WHAT ARE THE COSTS OF SETTING UP A BUSINESS?

Since you’ve come across this article, you’ve probably been thinking about starting your own business for some time now. Perhaps what’s holding you back the most is the fact that you can’t afford the costs of setting up a business.

Find out how much it costs to register a sole trader business and what the other running costs are. In this article, you’ll learn how much money you should have to get started in order to be successful and not have to worry about every zloty you spend.

What are the costs of setting up a sole trader business in 2023?

Are you wondering what the costs are for setting up a sole trader business? We’ve got some very good news for you. It COSTS NOTHING! You can submit your application to register your business online or take it in person to the relevant office.

The only potential cost involved in setting up a business is the fee for a power of attorney. This fee has remained unchanged for years and amounts to just 17 zlotys. You do not have to pay this fee for a power of attorney granted to your husband, wife, children, parents, grandparents, grandchildren or siblings.

You do not need anyone’s help to register a sole trader business online. A power of attorney is also not required.

Setting up a business – costs associated with VAT registration

VAT registration will also cost you nothing. The only exception is if you request confirmation of your registration. In that case, unfortunately, you will have to pay 170 zlotys. To clarify, we’d like to add that you don’t actually need such confirmation to run your business. It’s a completely unnecessary expense.

How much does running your own business cost? Administrative and tax charges

What most often keeps business owners awake at night are social security contributions (ZUS). The amount depends on the type of insurance you’re covered under.

• If you’re on the start-up relief scheme or combine running your business with full-time employment, you only have to pay the health insurance contribution, which is around 300 zlotys.
• If you pay the so-called ‘Mały ZUS’, this currently amounts to around 600 zł.
• If you pay the so-called ‘Small ZUS PLUS’, the amount of the contributions depends on your business income from the previous calendar year. The amount falls between that of the standard ZUS and the ‘Small ZUS’.
• If you pay the so-called ‘Large ZUS’, this currently amounts to as much as 1,600 zlotys.

How much does it cost to set up your own business?

Another cost incurred after registering your business is income tax advance payments. As the name suggests, the amount of these payments depends on your income. With high sales and low costs, you risk having to pay a very high amount of income tax.

What other expenses might you face after setting up your own business?

One such less obvious expense is the purchase of a cash register. Many sectors simply have to have one in order to operate legally. The cost of buying a cash register ranges from 500 to as much as 4,000 zlotys. The good news is that the government may reimburse you up to 700 zlotys.

How much does a sole trader business cost? A summary of potential costs

Before setting up your own business, you should have money set aside for:

• paying social security contributions (for at least three months);
• third-party liability insurance (required in certain sectors);
• purchasing a cash register;
• accounting (an accountant – 200 zł, software for doing your own bookkeeping – at least 45 zł).

On top of this, you’ll need to factor in the cost of renting an office if you can’t run your business from your own home. The running costs of an office include rent and utility bills, such as electricity, gas and internet.

As you can see, although setting up your own business costs nothing, before you can really get off the ground, you should be prepared for significant expenses even before you find your first client.