If you are a natural person and are thinking of starting a small business in Poland, you may wonder if you need to register it with the Central Register and Information on Economic Activity (CEIDG) or not. In some cases, you can take advantage of the provisions on non-registered activity and avoid the obligation to register your activity. This can save you time and money, as well as reduce your administrative burden.
Non-registered activity in Poland is a form of conducting an economic activity that does not require registration with CEIDG. It is intended for UE people who run a small-scale business, such as small trade or services and do not employ any workers. Non-registered activity is also subject to taxation, social security and health insurance contributions, and accounting rules.
To qualify for non-registered activity, you need to meet certain conditions:
you are a natural person,
your annual income from the activity does not exceed 50% of the minimum wage (in 2023, this amount is 1,745 PLN up to June 30, 2023, and 1,800 PLN per month since July 2023 or 21,270 PLN per year).
you do not perform any activities that require a license, permit, concession, or entry in a regulated profession register.
you do not conduct any activities that are subject to VAT or excise tax.
you do not issue invoices or receipts for your services or goods.
you do not use any business name, trademark, or signboard for your activity.
you do not advertise your activity in any way.
If you meet these criteria, you can conduct a non-registered activity without notifying any authority. However, you still need to keep records of your income and expenses, pay taxes, and comply with the relevant regulations for your type of activity. You do not need, however, to pay social security contributions for this kind of business activity.
If you want to expand your business beyond the scope of non-registered activity, you will need to register it with CEIDG. You can do this online via the business account portal at http://biznes.gov.pl, in person at a municipal office, or using us as your proxy. In such a case, you will also need to choose in what form you want to tax your professional business activity (standard, flat-rate tax, or lump-sum tax. What we can suggest is to ask Proper Taxed’s consultants which type of taxation will be best for you as differences in tax due can be huge.
To summarize, a non-registered activity is a convenient option for people who want to start a small business in Poland without much hassle. However, it also has some limitations and risks that you should be aware of before deciding to use it. For more information on non-registered activity and other situations where the company does not need to be registered, you can ask our consultants.
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