In order to legally engage in entrepreneurial activity on the territory of the Russian Federation, an individual must obtain the status of an individual entrepreneur. What responsibility will he bear for his obligations?
The embodiment of a successful business idea requires not only the availability of starting resources in the form of capital and labor, but also the proper legal registration of the status of the initiator of this idea. One of the easiest ways to legally obtain the right to engage in entrepreneurial activity in our country is to acquire the status of an individual entrepreneur. The procedure for obtaining it and working as an individual entrepreneur in some aspects is much simpler than other organizational and legal forms of doing business. However, this simplicity has its downside.
Responsibility of an individual entrepreneur
One of the main points that arouse concern to citizens who are thinking about the possibility of registering as an individual entrepreneur is the amount of responsibility that such a businessman bears for his obligations. So, article 24 of part 1 of the Civil Code of the Russian Federation, registered in the code of laws of our country under number 51-FZ of November 30, 1994, establishes that an individual entrepreneur is responsible for his obligations with all the amount of property belonging to him. Thus, if the economic calculation of a novice businessman was incorrect, and the profit he was counting on did not meet his expectations, he may have to pay, for example, with the landlord for the provision of premises for a store through the sale of personal property.
Restrictions on the imposition of penalties on the property of an individual entrepreneur
At the same time, when analyzing the possibility of applying such severe measures, an individual entrepreneur should take into account the additional provision given in Article 24 of Part 1 of the Civil Code of the Russian Federation. It, in particular, notes that the current legislation establishes a list of objects, things and valuables belonging to an entrepreneur, on which it is prohibited to impose a penalty. A complete list of such property is given in paragraph 1 of Article 446 of the Civil Procedure Code of the Russian Federation, which has number 138-FZ of November 14, 2002. For example, such things and objects include the only housing, personal belongings, tools necessary for carrying out professional activities and some other property. At the same time, however, luxury goods, jewelry and similar expensive items cannot be classified in this category, even if they are in the personal use of a citizen.
