What activities are not obligated to be registered in Poland

According to new legal Polish forms from 2018 , it is possible to carry out economic activities without registering a company. An unregistered activity (działalnośćnierejestrowana) is a small commercial activity that does not require company registration. This type of activity is very convenient for aspiring entrepreneurs. This usually applies to small businesses with a monthly turnover that does not exceed the amount established by law. Your business turnover per month cannot exceed half of the minimum wage (in 2021 it equals PLN 2,800).All other activities must be registered as an individual entrepreneur or as a legal entity.

Conditions:

• You are an individual
• Business revenue does not exceed 50% of the minimum wage, ie. less than or equal to 1400 PLN per month
• You have not carried out any commercial activity in the past 60 months

Benefits:

• You do not need to keep full accounting, simplified calculation is enough
• No need to pay to ZUS
• No need to report business in the business register (CEIDG)
• You do not need to have tax and statistical numbers (NIP and REGON)
• No need to pay social and health insurance contributions
• There is no need to have a fiscal office (unless the type of activity requires it –for example, a hairdresser)
• There is no need to keep complex records of activities and pay monthly or quarterly taxes (however it depends on the type of activity – for example, legal activities or consulting services must pay VAT)
• No need to issue invoices.

IMPORTANT! Do not forget to indicate the income received in the annual PIT-36 declaration in the “other income” section, and also make tax deductions in accordance with your income on a progressive scale of 17% and then – 32%.

Obligations when conducting unregistered activities:

• Maintaining simplified sales records
• Report income (net of costs) on the PIT-36 annual tax return according to the tax scale
• Provide invoices if buyers request
• Respect consumer rights

IMPORTANT! It is necessary to adhere to the requirements of the legislation in the field of consumer rights, i.e. allow the return of the product within 14 days from the date of sale.

The right of foreigners who conduct non-registered activities

Not all foreigners can conduct unregistered activities in Poland. According to Polish law, this type of activity can be carried out by foreigners who can open an individual entrepreneur (jednoosobowadziałalnośćgospodarcza) in Poland, for example:

• Foreigners who are citizens of a state-member of the European Union or the European Economic Zone
• Foreigners who are citizens of another country, if they have:
• permanent residence permit
• residence permit for long-term resident of the EU
• temporary residence permit
• temporary residence permit due to family reunification
• foreigners married to a Polish citizen
• foreigners who have a permit for temporary residence for the purpose of living
• business activities issued in connection with the continuation of already existing business activities based on the basis of data storage in the center of the review
• foreigners with a valid Polish card.

You can find more information about individual entrepreneurship for foreigners on our website, following the link https://progressholding.pl/en/incorporation-in-poland/

In Poland, there are also separate types of activities that do not need to be registered, regardless of the amount of income received. These include:

• Farm agritourism
• Master’s winemaking (no more than 100 hectoliters of wine should be produced per year)
• Retail trade in agricultural products, provided that the products are sold only at retail and in the place where they were produced, hired employees were not involved in the work on a contractual basis, these products include only products of our own production.

IMPORTANT! In case you exceed 1400 PLN, it will be necessary to register the economic activity with all the ensuing consequences, including the payment of ZUSwithin 7 days.