Unregistered business activity in 2025 – how to earn extra money legally without setting up a company?
Would you like to earn money from your hobby or sell handicrafts, but are you scared by the thought of setting up a company, paying social security contributions and filing monthly tax returns? Unregistered business activity may be the perfect solution.What is unregistered business activity?
It is a small-scale gainful activity that you can carry out without setting up a company, provided that you do not exceed the monthly income limit. In 2025, this limit is
3499,50 zł (i.e. 75% of the minimum wage).
Examples:
- You sell jewellery on Instagram.
- You occasionally make cakes to order.
- You write or edit texts on commission.
- You sell ready-made digital products.
Important: unregistered business activity can be combined with full-time employment, contract work or a contract for specific work. Both sources of income are reported together in the annual PIT-36 tax return. However, if you have ever had a company, at least 60 months must pass from its closure (or suspension) before you can use this form of income. Suspension of business activity is counted as non-performance.
When do you need to register your business?
If:
- you exceed the monthly income limit – you have 7 days to register with CEIDG,
- you run a business that requires a licence (e.g. sale of alcohol),
- you want to provide services that are subject to special regulations (e.g. organisation of trips, hairdresser, beautician).
Please note! You must obtain a tax identification number (NIP) if:
- you are a registered taxpayer of goods and services tax or
- you keep sales records using cash registers.
What are the obligations?
Unregistered business activity gives you a lot of freedom, but also entails a few simple obligations:
- Keeping simplified sales records (this does not have to be done using professional software; you can do it on paper or in Excel, for example. It is important that sales are recorded no later than before the next sale is made).
If your records are kept unreliably or not at all, and it is not possible to determine the value of sales on the basis of the documentation, the tax authority will determine the value of taxable sales and calculate the amount of tax due. If it is not possible to determine the taxable item, the tax amount will be set at 22%.
- At the customer’s request, issuing a receipt or invoice
- Settling accounts once a year on the PIT-36 form (section ‘unregistered activity’).
- Compliance with consumer rights, including the right to complain and return goods.
When conducting unregistered business activity, you are not an entrepreneur, but if you provide services (e.g. tutoring, copywriting, video editing), you are legally entering into a contract of mandate. Your client must then register you with the Social Insurance Institution (ZUS) and pay the appropriate contributions. On the other hand, if you sell finished goods, such as handicrafts, e-books or baked goods, this is a sales contract that does not involve any social security contributions. In this case, you can operate freely as long as you do not exceed the monthly income limit (PLN 3,499.50 in 2025).
The difference between calculating income for the purpose of determining the limit and income for PIT purposes:
Income limit (in 2025, PLN 3,499.50 per month): this limit includes income due, i.e. what you are owed, even if the customer has not yet paid (if you issue an invoice for PLN 2,000 in March and the customer does not pay until May, the PLN2,000 still counts towards the limit in March)
Income reported on your PIT: Here, what counts is what you actually received in your account or in cash, i.e. your cash income. On your PIT-36, you only report what you physically received in a given year (e.g. cash, a transfer from a customer or another service you received in the form of payment). You can deduct tax-deductible costs from this income if you can document them (e.g. purchase of materials, energy, packaging, etc.).
Please note! You do not include, for example, goods returned by customers or discounts in your income.
When running an unregistered business, you are not required to pay monthly tax advances. You only settle your taxes in your annual tax return submitted by 30 April for the previous year.
Cash register – is it necessary?
If your annual turnover does not exceed PLN 20,000, you do not need a cash register. However, there are exceptions – e.g. if you sell electronics or provide beauty services – then a cash register is mandatory regardless of the turnover.
Do you need to register for VAT?
No, most people running an unregistered business do not need to register as VAT payers. The so-called subjective exemption applies if your turnover does not exceed PLN200,000 per year. But! There are exceptions – if you sell, for example, perfumes, electronics, or provide beauty or consulting services, you may be required to register for VAT.
Who can run an unregistered business?
An unregistered business can only be run by a natural person, but in some cases additional conditions apply.
Foreigners
From June 2025, foreigners will be able to conduct unregistered business activity in Poland if they have a legal residence permit allowing them to conduct business activity.
Examples of documents:
- permanent residence permit
- temporary residence permit (e.g. in connection with a Polish citizen)
- residence card
- Polish Card
- EU Blue Card
- refugee status
- long-term EU resident status
The following persons may also operate without additional formalities:
- EU, EEA, Swiss and US citizens
- Ukrainian citizens with legal residence and a PESEL number
Minors
They can operate, but with restrictions. Persons aged 13 and over need the consent of a parent or legal guardian to conclude contracts or sell products.
Unemployed persons
Unemployed persons may only conduct unregistered business activity if they sell products (e.g. handicrafts). However, if they operate on the basis of a contract of mandate, contract for specific work or agency contract, they lose their unemployed status. In addition, if their income exceeds 50% of the minimum monthly wage, they lose their unemployed status.
Civil servants
They may operate without registration, provided that the internal regulations of their office do not prohibit additional gainful activities. The consent of the director general is often required.
Farmers
Farmers may conduct unregistered business activity, but only if it does not involve activities excluded from the Entrepreneurs Law.
What are the benefits of unregistered activity?
-you do not have to register your activity with CEIDG, the tax office or GUS
-you do not pay compulsory social security or health insurance contributions on your business activity
-you do not have to pay advance tax payments
-you do not have to pay VAT
-you do not have to keep complicated accounts, only simplified sales records.
When do you have to register your business even if you do not exceed the limit?
You must register your company even if you plan to generate only small revenues, but the business you want to run:
- requires a permit, licence or entry in the register of regulated activities
- has been defined in regulations as a business activity within the meaning of the Entrepreneurs Law.
In these cases, the activity cannot be carried out without registration.
Examples of economic activities that require a permit, licence or entry in the register of regulated activities include: protection of persons or property, sale of alcohol, organisation of tourist events or detective services.
Is unregistered activity subject to inspection?
Yes – the lack of obligation to register with CEIDG does not mean that there are no inspections. Unregistered activity may be inspected by, among others, the tax office, Sanepid (e.g. in the case of food sales) or UOKiK and UODO (if consumer rights or the GDPR are violated).
Remember – even if you are exempt from VAT, you must keep sales records. This allows you to prove that you are doing everything in accordance with the regulations.