Entrepreneurial activity without registration and licenses: the amount of fines. Illegal entrepreneurial activity of an individual and its legal consequences Penalty for entrepreneurial activity without registration

Of course, illegal entrepreneurship harms the country's economy. Millions of rubles of unpaid taxes are not the only reason for outlawing such activities.

Consumers of low-quality services and goods also suffer, losing not only money, but risking their health.

What does commercial activity mean?

To answer the question, what is entrepreneurial activity, you should refer to Article 2 of the Civil Code. It determines that a person sells goods, provides services, leases property systematically for the purpose of making a profit.

According to Article 23 of the Civil Code, such activities can be carried out from the moment of state registration as an entrepreneur or registration of a legal entity.

It is not an entrepreneurship, for example, a one-time sale of any property. If a person does not receive profit from his activities (for example, a person rents an apartment to his relatives without payment), then this is also not entrepreneurship. The issue of systematicity in the legislation has not been fully clarified, in each case the court individually determines whether it has a place to be.

Administrative responsibility and entrepreneurship: grounds for the emergence

Russian legislation contains not only criminal, but also administrative liability for engaging in illegal business. Article 14.1 of the Code of Administrative Offenses establishes liability for entrepreneurship without a specific legal status.

Only individual entrepreneurs or legal entities can engage in commercial activities, otherwise entrepreneurs face a fine in the range of 500-2000 rubles.

The second part of the article contains responsibility for those who do business without a license, if it is required (for example, a license is needed to sell alcohol, drugs, etc.). The amount of the fine depends on the subject of the offense:

1. Individuals pay a fine of 2000 - 2500 rubles;
2. From 40,000 to 50,000 rubles are assigned to legal entities;
3. From 4000 to 5000 rubles for officials.

In all cases it is possible confiscation of raw materials or finished goods.

Part 3 of Article 14.1 of the Code of Administrative Offenses lays responsibility on those persons who have a license, but have violated any of its rules (for example, an alcohol seller sells alcohol in a kiosk or stall, and not in a store). Here, as in the previous part, the amount of the fine depends on the subject:

1. from 1500 to 2000 rubles for citizens - individuals;
2. 3000 - 4000 rubles for officials;
3. 30,000 - 40,000 rubles for legal entities(business entities).

Part 4 of the article is devoted to gross violations of the license. The Code of Administrative Offenses itself does not contain such offenses, it refers to Government acts that fix lists of gross violations for each licensed activity. For example, in the field of drug trade, it is a gross violation to sell drugs without a doctor's prescription, if such a prescription is required.

There are penalties for this:

1. officials and individuals - within 4000 - 5000 rubles;
2. legal entities - from 40,000 to 50,000 rubles.

The penalty in both cases can be replaced by the suspension of business activities for up to 90 days.

Russian legislation is quite loyal to the procedure for establishing legal entities, as well as acquiring the status of an individual entrepreneur. For example, the minimum contribution for registering an LLC is 10 thousand rubles, even one person can establish it.

Such a policy of the state is aimed at ensuring that business comes out of the shadows and becomes legal.

Criminal prosecution: violators face not only fines

Part 1 of Article 171 of the Criminal Code contains the same offense as Parts 1 and 2 of Article 14.1 of the Code of Administrative Offenses with the difference that illegal entrepreneurship additionally:

It caused major damage to citizens, organizations, the state;

Or brought a large profit to its owner.

Possible penalties under the article are as follows:

• Fine up to 300,000 rubles;
• The amount of income, for example, the salary of a convict for 2 years;
• Mandatory work within 480 hours;
• Arrest for up to 6 months.

Article 171 of the Criminal Code itself does not answer the question of what is large damage, large income. You can learn about this from Article 169 of the Criminal Code, which names a specific amount - more than 1.5 million rubles.

Contains qualified staff crimes of Part 2 of Article 171 of the Criminal Code, when the same illegal business:

1.Was carried out by an organized group;

2. His activities were accompanied by the receipt of income ( net profit) in an especially large amount (more than 6 million rubles - note to article 169 of the Criminal Code).

Punishments for crimes are noticeably stricter here:

• Fine in the range of 100,000 - 500,000 rubles;
• The amount of income, for example, the salary of a convicted person for a period of 1 to 3 years;
• Up to 5 years of forced labor;
• Up to 5 years of imprisonment with the simultaneous payment of a fine of up to 80,000 rubles, or in the amount of 6 monthly earnings, or simply imprisonment up to 5 years.

Thus, Russian legislation rather tightly controls the sphere of entrepreneurship, establishing two types of liability for non-compliance with registration and licensing rules at once. As for legal entities, they can only be involved under the articles of the Code of Administrative Offenses. Their leaders are subject to criminal prosecution.

The sale of goods, the performance of services, carried out with the bearing of one's own risks, by a citizen of the Russian Federation, in order to extract systematic profit, according to the Civil Code of the Russian Federation, is an entrepreneurial activity. Any such organization of its own business is subject to registration as an individual entrepreneur with the ensuing obligations. A malicious violation of the law is punishable by administrative, criminal and tax liability.

In order to hold a person liable, you must first prove his involvement. To do this, it is necessary to establish the fact of consistency and profit. An activity that is carried out more than twice a year will be considered systematic. That is, a product was sold or a service was provided. A one-time lesson does not apply to a systematic one and is not forbidden. It is more difficult to prove a profit, since if the sale of a product (rendering a service) turns out to be unprofitable, or the profit is zero, then such activity will not be considered commercial.

Administrative responsibility

Based on a protocol drawn up by the police, consumer rights society, tax or other state inspection, the prosecutor has the right to initiate a case on an administrative or criminal offense. Administrative responsibility occurs only in the event that the amount of income received has not reached the bar of 250 thousand rubles. The decision to apply h. 1 Article. 14.1 of the Code of Administrative Offenses of the Russian Federation is accepted by the justice of the peace. The punishment is a fine in the amount of 500 to 2 thousand rubles.

It is rather difficult to prove illegal entrepreneurial activity; for this, the relevant authorities conduct raids and test purchases. In the case of an incorrectly or inaccurately drawn up protocol, the judge has the right to return the case to the body that compiled it. Due to the fact that the statute of limitations for this document should not exceed two months, the case often falls apart without reaching the court, or the court decides to close it due to the expiration of the period.

Criminal liability

The Criminal Code applies to dodgers whose income exceeds 250,000 rubles (large amount) or more than 1 million rubles. (extra large). Punishment is provided in the form of a fine for a large amount of up to 300,000 rubles, or correctional labor for up to 10 days, or arrest for up to six months. For especially large amounts, the fine can reach 500 thousand rubles, or wages up to 3 years old. Or a term of arrest of up to 5 years and a fine of 80,000 rubles.

It is difficult to prove the especially large size of entrepreneurial activity in the course of a test purchase. Therefore, more often a criminal case is initiated under Article 171 of the Criminal Code of the Russian Federation. It should also be noted that the initial involvement and the positive characteristics of the attracted most often lead to a fine or a suspended sentence.

A special position for landlords of apartments. Regardless of the proven profit from renting an apartment under Art. 171 of the Criminal Code of the Russian Federation, the case is not initiated. Reason - message Supreme Court RF in the Decree of the Plenum of the RF Armed Forces dated November 18, 2004 N 23.

Tax Liability

In accordance with tax code liability arises for late registration, attacks for non-payment of taxes and fees. Such setting is considered untimely if the first proven profit was received before registration. The penalty for it depends on the period of delay. When carrying out entrepreneurial activities up to 30 days without registration - 5,000 rubles, plus 10% of the profits received. If the period of illegal commercial activity exceeds two months, then 10,000 rubles. and 20%. It is also worth considering that the minimum amount of a fine is 20 and 40 thousand rubles. respectively. All unpaid taxes on income, as well as contributions to off-budget funds will be calculated based on the regional taxation system. Regardless of which scheme will be used to calculate the debt, 20% will be added to it in the form of a fine.

Regardless of how and for what amount the tax authorities calculated, it must be paid only by a court decision. Only a court of general jurisdiction can decide on the legality of the claims.

How to protect yourself from inspectors

The surest and most reliable way of protection is not to let inspection bodies into your territory. Without the proper one no one can break into your property. The facts of random inspections and test purchases do take place, but they are random in nature and most often are a direct tip from ill-wishers or dissatisfied buyers.

In 2019, there were no changes in the legislation regulating entrepreneurial activity. How successful this decision can be called will be seen at the end of this year, when processing all the data of the tax police, the consumer rights society and several other organizations authorized by the state. The definition of the concept is spelled out in the Civil Code of the Russian Federation.

Let's take a look at what it is regulations should accompany entrepreneurial activity, are there laws that would be useful for a novice entrepreneur to become familiar with.

Definition

A citizen who is engaged in the sale of any goods and services, while bearing certain risks and wishing to make a profit, is an entrepreneur, and his activity is regarded as entrepreneurial. Starting to practice own business, it is necessary to understand that there are a number of bills that must be taken into account.

Be sure to register your business with the relevant authorities and obtain the status of an individual entrepreneur. Of course, the registration of this status immediately entails certain actions, such as creating reports, adjusting the time for doing business, deductions made to the treasury of the state and to Pension Fund. All this requires care and scrupulousness, especially maintaining reporting documentation for the tax office. Based on the receipt of systematic profit, the amount of tax is determined. It is determined that the profit and type of business that a citizen is engaged in more than twice during the annual reporting period is considered systematic.

The Tax Code of the Russian Federation is the only main act regulating the system of taxes and fees. Both the organization and the individual business representative are obliged to adhere to the provisions of this code. Based on this legal act, all necessary contributions to the state treasury are made. In case of late payments or lack thereof, the individual entrepreneur may be held liable through a fine. There are several points on the basis of which the relevant authorities impose a fine.

Responsibility of an individual entrepreneur in 2018-2019

Responsibility is expressed in making your business legal, otherwise the responsibility for entrepreneurial illegal activity can be of three types:

• administrative. Based on the protocol, no more than two months old, the prosecutor must start a case on administrative offense. This protocol is provided by the tax police or the consumer rights society. In order to classify the violation as administrative, it is necessary to prove that the entity received a profit of no more than 250 thousand rubles. Basically, the case does not reach the court, or, if it nevertheless came to the consideration of the justice of the peace, then the decision on it is not made due to the expiration of the statute of limitations. A fine, the amount of which is from 500 to 2000 rubles, is indicated in the Code of Administrative Offenses of the Russian Federation;
• criminal. Criminal liability for illegal activities is provided for in case of tax evasion upon receipt of profit in large amounts - over 251,000 rubles, in especially large amounts - over 1 million rubles. The fine in the first case is 300,000 rubles, the fine in the second case is 500,000 rubles. A measure of restraint in the form of arrest and imprisonment for a period of six months to five years can be chosen. Combinations of punishment can be defined, in which the arrest is combined with the payment of money to the treasury, and is calculated on the basis of wages for three full years;
• tax. A fine is imposed for illegal activities when there was no timely registration of starting a business. If tax inspectors prove that the profit was received before registration, then this also threatens with a fine, the amount of which may vary depending on the period spent without accounting. Carrying out illegal business activities for less than 30 days, you can be fined in the amount of 5 thousand rubles with the addition of 10% of the profit. In the event that illegal commercial activity was carried out for more than two months, a fine of 10 thousand rubles is due with the addition of 20% of the profit received. Taxes not paid in this way must be calculated taking into account all contributions to the Pension Fund and regional specifics. Only a court decision makes this procedure lawful, and you need to pay based on the decision of the court.

Pentrepreneurial activity- risky economic activity aimed at systematic obtaining profits from the production and sale of goods, the provision of services, the performance of work. For this purpose, property, intangible assets, labor of both the entrepreneur himself and those attracted from outside are used.

Illegal business- this is a commercial practice that is permanent and is carried out contrary to the norms of the law.

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Carrying out commercial illegal activities without registration in tax authorities prosecuted by law. Therefore, a citizen who regularly provides services or sells goods simply needs to register his business. What punishment threatens an entrepreneur for illegal activities, we will describe in detail in our article.

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, he 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 license terms.

  Accordingly, depending on this, sanctions will also vary. So, for the first type of violation, a fine is provided from 1500 to 40000 rubles, and for the second - from 4000 to 50000 rubles, including the possibility of suspension of activities up to 90 days.

• 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 most soft look 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 practice 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 types 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 of 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 business activity, for which 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 obtained by entering into a simple service contract, the provider of such services will pay the usual standard income tax individual at a rate of 13 percent.
3. Child care in daytime days. IN 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 profit on a large scale, the offender may be liable in various forms, which have an alternative character:

• pecuniary recovery up to 300,000 rubles;
• recovery of wages of the 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 at the location of 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 in order to apply measures of influence and bring the offender to justice.

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

Illegal entrepreneurial activity is a serious violation of the law, entailing not only administrative, but also criminal liability. What is illegal business? What are the consequences for a person who does not register his business? You will find answers to these and many other questions in our article.

The conduct of any business activity is a special type of civil law relations between individuals and legal entities, regulated by federal law. The term entrepreneurship means:

• the systematic sale of goods in one direction or the systematic provision of the same services;
• regular profit from the sale of goods or services.

Note that the profit from doing business is calculated in monetary terms. Calculation by natural products does not require accounting in authorized bodies.

Any entrepreneurial activity must be legalized, that is, be registered in specialized government bodies and have a license to this species business in the Russian Federation. Illegal business entails serious consequences, like a crime in the field of economic activity. Types of illegal business include such cases as:

• production, storage and sale of unlicensed and non-certified products (Article 171.1 of the Criminal Code of the Russian Federation);
• rendering paid services for the repair of a large household appliances And electronic equipment without registration of activity in authorized bodies;
• provision of paid medical, hairdressing and veterinary services without a special permit (license);
• regular rental of residential property or Vehicle for rent without paying the annual tax on the income of an individual in the form of 3-NDFL;
• trade in products and industrial goods in spontaneous markets;
• conducting business activities that do not correspond to the declared information in state bodies;
• submission by an individual entrepreneur or legal entity of knowingly false information about himself to the registration authorities.

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;
• protection committee and .

Violations in the activities of companies and individual entrepreneurs can be detected during special 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.

Complaint about illegal business, in particular, about the lack of a license or official certificate of state registration entrepreneurial activity, can be submitted by any person to 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 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 a gross repeated violation of the terms of a 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 kind activities.

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 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 employment 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.