Unregistered business activity and remote working in 2025.

Unregistered business activity and remote working – the law, taxes and practice

Unregistered business activity, also known as unreported business activity, is an attractive way of carrying out small-scale economic activity without the need for formal company registration. It is becoming particularly popular amongst full-time employees and micro-entrepreneurs who wish to gain an additional source of income whilst maintaining the stability of their employment. Against the backdrop of the rapid growth of remote working, questions are arising about the possibility of combining these forms of activity, as well as the associated legal, tax and insurance obligations.

Definition and legal framework of unregistered business activity

Unregistered business activity is defined in the Entrepreneurs’ Law as a business activity where the revenue in any given month does not exceed 75 per cent of the minimum gross wage, and which has not been carried out in the last 60 months as a formally registered business. In 2025, this limit stands at 3,499.50 PLN per month (75 per cent of 4,666 PLN gross).

Persons carrying out such an activity are not required to register with the CEIDG, nor to report the activity to the Social Insurance Institution (ZUS), the Central Statistical Office (GUS) or the tax office for the purposes of business registration. They are also not obliged to keep full accounts or to pay ZUS contributions in respect of this activity. However, they are obliged to keep simplified sales records and to declare their income and expenses in their annual tax return on the PIT-36 form, where the income is taxed according to the general rules (17% or 32%).

Full-time employment versus unregistered business activity

Polish law does not preclude combining employment under an employment contract with carrying out unregistered business activities. Income from unregistered business activities is not subject to the obligation to pay social security and health insurance contributions, as these are already covered by the employer under the employment contract. As a result, it is possible to fulfil one’s duties as an employee whilst simultaneously developing one’s own business as part of an unregistered business activity.

It is important, however, that the additional business activity does not breach the terms of the employment contract, in particular the non-competition clauses. A breach of such a clause may result in the termination of the employment contract without notice and claims for damages from the employer.

An employee is not obliged to inform their employer about starting a business not registered as a legal entity, unless required by internal regulations or the nature of their profession (e.g. civil servants, persons in positions subject to restrictions). It should be borne in mind, however, that such business activities must not be carried out during working hours nor affect the quality of the employee’s professional duties.

The nature of remote work

Remote working, particularly in professions such as virtual assistance, e-commerce or online consultancy, is perfectly suited to unregistered business activities. People carrying out administrative tasks, customer service, document preparation or managing social media profiles can make use of this form of business activity, testing their services without any formal obligations.

For example, a virtual assistant providing calendar management, email handling and simple graphic design services is entitled to operate as a self-employed person, provided her income does not exceed the monthly limit. As the business grows, exceeding this limit will necessitate the registration of a business.

An important aspect is compliance with data protection regulations (GDPR) and copyright laws regarding the materials produced. In the context of remote working, maintaining the confidentiality of client information and implementing appropriate technical safeguards are essential.

Tax obligations

Taxpayers running an unregistered business are required to keep simplified sales records, which may be maintained in paper or electronic form (e.g. a spreadsheet). These records are used to determine income and to monitor the 75 per cent limit of the minimum wage.

Taxable income comprises amounts actually received or made available during the calendar year, including the value of benefits in kind. It should be noted, however, that for the purposes of the monthly income limit, amounts due are also included, even if they have not yet been paid.

Income from unregistered business activities is reported in the annual PIT-36 tax return, under the section dedicated to unregistered business activities. Income tax is calculated according to the tax scale, and a loss from unregistered business activity cannot be used to reduce income from an employment contract.

Social security and health insurance

Unregistered business activity does not entail an obligation to pay social security and health insurance contributions in respect of carrying out that activity. Contributions are paid solely in respect of an employment contract, if one exists. In the case of providing services under civil law contracts (e.g. a contract for services), the obligation to register with ZUS and pay contributions rests with the client.

It is worth bearing in mind that people carrying out unregistered business activities who have no other basis for insurance cover may voluntarily join the social insurance scheme.

Restrictions and exclusions regarding unregistered business activity

Not everyone is eligible to carry out unregistered business activities. A prerequisite is that the person has not carried out any business activity in the last 60 months. Individuals previously registered as entrepreneurs must wait for this period to elapse before they can once again utilise this form of business activity.

In unregistered business activities, it is not permitted to carry out activities requiring a licence, authorisation or entry in the register of regulated activities (e.g. personal and property security, the sale of alcohol, detective services). Furthermore, it is not permitted to carry out business activities that compete with one’s employer if there is a relevant prohibition in the employment contract.

Practical aspects of remote working and self-employment

Remote working offers flexibility in terms of organising one’s time and the location where tasks are carried out. For those carrying out unregistered business activities, this enables them to fulfil assignments without having to rent office space or invest in infrastructure. At the same time, it is important to bear in mind that obligations arising from the employment relationship, such as diligence and care, must be respected, and unregistered business activities must not interfere with the performance of one’s full-time duties.

In the case of remote working, the employee should also ensure appropriate technical conditions and data security, particularly if, as part of their unregistered business, they process confidential information or their clients’ personal data.

Summary

Unregistered business activity is a flexible and advantageous form of supplementary income that fits perfectly within the remote working model. It allows business ideas to be tested without incurring the costs of registration or the obligations associated with a formal business. Combining it with employment under a contract of employment is permissible and commonly practised, provided that income limits are observed and obligations towards the employer are met.

Those interested in this arrangement should monitor their monthly income, keep accurate records and respect the provisions of their employment contracts regarding non-competition and confidentiality. We must also bear in mind tax obligations, including the declaration of income on the PIT-36 form.

In the context of remote working, unregistered business activity allows you to take full advantage of the flexibility of this model, but requires care in organising your work and compliance with data protection and consumer rights regulations. If in doubt, it is worth consulting a tax adviser or a lawyer specialising in employment and business law; if you need support, please feel free to contact our business incubator.