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Unregistered activity – how to start your business adventure in Poland?
Unregistered business is one of the simplest and least formal solutions for people who want to start their own business in Poland, but are afraid of complicated registration procedures and costs associated with full activity. It is an ideal solution for novice entrepreneurs who want to test their idea on business without major obligations. In this article, you will learn what unregistered activity is, what its advantages are, and how to meet the legal requirements to take advantage of it.
What is unregistered activity?
Unregistered activity is a form of conducting business economic activity without having to register your company in Central Registration and Information on Economic Activity (CEIDG). This is a simplified way to start a business that does not involve the obligation to submit formal documents or pay social insurance contributions. In practice, this means that an entrepreneur can legally sell their products or provide services without keeping full accounting records or incurring costs related to ZUS.
However, in order to benefit from this form of activity, the entrepreneur must meet several conditions:
Revenue limit: Monthly income from the business cannot exceed 50% of the minimum wage (in 2024 it is PLN 2,500). If this limit is exceeded, the business must be registered in CEIDG.
Natural person: Unregistered business activities can only be conducted by individuals who have not conducted registered business activities in the last 60 months.
Type of activity: This activity cannot involve services that require special licenses or permits.
Unregistered activity
Advantages of unregistered activity
Unregistered activity is a solution that brings many benefits, especially for beginner entrepreneurs:
No registration formalities
There is no need to submit registration applications, which saves time and allows you to get started quickly.
No ZUS
People conducting unregistered activities are not obliged to pay social security contributions, which significantly reduces the costs of running a business.
There is no need for complicated accounting. It is enough to record income to control whether the established limit has been exceeded.
Flexibility
This is a perfect solution for people who want to test their business idea without financial and formal risk.
Challenges related to unregistered activities
Although unregistered business is a very attractive option, it also has its limitations. The biggest one is the low revenue limit, which makes it a temporary solution. After exceeding the limit, the entrepreneur must register the business, which is associated with greater obligations, such as paying ZUS, keeping full accounting or filing tax returns.
Another challenge may be the difficulty in establishing cooperation with larger companies, which may require their contractor to have a registered business activity. Some entities may also require issuing invoices VAT, which is impossible in the case of unregistered activities.
How to start an unregistered business?
Starting an unregistered business is very easy. All you need to do is start providing services or selling products, remembering the applicable revenue limits. There is no need to report your business to offices or register with CEIDG. However, it is worth keeping accurate records of revenues in order to register your business at the right time, if necessary.
Unregistered activity is a great way to test your business idea without incurring high costs and complicated formalities.
This is an ideal option for people who are just starting their entrepreneurial adventure and are not sure whether their idea will generate profits on a larger scale. Despite some limitations, unregistered activity offers great flexibility and allows you to focus on developing your business without the burden of formalities.
Sources:
(Auratech Blog)tps(Entrepreneur's Guide)-ro(Accounting Portal)year(SC Book)ch-changes-for-entrepreneurs-in-2024)
New regulations for companies from 2024 – infor.pl
11 most important changes for entrepreneurs in 2024 – ksiega.pl
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