How to start your own business?
The simplest organizational form of conducting business activity by natural persons is sole proprietorship.
Business registration is made by submitting an application for entry in the Central Register and Information on Economic Activity (CEIDG) electronically or in paper form at the City Hall in Łomża.
This form of business registration cannot be used by legal persons (including sole proprietorships of commercial law established by a natural person),
which, under the law, are subject to the provisions on legal persons and register through an entry in the National Court Register.
The Law on Entrepreneurs, which is part of the Business Constitution, regulates in art. 5 issues related to unregistered activities.
This form of business activity can be used by anyone whose monthly income does not exceed 50% of the minimum wage and who has not carried out economic activity during the last 60 months.
The minimum remuneration for work in 2018 is PLN 2,100 gross, therefore the income limit for unregistered activities is PLN 1050.
Conducting unregistered activities does not release you from the obligation to pay income tax on account of earned income, as the revenues from this are not exempt from tax.
The taxpayer shows the achieved revenues and the costs of obtaining revenues due to conducting unregistered activities in the annual tax return PIT-36 in the part "Other sources".
These revenues are taxed according to the tax scale (18%, 32%). An application for entry into the CEIDG is also a notification to ZUS / KRUS, GUS and the head of the tax office.
Therefore, when setting up a business, you should consider:
- social security issues
codes of PKD activity of the conducted business activity
form of taxation.
The insurance obligation in relation to a person conducting non-agricultural activity arises from the day of commencing the activity and ceases on the day of cessation of its activity. Regardless of whether the activity is periodic or not, the obligation to pay social security contributions exists throughout the year and is not dependent on income. Deregistration or suspension of activities results in the termination of the insurance obligation.
An entrepreneur starting a business is obliged to indicate the subject of his activity in accordance with the Polish Classification of Activities (PKD). Providing codes is necessary at the stage of establishing a company. Changing the scope of business is possible provided that the PKD codes in CEIDG are updated. A person starting a business chooses the form in which they tax.
The following forms are available for choosing the taxpayer:
taxation on general principles, using a progressive tax scale (18% and 32% rates)
flat tax - 19% rate
flat-rate taxation - a lump-sum tax on registered income or a tax card
Below in a few steps we present how to set up a company.