We draw up an agreement with an individual entrepreneur

What is a contract?

An agreement is a legal document containing a description of the relationship between the parties, the beginning, modification and termination of rights (or obligations), which are regulated at the legislative level. A more detailed description of the term “agreement” is provided by the Civil Code of the Russian Federation (Article 420).

The contract can be classified as the most common type of document.

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

A legal entity must conclude an agreement in writing, regardless of who the 2nd party is - an organization or a citizen. In case of oral agreement, according to Art.

162 of the Civil Code of the Russian Federation, you do not have the right to rely on witness testimony to confirm the transaction and its terms. But at the same time, you can provide written and other evidence confirming the deal concluded orally.

Those. Failure to conclude an agreement in writing may complicate the situation that arises when the parties fail to fulfill their agreements.

Only correctly drawn up agreements do not contradict the legislation of the Russian Federation and fully reflect the mutual interests of the parties.

Which parties can enter into an individual entrepreneur agreement with an LLC?

The parties to the agreement may be:

• individuals;
• legal entities;
• municipal structures;
• international organizations;
• legal structures (state).

According to the law, an individual entrepreneur has the right to enter into agreements with various parties, that is, the second party can be a sole proprietor, a legal entity, or even the state.

Considering that an individual entrepreneur is actually an individual, but, nevertheless, he participates in concluded transactions as a legal entity and bears full responsibility for them.

What sections does a standard contract consist of?

The mandatory components of a standard contract are the following sections:

1. Preamble (or introductory part). This section contains information about the name, date, place of preparation, names of the parties, concluding parties, full names of persons (authorized to sign the document).
2. Subject of the agreement (main section). This section focuses on the specific intentions of the parties to the contract. It contains information about the object of the transaction (for example, the sale of something>) and a description of the subject of the contract.
3. Rights and obligations of the parties.
4. Amount and method of payment for services. This section describes the procedure and form of mutual settlements.
5. Contract time. The deadlines (or period of time) within which the parties undertake to fulfill their obligations.
6. Additional terms and conditions. This part of the contract provides for various specific conditions that are not mandatory.
7. Responsibility of the parties. This section specifies the sanctions facing the parties if they fail to comply with the terms and obligations.
8. Termination and amendments to the contract. This part of the document is devoted to the conditions that allow the parties to terminate or change the contract.
9. Final provisions. The section provides ways to resolve disputes that may arise between the parties.
10. Details of the parties. The section contains the following items:

• Name;
• address;
• code;
• bank details of the parties.

Now let’s consider which types of contracts an individual entrepreneur may most often encounter in the course of his activities.

The types of contracts are as follows:

 paid provision of services - a type of agreement, according to which Party 1 (Contractor) is obliged to Party 2 (Customer) to provide certain services within the period specified in the document. Party 2 (Customer) is obliged to accept these services and pay for them on time.

 - the most common type of agreement, according to which Party 1 (Seller) is obliged to transfer an item (or property) to Party 2 (Buyer). The buyer under the contract undertakes to accept this item and pay within the period specified in the document.

 contract - a type of agreement, according to which Party 1 (Contractor) undertakes to perform a type of work for Party 2 (Customer) (for example, manufacture or process) within a certain period of time and deliver the finished work to the Customer. The customer undertakes under the contract to accept the work and pay for it within the period specified in the document.

 lease - a type of agreement, according to which Party 1 (Lessor) is obliged to transfer property to Party 2 (Lessee) for a certain amount for a period specified in the document. The Tenant under the contract undertakes to accept this property and pay rent in favor of the Lessor.

If the lease agreement is concluded for a period of more than one year, then registration with Rosreestr, mediated by the MFC, will be required. To conclude such an agreement, you will need to pay a fee.

 loan - a type of agreement, according to which Party 1 (Lender) is obliged to transfer to Party 2 (Borrower) valuables for a period specified in the document, in a certain quantity and quality. The borrower undertakes under the agreement to return these valuables (in the volume and quality as indicated in the agreement).

When concluding any type of agreement, the individual entrepreneur has the opportunity to request additional documents from Party 2 (the LLC). These documents may be:

• Certificate of registration with the tax authority;
• Certificate of state registration;
• Certificate of entry into the Unified State Register of Legal Entities.

Individual entrepreneur: status, features, drafting contracts

IP status and its features

In 1995, in Article 23 of the Civil Code of the Russian Federation, the concept of “Individual Entrepreneur” (IP) appeared. This status was awarded to citizens carrying out entrepreneurial activities without registering a legal entity. These mainly included farm owners who distributed their products (milk, meat, etc.).

Now the status of individual entrepreneur can be obtained by any entrepreneur who owns a business in the Russian Federation or abroad.

A feature of the status of an individual entrepreneur is that it is subject to both the laws in force for individuals and the laws within which business entities operate. Accordingly, an individual entrepreneur needs to know almost all the legislation of the Russian Federation.

By receiving the status of an individual entrepreneur, a citizen takes responsibility for paying taxes, making mandatory contributions and contributions to extra-budgetary funds.

The laws do not have age restrictions for citizens wishing to register an individual entrepreneur, but, according to clause “z” of clause 1 of Art. 22.1 of the “Registration Law”, minor citizens can obtain this legal status only with the written consent of their legal representatives.

On what basis does the IP operate?

Until January 1, 2021, individual entrepreneurs carried out their activities on the basis of a Certificate of state registration as an individual entrepreneur. Today, the document on which the activities of individual entrepreneurs are based (according to the Order of the Federal Tax Service of Russia dated September 12, 2016 N MMV-7-14/481) is the Entry Sheet in the Unified State Register of Individual Entrepreneurs.

What documents should an individual entrepreneur have?

Individual entrepreneurs do not have constituent documents like legal entities. Therefore, the Entry Sheet in the Unified State Register of Individual Entrepreneurs is the only document that gives an individual entrepreneur the right to carry out his activities.

OGRNIP (main state registration number of an individual entrepreneur). Until January 1, 2017, a registration certificate was issued to each registered individual entrepreneur, but recently it was replaced by the Registration Sheet in the Unified State Register of Individual Entrepreneurs.

TIN. An individual taxpayer number is assigned to each citizen at the beginning of his or her working life. Therefore, the individual entrepreneur should also have it.

How to conclude a contract correctly

Concluding an agreement is a procedure that falls to the majority of individual entrepreneurs. Its correct drafting is extremely important, because in cases where the conflict of the parties comes to trial, the agreement of the parties is the only document that can confirm the competence of the actions of the individual entrepreneur.

When concluding an agreement, an individual entrepreneur acts on the basis of a registration certificate (Record Sheet in the Unified State Register of Individual Entrepreneurs). Accordingly, the contracts may contain the line “Individual entrepreneur acting on the basis of the Entry Sheet in the Unified State Register of Individual Entrepreneurs (USRIP Registration Certificate No....).”

There are several types of contracts for individual entrepreneurs.

1. LLC and individual entrepreneur agreement.

The type of contract depends on the meaning of the transaction between organizations: rent (premises, equipment, etc.), delivery or contract (for example, to perform certain work). Contracts with individual entrepreneurs do not have a unified form, but they are of the same type. The agreement can be “tailored” to each type of interaction. There are several points that must be specified:

• Preamble. It includes the date of conclusion, place of signing and the essence of the agreement and the names of the parties with details.
• The subject of the agreement and a detailed description of its essence.
• Rights and obligations of the parties
• Procedure for terminating the contract
• Transaction amount and payment procedure
• Other (additional conditions, signatures of the parties)

When concluding a lease agreement, it is necessary to draw up an inventory of the objects being leased for temporary use. It is necessary to draw up an act of acceptance and transfer of property. Such an agreement also stipulates the rights and obligations of the tenant, the timing of payment of rent and other nuances.

When concluding an agreement for the supply of goods (this type of document is most often concluded between an LLC and an individual entrepreneur), it is recommended to specify the conditions for the return of goods, quality requirements, as well as the terms of payment and the amount of the penalty.

1. Employment contract with individual entrepreneur

According to Art. 67 of the Labor Code of the Russian Federation, within a maximum of 3 days after admission to work, it is necessary to draw up an employment contract between the employer and the employee. IP in this case is no exception.

To conclude such an agreement, the applicant must provide the following package of documents:

• Passport (its copy certified by a notary)
• Employment history
• Military ID (for young people of military age)
• Diploma or certificate of education (depending on the individual entrepreneur’s requirements for the applicant)
• Pension Fund insurance certificate (for pension contributions)
• Certificate of passing a medical commission (if the individual entrepreneur’s activities are related to food, working with children or any other conditions prescribed in Article 212 of the Labor Code of the Russian Federation)
• Certificate of no criminal record (criminal or administrative), certificate from a narcologist and psychiatrist

Requiring documents beyond this list is illegal. This will be emphasized during the trial.

For different types of work, different types of employment contracts are provided. They are divided according to the duration of interaction (urgent; for an indefinite period), according to the presence of a probationary period for the employee.

If the work involves the provision of services by the employee over a long period, then it would be more advisable to conclude an “open-ended” employment contract. If an employee is invited, for example, to do seasonal work, then the exact terms of the employment relationship must be specified in the employment contract.

Having a probationary period for an employee is more beneficial for the employer. Over a certain period of time, the individual entrepreneur can assess the employee’s work qualities, professional skills and other necessary points. In case of labor inconsistency, the employer has the right to terminate the employment contract under the relevant article (unsuitability).

It is important to remember that the employment contract is drawn up in two copies and signed by both parties.

No later than the same three days from the start of work, an order is issued to hire a citizen. It is signed by the individual entrepreneur and the employee himself.

In an employment contract, an individual entrepreneur can specify clauses according to which payment will be collected from an employee for intentionally causing damage to the property of the individual entrepreneur. But the amount of the penalty cannot exceed the employee’s monthly salary.

It is mandatory that the employment contract stipulates:

• Place of work.
• Employee functions.
• Indication of the start day of work. If unpaid days of internship, training, etc. are expected, then the day the employment relationship begins is indicated.
• Remuneration (salary or tariff rates).
• Work schedule, number of hours per shift.
• Social guarantees (paid vacation, sick leave, study leave).
• Details of the parties. For individual entrepreneurs, it is necessary to indicate the TIN.

1. Individual entrepreneur agreement with an individual

This group includes agreements that individual entrepreneurs enter into with individuals (not individual entrepreneurs, companies, LLCs, etc.).

This includes:

- Work agreement

— Contract for paid services

They differ in the type of services provided (tangible and intangible), according to the terms of termination of the contract (for example, a contract provides for only 3 scenarios in which the contractor can refuse to perform the work), according to the terms of compensation for losses, and the possibility of involving third parties, on terms of work and on law enforcement.

What details of the individual entrepreneur should be indicated in the contract?

To draw up contracts, the individual entrepreneur has 2 types of data: those the indication of which is mandatory and those the indication of which remains at the discretion of the individual entrepreneur himself.

Required details include:

• Entrepreneur's passport details (full name and registration address)
• OGRNIP number (as stated above, is given to each entrepreneur when registering an individual entrepreneur)
• TIN

If one of the above points is omitted when drawing up the contract, there is a risk that government authorities will raise questions and suspicions regarding the legality of the business.

Information that is not required to be indicated in the contract includes bank information, OKPO code and OKATO code. Also in 2021, such data included the power of attorney issued by the business owner to the representative, the date of its execution and the full name of the representative; actual address (place of registration of the entrepreneur); contact phone number (although if you do not indicate it, some problems will arise during the work process).

Checking the counterparty before concluding a contract

In order to ensure the legality of the counterparty’s activities and its integrity, it is necessary to ensure that it has the following documents:

• certificates of registration in the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs (letter of the Ministry of Finance of Russia No. 03-02-07/1-340 dated July 6, 2009);
• certificates of tax registration (letter of the Ministry of Finance of Russia No. 03-02-07/1-340 dated July 6, 2009);
• extracts from the Unified State Register of Legal Entities with data on the sole executive body (for organizations);
• charter (for organizations, since individual entrepreneurs do not have a charter);
• a document confirming the grounds for being located at the legal and actual address, other addresses (location of warehouses, production premises, etc.), - lease agreement, use of premises, etc.;
• passports of the manager (individual entrepreneur) and persons authorized to conclude an agreement and sign related documents (in particular, invoices when issued by the counterparty);
• powers of attorney to represent the interests of the counterparty (to conclude an agreement, sign certain documents) (letter of the Ministry of Finance of Russia No. 03-02-07/1-340 dated July 6, 2009).

If the counterparty refuses to provide the above documentation, it would be logical to think that interaction with him could negatively affect the activities of the individual entrepreneur.

In addition to the requested documentation, the individual entrepreneur can study data about the counterparty in publicly available sources:

• using the services of the Federal Tax Service of Russia (get a short extract from the Unified State Register of Legal Entities, make sure there is no record of liquidation of the legal entity, etc.)
• having studied the file of arbitration cases on the official website of the Supreme Arbitration Court of the Russian Federation (to obtain information about participation in court proceedings)
• having studied information about the counterparty on the Unified Federal Register of Information on the Facts of Activities of Legal Entities (to be sure that the counterparty is not at any stage of bankruptcy)
• having studied the register of unscrupulous suppliers (on the official website of the FAS).

Irina Yakub

Photo: kzvesti.kz

How to correctly draw up an agreement between an individual entrepreneur and an LLC?

In order for the agreement concluded between the individual entrepreneur and the LLC to be correct and competent, certain conditions must be met:

• clearly and clearly formulate your requirements that must be fulfilled under the contract;
• try to identify in advance all the “pitfalls” of the contract and tricks (for example, ambiguous interpretations);
• Before signing an important contract, consult with a qualified lawyer who can professionally evaluate the contract and point out any shortcomings or shortcomings that you can correct before signing the document.

An important feature of drawing up an agreement between an individual entrepreneur and an LLC

The duality of the legal status of an individual entrepreneur allows him to enter into and sign agreements with an LLC not only as an individual entrepreneur but also as a private individual. Using this legal case, the entrepreneur may not indicate his details as an individual entrepreneur and in this case will be liable as an individual (for example, by indicating in the Agreement the current account of not an individual entrepreneur but an individual).

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

Individual entrepreneurs have the right to provide services to legal entities, citizens, and companies. Each type of interaction has its own characteristics; in all types of interaction, an agreement can be concluded with an individual entrepreneur.

Despite the fact that the legislation does not contain provisions for the mandatory conclusion of written agreements, in most cases, signing an agreement is the best option for cooperation.

• Can individual entrepreneurs enter into an agreement with each other?
• List of required documents
• Types of contracts
• How to draw up an agreement between individual entrepreneurs
• Sample filling
• Change and rupture

Employment contract with individual entrepreneur

The law describes several requirements for the content of an employment contract, regardless of who exactly the employer is.

Sample employment contract with individual entrepreneur

The document must contain the following information:

1. Place of work. In this case, it is important for the employee to pay attention to the fact that only one object is indicated as the territory of work. Despite the apparent obviousness of this point, in reality, entrepreneurs may indicate different addresses, assuming that, if necessary, they will be able to oblige the employee to work for several days there. Therefore, before signing, you need to carefully study all the details.
2. Responsibilities of the employee – i.e. all his functions that he must perform at work.
3. Indication of the day from which the citizen must begin performing his duties (first working day). This is also a rather important point - in many cases, entrepreneurs organize unpaid internships, training courses, etc. for job candidates. Therefore, it is necessary to specifically determine on what day labor, rather than civil, relations begin.
4. Remuneration - the amount of salary, tariff or hourly rate, possible bonuses, bonuses, coefficients that are established due to the unfavorable climate of the region.
5. Work schedule, number of hours per shift, number and procedure for assigning days off.
6. Social guarantees - payment for the provision of vacation pay, as well as sick leave.
7. Details of the parties - for individual entrepreneurs, the TIN must be indicated.

NOTE. Sections of the agreement may have different names, but if any of these points are missing in content, then the employment contract with the individual entrepreneur loses legal force.

Often, employment contracts contain additional clauses that describe in detail working conditions, the presence and features of a probationary period, as well as requirements for non-disclosure of commercial or state secrets, etc.

At the same time, employment contracts, as usual, are divided into fixed-term and unlimited-term, which is also stated in the document. A sample of a typical individual entrepreneur agreement with an employee is presented below.

In some cases, it is more profitable for an entrepreneur or employee to conclude not an employment contract, but a so-called GPC (civil law) agreement. Speaking very generally, an employment contract presupposes the emergence of labor relations between the parties, and the civil process agreement presupposes the emergence of civil relations. This greatly affects the legal consequences, features of record keeping and forms of interaction between the parties. A visual comparison of both documents is presented in the table.

A specialist’s commentary on the differences between these documents can be seen here.

Thus, the GPC agreement is more focused on the results of activities themselves, on the quality and timing of their implementation. At the same time, the employment contract pays a lot of attention to the schedule, days off, work and rest, and also provides for all social benefits to the employee.

Can individual entrepreneurs enter into an agreement with each other?

Some businessmen consider concluding an agreement a bureaucratic formality, a waste of time and effort. However, written confirmation of the transaction indicating all its terms is necessary for all parties.

For the performer, this is a guarantee of the legality of actions and the absence of problems from regulatory authorities. For the customer - the opportunity to defend their rights in any situation.

A contract is an agreement between two or more parties, concluded in writing and containing certain information. There are types of activities in which two entrepreneurs must enter into a written agreement. But in other situations, it is recommended to seal business relationships with an agreement on paper.

Individual entrepreneurs have every right to work with each other as contractors or partners, to hire each other to provide services or perform work. Accordingly, businessmen can sign agreements among themselves.

Agreements are drawn up on the basis of a mutual decision of entrepreneurs to carry out a transaction. The paper is drawn up taking into account the intention to carry out business activities, indicating its specific conditions and the expected result.

This is a paid type of contract, since one party pays for the services of the other.

List of required documents

Before concluding an agreement with an entrepreneur, the second businessman should make sure of the reliability of the partner. Individual entrepreneur documents for concluding an agreement will help with this.

Feedback from other clients or counterparties cannot always be taken on faith. In this case, the responsibility for assessing the reliability of the partner rests entirely with the merchant himself.

If you fail to exercise due diligence, you may face not only losses, but also an unscheduled audit by tax authorities or even litigation with creditors.

That is why it is worth familiarizing yourself with a certain package of documentation before signing an agreement, especially since it is also needed for its conclusion. The list of such securities includes:

• Registration certificate confirming the legal status of an individual entrepreneur.
• Extract from the Unified State Register of Individual Entrepreneurs (USRIP) - the official register of individual entrepreneurs.
• Taxpayer INN number.
• Confirmation of the businessman's tax registration.
• A passport is proof of a merchant’s identity.
• A document confirming your legal presence at the specified address (owner certificate, lease agreement).

You can check some data yourself. So, using a unique code assigned by the Federal Tax Service or Unified State Register of Entrepreneurs, it is possible to obtain information about a future partner.

Types of contracts

When concluding agreements between individual entrepreneurs, several types of documents are used. The choice of a specific option depends on the specifics of the action in respect of which the contract is concluded.

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

A purchase and sale agreement is concluded when the seller sells to the buyer an asset that is not the subject of the former’s commercial activity. The supply agreement is not applicable in such situations.

This applies, for example, to vehicles, commercial real estate, and equipment that a businessman uses in his activities. An individual entrepreneur has the right to sell his own assets to another entrepreneur, as well as a legal entity or citizen.

It is believed that agreements of this type only confirm the intentions of the parties to complete a certain transaction, as well as their obligations. The document is not mandatory; in general, the act of acceptance and transfer is sufficient.

You also need a delivery note, which reflects information about the product being sold (brand, name, serial number and other characteristics).

But even in such circumstances, it is better to draw up an agreement, especially if used equipment is being sold. In such a paper you need to write:

• Characteristics of the subject of the transaction.
• Existing defects, shortcomings (indicated in the main text or in the appendix).
• Confirmation of the fact of use of the equipment before the transaction.
• Actions of the parties upon discovery of hidden defects.
• Confirmation of inspection of the goods by the buyer and the absence of any complaints.
• Terms and conditions of the seller's warranty, if provided.
• Confirmation by the seller of the absence of encumbrances on the goods (seizure, pledge, lease or pledge).
• Terms and address of delivery of goods to the buyer.
• The procedure for resolving controversial issues.

If there is a written agreement, it will be easier for the buyer to prove in court that defects were intentionally hidden from him. This means the possibility of demanding termination of the agreement and compensation.

A lease agreement is drawn up when one individual entrepreneur transfers property to another that will be used for business needs. If the same property is leased by an individual, he will have to pay personal income tax. An individual entrepreneur using a patent or simplified form will only pay tax on income, so this option is more profitable.

When the subject of the lease is real estate, the agreement specifies the footage, address, and cadastral details. For vehicles, this will be the engine number, make, and license plate number of the vehicle.

It is also worth indicating the current state of the subject of the transaction, the possibility of premature termination of the agreement, and the need to maintain the proper condition of the property. For real estate properties, it is possible to stipulate the procedure for paying for housing and communal services.

Drawing up a loan agreement is necessary when one individual entrepreneur lends money to another. In addition to the amount, currency of the loan and interest on it, it is necessary to determine the procedure for issuance and repayment, penalties for violating the conditions, the purpose of using the funds, the period during which the agreement is valid, as well as the possibility of its early termination.

Such a document must separately stipulate the conditions for transferring the rights to claim a loan to third parties. If this is not done, the assignment of claims will be impossible.

A partnership agreement is concluded for joint conduct of business without establishing a legal entity. For example, entrepreneurs specializing in cargo transportation can team up and replace each other in order to allocate time for car repairs. Such an agreement has a number of features:

• Parties to the agreement can only be a legal entity or individual entrepreneur.
• The contributions of each participant are considered equal by default, but a different ratio can be stipulated in the agreement.
• Contributions may be made in the form of cash, property, or work. The agreement stipulates the responsibilities for the maintenance of shared property and the costs associated with it. The same applies to the rules for the use of common property.
• The participants of the partnership are jointly and severally liable for general obligations, regardless of the grounds for their occurrence.
• Profit is distributed in proportion to the contribution to the authorized capital, but another distribution is possible, which should be specified in the agreement.

An alternative to such an agreement is a joint activity agreement.

A supply agreement with an individual entrepreneur usually includes a list of requirements for the quality of goods, conditions for the return of low-quality products, collection rules and the amount of the penalty. Separately, you can make a link to the possibility of issuing invoices for deliveries under an agreement with electronic payment.

This option is used for long-term cooperation and a high level of trust between the parties.

Supply contracts can take different forms depending on the products supplied:

• building materials;
• equipment;
• export goods;
• food products.

There are also separate types of agreement. Thus, a tolling agreement is an agreement that provides for the receipt by one individual entrepreneur of raw materials from another without paying for its cost, but with the return of the result of processing. A consignment agreement is concluded for the transfer by one businessman of goods for sale to another.

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

An annex to supply contracts is a specification, which includes the exact timing and quantity of products supplied. Delivery of the goods is confirmed by the acceptance certificate. If the buyer has any complaints, he draws up a statement of discrepancies upon acceptance.

An agreement on the provision of paid services is concluded by two individual entrepreneurs to provide accounting, consulting, legal, information, training, educational, and courier services on a paid basis.

In order for one individual entrepreneur to perform work for the same purposes within the framework of his commercial activities, another individual entrepreneur signs a contract. There is also the concept of an employment contract - an agreement to hire an entrepreneur to work.

For what period is the contract concluded with the individual entrepreneur?

A contract with an individual and an individual entrepreneur is another type of transaction for an entrepreneur. The validity period of the agreement is mandatory and without clearly specifying the terms, the transaction can be considered invalid. An entrepreneur has the right to enter into a contract agreement even with his own full-time employees. If the contractor violates the deadlines, a revision of the agreement document or the imposition of sanctions (fines, reprimands) may occur. In some situations, violation of the deadline may lead to termination of cooperation.

There are two types of deadlines:

• Start and end. This is the exact designation of the start date of work and the deadline for delivery;
• Intermediate. Indicates the dates for the completion of work in stages.

Note ! In order to impose a fine in case of failure to meet deadlines, its amount and conditions must be specified in the agreement in writing.

Russian legislation does not establish any maximum limitation periods. The format of the work period is established either in the number of years, days, months, or by the occurrence of a certain event.

It is worth noting that a subcontract agreement with an individual entrepreneur, unlike an agreement on the provision of paid services, is not subject to changes in terms. If at the specified time the performer (or several performers) do not have time to complete the work, the contract is reclassified from a contract agreement to any other suitable one.

Work agreement

To correctly draw up a contract, it is better to contact professional lawyers. The term of the contract does not define the contractor as a full-fledged employee of an individual entrepreneur. This means that the vacation period is not set, and the entrepreneur does not pay contributions or taxes for it during work.

How to draw up an agreement between individual entrepreneurs

All necessary data should be specified in the agreement between individual entrepreneurs. The document must contain:

• name of the agreement;
• place and date of conclusion;
• full names of participants or names of individual entrepreneurs;
• description of the subject of the contract, listing of services;
• obligations and rights of both parties;
• deadlines for fulfilling obligations;
• conditions for accepting the service and the procedure for filing claims;
• the exact amount of the contract and the mechanism for its payment;
• liability for failure to fulfill the agreement;
• circumstances under which liability for failure to comply with conditions does not apply (force majeure).

Each document has its own validity period, and the agreement between individual entrepreneurs is no exception. This period can be indicated in the text of the agreement or not limited to it, and then the agreement will be considered as unlimited.

Specifics of contracts concluded between individual entrepreneurs

It is impossible to distinguish any particular differences between an individual entrepreneur’s agreement with another individual entrepreneur and similar written agreements concluded with individuals or legal entities. The difference comes down only to the set of details that the parties in this case must use in the document.

Otherwise, the essence of the agreement between individual entrepreneurs in all cases boils down to the fact that one party provides the other with goods, services or, for example, some material goods for temporary use for its needs. And in exchange for this, he receives monetary or other compensation from the other party.

The basis for such an agreement is usually a standard sample agreement. If necessary, the parties have the right to present any clauses of such a sample in the wording that is considered mutually acceptable. In this regard, the law provides them with maximum freedom.

Change and rupture

It is impossible to terminate the contract unilaterally; administrative liability is provided for this. However, the customer has the right to refuse to receive the service before it has been provided, i.e., before signing the acceptance certificate. Termination by one party is also possible in case of gross violation of the terms of the contract by the partner.

The contract itself may provide for a termination mechanism. This usually means one party giving notice that they wish to terminate the agreement.

Upon receipt of such a message, the contract ceases to be valid. But at the same time, the customer who initiated the termination undertakes to reimburse the contractor for actual expenses in full.

If the contract is terminated at the request of the contractor, he compensates for lost profits and actual damage to the customer.

When some circumstances change during the work and adjustments to the current agreement are required, individual entrepreneurs enter into an additional agreement among themselves. It may contain new details, extension of the validity period of the document or its early termination.

The main condition is the consent of both parties, which they express by signing the paper.

The best option for cooperation between individual entrepreneurs is to conclude an agreement. The legislation provides for various types of agreements, taking into account the specifics of the activity.

The contract specifies all the terms of interaction, so if one party violates the agreements reached, the other can reasonably defend its interests. However, for this it is necessary to draw up a contract correctly.

The easiest way is to use a standard document to avoid errors, discrepancies and violations of current legislation.

1. Features of concluding an agreement for the provision of services to an individual entrepreneur with an individual entrepreneur
2. How to draw up a contract for the provision of paid services between individual entrepreneurs?
3. Sample agreement for the provision of services between individual entrepreneurs 2021
4. Sample act on the provision of services to individual entrepreneurs

There are always two parties to a service agreement: the customer and the contractor. Any party can be a legal entity, an individual entrepreneur or an individual. Let us analyze the situation when an individual entrepreneur enters into an agreement with an individual entrepreneur for the provision of services.

Does it have legal force?

A contract agreement, as well as a simple partnership agreement or a contract for the provision of paid services, has legal force. What does it mean? This means that if claims and disputes arise, either party can go to court to resolve the situation. For example, the work was performed poorly. One of the most common cases is when the contractor (individual) was not paid remuneration in full or in part.

The contract will be invalid if it does not fully reflect the terms and conditions. For example, the exact amount of payment or the timing of the work. Also, it will not be possible to recover compensation if an individual performed the work poorly, but the quality requirements were not specified either in the agreement or in the legislation.

Note ! An agreement on joint activities between an individual entrepreneur and an individual, a sample of which is presented above, is a full-fledged legal document that is significant evidence in court proceedings.

The contract may be a partnership contract instead of a formal employment contract. And in this case it is with an individual, not a legal entity. To protect themselves, individuals and individual entrepreneurs should turn to professionals or personal lawyers for drafting.

How to draw up a contract for the provision of paid services between individual entrepreneurs?

There are standard agreements that are convenient to use in any situation. They contain a strict structure. Let us analyze the algorithm for drawing up a contract for the provision of services, the parties to which are individual entrepreneurs.

1. The header of the document indicates the details of the customer and service provider - full name. Relevant documents are attached to confirm your status (IP). It is mandatory to indicate the place where the agreement was drawn up and the date of its conclusion.
2. The subject of the agreement is the main point of the document. It is necessary to specify as accurately as possible the services that the customer wants to receive from the contractor. Often, during the negotiation process, the parties agree on one thing, but in the contract they treat the point formally. As a result, the customer risks getting a result that is completely different from what he planned. In case of controversial situations and proceedings, the judge pays attention precisely to the subject of the agreement, as it is set out in the document.

Here it is also necessary to indicate which party must provide everything necessary to perform the service: personnel, materials, means of production, etc.

1. The duration of the service and the validity of the contract are strictly specified by dates. It is possible to extend the deadlines, but only by agreement of the parties, indicating the possibility and drawing up an additional agreement.
2. The quality of the service and the result of its provision are discussed in a separate paragraph with the establishment of requirements. The customer has the right to establish in the contract the possibility of demanding the elimination of deficiencies discovered during the provision of the service, or material compensation.
3. The procedure for providing services includes the responsibilities of the contractor for:

• acceptance and transfer of all materials and equipment required for implementation under the relevant act;
• safety of received materials and equipment;
• compliance with the requirements set by the customer for the quality of service provision.

1. The cost of services and the payment procedure are mandatory details of the contract. The price of the service is written in numbers and words. The parties have the right to agree on the amount of the advance, indicating it in this paragraph. The settlement procedure is established by agreement between the individual entrepreneurs.
2. The procedure for changing the agreement and its termination is prescribed.
3. In the final clause, it is possible to indicate all the points that were not included in the paragraphs above.
4. The addresses and details of the parties complete the agreement. All information about entrepreneurs is indicated here: full name, passport details, TIN, address, contact phone number, bank account details.

The agreement is drawn up in two copies, one for each party and must be certified by both individual entrepreneurs in their own hand.

Confirmation of acceptance of services performed under the contract is the acceptance certificate. This must be mentioned in the agreement.

Activities

All types of entrepreneurial activities can be divided into those by which entrepreneurs:

• has the right to engage in activities after their state registration without notifications and permits;

• has the right to engage in activities after notifying the regulatory authorities;

• has the right to practice after receiving a license (permit);

• have no right to practice at all.

The lists of activities that require notification or license (permit) are the same for entrepreneurs and legal entities. But entrepreneurs have more prohibitions than legal entities.

Advice: Before concluding an agreement with an entrepreneur, you should make sure that he is legally engaged in the type of business activity that is the subject of the transaction, has received the necessary permits and notified the regulatory authorities.

The lack of a license is not a basis for challenging the transaction. But a counterparty of an entrepreneur acting without the necessary documents may experience other negative consequences, including claims from the tax authorities.

1. Types of activities that are allowed to be carried out immediately after registration

The principle applies: “everything that is not prohibited is permitted.” Individual entrepreneurs have the right to engage in any type of activity, with the exception of those for which prohibitions or restrictions are expressly established by law.

2. Activities that require notification

There are 37 types of activities that both entrepreneurs and legal entities can engage in only after notifying regulatory authorities, for example, Rospotrebnadzor, etc.

In particular, these types of activities include:

• hotel, household, social services;

• retail and wholesale trade;

• transportation by road (except for transportation along regular transportation routes, as well as to meet your own needs);

• publishing and printing activities;

• screening of films;

• production of textile materials, clothing, clothing, leather, leather goods.

The full list contains paragraph 2 of Article 8 of the Federal Law of December 26, 2008 No. 294-FZ “On the protection of the rights of legal entities and individual entrepreneurs in the exercise of state control (supervision) and municipal control.”

The notification procedure is established by Decree of the Government of the Russian Federation dated July 16, 2009 No. 584 “On the notification procedure for the start of certain types of business activities.”

If the entrepreneur has not sent a notification, he is obliged to pay a fine in the amount of 3 thousand to 5 thousand rubles. If the notification contains false information, the fine will be higher - from 5 thousand to 10 thousand rubles. (Article 19.7.5-1 of the Code of Administrative Offenses of the Russian Federation).

3. Types of activities for which a license is required

Entrepreneurs and organizations have the right to engage in certain types of activities only after receiving a license.

The list of licensed types of activities is provided by Article 12 of the Federal Law of May 4, 2011 No. 99-FZ “On licensing of certain types of activities” (hereinafter referred to as the Licensing Law), as well as special laws, for example, these are:

• medical activity (subclause 46, part 1, article 12 of the Law on Licensing);

• transportation of passengers by inland water transport, sea transport (subclause 20, part 1, article 12 of the Licensing Law);

• private detective (detective) services (subclause 33, part 1, article 12 of the Law on Licensing, article 6 of the Law of the Russian Federation of March 11, 1992 No. 2487-1 “On private detective and security activities in the Russian Federation”; hereinafter referred to as the Law No. 2487-1), etc.

For entrepreneurial activity without a license, individual entrepreneurs face a fine of 4 thousand to 5 thousand rubles. with or without confiscation of manufactured products, production tools and raw materials (Part 2 of Article 14.1 of the Code of Administrative Offenses of the Russian Federation).

For more details, see Types of activities that require a license from government agencies.

4. Types of activities that are prohibited for entrepreneurs

The types of activities that entrepreneurs cannot carry out are directly named in the law. When the law specifies that only legal entities have the right to engage in a particular activity, this means that it is prohibited for entrepreneurs.

For example, they may not:

• engage in private security activities (Article 11 of Law No. 2487-1);

• develop and produce medicines (clauses 30–32 of article 4 of the Federal Law of April 12, 2010 No. 61-FZ “On the Circulation of Medicines”, clause 1 of the Regulations on licensing the production of medicines, approved by the Decree of the Government of the Russian Federation of July 6 2012 No. 686);

• engage in television broadcasting and radio broadcasting (Article 2, 31 of the Law of the Russian Federation of December 27, 1991 No. 2124-1 “On the Mass Media”, clause 1 of the Regulations on licensing of television broadcasting and radio broadcasting, approved by Decree of the Government of the Russian Federation of December 8, 2011 No. 1025);

• develop, produce, test, repair, and maintain aviation equipment (Article 7 of the Federal Law of January 8, 1998 No. 10-FZ “On State Regulation of Aviation Development”, Decree of the Government of the Russian Federation of March 28, 2012 No. 240);

• produce, supply electrical energy, sell it to citizens (Federal Law dated March 26, 2003 No. 35-FZ “On Electric Power Industry”, order of the Ministry of Industry and Energy of Russia dated June 14, 2005 No. 119);

• sell and produce alcohol (they can only sell retail alcohol-containing non-food products, beer and beer drinks, cider, poire, mead) (clause 1 of article 11, clause 1 of article 16 of the Law on state regulation of the production of alcoholic products), etc. d.