Posted by Dawid Ruth
on September 12, 2025
I often see many questions regarding unregistered business activity on various forums. Some of the questions include:
- How to start running an unregistered business?
- Do I need a cash register?
- Do I need a Tax Identification Number?
- How are taxes calculated?
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How much can I earn?
I thought I'd gather some information that will definitely be useful if you're just starting out in the industry. Let's say you want to try opening a beauty salon and see how running your own business goes for as little cost as possible ;).
I say "on a trial basis" because it's been legal since 2018. Unregistered (unregistered) business activity requires minimal investment and paperwork (no company registration, no accounting, etc. required). It's a great opportunity to see if your business idea makes sense and how you feel about it. I wrote recently that it's best to test your skills on family and friends, but after some time, we need to start working with "real" clients – this way, we'll get feedback on what we can improve and become even better.
Unregistered business activity bypasses the obligation to register and pay social security contributions, which is a significant advantage at the beginning. An 18% tax is paid on income when filing the personal income tax return, avoiding many formalities and costs.
And if your business takes off... then you "jump" to a higher level and start a company - but then you already know more or less how to run a business in our industry and it becomes much, much easier for you ;).
That's why it's worth considering a business name now, creating a logo, and creating a Facebook or Instagram profile. You can certainly use your company name and logo, but for now, the company is the individual, i.e., YOU. You can issue invoices (it's important that they include your details), have business cards or letterhead, and even a website.
If you like the work and feel good in it, you can think about a more serious activity (you will know when the right moment is) - for now, I have prepared some information about NDG for you in the form of questions and answers.
Who can conduct unregistered business activity?
There are only three conditions that must be met to run an unregistered business. First, the income from unregistered business activity cannot exceed half the minimum wage in any given month – I'll write about that in a moment. The second condition is that you haven't conducted any business activity in the last 60 months. And you must be an adult ;).
What do I need to do to start an unregistered business?
To start an unregistered business, simply start keeping simplified sales records (this can be a table like this: - see template ). You don't need to report the start of your business anywhere.
But what is a sales record?
A sales ledger is a summary of all payments received from your clients. It can be kept in paper format – it's best to allocate a dedicated notebook for this purpose, where you can record sales for a given day in a table format (no later than the next day's sale).
What should be included in the sales records for unregistered activities?
There are no predetermined elements of a simplified sales record, but it typically includes: the sales number, the sale date, the sales value, and the sales value (this can be a table - see the template ). It's worth adding a monthly sales summary because if we exceed the limit, which I'll mention in a moment, we'll have to register the company within 7 days.
What is the income limit for unregistered activities?
The income from this activity cannot exceed half of the minimum wage in any given month, as specified in the current Minimum Wage Act. In 2023, the President signed a law raising the income limit for unregistered activities from 50% to 75% of the minimum monthly wage. The regulations are scheduled to take effect in July 2023. The revenue limit would then be (in 2023) PLN 2,700 !
What is revenue anyway?
Revenues are all payments (cash) that you received from customers for products sold or services provided.
Do I have to pay income tax on unregistered activities?
Yes, income from unregistered activities is taxed under general rules and should be settled in the PIT-36 form. Data from the activity should be entered in part E, line 9: "Unregistered activities, specified in art. 20 sec. 1ba of the Act." In field 111, enter the income from the activity, in column 112 the costs incurred in connection with this activity, and in column 113 the actual income. You can find more information on this topic. here .
Do I need a cash register?
Yes. From July 1, 2021, online cash registers are required for businesses that provide services such as hairdressing, beauty and cosmetology, construction, healthcare, legal, and fitness facilities (entry only). The requirement to register transactions using a cash register, as well as businesses that are not VAT exempt due to sales value, require obtaining a Tax Identification Number (NIP), even for unregistered businesses. You can find more information on this topic. here .
Do I need a Tax Identification Number?
People operating without registration who must use a cash register are also required to obtain a Tax Identification Number (NIP). Without it, a cash register cannot be fiscalized. If you're interested in how to buy a cash register or whether you qualify for funding, let me know – I'd be happy to write a post on this topic for you.
Will I incur accounting costs?
If completing a standard PIT form is no problem for you, you don't need an accountant and don't incur bookkeeping costs. You can also outsource the PIT form itself to an accountant or someone experienced in this field. Foundations, for example, sometimes assist with completing the return, and tax offices also offer assistance.
What about bills and invoices?
You can issue a bill or invoice at the customer's request. The bill should include the following information: the serial number, the date of issue, the seller and buyer details, the name of the service, and the amount due. The invoice should include the date of issue, the number, the names and addresses of the taxpayer and the buyer of the goods or services, the name of the goods/service, the number of items delivered or the scope of the service, the price, and the total amount due.
What issuer details should be on the bill?
As the issuer, you provide your name, surname, home address and Tax Identification Number.
Can I legally advertise and promote my unregistered business?
Yes, including via websites.
Can I use the name and logo?
Yes, it is important that the account contains your details, i.e. the details of a natural person.
Can I accept payments in cash and by bank transfer?
Yes. Both forms are allowed.
Can only an adult perform unregistered activities?
Yes. Only an adult has full legal capacity.
Do I need to open a separate bank account?
This is not necessary, you can use your account.
Can unregistered activity be conducted with interruptions (e.g. several months of service provision, several months of downtime)?
There are no contraindications to this, as long as the monthly threshold for receivable income is not exceeded at any time, which means that the activity is no longer considered an unregistered activity and becomes a business activity.
You can start running a business "on a trial basis" without any problems and easily if you meet the conditions (remember that these are: being of legal age, not exceeding the income limit, and not conducting business activity for 60 months ). Theoretically, we don't need a Tax Identification Number (NIP), but in practice, in the cosmetics industry, due to the need to have a cash register, you need to apply to the Tax Office for a Tax Identification Number (NIP). Then, all you need to do is keep meticulous records of sales and develop your business ;)
I also have more information for you about the cash register and related topics. (costs, funding opportunities, etc.) - please write if you have experiences that you can share with us.
