Since 30 April 2018 important changes for entrepreneurs registered in CEIDG
Do you want to register a sole tradership? Or maybe you are already running such a business and planning changes, e.g. suspension or resumption of the company? From 30 April 2018, the provisions of the Business Constitution will come into force, which will change, among other things, the rules concerning entries in the Register of Entrepreneurs (CEIDG).
The changes concern, among others
- information to be provided in an application for a company registration
- the deadlines for the notification of changes to CEIDG
- rules for the notification of attorneys-in-fact
- applications for insurance in ZUS through CEIDG
The changes also apply to the rules for reporting suspensions/resumption of a company.
Note! The new Law on Entrepreneurs introduces the possibility of indefinite suspension of a company registered with CEIDG as of 30 April 2018 (the remaining minimum period of suspension is 30 days). So far, the suspension has been possible for a maximum period of 24 months. An entrepreneur who did not resume his activity within this period was automatically removed from CEIDG. According to the new rules, if the entrepreneur does not submit an application for resumption, he will not be removed from the CEIDG regardless of the period of suspension.
- The possibility of indefinite suspension applies only to companies registered with CEIDG.
- Companies registered in the National Court Register may suspend their activities under the old rules (from 30 days to 24 months).
Remember! If you have suspended your activity and have not yet applied for resumption, the suspension will automatically change to an indefinite one. You will not be removed automatically from CEIDG 24 months after the suspension!
The new regulations apply both to entrepreneurs who are just planning to start their business and to those who run a business.
What changes for entrepreneurs planning to register a company?
Less data in the registration application
If you are just planning to start a business, the new regulations will allow you to provide less data when you register with CEIDG.
- The indication of the date of birth, which is unnecessary in the context of the entrepreneur's obligation to provide a PESEL number has been dropped. The date of birth may be given only for foreigners and only for those who do not have a PESEL number.
- The scope of address data entered into CEIDG is limited to the address for delivery only, as well as the address of your permanent place of business (if any). If your business involves frequent relocations (on-site service) or is mobile, you do not need to indicate the address of your place of business in your registration. The only address entered may be your delivery address (it does not have to be your address of residence).
- The obligation to provide information on the existence or termination of a matrimonial property ownership has been abolished (you may but do not have to provide this information when registering your company).
Attorney-in-fact in CEIDG without the obligation of a written power of attorney
If you want to settle matters by attorney-in-fact, you can disclose him/her to CEIDG (thanks to that you will not have to file a power of attorney every time when handling matters). What is important, publication of information about an attorney-in-fact in CEIDG will be tantamount to granting a power of attorney in writing. Previously, despite the fact that the attorney was registered with CEIDG, he had to have your separate written power of attorney.
Reporting employees to the Social Insurance Institution when registering with CEIDG
From 1 January 2019, you will be able to register your employees with the Social Insurance Institution (ZUS) when registering your company (you can now register yourself and your family members with ZUS by attaching applications to ZUS to the CEIDG application).
Resignation from commencing activity
If, after registering your company for some reason, you do not take up business, you can submit an application informing that you have not taken up business. You can do this at any time (even after the date indicated as the start date of your business).
Change of the date of commencement of activity
The new regulations allow to change the date of commencement of business activity entered in the application for registration in CEIDG (even to the retroactive date). Remember that it must be the actual date (actual date of starting a business).
What is changing for entrepreneurs running a business?
The new regulations have introduced a division of the data you enter in CEIDG into records data and information data. Records data include, among others, first name and surname, PESEL, NIP, REGON, nationality, PKD, contact details, address for service and address of a permanent place of business (if any). The information data include, among others, the date of commencement, suspension, resumption, termination of the business activity, tax identification number and REGON of the civil law partnership, information on the existence or termination of the marriage.
So far, changes to any data (e.g. changes to the PKD, or suspension or resumption of activity) had to be notified to CEIDG within 7 days of their occurrence.
In line with the new rules:
- you can change the information at any time. These are data, the validity of which has no direct impact on other participants of economic transactions. So if you have suspended your company, for example, you no longer have to change your entry in CEIDG within 7 days.
- for recording data - the most important from the point of view of ensuring the security of economic turnover - the deadline of 7 days for submission of an application from the date of change of such data has been kept.
Less data required by CEIDG
The CEIDG application has reduced the scope of data to be provided. In accordance with the new regulations:
- you do not have to inform CIEDG about keeping revenue and expense ledger
- you do not have to inform about signing a contract with an accountancy office to keep accounts
- you do not have to inform about the marriage community
- If you conduct a mobile business and cannot identify a permanent place of business (e.g. you provide services at customers'), you only need to provide an address for service. You do not need to specify a permanent place of business (e.g. your home). It is important that you have a legal title to this property.
New rules for notifying suspension and resumption of activity
According to the new regulations, you have the right to suspend the company registered with CEIDG indefinitely (the minimum period is still 30 days). The "automatic" removal from CEIDG of entrepreneurs who have exceeded the 24-month suspension period allowed earlier will no longer apply. You will only be able to resume activity upon your request. It can be submitted at any time during the suspension period.
Automatic resumption of activity
You can apply to resume your business at any time during the suspension period. You can give the date of resumption as soon as you submit your application for suspension. After this date (i.e. the date indicated by you for the resumption), the information about the resumption of activity (automatic resumption) will be automatically added to your entry. So you don't have to submit a separate application for resuming your business.
Possibility of retroactively notifying suspension/resumption
You do not have to (as so far) report a suspension/resumption of your business before it has taken place. Now you can do it later (even with a retroactive date), but the information you report to CEIDG should contain the data according to the actual state of affairs.
Waiving of suspension/resumption
If you have suspended/resumed your business, you may also opt out of the suspension/resumption (if, for example, you think you want to continue the suspension a few days after the resumption). You can resign by ticking the appropriate box in the CEIDG form.
Remember that the information about the suspension/resumption is sent from CEIDG to other offices (Social Insurance Institution, Tax Office) and from this date for these offices you are an entrepreneur who has suspended/resumed business activity (and you have certain rights and obligations). If you resign from suspension/resumption, you may have to additionally settle with the Social Insurance Institution or the Tax Office for the suspension/resumption of your activity.
Without declaration of non-employment of personnel
According to the law, you may not suspend your business if you hire employees on a full-time basis. The new rules are more flexible in this respect and give you the possibility to suspend your company if you employ workers on maternity leave, parental leave who do not combine taking parental leave with working for you as an employer. If you apply to CEIDG for suspension of your company, you do not have to submit a declaration that you will not employ workers (tick the appropriate box in the CEIDG application). Remember, ZUS will check if you do not employ any employees while suspending your company.
Changes in the company's suspension policy for childcare reasons
If you want to suspend your activity due to childcare, you do not have to report it on the CEIDG form as so far (by ticking the appropriate box). In CEIDG you report "normal" suspension and in ZUS you settle the remaining formalities concerning the benefits to be provided by the company to entrepreneur who takes care of the child.
Attorney-in-fact in CEIDG without the obligation of a written power of attorney
If you wish to register your attorney-in-fact with CEIDG or change the power of attorney disclosed in CEIDG, you do not need to have a separate written confirmation of the power of attorney. An entry in the CEIDG is tantamount to establishing one.
Reporting employees to the Social Insurance Institution via CEIDG
From 1 January 2019, you will be able to register your employees with the Social Insurance Institution (ZUS) via CEIDG (now you can register yourself and your family members with ZUS). ZUS documents are attached to the CEIDG application.
Automatic change of address and surname
If, for example, due to a resolution of the municipality to change the street name, the address of your company has changed, new data will be automatically collected by CEIDG from public registers, if possible. An exception may be changes of street names with simultaneous division of the street into many parts with different names. Then it may not be possible to change the address automatically in CEIDG for technical reasons.
You do not have to report your change of name to CEIDG. Information about the change will be automatically transmitted to CEIDG (and to other authorities).
What is changing for entrepreneurs closing a company?
Notification of cessation of activity
You do not have to any more notify CEIDG within 7 days of the termination of your activity (application for removal from CEIDG). You can do this at any time, but the information should be factually correct. Remember, even if you report termination of activity to CEIDG at a later date, you have other, timely responsibilities, such as drawing up a physical inventory and informing the Tax Office 7 days before.
Re-instatement of activity
Even if you have notified CEIDG that you will cease your activity (application for removal of your entry), you can report that you have changed your mind (this is the so-called resignation from terminating your activity) and that you can continue your activity. You then apply for a change of the entry and tick the appropriate boxes.
It is a facilitation for entrepreneurs who, e.g. mistakenly removed a company from the register. Remember, however, that you have other duties when you terminate your business, such as closing your accounts and settling accounts with the tax office. "The reinstatement" of activity may involve additional formalities, e.g. in the Tax Office or the Social Insurance Institution.
The day after day company is the same company
If, for example, you have removed a company from CEIDG and registered a new one the next day, it will be treated as a continuous business activity. This applies if the removal date in the entry is one day earlier than the date of commencement of business activity included in the active entry.
Be aware of the deadlines for reporting changes to CEIDG!
The new regulations give you a lot more freedom when it comes to deadlines for reporting changes to CEIDG. You can also give retroactive dates, i.e. dates relating to the period before submission of your application. The rules also allow you to "opt out" of earlier entry regarding registration, suspension, resumption or closure.
What you should be aware of
- The data you provide should be true, i.e. it should correspond to reality. Failure to report the information about the change (e.g. suspension) to CEIDG does not exempt you from the obligation to comply with other regulations, e.g. ZUS requires that all changes in insurance are reported within 7 days.
- The information you submit to CEIDG is at the same time an update notification to the Tax Office, an application for change of the entry in REGON, and a change in the declaration of the payer of contributions to ZUS. Authorities such as the tax office or ZUS can draw consequences for the entrepreneur under separate provisions. According to the Penal Code, a taxpayer or payer who, contrary to his obligation: does not make an identification report or update the data covered by it within the deadline, or provides incorrect or incomplete information; reports more than once; does not provide a tax identification number or provides an incorrect number, is subject to a fine for a fiscal misdemeanour. Liability for offences against the provisions of the Act is also specified in the Act on the social security system.
- Your duties as an entrepreneur towards the Social Insurance Institution and tax offices are determined primarily by the actual performance or non-performance of your business activity, and not by the date of your application to CEIDG. If you report e.g. a retroactive date of suspension, but after this date you continue to run your business and earn income, the suspension will be ineffective and you will have to pay social security contributions for this period.
New channels of communication with entrepreneurs
If you provide a telephone number in your CEIDG entry, CEIDG will be able to send you "reminder" information regarding: the date of expiry of the suspension period, the prohibition of doing business, obtaining, revoking, losing and expiring the rights arising from the licence or permit.
Removal of data from CEIDG
After 10 years from the day of removal of the entrepreneur from the CEIDG, the data entered into the CEIDG before the day of such removal shall be subject to removal. After the lapse of 10 years from the date of filing an application, the data of the person who submitted such application will be deleted.
- Act of 6 March 2018 on the Central Register and Information on Business Activity and the Entrepreneur Information Point.