Before You Start Before You Start
Starting a Business Starting a Business
Tax obligations Tax obligations
Social security Social security
Running a business Running a business
Closing a business Closing a business

CEIDG – SOLE TRADERSHIP

Only natural persons may be entered into the Central Registration and Information on Business.

Even if you want to set up a civil law partnership, first you need to appear in the CEIDG.

If you are a sole trader, as an entrepreneur you are responsible with your all assets for obligations arising from running business activity. This means that your personal assets and that used for running business activity are treated by creditors equally. If your business does not generate profits you will need to cover all liabilities (e.g. contributions to ZUS, remuneration for employees and partners, accounts, contractual penalties, mortgage repayments) from private assets.  Similarly, all profits from your activities from the outset increase your private assets.

As a sole trader you have the exclusive right to represent your activities. Only you can conclude agreements with suppliers and customers, only you have the obligation to pay advance tax payments, submit an annual tax return and make settlements with ZUS. Naturally, you can subcontract part of these issues to other persons on the basis of power of attorney, but always the action of your proxies will have an impact on your personal assets.

When you register in CEIDG, you will be granted NIP number. Its function is to identify your activity before the tax authorities. Every time you pay the advance tax payment or the tax you have to give this number (NIP). Even if you settle tax from different sources on a single tax return (e.g. from business activity and full-time job ) as the taxpayer's identification number you indicate NIP not PESEL.    

Depending on the chosen method of taxation at the end of the year you must submit a relevant tax declaration, however you are always PIT taxpayer when you conduct business activity.

In order to settle tax it is sufficient to submit an annual return, you do not have to prepare or transmit financial statements to any authority.

Unlike in the case of companies one natural person can have only one entry in the CEIDG. Therefore, under a single entry you can have very different types of economic activity.

Remember that both entry in the CEIDG and updating of data is free of charge. During registration or while running your business activities no one can charge you for registration in CEIDG.

At the time of entry in the CEIDG you start to be an entrepreneur. This has serious consequences in your relations with other entrepreneurs. If you conclude a contract and buy goods or services that you will use to pursue your activities, you are no longer a consumer. You are regarded as a professional. You do not have the right to return goods purchased away from business premises (e.g. via the Internet) within 14 days without giving reasons.

You have also additional information obligations. If you send correspondence to another person as an entrepreneur, you must indicate the name, NIP and address of your company. As  a registered entrepreneur you have obligations towards the tax office and the Social Insurance Institution (ZUS). Basic information on this issue can be found in the article I want to conduct business in Poland.

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