Conducting business without registration

How do you set up a business without registering it? Is it even possible to run a business without registering it? In this article, we answer these questions, highlighting the opportunities offered by running an unregistered business and signing an agreement with a business incubator. Would you like to find out more? If so, please read on!

Illegal business activity: is it possible to run a business without registration?

In accordance with paragraph 1 of Article 601 of the Act of 20 May 1971 – the Code of Misdemeanours (i.e. Journal of Laws of 2023, item 2119):

“Anyone who carries out business activities without the required notification to the business activity register, entry in the register of regulated activities, or without the required licence or authorisation, shall be liable to a penalty of restriction of liberty or a fine.”

However, pursuant to Article 3 of the Act of 6 March 2018 – Entrepreneurs’ Law (consolidated text: Journal of Laws of 2024, item 236):

“A business activity is an organised gainful activity carried out in one’s own name and on a continuous basis.”

The provisions cited above mean that, as a general rule, anyone who undertakes activities that may meet the statutory definition of an economic activity is obliged to register it. Failure to register therefore exposes the person to a fine or even a custodial sentence.

There are, however, certain exceptions to this rule…

Unregistered business activity as a way of carrying on business without registration

The most important exception of this kind is, of course, the possibility of carrying out unregistered business activity.

Unregistered business activity (also known as unregistered or unreported business activity) refers to small-scale activity that does not require the formation of a company or entry in the Central Register and Information on Economic Activity.

Although this activity meets the key criteria of a traditional business, it is subject to very significant restrictions.

These relate primarily to the limit on the revenue that can be generated from such activities.

In any given month, this revenue must not exceed 75 per cent of the minimum wage.

In 2024, the exact revenue limit for unregistered business activity is:

• From 1 January to 30 June 2024: 3,181.50 PLN;
• From 1 July to 31 December 2024: PLN 3,225.

Exceeding these monthly limits automatically triggers the obligation to register with the CEIDG.

Furthermore, you may only carry out unregistered business activity if you have not conducted any business activity during the previous 60 months (i.e. 5 years).

That said, unregistered business activity is by no means a solution for everyone. Even if you generate only small amounts of income, you must still register any business activity that requires a permit, licence or entry in the register of regulated activities.

However, an unregistered business is not the only way to carry out business activities without registering a company…

Running a business without a business registration is possible thanks to a business incubator!

Your own business without registration? Yes, it is possible – even if your income exceeds 75 per cent of the minimum wage!

Such opportunities are provided by business incubators available on the market.

A business incubator (sometimes also referred to as an entrepreneurship incubator) is an organisation that supports entrepreneurship by lending its legal personality to individuals with a business idea who, for various reasons, do not wish to register their own company.

In practice, therefore, an incubator provides an opportunity to bring business ideas to life in the cheapest, quickest and, above all, least risky way. All this whilst retaining the benefits associated with running one’s own business.

What opportunities does a business incubator offer?

• The ability to issue VAT invoices;
• The ability to enter into B2B contracts;
• The ability to claim business purchases as tax-deductible expenses;
• The ability to take part in tenders;
• The ability to employ staff.

All this is within your reach thanks to a civil law contract signed with a business incubator!

Do you have a business idea but don’t want to set up your own company? Make use of our services!

The ‘Firma Dla Każdego’ Foundation is the highest-rated business incubator in Poland, supporting entrepreneurship among Poles and foreign nationals by enabling them to bring their business ideas to life on market terms.

Make your dream of running your own business come true today without having to register it!

We’ll sort out the paperwork in no more than 15 minutes and take full responsibility for running the business. With us, you won’t have to worry about inspections by the Social Insurance Institution (ZUS) or the tax office, nor about bookkeeping or tax returns.

Interested? Check out the details of our offer on our website: firmadlakazdego.pl.

Sources:

• Act of 20 May 1971 – Code of Misdemeanours (consolidated text: Journal of Laws of 2023, item 2119)
• Act of 6 March 2018 – Entrepreneurs’ Law (consolidated text: Journal of Laws of 2024, item 236)
• https://www.biznes.gov.pl/pl/portal/00115
• https://www.infakt.pl/dzialalnosc-bez-rejestracji/
• https://firmadlakazdego.pl/czym-jest-inkubator-przedsiebiorczosci/
• https://firmadlakazdego.pl/