Starting your own business

Registration with CEIDG

You have received an interesting job offer on a B2B basis, so business-to-business, but you don’t have your own business? Do you want to start your own company, but don’t know where to begin? More and more people are giving up full-time positions in favour of having their own business. The benefits of this form of employment are many, and the formalities associated with starting your own business are no longer cause such difficulties as they once did. It’s enough to take just a few simple steps.

The first step is registration with with Central Registration and Information on Business (CEIDG). To this end you need to properly complete an CEIDG-1 application, available on the CEIDG website. It is not complicated, but you should read the instructions for filling-in the form and have the following information ready: name of the company, address of activity, date of commencement, form and place of taxation, bank account as well as the business classification code (PKD). Registration with CEIDG is free.

The integrated CEIDG-1 application is simultaneously registration with ZUS (or KRUS) for calculating contributions for social and health insurance, with the Central Statistical Office for obtaining a REGON number as well as Inland Revenue for the issuance of a NIP (tax ID) number or to update it.

Choice of form of taxation

Starting your own business, you have a choice of one of four forms of taxation: on general terms, under which the taxation rates are 18% and 32%, a flat tax of 19%, a tax on registered income without deductible costs, or a fixed-amount tax. The most frequently chosen options are the first two forms, which have the advantage of the ability to deduct expenses. Expenses reduce the tax base, which translates into greater income for the entrepreneur.

Expenses you can deduct include:

  • accounting expenses,
  • education-related expenses, including trainings, books and magazines linked with the activity and development of the company,
  • office supplies,
  • computer equipment needed for work, Internet, telephone,
  • entertainment allowance (lunch, attire for business meetings with clients),
  • car and petrol (under certain conditions),
  • rent and fees associated with the maintenance of an office (in the case of a home office, it is required to declare what percentage of the residence is used for the business).

VAT registration

The next question is the tax on goods and services (VAT). When starting a business, you can register as a VAT taxpayer. This is an individual decision and before taking it you should consider all the advantages and disadvantages. It is worth consulting with e.g. a tax accountant who knows the current statutes precisely and can advise you whether in your case it is worth becoming a VAT taxpayer or not.

It should be mentioned that certain kinds of activities or level of sales require that a business register as a VAT taxpayer. This is covered by Article 113 of the law on VAT.

Registration for VAT is free and can be done by submitting form VAT-R to the appropriate Tax Office or attaching the VAT-R registration to the CEIDG-1 application.

Registration with ZUS

After completion of the application and registration of the company, contacting the local ZUS office is required within seven days of the commencement of business for the purpose of choosing the form of insurance ZUS ZUA/ZZA).

As a new entrepreneur, you can take advantage of the so-called little ZUS, or making smaller social insurance contributions for a period of 24 months. The minimal ZUS contribution for those starting a business (January-December 2016) is 465,28 PLN.

There are, however, some exceptions. Those who cannot take advantage of preferential ZUS contributions are:

  • entrepreneurs, who have run a non-agricultural business in the past five years,
  • persons, who as part of a business work for a former employer (insofar as they are performing the same work as they had previously under terms of an employment contract).
  • members of general, professional or limited partnerships
  • owner of one-person limited liability company,
  • individuals obliged to pay contributions, who do not posses a registered business.

The full monthly contribution to ZUS for a business activity (for January-December 2016)is 1121,52 PLN.

Suspension of activity

If at a certain time in your business you do not have the money to pay contributions or are dreaming of several months of vacation, you do not have to shut down the business. You can simply suspend a one-person business for a period from 30 days to 24 months.

The application for suspension of business activity is submitted to the appropriate local council office or in electronic form through the CEIDG webpage.Submission of information regarding the suspension of business activity as well as regarding its resumption is free of charge.

ePUAP, or the Electronic Platform of Public Administration Services

It is much easier to take care of administrative matters when you have a verified e-signature or a free trusted profile (for contacts with administration only) on ePUAP, or the Electronic Platform of Public Administration Services. By having a verified e-signature you can take care of many administrative services without having to leave home and in this way save a lot of time.

If you think, however, that starting your own business is beyond what you can do, you can always get advice from a trusted accountant, for example. There are also many firms offering comprehensive assistance in taking care of the formalities of starting a business, and also offering entrepreneurs consulting and accounting services. If you take advantage of such services, then you will only have to register with the local council office and confirm your CEIDG application with your signature.

In case of any problems or questions, you can also call the CEIDG infoline at 801 055 088.