Federation).
• Provision of paid services for the construction, repair and maintenance of cars, household appliances and electronics (activities are not registered in the tax).
• Provision of paid medical or veterinary services without a license.
• Systematic leasing of real estate.
• Rental Services Vehicle for a certain payment for use without paying taxes on the income of an individual in accordance with the form 3-NDFL.
• Activities in the so-called spontaneous markets.
• False information during registration and reporting on the state of affairs of the organization.

How illegal business is defined

Representatives of the tax inspectorate, the prosecutor's office determine violations of the requirements for legal registration and licensing of goods sold. Illegal activities of unregistered companies and individual entrepreneurs can be identified in the process of targeted audits by both tax and other authorized bodies.

Legal consequences in the process of violation of the procedure for registration or licensing of goods sold by the organization determine the sanctions. The chosen measure of punishment in case of violation of the requirements of the law regarding illegal activities, as well as in the absence of a license and certificates of products sold, should come into effect after 2 months from the date of their discovery.

Penalties for violation of the rules for conducting and registering a business are applied no later than 2 months from the moment the violations are discovered. The punishment can come into force only if no more than 2 months have passed since the violation was discovered, and the fact of the violation is documented and submitted to the court in a timely manner. If one of the above conditions has not been met, the legal force of the charges loses its relevance.

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Who can define illegal business

The duty to identify signs of illegal entrepreneurial activity is assigned to the state authorized bodies:

• tax and trade inspection;
• antimonopoly service;
• prosecution authorities;
• Committee for the Protection and Protection of Consumer Rights.

Violations in the activities of companies and individual entrepreneurs can be detected during specially conducted inspections. Penalties for offenses are applied after 2 months from the moment of their discovery.

Punishment for conducting illegal activities cannot occur at the end of two months after the discovery of a violation, if this fact has not been documented and brought to court.

A complaint about illegal entrepreneurship, in particular, about the lack of a license or an official certificate of state registration of entrepreneurial activity, can be filed by any person with the above-mentioned authorized bodies.

Types of punishments for conducting illegal business

Illegal entrepreneurial activity entails three types of liability: administrative, tax and criminal. Let's take a closer look at each of them.

Illegal business: administrative responsibility

Russian legislation, in particular the Code of Administrative Offenses of the Russian Federation, provides for the following measures penalties for illegal business activities:

• for the lack of registration of their activities in state bodies as an individual entrepreneur - a fine in the amount of 500 to 2000 rubles;
• for conducting activities that require licensing without issuing a special permit - penalties are:
  • for individuals from 2000 to 2500 rubles with the possibility of confiscation of products and production tools;
  • for legal entities from 40,000 to 50,000 rubles with or without confiscation;
  • for officials from 4,000 to 5,000 rubles with the possibility of confiscation.
• For violation of the requirements of the license, a fine is imposed:
  • for individuals from 1500 to 2500 rubles;
  • for legal entities from 30,000 to 40,000 rubles;
  • for officials from 3000 to 4000 rubles.
• for being rude repeated violation terms of the license, the law provides for the suspension of entrepreneurial activity for up to 90 days or a fine in the amount of:
  • for individuals - from 4000 to 8000 rubles;
  • for legal entities - from 100,000 to 200,000 rubles;
  • for officials - from 5,000 to 10,000 rubles.

The fact of illegal entrepreneurship is revealed in the course of verification activities in the form of a test purchase, inspection of the premises, etc., upon the discovery of a violation by state control bodies, a protocol is drawn up. The decision to bring to administrative responsibility entrepreneurs engaged in illegal activities is made by a justice of the peace at the place of residence of the person who committed the violation, or at the place of illegal business. The case of an administrative violation is considered within a period of up to 2 months from the date of registration of the protocol, in case of exceeding the named period, the court is obliged to make a decision to terminate the proceedings.

Illegal business of the Criminal Code of the Russian Federation

Criminal liability for conducting illegal business activities is an extreme measure of punishment that is imposed on a person who repeatedly violates the law and the order of doing his business. In a number of basic cases, which provide for punishment on the basis of Art. 171 of the Criminal Code:

• systematic violation of the law by one person;
• profit in especially large amounts, as a result of conducting illegal entrepreneurial activities, or received as a result of conducting unregistered business;
• significant damage caused to clients, organizations and the state in the course of illegal business, expressed in payment for goods or services of a company that is not registered with the relevant authorities or does not have official permission to carry out a certain type of activity.

Profit from conducting illegal business activities in the amount of more than 2,250,000 rubles is the basis for bringing the entrepreneur to criminal liability.

The Criminal Code of the Russian Federation provides for the following types of punishments for the implementation of illegal entrepreneurship:

• infliction of damage on a large scale (from 2,250,000 rubles): a fine of up to 300 thousand rubles or in an amount equal to the earnings of the violator within 24 months; performance of compulsory works for a period of 180 to 240 hours; imprisonment for a period of 4 to 6 months.
• infliction of damage on an especially large scale (from 2,250,000 rubles to 9 million rubles) or an act committed by a group of persons: a fine in the amount of 100,000 to 500,000 rubles; a fine equal to the offender's income for 3 years; imprisonment up to 5 years with a fine of up to 80 thousand rubles or in an amount equal to the income of the convicted person for 6 months.

The duty to identify the fact of a violation and extract a large income or cause damage to third parties on an especially large scale is assigned to the prosecution authorities and the police. Responsibility for illegal entrepreneurship rests entirely with the head of the violating organization. In this case, they do not bear criminal responsibility:

• persons who have concluded with an illegal entrepreneur labor contract to work;
• the owner of the premises leased to a person engaged in illegal business activities.

The Criminal Code of the Russian Federation also provides for mitigating circumstances that can be taken into account when making a court decision: the positive characteristics provided for the perpetrator and the fact that the perpetrator was brought to criminal responsibility for the first time. If illegal entrepreneurship is accompanied by other criminal acts in the field of economic crimes (for example, illegal use of a trademark, production and sale of excisable goods or counterfeit products, and others), criminal liability measures are assigned in the aggregate of all committed acts.

Illegal business: tax liability

In addition to administrative and criminal liability, Russian legislation also provides for liability to the tax authorities for conducting illegal business activities. So, in accordance with Art. 116 of the Tax Code of the Russian Federation, the following penalties may be imposed on an entrepreneur:

• a fine in the amount of 10 thousand rubles - for late registration of their activities with the tax authorities;
• a fine in the amount of 10% of the total amount of income for the entire period of illegal entrepreneurial activity (but not less than 40 thousand rubles) - for doing business without registering with the relevant authorities.

Also, it is worth noting that if an entrepreneur who carries out his activities illegally violates any other legal norms, he will be liable in the aggregate for all offenses committed. For example, a person carrying out activities in the field of medicine did not receive the appropriate permission, and in addition, when hiring employees, he did not ensure the complete confidentiality of their personal data, allowing information to be leaked to third parties. Such actions will entail cumulative liability for illegal business and violation of legislation on the protection of personal data.

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Liability for illegal business activities

Any illegal activity is punishable, and the nature of responsibility for the deed differs in the category of "harmfulness" and harm (damage). Such a negative effect in the form of damage is caused to people, other legal entities, private entrepreneurs, and the state. Consider the main types of responsibility.

Criminal (UK)

The toughest and most radical type of responsibility, this is justified by the fact that it provides for serious types of punishment. This form of liability is enshrined in the Criminal Code. For example, article 171 of the Tax Code of the Russian Federation is responsible for illegal commercial business activity. Citizens should be aware that criminal liability can only occur for guilty individuals, including:

• Entrepreneurs.
• Managers, owners of legal entities.
• Actual managers or owners of an unregistered enterprise, organization.

Administrative (CAO)

Provides only for penalties that are not global (not in large volumes) in nature, in particular - from 500 to 2000 rubles ( smallest view sanctions). Legislators have provided for this type of liability in the Code of Administrative Offenses.

The amount of penalties directly depends on the presence of repetition, the attitude towards the offense of the entrepreneur himself, the subject of the offense, and, no doubt, the type of offense. The main forms of such offenses are:

• Violation of licensing rules. There are two types of offense according to severity: violation of the terms of the license, gross violation of the terms of the license.
• No license. Punishable by money from 2000 to 50000 rubles with the confiscation of unlicensed products, as well as raw materials.
• Work without registration – from 500 to 2000 rubles. As mentioned above, the mildest form of punishment.

tax

The main purpose of registration and licensing of enterprises is to replenish the budget. Such replenishment is carried out at the expense of taxes and fees. Therefore, by right, tax is the main type of responsibility.

Tax liability is material and compensatory in nature. That is, in addition to taxes not received by the state, you will also have to pay a fine for tax evasion. Tax liability for illegal business is provided for by Art. 116 of the Tax Code.

Varieties of illegal entrepreneurial activity

There are several types of such illegal activity:

• Prohibited by law. This type usually includes the production, sale, transfer, storage of narcotic and psychotropic substances, the creation, sale of weapons.
• A business that is not registered in accordance with the procedure established by the state. In order to enter into relations with counterparties for the purpose of buying, selling, marketing, exchanging any products, providing services for commercial basis, it is necessary to have a certain status - a legal entity or an individual entrepreneur. But, as you know, in order to obtain such a status, it is necessary to register, that is, to give a legal form to your business. If, for example, you systematically provide paid hairdressing services at home and do not have official registration as an enterprise or entrepreneur, then know that your activity has nothing to do with the law, and appropriate liability measures are provided for it.
• Lack of a license when performing licensed activities and violation of licensing rules. A license is a legal permission to engage in a specific business. Not every type of activity implies obtaining such a permit, but there is a certain list of such types. Among the most popular are activities related to the production of alcohol, pharmaceuticals, medical and educational practices.
• The activities of the company in violation of the statutory provisions (in violation of the rules of registration). The charter is the main document of the enterprise, the basis of its functioning. The charter, as the basis for the existence of the enterprise, indicates the leading and additional activities. If the organization is engaged in any other types of activities not provided for by the Charter, this can only be regarded as illegal activity.

Which state bodies can reveal the fact of illegal entrepreneurial activity

In order to control the functioning of entrepreneurs and legal entities in the state, competence is distributed among specialized bodies designed to protect the law and promote a direct flow of profit to the budget.

These bodies are engaged in monitoring the activity of entrepreneurial activity, as a result of which they sometimes reveal violations of the law in the field of entrepreneurship.

These bodies are:

1. Tax office. This is the main body that monitors the replenishment budget funds in the form of taxes. In order to detect illegal activities, tax inspectorates conduct inspections, pay visits, and carry out raids. The IFTS has the right to bring tax liability for violation of legislation in the field of entrepreneurship.
2. Antimonopoly committee. A specific body created to ensure transparency and legality, freedom of competition. Their activities are aimed at establishing the integrity of relations between business entities and the cleanliness of doing business. The Antimonopoly Service has the right to bring those responsible for violation of the law to liability, which is administrative in nature.
3. consumer market regulators. The prevailing body is Rospotrebnadzor, whose main function is to protect the rights of consumers. They have powers in the field of bringing to administrative responsibility. The main offenses identified by this body in the field of entrepreneurial activity include violations in the field of trade. Also, bodies of this type include services for veterinary and sanitary supervision, for supervision in health care. These bodies are the link between offenders and law enforcement agencies.
4. Police. As a law enforcement agency, it is engaged in identifying any offenses, accepting applications from citizens, initiating cases on the fact of illegal entrepreneurial activity.
5. Prosecutor's office. It also appears to be a law enforcement agency. Identifies offenses (crimes), has the right to prosecute. Supervises the police, is a representative of the state and the applicant in court when considering cases related to the illegal activity of legal entities and private entrepreneurs.

Types of business activities that do not require licensing

There are some types of business activity for which it is not mandatory requirement registration. These types of business activities are personal in nature, mainly the provision of some kind of service.

It is worth paying attention to the following types:

1. Tutoring, homeschooling. Any citizen can engage in tutoring without acquiring a license from the state. You can engage in tutoring both as an entrepreneur and without registering an individual entrepreneur. But it is worth paying attention that if a citizen is not registered as an entrepreneur, then his services cannot be systematic.
2. Cleaning of residential premises. A citizen can provide residential cleaning services without issuing an IP. These services can be arranged by entering into a simple service contract, the provider of such services will pay the usual standard personal income tax of 13 percent.
3. Day care for children. AT modern world private kindergartens providing day care for children have become popular. The implementation of this kind of activity is in the nature of individual labor pedagogical activity, which does not require a license.
4. Some agricultural services. One-time agricultural services that are not permanent in nature do not require official permission from the state. Taking a special case, it should be noted that such a service will be the provision land plot for rent.

Criminal liability and possible penalties

As mentioned above, the Criminal Code provides for quite serious sanctions for carrying out illegal business activities. Criminal liability occurs:

• in the case of systematic recorded employment in illegal business activities;
• in the event of receipt of income from illegal commercial activities on an especially large scale;
• when causing significant damage to citizens of the Russian Federation, organizations and state interests in the course of illegal business activities;

When acquiring profits on a large scale, the offender may be liable to various forms having an alternative character:

• pecuniary recovery up to 300,000 rubles;
• penalty wages convict (other type of income received) for a period of up to 2 years;
• arrest up to 6 months;
• mandatory work for up to 480 hours;

For a more serious violation of a criminal nature, where the aggravating elements are the group commission of a crime, as well as the receipt of monetary benefits on an especially large scale (6,000,000 rubles), the following types of sanctions are provided:

• fine from 150,000 to 500,000 rubles;
• offender's wages (other income) for a period of 1 to 3 years;
• imprisonment for up to 5 years with an accompanying fine of up to 80,000 rubles or recoverable income from illegal activities for a period of up to 6 months, and also without additional penalties;

Tax liability and penalties

In connection with the changes that have taken place, today there are two types of tax offenses related to the illegitimate activity of a private entrepreneur and organization:

• Violation of the terms of registration (filing an application);
• Functioning without appropriate tax registration - registration.

1. Penalty for late registration with the Federal Tax Service has a fixed nature and amounts to 10,000 rubles. According to Art. 83 of the Tax Code, the taxpayer is obliged to submit documents for registration within 10 days after state registration. If state registration is carried out at the location separate subdivision or by location real estate– within 30 days.
2. Entrepreneur not registered with the Federal Tax Service. If at the time of the audit by the tax inspectorate a person engaged in entrepreneurship did not submit a package of documents for the purpose of registration, then such a person bears tax liability. For this type of misconduct, a monetary penalty is expected in the form of 10 percent of the income received by the offender from his illegal activity. The minimum fine is 40,000 rubles.

Protection from illegal business activities

If you have caught an enterprise or entrepreneur in illegal operation, and believe that such activity harms you in a way, you always have the right to contact the control and law enforcement agencies in order to apply enforcement measures and bring the offender to justice.

The most common cases of appeal are applications to the police, prosecutors and tax authorities

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What is entrepreneurial activity

Before talking about legality, it is necessary to understand the very concept of entrepreneurial activity.

According to the law, this is an activity that:

• It is carried out independently and on its own initiative by an individual or legal entity, which also independently bears all possible risks;
• It is aimed at systematic (not a one-time) profit: cutting a friend’s bangs once for money is not yet entrepreneurship, but to open your own even a mini-salon and regularly make money on hairdressing services, you will already need to register with the tax office;
• Uses property for commercial purposes (for example, renting a car), sells goods (trade) or services ( repair work, cosmetic services and so on).

The systematic sale of goods at a cost equal to or less than that at which it was acquired cannot be considered entrepreneurship, since there is no profit.

Types of illegal business

Illegal business activity - a business that does not meet the requirements of the law.

What law must an entrepreneurial business break in order to become illegal? In fact, the correct answer is any. There are many types of illegal business, but let's focus on the most common ones.

Situation 1. Carrying out business activities without proper registration

Simply put, doing business without registering an individual entrepreneur or legal entity. The moment of registration is the date of making an entry in the appropriate state register.

It will be recognized as a violation not only to conduct business without filing an application with the registration authority, but also to start such activities before receiving a positive response. Only a certificate of the established form can confirm the state registration; it is illegal to conduct entrepreneurial activities until it is received.

Entrepreneurial activity without registration and licenses: the amount of fines.

Situation 2. Inconsistency between the type of activity and the one declared during registration

For example, an entrepreneur registered as an individual entrepreneur planning to open a car service, but at the construction stage he decided to change direction to a roadside cafe, which he did not report to the registration authority. Since the entrepreneur was not issued a permit to work in the field of catering, such activities will be considered illegal.

Situation 3. Lack of necessary permits (licenses)

For example, the sale of clandestine alcohol or other unlicensed products. Full list types of activities subject to compulsory licensing is specified in Article 17 federal law №128.

• The entrepreneur did not apply to the relevant authority for permission when it is required by law;
• An application for a license has been submitted, but a positive response has not yet been received, and the activity is already underway;
• Commercial activity continues after the suspension or cancellation of the license, its expiration.

Case 4: Licensing violation

• Violation of the conditions for products (the date of manufacture is not indicated);
• Violation technical requirements to licensed activities (sanitary and hygienic conditions in food production);
• Activities outside the territory specified in the license.

Complaints about illegal commercial activities

The Russian government is seriously concerned about the scale of illegal business in the country. When one person in a million without state registration systematically sells potatoes and does not pay taxes, the country's budget will not notice this, but when such violations are massive, tax system sounds the alarm.

The desire of entrepreneurs not to pay taxes on their already meager income is understandable, but everything has a limit. Perhaps no one will complain about a neighbor who illegally bakes cakes to order once a month, but you can already file a complaint against a full-fledged hairdresser, open without registration and license in an ordinary apartment.

You can file a complaint at:

• Department of Economic Security;
• Prosecutor's Office (considers all complaints and redirects them to other instances);
• Federal Tax Service (complaints against entrepreneurs hiding significant profits);
• Police (considering complaints about street vendors and producers of illegal alcohol);
• Licensing authorities (complaints regarding the lack of a license or violation of its conditions).

The application must indicate:

• Information about the offender;
• the object of the violation;
• Direction of illegal activity;
• A package of documents-evidence (receipt of payment, contract for the provision of services).

Liability for illegal business

Establish and record cases of illegal commercial activities can:

• Law enforcement officers, prosecutors;
• Inspectors of Rospotrebnadzor or antimonopoly service;
• Employees of tax and other inspection bodies.

Most often, complaints from citizens and reports of illegal business become the basis for the visit of inspectors. The result of the check is a protocol containing all the allegations.

Depending on the scale of the violation, liability for illegal business can also be of varying severity.

For example, at the same time as the following, there may also be violations Labor Code, the requirements of the fire inspection, the antimonopoly service and many others. You will have to answer for violations of all rules of law.

Criminal liability (CC)

The most terrible for the violator is criminal liability for illegal entrepreneurial activity provided for by Article 171 of the Criminal Code of the Russian Federation. They are brought to it only for violations that caused large (more than 1.5 million rubles) damage to citizens or other organizations.

Responsibility under Article 171 of the Criminal Code of the Russian Federation is difficult to prove, so it is rarely used.

Depending on the damage caused, this article provides for the following penalties:

Measure	Lack of state registration or required license	Conducting illegal business by an organized group or causing damage of more than 6 million rubles.
Fine in rubles	Up to 300,000	From 100,000 to 500,000
Penalty in the income of the convict for the period	Up to 2 years	One to three years
Forced labor	Up to 480 hours	Up to five years
Arrest	Up to six months	Up to five years, sometimes an additional fine of about 80,000 rubles is imposed

Persons over 16 years of age may be held liable:

• Managers, founders of the company;
• Actual business owners without state registration.

Criminal liability is mitigated by the lack of a criminal record of the accused.

Regardless of the amount of damage, citizens working under an employment contract with an unregistered entrepreneur and owners of leased real estate cannot be held criminally liable.

Administrative responsibility

According to the Administrative Code of the Russian Federation, liability arises if the violation did not entail damage to third parties in excess of 1.5 million rubles.

Unregistered entrepreneurial activity can result in an administrative fine of 500-2000 rubles.

For violation of the licensing system, equipment and manufactured products may be confiscated, as well as the following fines:

Violation	For citizens		For officials	For legal entities
No required licenses		2000-2500 rubles	4000-5000 rubles	40000-50000 rubles
Non-Compliance with Licensing Terms		1500-2500 rubles	3000-4000 rubles	40000-50000 rubles
Gross violation of licensing conditions (in addition to the fine, the activity of the enterprise may be suspended for up to three months)		4000-5000 rubles	4000-5000 rubles	40000-50000 rubles

Sometimes administrative punishment can be avoided. For example, when the verification protocol was drawn up incorrectly or if there are contradictions in it. The protocol with inaccuracies must be re-drawn, and if this procedure takes more than two months, the judge is obliged to close the case. The decision to bring to administrative responsibility is made by the justice of the peace.

Tax code

The tax service is particularly interested in identifying illegal entrepreneurship, because due to unregistered activities, the state receives less of its share of taxes.

Article 116 most often becomes an article of the Tax Code punishing illegal entrepreneurship.

According to her:

1. For violation of the deadlines for filing an application for registration of entrepreneurial activity - a fine of 10,000 rubles.
2. Doing business without registration, that is, if an application for registration has not been submitted at the time of the claim - a fine of 10% of the income received for the entire period of work, but not less than 40,000 rubles. In practice, the amount of such a fine is rarely objective, since it is very difficult to reliably establish the date of commencement of unregistered entrepreneurial activity and the amount of income received.

In addition to fines for illegal business activities, the tax authorities may require the entrepreneur to pay all taxes and penalties for their delay.

Tax sanctions are imposed only by a court decision.

Civil Liability

After the commercial activity is recognized as illegal, all agreements concluded within its framework are terminated, and the entrepreneur has civil legal obligations to customers. For example, to return the paid funds and pay a penalty. Dissatisfied customers may require a refund within three years.

Failure to fulfill an obligation under civil liability can also be presented in court.

Appeal

To charge an entrepreneur with illegal activities, the regulatory authority will have to collect a lot of evidence. All revealed facts are recorded in the act, on the basis of which the protocol is formed.

You need to appeal the protocol before presenting it in court, since after that it will be almost impossible to prove your innocence.

You can only appeal against the protocol, but not the act - it only confirms the fact of the check. But when appealing, it is necessary to refer precisely to the lack of evidence of the circumstances in the act.

Based on the results of the appeal against the protocol, the court may cancel it and withdraw the charges against the defendant, or may leave it in force and continue the consideration of the case.

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If a person is engaged in entrepreneurial activities, but did not register legally in time, while systematically selling goods or services for profit, he is liable. It is possible to conduct such activities only after registering with state bodies, obtaining a license (for certain types of business) and fulfilling other requirements of the law (and so on, again, if necessary).

If the owner of the organization is not registered as such or did not consider it necessary to fulfill other requirements in accordance with the laws of the Russian Federation relating to the entrepreneurial activities that he conducts and as a result of which he receives income, he is threatened with criminal, tax, as well as administrative liability and is subject to a fine for illegal entrepreneurship . In case of illegal entrepreneurship, if the violation is determined in a criminal procedure, the violators are entitled to the appropriate punishment of the individual.

The most common types of illegal business for 2017:

• Production, sale and storage of unlicensed products (this is provided for by Article 171.1 of the Criminal Code of the Russian Federation).
• Provision of paid services for the construction, repair and maintenance of cars, household appliances and electronics (activities are not registered in the tax).
• Provision of paid medical or veterinary services without a license.
• Systematic leasing of real estate.
• Services for the rental of vehicles for a certain payment for use without paying taxes on the income of an individual in accordance with the form 3-NDFL.
• Activities in the so-called spontaneous markets.
• False information during registration and reporting on the state of affairs of the organization.

How illegal business is defined

Representatives of the tax inspectorate, the prosecutor's office determine violations of the requirements for legal registration and licensing of goods sold. Illegal activities of unregistered companies and individual entrepreneurs can be identified in the process of targeted audits by both tax and other authorized bodies.

Legal consequences in the process of violation of the procedure for registration or licensing of goods sold by the organization determine the sanctions. The chosen measure of punishment in case of violation of the requirements of the law regarding illegal activities, as well as in the absence of a license and certificates of products sold, should come into effect after 2 months from the date of their discovery.

Penalties for violation of the rules for conducting and registering a business are applied no later than 2 months from the moment the violations are discovered. The punishment can come into force only if no more than 2 months have passed since the violation was discovered, and the fact of the violation is documented and submitted to the court in a timely manner. If one of the above conditions has not been met, the legal force of the charges loses its relevance.

Punishment Options

If an individual conducts entrepreneurial activities illegally or circumvents the requirements of the legislation on conducting this activity, 3 types of liability may be applied to him: administrative, tax, criminal.

The first type of punishment is administrative. Art. 14.1 of the Code of Administrative Offenses of the Russian Federation defines the following liability measures:

• In the absence of legal registration of the organization, a fine is imposed, the amount of which ranges from 500 rubles to 2,000 rubles.
• If there is no license for products sold or goods that are in the warehouse of the entrepreneur. Fines for individual entrepreneurs - from 2,000 rubles with confiscation of goods; for executive persons of the enterprise - from 4,000 rubles.
• If the product licensing requirements are ignored, the following penalties are imposed: a fine of 1,500 rubles for individuals and 30,000 rubles for legal entities. Officials are also required to pay a fine for ignoring the norms and rules for issuing a license or quality certificate for products - in the amount of 3,000 rubles or more.
• For systematic gross violations of the requirements for obtaining a license for goods, a ban on carrying out activities for the purpose of making a profit for a period of up to 90 working days or the imposition of penalties is provided: 4-5 thousand rubles for individuals, from 40,000 rubles for legal entities and from 4,000 rubles for officials.

Regarding tax liability in the conduct of illegal business, as stated in Art. 116 of the Tax Code of the Russian Federation, the following penalties may be imposed:

• In case of untimely registration of an entrepreneur with the tax authorities, the owner is obliged to pay a fine in the amount of 10,000 rubles.
• If the organization has not passed legal registration and conducts entrepreneurial activities, a fine is imposed in the form of 10% of the profit received from the moment the activity began, but not less than 40 thousand rubles

Criminal liability is assumed under Art. 171 of the Criminal Code of the Russian Federation, is applied in the event of the acquisition of profit on a large scale and is punishable by a fine of up to 300 thousand rubles or in the amount of wages for a period of up to 2 years, work for up to 480 hours or arrest for up to six months. If the illegal act is committed by an organized group:

• A fine in the amount of 100 thousand rubles to 500 thousand rubles or wages for the first 3 years of work.
• Public works of legally responsible persons for a period of up to 5 years.
• Physical incarceration. persons for a period of up to 5 years, together with a penalty amount or without it
• Full responsibility for violation of the law and conduct of illegal business activities or for violations in the procedure for licensing goods is solely the owner of the organization. At the same time, the persons who have concluded an employment contract with an illegal organization, the lessor of the premises that the organization has rented, are not liable.

Working for yourself is not only freedom from superiors, but also a number of responsibilities. This includes paying taxes to the state, obtaining licenses to perform services specified by law or sell certain goods, as well as a number of other obligations that help the state to better control the work of a business. This is an inevitable evil of entrepreneurship, which you have to put up with and fulfill the requirements of the law in full. Otherwise, your illegal position will surface sooner or later, and then you will definitely not be healthy. We strongly recommend that you make the right choice!