Occasional activities and the need to set up a business

Service Business

It often happens that natural persons who do not conduct business activity perform some sporadic activities as a result of which they earn income. The question then arises whether it is necessary to register a company and conduct business in such a situation?

When to register a company

According to the Entrepreneurs' Law Act, economic activity is activity conducted in an organized manner, on one's own behalf and for profit. This means that people who plan to perform gainful activities, i.e. sell or provide services in a continuous and organized manner, are required to set up a business. An organized and continuous activity will be, for example, selling items on the Internet, photographing special events or walking dogs, if these activities are not of a one-off nature. It does not matter how many customers will use these services, whether they buy goods, or what the value of the turnover will be, what counts is the mere fact of offering a good or service for sale and the repeatability of the activities performed.

Important!

A sole proprietorship should be registered on the CEIDG-1 application.

An organized and continuous activity will also include seasonal offering of services, such as holiday jewelry sales or tattooing.

When there is no need to start a business

However, there are exceptions as to which, if you perform an activity for profit, you will not need to register a business. These are, for example, situations where we sell a private, unnecessary item from time to time, provided that we are the owner of the item. For example, we bought or received a bicycle, after some time it turned out that we no longer needed the bicycle and we decided to sell it. In this case, of course, we do not have to start a business, because we do not intend, nor will we continue to trade in bicycles. Similarly, when we walk someone's dog as part of the neighborhood help. However, if we take the dogs of all neighbors out of the estate for a fee, it is an organized and continuous activity, and thus requires registration.

They are therefore the so-called occasional activities, i.e. performed in a rare, occasional and non-economic manner. Taking photos at the wedding of friends from time to time, or putting a few unnecessary items on the website for sale, does not impose an obligation to set up a business, as it is not continuous and organized.

Undeclared activity

In connection with the entry into force of the provisions on the Business Constitution, the possibility of conducting business activity without the necessity to register it has been introduced, provided that the following conditions are met:

  • a natural person earns income in each month not higher than 50% of the minimum wage (in 2018 this amount is PLN 1050);
  • a natural person has not run his business for the last 60 months, or if the activity was conducted, he had a break in the entry in CEIDG, which lasted at least one year from the deletion from the CEIDG.

Moreover, unregistered activities do not apply to civil partnerships and activities that require special permits or concessions.