You cannot set up a business name, i.e. register as a light entrepreneur with a business ID, through UKKO if you have a debt in enforcement.
Active enforcement prevents you from using the service. If you have a default entry on your credit file, but no outstanding enforcement debt, you can use the service.
However, if you have an active debt in enforcement, you can still operate as a self-employed person with a business ID in the UKKO Entrepreneur private trader service. Read more about the service here. However, please note that payment defaults can lead to a business ban, which means that you will not be able to become a private trader.
If your situation is more suited to invoicing for your own work without a business ID, then we recommend the UKKO Light Entrepreneur service without a business ID. As a light entrepreneur, you get the freedom to invoice your customers whenever you want and without the paperwork! Find out more about the service here!
How can default notices affect you as an entrepreneur?
As a self-employed person with a business ID, default notices can affect your rental and insurance contracts or, for example, your access to finance. Whether you are self-employed or a private person, credit defaults make it difficult to obtain a loan, insurance or credit card. It may also be difficult to obtain instalment contracts or to buy on account.
Access to start-up money is not directly affected by loss of credit, but entrepreneurs may need to provide additional information on their application.
If the default record is based on tax debts, the entrepreneur may not be able to join the pre-tax register.
How much of an entrepreneur's income is subject to garnishment?
If the income from wages and salaries is being garnished, the person must retain two thirds of the income. Five sixths of business income. Nowadays, the garnishment does not prevent self-employment, as from 2014, a self-employed person is not obliged to stop trading in order to qualify for debt adjustment.
The entrepreneur is responsible for his debts
When acting as a self-employed person with a business ID, the entrepreneur is also personally liable for the debts of the business. It is therefore very important that debts and other invoices are paid on time. If debts remain unpaid for any reason, an entry will be made in the entrepreneur's own credit file.
The loss of credit or a garnishment does not directly prevent you from starting or continuing your business, so it is important to contact the garnishment authority immediately if your debts go into garnishment or your finances get out of hand. This will enable you to reach an agreement with the authority on debt settlement within a short timeframe.