Hello! In this article we will tell you in what cases an individual entrepreneur will need a power of attorney.
Today you will learn:
- What transactions require a power of attorney from the individual entrepreneur;
- In what forms can a power of attorney be drawn up?
- When the participation of a notary is mandatory when drawing up a document.
What is a power of attorney
When opening an individual entrepreneur, you must be prepared for the fact that you will need the help of other people. And here we are talking not only about hired workers. They carry out their activities in accordance with the employment contract. But sometimes they can be involved in other work that is not related to their direct responsibilities.
For example, you are in another country, and the buyer in the city where the business operates decided to transfer money for previously shipped goods. You personally will not be able to receive funds, and therefore for these purposes you need to have a reliable person.
For the buyer to be convinced that the representative you sent came from you, a verbal word will not be enough. For these purposes, there is a document called a power of attorney.
A power of attorney is a special document, the existence of which is enshrined at the legislative level. With its help, you can transfer part of your own rights to another person. And he will already represent your interests to the other side. The document is drawn up in writing.
A power of attorney to represent interests may be needed in some cases:
- If you are absent from work (sick leave, vacation, business trip, family celebrations, etc.);
- If you do not have time to cope with the volume of work (to save time, it is better to get an assistant).
How much does it cost to issue a power of attorney?
For notarized confirmation of a power of attorney to open an individual entrepreneur, you must pay a state fee. Its amount is 200 rubles, for disabled people of groups I and II – 100 rubles. Additional fees are charged for legal and technical services, which include:
- legal analysis of submitted documents;
- consulting on the application of legislation;
- production of the document and its copies;
- scanning a paper or printing an electronic version;
- technical support for document storage.
In order not to spend extra money, you can draw up the text of the power of attorney yourself, and the notary will simply notarize it. However, it is necessary to clarify this issue in advance, because some notaries insist on using only their own sample power of attorney, especially since the text of the power of attorney is printed on a notary form.
When can you trust an assistant?
Let's decide whether an individual entrepreneur needs a power of attorney. The document may be needed under a variety of circumstances. There are cases of its use established by law, and those that are directly related to the intricacies of the work of your enterprise.
Main cases of using a power of attorney:
- To represent an individual entrepreneur to the tax office (for registration, liquidation, filing a declaration, obtaining certificates, consultations, etc. For example, a power of attorney to close an individual entrepreneur will allow you to liquidate the enterprise without your participation);
- To manage bank accounts (banks have developed power of attorney forms, in which you only need to enter information about the individual entrepreneur and the representative. The document allows you to withdraw money, make transfers, open or close accounts);
- Upon receipt of postal items;
- To contact local authorities;
- Receipt of goods and other valuables (such a power of attorney has a unified form of a recommendation nature, that is, it is not obligatory to use);
- To represent an individual entrepreneur in court (this can be done on a regular basis by a full-time lawyer);
- Carrying out transactions with partners (receiving money, drawing up and signing contracts);
- Buying, selling real estate or cars and other things.
As you can see, the list of operations is quite impressive. Therefore, the question of the unnecessaryness of a power of attorney in the activities of an individual entrepreneur disappears.
Main types
The presence of seals is just a right of an LLC or individual entrepreneur, and not an obligation. But if they are used in the company’s document flow, then how to use them correctly?
The following types of seals can be used in the activities of an LLC or individual entrepreneur:
- The main one is round, usually stamped.
- Special: round or rectangular. Used for internal documents.
- Seal of a structural unit (for the HR department, for the sales department, etc.).
The principal, in order to certify the document, has the right to use any of the above seals, provided that:
- the print on paper contains the full name of the organization or full name of the entrepreneur;
- indicates the address of the LLC or individual entrepreneur;
- state registration number;
- the stamp shape is round;
- the name of the seal does not contradict the scope of its application (for example, a document giving the right to receive material assets cannot be certified by a stamp with the inscription “For the sales department”).
But is it possible to put a document stamp on a document certifying the authority to act on behalf of another person? Yes, you can. The principal has the right to use a round seal for internal documents if this does not contradict the requirements. The official (main) stamp is not considered mandatory.
Important! A power of attorney submitted to government agencies may only be sealed with the principal seal of the principal.
Types of powers of attorney
There are three main types of document:
- One-time – compiled for one operation. It can only be used once. Once the purpose of drawing up a power of attorney has been achieved, the document will be invalid. For example, you sent an employee to a buyer to receive an advance payment from him. Such a power of attorney is common among transactions of a small nature. It can also be issued to any employee if your main assistant cannot currently cope with the assignment;
- Special – a power of attorney that is aimed at carrying out activities in a particular area. Let's say you want a lawyer in your firm to always represent your interests in court. Special ones include the type of bank power of attorney, a document for representation in the tax authorities. You can give a power of attorney to the company’s accountant so that he will receive money for you all the time. If the company has a forwarder, then he is also able to make purchases on your behalf);
- A general power of attorney is the most important power of attorney. It must be registered with a notary. Its reliability is always easy to check through a special registry. The document is entered into the official database and is almost impossible to falsify. A power of attorney is required if you give broad powers to another person. For example, you sell a building, a car through a representative, or give the right to manage your own business (power of attorney for running an individual entrepreneur).
What else could a power of attorney be?
Powers of attorney are divided not only by scope, but also by form of preparation.
In this regard, there are two types:
- Simple - compiled by the individual entrepreneur himself. It does not have any strict template for filling out. Compiled in free form. Such a document has limited validity. Not all authorities and business partners accept such a power of attorney. Most often it is one-time in nature. Certifies the power of attorney of the individual entrepreneur with his signature;
- Notarized - such a power of attorney is more reliable than the first option. It inspires the trust of others, and in some cases its use is subject to legal restrictions. In other words, when performing a certain list of operations, you cannot neglect drawing up a notarized power of attorney. For example, you can close an individual entrepreneur only with a notarized power of attorney.
How to compose
To issue a power of attorney to represent the interests of an individual entrepreneur, the following papers will be required:
- certificate of state registration of an individual as an individual entrepreneur (OGRN);
- certificate of registration of an individual with a tax authority on the territory of the Russian Federation (TIN);
- personal presence of the principal (citizen wishing to issue a power of attorney) with a passport;
- passport details or a copy of the passport (1 and 2 pages) of the attorney (the citizen in whose name the power of attorney is issued).
IMPORTANT!
The above list is general. If an unusual situation arises, the notary will need additional documents necessary to perform the notarial act.
The businessman himself does not have to write the text for conducting the affairs of an individual entrepreneur under the general power of attorney; this will be done by a notary. Using her example, we can show how any other document that is not notarized is prepared. The structure is the same. The general authority of an individual entrepreneur to an individual implies that for the entire period the representative has the same powers as the principal himself. The attorney conducts business at his own discretion, without obtaining consent or informing:
- carries out commercial activities;
- represents interests in any organizations and institutions;
- disposes of property.
Any type of authorization, like the State Duma, contains the following information:
- The principal and information about him.
- Representative and information about him.
- List of represented interests.
- The right to sign contracts and other documents related to the execution of transactions is separately prescribed.
- List of organizations where the authorized representative is authorized to represent the interests of the individual entrepreneur. The list should be as detailed as possible.
- Validity.
- Possibility of transfer to third parties.
For a one-time transaction for the purchase of real estate, powers to search, negotiate, etc. are added to the sample power of attorney from an individual entrepreneur for an individual to sign documents.
POWER OF ATTORNEY to conclude an agreement on behalf of an individual entrepreneur city of St. Petersburg September ninth two thousand and twentieth Individual entrepreneur Voronov Andrey Viktorovich, passport series 1234 No. 123321, issued by the Department of Internal Affairs of the Southern District of St. Petersburg, living at the address: St. Petersburg, st. Pravdy, 1, apt. 2, certificate of state registration as an entrepreneur No. 123404321 (hereinafter referred to as the represented), this power of attorney authorizes Ivan Ivanovich Ivanov, passport series 4321 No. 123321, issued by the Department of Internal Affairs of the Babushkinsky district of Moscow on January 11, 2011, residing at : 111666, Moscow, st. Lermontova, 1, apt. 8, conclude a purchase and sale agreement for real estate owned by the represented person at the address: Moscow, st. Sretenka, 123, at a price of no less than 16,000,000 (sixteen million) rubles, for which it is entrusted to conduct negotiations on behalf of the represented case and in relations with any organizations and citizens, submit applications, receive all necessary documents, sign and complete all legal and other actions related to the execution of this instruction. The power of attorney is valid for three years from the date of issue. | Voronov A.V. |
The GD is certified by a notary, issued by an individual entrepreneur - with a signature and seal. In the above example, the individual entrepreneur independently prepared and certified a sample power of attorney from the individual entrepreneur to an individual to represent interests in court.
ConsultantPlus experts discussed how to issue a power of attorney on behalf of an organization. Use these instructions for free.
Why contact a notary
In some cases, the law regulates the relations of the parties through a notarized power of attorney.
This document is required if:
- Applying to the tax office (opening and closing a business);
- Drawing up a lease agreement and further actions related to it;
- Signing a mortgage agreement;
- Transfer of rights to dispose of property and some others.
This means that if your representative comes to the tax office without a power of attorney to liquidate the individual entrepreneur, he will be denied registration. This is a legal basis. All government bodies must be contacted through a representative with a notarized power of attorney.
Such a document is drawn up on a special generally accepted form with an arbitrary listing of the rights transferred to a third party. A power of attorney is issued for a fee established by legislative acts.
In what cases is it necessary to notarize a power of attorney?
Notarization of a tax power of attorney from an individual entrepreneur will be required in cases where there is interaction with the Federal Tax Service:
- when sending an application by courier;
- when sending registration papers by mail;
- upon delivery of the application and documents to the tax office through an authorized employee.
Important! The listed options for submitting papers require certification by a notary, signature of the entrepreneur, and writing of an application. You also need a copy of the individual entrepreneur’s civil passport on the first page and double page with registration.
If a notarized power of attorney does not contain the date of its signing or the period of validity, it is considered illegal and loses its force. Other options that require notarization:
- carrying out transactions that require a specialist’s certificate - representing interests in the arbitration court, the Federal Tax Service, the Pension Fund of the Russian Federation;
- carrying out by an entrepreneur actions that are subject to mandatory state registration - opening or liquidating a business;
- opening an account in a banking institution, monetary transactions;
- when drawing up a general power of attorney;
- if another company requires notarization.
Sample of a notarized power of attorney from an individual entrepreneur
When ordering the services of a specialist, you do not need to bring an A4 sheet, he will issue a ready-made form. If a businessman is engaged in activities, also studies or is employed in any educational institution, he has every right to certify a document for receiving funds from these organizations to his authorized persons at the place of work or study.
An entrepreneur does not always and not everywhere have time to cope with many things. He can transfer part of his official duties to an employee, another citizen. A power of attorney does not have a strict form; sometimes it is drawn up in free form. It is necessary to put the date of its signing and the signatures of the parties, otherwise the paper is not considered legal.
* Prices are valid as of July 2022.
Validity periods
Any power of attorney must indicate the date of its preparation. Otherwise, the document is considered invalid, and the rights transferred under it are not valid. If the other party to the transaction did not notice the absence of a date on the power of attorney and drew up an agreement on the basis of the latter, it is also invalid.
The power of attorney may have a validity period specified by you. For example, you can delegate powers to another person for two weeks or 1.5 years. This period must be indicated in the power of attorney. If the period is not indicated in the document, then the power of attorney continues for a year.
Previously, the document could have a maximum period of 3 years. Today it is not installed. Such a power of attorney is considered unlimited. Its end date will be considered the day on which you yourself revoke the document. Such a power of attorney is often used for representatives located in other countries.
If you decide to terminate the power of attorney, you can close it on the same day. This is done through a notary in the case of a notarized power of attorney and independently in a simple form.
Deadlines
If the text does not indicate its duration, the power of attorney for an individual entrepreneur is valid for one year. You can enter a specific date by specifying the day, month and year. In this case, the paper will lose its validity upon this date.
Another option: specify the exact period after which it will lose its force, for example:
...issued for a period of 6 months from the date of issue.
If a one-time event is specified as the end (for example, submission of annual reports for 2022), immediately after its completion the document period automatically ends.
Article 188 of the Civil Code of the Russian Federation lists cases of termination of a power of attorney. These include: the desire of either party to withdraw from cooperation, the death of either party, and expiration.
What is stated in the power of attorney
As such, there is no generally accepted unified form for filling out a power of attorney. But there are details whose inclusion in it is mandatory.
The document must contain:
- Document number (usually indicated with a notarized power of attorney. If you are drawing up a simple form, you can also record its number and indicate it in the internal reporting of the individual entrepreneur);
- Date of preparation (mandatory details, without which the document will not be accepted by a third party);
- Information about the principal (about the individual entrepreneur transferring powers. Indicate TIN and registration number);
- For whom the form was issued (indicate the name of the government body, the name of the company or the full name of the person);
- To whom the document was issued (his passport details);
- Validity period (if necessary);
- Place of registration (locality);
- Rights vested in the representative (specific actions. Phrases must clearly describe each power. Their meaning cannot be understood in two ways);
- Compiler's signature;
- IP stamp (if necessary).
Sample of a simple power of attorney
Power of attorney for an individual entrepreneur to receive goods by an individual
If the document is written independently, then it contains the following information:
- Full name of the businessman;
- company address, certificate of title, TIN, current account number;
- date and place of signing of the power of attorney;
- name and number of the document, if necessary;
- Full name and passport information of both parties - the businessman and his assistant;
- validity period of the paper, if the period is not specified, by default it will be considered that it is valid for 1 year;
- a description of the powers and rights that the businessman entrusts to the person;
- date, seal, signature of individual entrepreneur;
- notary's mark if the parties contacted him with help.
Important! The paragraph containing a description of the powers of the trustee must be described as specifically as possible. If necessary, refer to the internal documentation of the enterprise - contracts with suppliers, customers.
Also, the power of attorney must indicate the right of subrogation. If a leader can entrust part of his powers to another citizen, then he has this right. But in life, such privileges are not granted for security reasons.
When drawing up a power of attorney, you can rely on this sample
Some subtleties associated with a power of attorney
There are several important points that every individual entrepreneur should know. They will avoid many difficulties and misunderstandings on the part of third parties and representatives.
Let's find out whether an individual entrepreneur can issue a power of attorney to hired employees. It is generally accepted that a special power of attorney refers to a document certified by the employer. It may be needed, for example, when an employee receives mail in his name. That is, your employee wants to grant a power of attorney to another person to carry out some personal matters.
In this case, you, as an individual entrepreneur, do not have the right to certify such a power of attorney. It will be considered invalid. None of the employees working for the individual entrepreneur can certify the document with the signature of the individual entrepreneur, since the owner of the enterprise here is an individual. Only a legal entity on behalf of the manager can certify such forms.
Perhaps at some point one of your relatives will need to issue a power of attorney for you. This is not forbidden. Drawing up a power of attorney with your participation may be necessary due to the specifics of the enterprise. If your individual entrepreneur provides intermediary services, then a power of attorney will often be issued in your name.
A simple power of attorney form for an individual often requires only your signature. But there are cases in which printing is necessary. If your company does not have one, then you will have to contact a notary to draw up a power of attorney. Sometimes transaction partners may not trust unstamped forms, so if possible, order this information.
Each power of attorney transfers some powers to another person. But you must understand that all responsibility for the consequences of the transaction falls on your shoulders. If the representative made some serious mistake or violated the rights of a third party, then you will have to answer in court.
By the way, they can assign you a term, but the representative will go unpunished. Therefore, always choose competent and reliable assistants. Clearly indicate your credentials and do not write anything unnecessary. Any entry may result in an abuse of your own rights.
A power of attorney requires only the signature of the principal. There should not be any notes from the representative in it.
Be sure to keep a log of the issuance of intangible assets. Indicate the number of the issued form, its validity period, details of the accountable person and the name of the third party. This way you can control the process of issuing powers of attorney and revoke them in a timely manner.
How long does a power of attorney last?
When drawing up a document, you can specify its validity period. If it is not entered, then the power of attorney is valid for a year by default. If the signing date is not entered, then the paper has no legal force.
Certificate from the place of work with an individual entrepreneur - how to do it correctly
But there is an exception - when a power of attorney from an individual entrepreneur is signed by a notary and issued for the selected person to work abroad. If there is no validity period, it will remain in force until revoked.
Important! Experts recommend that an entrepreneur create a register that will allow him to monitor to whom he transferred what rights and obligations and for what period.
Notice of termination of power of attorney
The power of attorney will automatically lose force in the following cases:
- the validity period has expired;
- the individual enterprise from whose manager the document was written was liquidated;
- a bankruptcy procedure was carried out, as a result of which the right to issue powers of attorney was lost;
- the action specified in the one-time document has already been carried out;
- the legal entity that issued or received the paper is declared incompetent, dead or missing.
In other cases, the businessman can complete the powers recorded in the paper on his own. It is necessary to draw up a cancellation document in the same format as the transfer of rights. An attorney can also write a waiver.
How to draw up a power of attorney
The process of drawing up a simple document form consists of several stages:
- You understand that you will not be able to carry out any actions on behalf of the individual entrepreneur in the near future and are looking for a trusted person;
- It is necessary to collect information about the third party and take the representative’s passport;
- Fill in information about the parties to the transaction;
- Indicate a list of actions that can be carried out by an authorized representative of an individual entrepreneur;
- Enter all required details;
- Put your personal signature and seal (the latter is optional).
If a notarial form is drawn up, for example, to open an individual entrepreneur by power of attorney, then the steps will be as follows:
- Together with your representative, go to any notary company (you must have documents for the individual entrepreneur and the passport of the authorized person with you);
- The notary will enter all information about the parties into the form;
- Further, from your words, credentials are entered;
- After entering all the data, you check the form for errors;
- Give the documents and stamping forms to the notary for signing (you can also draw up several powers of attorney)
- The notary enters the power of attorney number into a special register;
- The form is immediately given to you (you can also ask for a certified copy of the power of attorney).
The document comes into force immediately after its certification. From now on, your representative can perform some operations on behalf of the individual entrepreneur.
Is free writing possible?
The main reason when a power of attorney from an individual entrepreneur may be needed is when collaborating with partners and suppliers. To interact with other persons and businessmen, it is enough to draw up a power of attorney in free form.
The document form must include the following information:
- personal information about the citizen - his full name;
- number of the individual entrepreneur registration certificate, TIN;
- place, date of signing the paper;
- its validity period;
- a description of the powers and rights that are transferred to the attorney;
- signature of the businessman and citizen for whom the power of attorney is issued;
- IP seal.
Of the information provided, the item “validity period” is optional. If it is not there, by default the document is valid for 1 year.
When do you need a power of attorney to receive goods?
A power of attorney is not needed in the case when inventory items are delivered directly to the individual entrepreneur’s warehouse. In this case, the values are received and formalized by their own employees, whose powers and responsibilities are determined by internal documents, including an employment contract and job description. But if the goods have to be received from a third party, then drawing up such a document is necessary. The exception is the situation when its director acts on behalf of the company.
There are different types of power of attorney:
- general - provides the representative with the widest range of rights, issued in special cases;
- one-time - issued for a one-time action;
- special - for carrying out certain actions.
A representative who has received a power of attorney may, on the basis of it, delegate powers to third parties if this point is indicated in the main document. When transferring the power of attorney, you must notify the person who issued the power of attorney.