4 Frequently Asked Questions about Sole Traders

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An ENI is held by an individual and is the simplest legal form of establishing a company. It is aimed at small businesses with low investment. In this type of company, the business name may consist of the full or abbreviated civil name of the entrepreneur and may include an expression related to the activity carried out. One of the advantages of an Individual Entrepreneur is that they are not required to have a minimum share capital to start the activity. However, they are unlimitedly liable for debts incurred during the exercise of the activity.



How to Open a Business as an Individual?
To create a sole proprietorship, the steps indicated by the Tax Authority are as follows:

Completion of the Declaration of Commencement of Activity at line database local office or through the Tax Portal ;
Social Security registration by completing Form RV1000-DGSS.
Social Security registration is mandatory for entrepreneurs whose gross income is 6 times higher than the IAS (Social Support Index). ENIs who open a company for the first time are exempt for 12 months.

What is the Accounting Regime for Individual Entrepreneurs?
Individual entrepreneurs can opt for the simplified regime or for organised accounting. The simplified taxation regime is the most common option. It is granted by the Tax Authority when the individual entrepreneur starts up business (if the annual turnover does not exceed 10 thousand euros, the individual entrepreneur can also benefit from the VAT exemption under Article 53 of the CIVA ). If the individual entrepreneur opts for organised accounting, he or she can deduct a large part of the professional expenses.