How to start your own business in Poland without official registration?
How to conduct business in Poland without official registration? Business secrets that no one will tell you.
Unregistered activity in Poland: This means running a business without officially registering the activity in Poland. This can be done in various ways, which will be described in this article.
Działalność nierejestrowa: A term in Polish that means unregistered activity.
Amount of eligible income from July 1, 2023: This is the limit on the amount of income that can be earned by operating unregistered activities from July 1, 2023. This restriction is imposed by the government in order to control such activities and reduce unofficial transactions.
2024 Income Cap: This is the proposed 2024 unregistered income cap. . This restriction is also established in order to reduce unofficial transactions and increase the transparency of economic activities.
Can foreigners carry out unregistered activities: In this section we will talk about the rules and opportunities for foreigners who want to conduct unregistered activities in Poland.
Advantages of a company sample: A company sample is a special status provided by the state for new entrepreneurs who have not yet are ready to register their activities officially. In this section, we will look at the benefits and responsibilities of a firm's sampler.
Responsibilities of a foreigner for unregistered activities: In this section we will talk about the requirements and obligations that foreigners must comply with when conducting unregistered activities in Poland.
When to issue a check: In this section, we will describe when an alien conducting an unregistered activity is required to issue check to your clients.
Sales accounting: Sales accounting is an important aspect for any entrepreneur, including those who conduct unregistered activities . This section will provide advice on recording sales for unregistered activities.
Consumer Rights: Consumers who do business with foreigners operating unregistered businesses also have certain rights. This section will discuss consumer rights and their protection.
PIT-36 tax return and tax calculation: In addition to sales accounting responsibilities, an alien conducting an unregistered business , must file a PIT-36 tax return and tax estimate. This section will describe how to correctly fill out such a declaration and calculate taxes.
What tax is paid for unregistered activities: In this section we will talk about the taxes that must be paid by a foreigner , conducting unregistered activities in Poland.
Unregistered activities and VAT VAT: This section will discuss the applicability of VAT (value added tax ) for unregistered activities. Recommendations will be provided on correct accounting and payment of VAT.
What to do if revenue has grown above 75 of the minimum wage: In this section we will look at options which a foreigner can undertake if his income from unregistered activities exceeds 75% of the minimum wage.
This glossary contains basic terms and definitions related to doing business without official registration in Poland. It will help the reader better understand the context and terminology used in this article.
What is unregistered activity in Poland
In Poland there is a form entrepreneurship, which allows you to conduct business without official registration - this is the so-called “unregistered activity” or Działalność nierejestrowa. Such entrepreneurship allows individuals to engage in commercial activities without the need to carry out registration procedures and obtain official entrepreneur status.
Advantages of unregistered activities
Main advantages unregistered activities in Poland are as follows:
Simplicity and time saving: You do not need to fill out long forms, go through authorities and waste time on official registration procedures. You can immediately start your business and start making money.
Cost reduction: For unregistered activities, you do not incur additional costs for the services of an accountant, lawyer or recruitment agency . You get the opportunity to save on these costs and make your business more profitable.
Flexibility: Activities without official registration have greater flexibility and freedom of action. You are free to change the direction of your business, without the restrictions that may exist when officially registering.
Tax incentives: As an unregistered business, you may benefit from tax incentives, including simplified taxation or exemption from some taxes.
Freedom from Bureaucracy: You avoid the complex and confusing procedures associated with officially registering a business. You do not need to monitor your activities in accordance with the requirements of government agencies.
Who can engage in unregistered activities
Unregistered activities in Poland are available for all individuals who want to start their own business without the need for official registration. This can be useful for enthusiasts, students, freelancers and other entrepreneurs who do not want to be bound by the bureaucratic procedures and restrictions associated with the official status of an entrepreneur.
Limitations and risks of unregistered activities
Despite all the advantages of unregistered activities, it is necessary to take into account some restrictions and risks, associated with this type of business activity:
Lack of official entrepreneur status: You will not have official entrepreneur status with corresponding rights and privileges. This may affect your business reputation and ability to obtain loans or enter into transactions with other companies.
Limitations in business expansion: Unregistered activities may limit you in expanding your business and attracting new partners or investors. Some companies may refuse to work with you because you do not have official status.
Tax Responsibility: Unregistered activity does not relieve you of tax liability. You must still pay taxes on the income generated by your business. Failure to pay taxes can result in fines and legal problems.
Best practices and useful tips
When engaging in unregistered activities in Poland is advised to adhere to the following best practices:
- Maintain proper records of finances and income related to your activities.
- Understand your tax obligations and keep track of your payments to avoid legal trouble.
- Participate in periodic tax amnesties and tax concession programs to reduce your tax burden.
- Consult a professional accountant or consultant for advice on running your business and complying with regulations.
Unregistered activities in Poland provide entrepreneurs with the opportunity to conduct business without formal restrictions and registration. However, despite its advantages, one should take into account the limitations and risks associated with the lack of official entrepreneur status and tax obligations. If properly organized, an unregistered activity can be an effective tool for starting a business in Poland without official registration.
When can you run a business without official registration?
If you are planning to start your own business in Poland, but do not want to undergo official registration, then you have certain legal options. In this article we will talk about one of these options – Działalność nierejestrowa. Let's look at the basic requirements and conditions under which you can do business without registering your activity.
Compliance with certain restrictions
Działalność nierejestrowa is a way to engage in business activities without officially registering as a taxpayer. However, there are a number of requirements that must be met:
- You must operate solely as an individual. This means that you cannot include other persons in your activities or create joint ventures (spółka cywilna).
- Your income from activities should not exceed 75% of the minimum wage established by the Polish government. From 07/01/2023 this limit was increased from 50% to 75%. Therefore, it is important to keep current regulations in mind to avoid violating the established restrictions.
- Your activity should not require additional permits, licenses or the mandatory presence of a cash register registered with the tax authorities.
- In the 60 months preceding the start of such activity, you must not have carried out business activities. Działalność nierejestrowa provides the opportunity only to start a new business, and not to continue an existing one.
Eligible income from July 1, 2023
The rules effective from July 1, 2023 increased the amount of eligible income to 75% of minimum wage. In 2023, the minimum wage increased twice: from January to 3,490 zlotys and from July to 3,600 zlotys. Accordingly, in 2023 the income limit for Działalność nierejestrowa is:
- From January: 3490 * 50% = 1745 zlotys
- From July: 3600 * 75% = 2700 PLN
These figures explain how much your business income can be, so that it does not exceed the established limits.
Maximum income in 2024
In 2024, the minimum wage will be PLN 4,242 from January and PLN 4,300 from July. Taking into account the current rules, the maximum monthly income for an unregistered activity will be:
- From 01/01/2024: 4242 * 75% = 3181.50 PLN gross
- From 07/01/2024: 4300 * 75% = PLN 3225.00 gross
It is important to note that these values may increase or change in the future, so keep an eye out for changes in legislation and check current information.
The above requirements and restrictions allow you to do business in Poland without official registration, providing some flexibility for entrepreneurs. However, before deciding to choose this form of activity, it is recommended that you familiarize yourself with other possibilities and seek advice from legal experts in this field.
"You can't stand still, you need to develop and look for new opportunities."
— Lydia Janiszewska, entrepreneurship expert at eBay.pl
As can be seen from the review, Działalność nierejestrowa is just one of the opportunities to do business in Poland without official registration. However, in order to make the right decision and choose the best path, it is recommended to seek qualified advice and familiarize yourself with other options.
|Conduct activities as an individual
|Include other persons in your activities
|Proceeds from activities do not exceed 75% of the minimum wage
|Carry out activities within the scope of spółki cywilnej
|Activities do not require additional permits or licenses
|Carry out economic activities in the previous 60 months
When deciding to conduct business without official registration in Poland , be sure to take into account all restrictions and requirements in order to comply with the law and avoid unpleasant consequences.
Foreigners and unregistered activities in Poland
Legality and possibility of doing business without official registration in Poland for foreigners - a question , which requires serious consideration. On the one hand, the legislation does not establish restrictions for foreigners wishing to engage in this activity. Many Russian-language sources mention the need to have a certain status to use Działalność nierejestrowa. However, it is worth noting that the legislation provides for obtaining permission from the voivode when concluding civil contracts for any type of activity of a foreigner. Obtaining such permission can take a lot of time, which makes the idea of an unregistered activity of little interest if the income is low.
The question arises: does it make sense for a foreigner to consider the option of Działalność nierejestrowa? The answer is yes! First of all, there is a whole list of foreigners who can carry out activities in Poland without a separate permit. These persons may also use unregistered activities without permission. Consequently, not every activity requires civil contracts or requires permission from the voivode.
Thus, foreigners can carry out some types of business in Poland without mandatory official registration. However, it is necessary to pay attention to the specifics and requirements of the law in order to avoid unforeseen problems. Let's look at what types of activities can be carried out without official registration.
List of activities that do not require official registration:
Freelancing and remote work services
- Freelance and provide services remotely without requiring official registration.
- Examples: web design, programming, copywriting, etc.
- This will allow you to start your own business without unnecessary formalities.
- Provide services in the tourism market without the need for official registration.
- For example, you can become a guide for foreign tourists or offer excursions to the sights of Poland.
Freelance consulting and expert services
- Offer your professional services in the field of consulting or expertise without official registration.
- These may include accounting consulting services, legal advice, etc.
Selling goods online
- Use online platforms to sell goods without the need for official registration.
- For example, you can sell products through popular online marketplaces or create your own online store.
Cultural and creative services
- Act as an artist, musician , artist or other creative specialist without official registration.
- Offer your services at various events and cultural centers.
However, it is worth noting that although it is possible to conduct business without official registration, you must comply with the requirements of Polish legislation regarding taxation and respect for consumer rights. Be informed and consult with lawyers or business specialists to avoid unexpected problems and be completely confident in the legality of your actions.
Important to know:
- If there is a need to conclude a civil contract, a foreigner is required to obtain permission from the voivode to carry out such activities.
- It may seem attractive to jump into a business without registering, but keep in mind that going unregistered will prevent you from taking advantage of some benefits, such as open bank accounts, legal working capital, or the ability to work with large companies as service provider.
- Make sure you understand the legalities and follow the rules of each specific business in which you plan to work.
- Before you start a business without formal registration, consult with experts to get specific recommendations and best practices for your case.
"Remember that legality and compliance are key to the success and long-term sustainability of your business." - Damian Kaminski, Legal Specialist at Allegro.
Foreigners can realize their entrepreneurial ideas in Poland without official registration. This opportunity opens up new horizons for entrepreneurs who want to start their own business. It is important to be attentive to the legislation and understand the restrictions and requirements to avoid problems in the future.
In conclusion, unregistered activities in Poland can be carried out by foreigners, but require caution and study of legal requirements. When choosing this path, make sure you fully understand the risks and considerations of your business. Consult with professionals and experts to develop an effective strategy that suits your needs and ensures successful business without official registration in Poland.
Advantages of informal business registration in Poland
Unlike traditional official business registration in Poland, there is a way of doing business without having to go through all the stages of formalization. Działalność nierejestrowa, or unofficial business registration, provides entrepreneurs with some privileges and advantages. In this section we will look at the key advantages of this way of doing business in Poland.
Exemption from official registration and tax obligations
One of the main advantages of informal business registration is the absence of the need to go through official procedures (registration with CEIDG and GUS) and obtain relevant numbers (NIP and REGON). This saves time and makes starting a business easier.
In addition, unofficial registration exempts you from the obligation to pay social contributions to ZUS and pay VAT (VAT). In this case, the income level is tax-free, providing additional financial benefits. There is also no need to transfer the advance payment of income tax, which also saves money for the entrepreneur.
Simplified accounting regime
Informal business registration also allows you to conduct accounting in a simplified mode, which makes it easier to record finances and reduces bureaucratic costs for the entrepreneur. Simplified accounting mode is especially useful for small businesses where a minimum amount of documentation and reporting is required.
Flexibility in setting prices and wages
Another advantage of informal business registration in Poland is the flexibility in setting prices for goods or services. Unlike officially registered companies, entrepreneurs who carry out informal registration can practice free pricing, which can be beneficial for attracting customers and competitiveness in the market.
In addition, there is no strict regulation of wages in unofficially registered businesses. This allows entrepreneurs to flexibly set wages and negotiate the terms of an employment contract, which increases flexibility in business management.
Limitations and risks of unofficial registration
Unofficial registration of a business in Poland has its limitations and risks. The main risk is legal liability. In case of violation of the law or harm to third parties, an unofficially registered business does not have the same legal benefits and protections that officially registered companies receive.
It should also be taken into account that some partners or clients may refuse to work with unofficially registered businesses, as there is a risk of unconfirmed legitimacy and proper quality of the goods or services offered.
Brief summary and best practices
In summary, informal business registration in Poland provides some advantages, such as exemption from official registration and tax obligations, simplified accounting regime and flexibility in pricing and remuneration. However, you must be aware of the risks and limitations associated with unofficial registration.
When deciding to register a business, it is recommended to consult with legal experts and consider all aspects of this method of doing business. In each specific case, it is necessary to evaluate the risks and benefits in order to make the right choice that suits the characteristics of your business and business goals.
"Informal business registration in Poland can be a useful option for entrepreneurs who want to start a business without official registration. It provides flexibility, time savings and financial benefits. However, it is necessary "consider the risks and limitations associated with this way of doing business. To make the right decision, it is recommended to contact legal experts and evaluate all aspects of this issue."
Before deciding on business registration methods, it is recommended that you contact legal experts and familiarize yourself with the relevant legislation. This will help avoid unintended consequences and provide legal protection for your business.
📝 Responsibilities for unregistered activities
When carrying out business in Poland without official registration of activities ( also known as activity nierejestrowa), all entrepreneurs must still fulfill certain responsibilities. In this section, we will look at several key responsibilities that must be observed. Let's take a closer look at them.
1. Maintain simplified bookkeeping
Although you do not have to officially register your business, you are still required to keep simplified bookkeeping. Your accounting should reflect all income and expenses associated with your business. You may need the help of a professional to properly organize your accounting and comply with all legal requirements.
2. Filing a PIT-36 Return
Even if you are an unregistered business, you must still file a PIT-36 Return with the Internal Revenue Service. This allows you to document your income and determine your tax basis for paying taxes. On the PIT-36 return, you will report your income, expenses, and other information that may affect your tax bill. Seek help from a tax advisor or lawyer to ensure that your return is completed correctly and that all legal requirements are met.
3. Compliance with Consumer Rights
Whether your business is registered or not, you must respect consumer rights under the law. This includes issues such as product returns, replacements, service and repairs. Your clients should be provided with all the necessary guarantees and protection of their rights. Be attentive to consumer requirements and resolve all issues in accordance with current legislation.
4. Providing a check upon request of the counterparty
If your consumer or client requests a check, you must provide it. A receipt is a document confirming the fact of purchase and may be important for the client for subsequent accounting or guaranteeing rights. Please remember that failure to provide a check when requested by a counterparty may affect your business relationship and have negative consequences.
5. Other Responsibilities
In addition to the responsibilities listed above, there may be other requirements depending on the specific type of activity. It is important to be aware of all the requirements and conditions that apply to your business. If you operate certain businesses, such as taxis, car repairs, or hairdressing, you may need a special permit or registration to perform these services.
In general, when operating unregistered in Poland, there are certain responsibilities that must be followed in order to remain law-abiding and avoid problems with the authorities or your clients. Make sure you fully understand all requirements and legislation associated with your business and apply them to your work.
💡 Examples of best practices:
- Keep a complete record of all financial transactions of your business to have a clear understanding of income and expenses.
- Contact a tax advisor for assistance completing your PIT-36 return and accounting for expenses.
- Follow customer service guidelines and satisfy all customer requirements in accordance with the law.
- Listen carefully to customer requirements and provide receipts upon request to verify purchase.
What to do if the proceeds increased above 75% of the minimum wage
One of the features of business in Poland is the official registration of activities. However, there is a way to run a business without official registration if the revenue level does not exceed 75% of the minimum wage. Let's figure out what you need to do if your revenue starts to grow and exceeds this level.
If your revenue has grown above 75% of the minimum wage, in accordance with Polish law, you must register your business as a full-fledged business entity. In Poland, there are several forms of legal structures for registering a business, such as Jednoosobowa działalność gospodarcza, Spółka z o.o., Prosta Spółka Akcyjna and others. The choice of form depends on many factors, including the size of the business, the number of participants and the degree of responsibility. Please note that this procedure must be completed within the next 7 days after the revenue level is exceeded.
To uncover the process of officially registering an activity in Poland, we invite you to consult the official government booklet on unregistered activity, compiled in 2018, which provides details of the procedures, as well as the specific requirements that need to be execute.
However, besides official registration, there are other ways to conduct business in Poland without official registration. For example, you may work under contracts with other companies, act as a freelancer, or provide services through agents or suppliers. These methods can be especially useful for those who need flexibility in their work or temporary business.
However, before deciding to conduct business without official registration, you must carefully weigh all the advantages and disadvantages of this approach. Consider the following:
- More flexible work hours and taxation
- No need for full accounting and salaries to employees
- Possibility of quickly stopping the business if necessary
- Limited access to some opportunities provided only to full-fledged business entities
- Possible legal problems with work without official registration
- Limited opportunities for business expansion
If you do decide to business without official registration, we recommend consulting with lawyers specializing in business activities in Poland. They will be able to provide you with advice and assistance in preparing the necessary documents to legally conduct business.
Do you want to start your business in Poland without official registration? Contact our experts to receive qualified support and guidance in your business process.
Be careful! All information provided in this article is generalized. Before making any decisions regarding starting a business without formal registration, be sure to consult with an attorney or tax advisor.
|Working with contracts
|Working as a freelancer
|Working through agents/suppliers
Start your business in Poland without official registration, but remember that to run a successful business, all decisions must be justified and based on official information.
Frequently asked questions on the question “How to conduct business in Poland without official registration? "
Unregistered activity in Poland means carrying out a business without official registration and obtaining the appropriate permits from government authorities.
You can carry out unregistered activities in Poland as long as your income from this activity does not exceed the permissible level.
From 1 July 2023, the allowable income limit for unregistered activities in Poland is a certain amount (the amount may vary depending on the year).
Yes, foreigners can also carry out unregistered activities in Poland, subject to certain rules and conditions.
The company sample provides certain benefits and advantages, such as the ability to carry out business without official registration and payment of taxes.
A foreigner carrying out unregistered activities in Poland is required to comply with all laws and regulations related to business, as well as strictly pay taxes.
You must issue a receipt to every customer when you sell goods or services, whether your business is registered or not.
For unregistered activities, you must independently keep records of sales and income in order to be ready to provide information to government authorities if necessary.
Consumers have the right to receive quality goods or services and to have their rights protected in accordance with Polish law.
For unregistered activities, you must file a PIT-36 tax return and calculate taxes in accordance with the rules and laws.
Thank you for reading this article!
You have just learned unique and valuable information about how you can successfully conduct business in Poland without the need for official registration. Previously, you might not have even imagined that such an opportunity existed! Now you have become an expert in this field.
So, dear reader, don't hesitate to get involved in Polish entrepreneurship and show the world what you can do! May you always have a smile on your face and may luck be your constant companion. After all, now you know the secrets of running a successful business in Poland without official registration.
Thank you for reading this article, for your interest, and for becoming smarter! We wish you many new projects, profitable deals and endless opportunities. Good luck in all your entrepreneurial endeavors!
🚀 Let's fly to new heights! 🚀