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This can make it much easier to start and grow your business. In this article, we will discuss the different types of relief you can count on when starting your first business.
Unregistered activity, or your first step in business
Let's start with whatnon-obvious. Unregistered activity is also a form of start-up relief for entrepreneurs. If you are just starting out and want to see if your business idea has potential, unregistered business can be a great solution. In this case, you do not have to register your business with CEiDG, and you do not have to pay ZUS contributions or advance income tax.
However, remember that the income from this type of activity cannot exceed 75% of the minimum wage. Currently, the minimum wage is PLN 3,181.50 (in July it will increase to - PLN 3,225). This is a great option for testing your idea without unnecessary burden of formalities.
Start-up relief that lasts up to 6 months
When your business starts to grow and generate higher revenues, you need to move to a full-fledged sole proprietorship. However, you will be pleasantly surprised - you do not have to pay full ZUS contributions right away. Entrepreneurs who have never run a business before or ran one more than 5 years ago can take advantage of the start-up relief. For the first 6 months, they only pay the ZUS health insurance contribution. Thanks to this, you can calmly develop your business without worrying costs.
Who cannot benefit from start-up relief?
Partners of general partnerships, limited partnerships and professional partnerships, as well as a sole shareholder of a limited liability company: Start-up relief does not cover people associated with this type of legal and organizational structures. This is important because such people often already have a stable position on the market and benefit from other forms of support.
Entrepreneurs carrying out business activities on behalf of a former employer: People who previously worked for an employer for whom they are currently running a business are not eligible for the start-up relief. This applies to both employees who performed duties related to the planned business and people cooperating in running a sole proprietorship.
Entrepreneurs who are already active or those who have been running non-agricultural business activities in the last 60 calendar months: This restriction applies to persons who, despite planning to start a new business, have already run another business activity in the past.
Entrepreneurs who have waived the start-up relief by registering for social insurance: If someone voluntarily gave up the start-up allowance by registering for social insurance, they will also not be able to use it in the future. In such a case, a 60-month waiting period applies.
2 years of small ZUS
After the start-up relief period ends, the so-called small ZUS applies for the next 24 months. This is great news for people who need more time to appear on the market and get their first orders. Small ZUS helps reduce operating costs in the initial phase of company development. The entrepreneur pays lower contributions, which are based on 30% of the minimum wage.
Full ZUS after 6 months – but relief with the option of small ZUS plus
If you think that these are all the reliefs, we have some more good news - if you do not exceed a certain income, you are still entitled to some reliefs. After 6 months of using the relief for the start and 24 months of small ZUS, the entrepreneur switches to full ZUS. However, if their annual revenues did not exceed PLN 120,000, they can use the so-called small ZUS plus. This is a preferential rate that can be used for a maximum of 3 years in a 5-year period. The amount of contributions depends on the income from the previous year.
If you, as an entrepreneur, have a small budget, be sure to check out our offer Virtual Office. Our services were created with growing companies in mind!
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