A BUSINESS WITHOUT ZUS – WHAT DOES IT LOOK LIKE AND HOW DO YOU RUN IT?

There has been a lot of talk again about setting up a business without ZUS in 2023. This is all down to the increase in income limits. Setting up a sole trader business, particularly in these uncertain times, involves a great deal of risk. It is precisely for this reason that so many people give up on their dream of becoming a business owner.

If you’re not sure whether the business idea you have in mind will prove successful, you can always try running an unregistered business. Find out what conditions you need to meet and what it’s like to run a business without ZUS. What limits will apply from 2023? What are the restrictions on running a business without ZUS? Find out everything in this article!

A business without ZUS, or what is unregistered business activity

An unregistered business is one of the ways to run your own business in Poland. The difference is that, unlike other forms, it does not require registration. To be able to run a business without ZUS, you must meet certain requirements.

Running a business without registration also comes with certain obligations. However, a business without ZUS is a very good way to start out, particularly if this is your first foray into the world of business.

What are the advantages of running a business without ZUS in 2023?

• Testing your business idea

An unregistered business can serve as a test to see whether your business idea will attract customers and provide you with a steady income. If you run your business in this way for a few months, you’ll be able to check whether your business would quickly fail or start making a loss. To put it simply, you’ll find out whether your idea makes any sense at all.

It’s also a very good learning experience in terms of marketing. You can find out what piques your customers’ interest and which activities yield no results. You’ll also be able to verify whether the services you offer are of interest to your potential target audience, or whether you need to modify them significantly.

An unregistered business does not require as much financial outlay as running a sole trader business. This is another advantage, as it allows you to limit your financial risk.

• You’ll find out whether you could manage to run a business

Many people, even those with very good business ideas, worry that they simply won’t be able to fulfil all the obligations involved in running a business. Particularly at the very start, the amount of information you need to take on board can be simply overwhelming.

To avoid jumping in at the deep end straight away, it’s worth trying out an unregistered business first, which is, by its very nature, much simpler and involves far fewer obligations.

You don’t need to worry about complex bookkeeping or having to fill in a huge amount of paperwork. However, even with this form of business, it’s worth signing contracts with clients to protect yourself financially.

What is it like to run a business without ZUS?

You do not have to pay ZUS contributions, which results in very significant monthly savings. Although ZUS contributions for new entrepreneurs are not high, they can still feel very burdensome given the risk of having no income.

A business without ZUS also means no bookkeeping. You do not need to hire an accountant, as your only obligation is to keep simplified sales records. You only need to file your tax return once a year. You are not obliged to pay income tax instalments every month.

You do not need to register your unregistered business with CEDiG. No filling in or submitting forms, and none of the associated stress. Once you decide to run a business without ZUS, you’ll be able to work however you like. This form of business is mostly chosen by people who can work remotely.

A business without ZUS – what are the limits for 2023?

With an unregistered business, your income must not exceed 50 per cent of the minimum wage for the given year. As is the case every year, the minimum wage has been increased since January. This has automatically raised the income limit for unregistered business activity. From January 2023, it stands at 1,745 zlotys.

If you exceed this limit, you then have just 7 days to register your business with CEDiG.

There is one more very important point that is to your advantage. From July 2023, there will be a further increase in the minimum wage from 3,490 zlotys to 3,600 zlotys gross. At that point, the limit for unregistered business activity will be 1,800 zlotys. We’d also like to remind you that as recently as 2022, this limit was only 1,505 zlotys, so the increase is significant.

Summary

Running a business without ZUS contributions in 2023 is a very good way to test your business idea. The revenue limits are low, but they are rising every year. It’s worth considering this form of business for a start-up and trying your hand at running a business.