If the specified revenue limit is exceeded, the activity automatically becomes a business activity, and the person carrying it out is required to register with the Central Register and Information on Economic Activity within 7 days.
Exceeding the threshold and the obligation to register
Exceeding the monthly revenue limit results in the status of the unregistered activity changing to a business activity. In such a case, the person carrying out the activity is obliged to submit an application for registration with the CEIDG within 7 days of the month in which the threshold was exceeded.
Unregistered business activity does not require prior notification to the CEIDG or obtaining a NIP or REGON number. The formal obligation to register arises only after the permissible revenue limit has been exceeded.
Insurance and social security contributions
As a general rule, carrying out unregistered business activity does not give rise to an obligation to pay social security and health insurance contributions. However, according to ZUS, an exception applies to situations where the activity involves the provision of services — in such cases, it may be classified as work performed under a civil law contract, which gives rise to an obligation to register for social security and pay the relevant contributions.
On the other hand, the sale of goods, as an activity not subject to the regime of civil law contracts for the provision of services, does not, as a rule, give rise to an obligation to pay contributions.
Who can carry out unregistered business activity?
Only natural persons may carry out unregistered business activities. It is not possible for legal persons or organisational units without legal personality to do so.
However, certain groups of natural persons are subject to additional restrictions or specific rules arising from separate legislation. These include foreign nationals, minors, the unemployed, civil servants and public officials, as well as farmers.
Summary
Unregistered business activity is an attractive form of gainful employment for natural persons intending to operate on a small scale. The basic condition is not exceeding the monthly revenue limit and not having previously conducted business activity in the last five years.
Despite the simplified nature of this form of business, certain groups of people should take into account specific regulations and restrictions arising from their legal status.
The practice includes ongoing advice on administrative and tax law. He has extensive experience in handling judicial, administrative, tax and judicial-administrative proceedings concerning both individual clients and business entities, including that gained through many years of providing services to local government units and other units of the public finance sector.
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