Switching from unregistered business activity to a sole proprietorship (JDG) means, in practice, filing a CEIDG-1 application and rearranging the settlements: tax, contributions, VAT and records. If quarterly revenue exceeds the limit, which in 2026 is PLN 10,813.50, only 7 days are given to register the business. The good news: a period without a CEIDG entry does not deprive you of the right to start-up relief (ulga na start) in ZUS.
Two scenarios: compulsion or choice
Two paths lead to JDG and each has a different rhythm.
- Exceeding the limit. Activity ceases to be unregistered on the day the quarterly revenue due exceeds 225% of the minimum wage. At a minimum wage of PLN 4,806, this means PLN 10,813.50 per quarter in 2026. From that day the 7-day deadline for CEIDG entry starts to run.
- Decision before the limit. Many people register the business earlier because a business client wants to work with an entrepreneur, because they need leasing or a business account, or because costs become significant and are worth settling within the business. Then the start date can be chosen calmly, preferably from the first day of the month or quarter.
An important difference: the limit counts revenue due, i.e. resulting from an issued receipt or invoice, even if the client has not yet paid. Those who only watch the inflows into the account can easily miss the moment of exceeding.
Registration step by step
- Setting the start date. On the CEIDG-1 application the date of starting the activity is given. When the limit is exceeded, the activity becomes business activity already from the day of exceeding, so it is not worth waiting until the last of the 7 days.
- PKD codes. You should carry over to the application what has actually been done so far and add the planned areas.
- Form of taxation. The choice may be declared on the application or later — for ryczałt (lump-sum tax on recorded revenue), the declaration is submitted by the 20th day of the month following the month of the first revenue from the business (or by year-end, if the first revenue falls in December).
- ZUS. The CEIDG-1 application allows the insurance registration to be submitted at the same time, including an indication of start-up relief.
- VAT and cash register. It must be checked whether total sales in the year are not approaching the limits mentioned below.
- Account and records. From day one it is worth separating business inflows from private ones and setting up the records appropriate for the chosen form of taxation.
Details of filling in the application are described in the guide how to set up a JDG via CEIDG.
The transition year in income tax
In the year of the change, the same person has two separate sources of revenue and each is settled differently.
| Period | Source of revenue | How it is settled |
|---|---|---|
| Up to the day before JDG start | Unregistered business activity | No advance payments during the year; income (revenue minus documented costs) is shown on PIT-36 in the section on unregistered business activity, under the tax scale |
| From the day of JDG start | Non-agricultural business activity | Advance payments or ryczałt monthly or quarterly, under the chosen form; the annual return appropriate for that form |
In the tax settlement of unregistered activity, revenue is the amount received, not the amount due. That is why payment for a service performed before registration which comes in only after the start of the business requires careful allocation — it is best to agree it with the accountant before the first settlement. Costs incurred before registration are, as a rule, assigned to the period in which the revenue they concern arose.
ZUS contributions after registration
In unregistered activity, no contributions are paid, but there is also no insurance protection, and this period does not count for the pension. After registration the situation changes from the first day of activity.
The right to start-up relief belongs to a person who takes up business activity for the first time or after at least 60 months from ending or suspending the previous one. Sales without a CEIDG entry conducted within the limits are not treated by the regulations as business activity, so they do not block this relief. This means the possibility of following the path: 6 months without social contributions, then up to 24 months of a preferential contribution base. The relief does not apply, however, if in JDG you perform for a former employer the same work that you did under employment in the current or previous year. More on the conditions and counting the relief period in the article on start-up relief.
The health contribution applies from the beginning, also during start-up relief. Under the tax scale and the flat tax, its monthly minimum from February 2026 to January 2027 is PLN 432.54. This is usually the biggest noticeable change in the budget after leaving unregistered activity.
VAT and cash register — the limits do not start from zero
The turnover-based VAT exemption applies up to PLN 240,000 of sales in 2026, and when starting during the year the limit is counted proportionally. The VAT payer is the same natural person before and after registration, so it is safer to assume that sales from the unregistered period also count towards the limit. The same approach is worth applying to the PLN 20,000 limit exempting from the cash register for sales to private individuals. VAT details for activity without registration are discussed in the article on unregistered activity and VAT.
Example: a ceramics shop in the second quarter of 2026
Ms Ola sells hand-painted mugs. In April 2026 she issued receipts for PLN 4,000, in May for PLN 5,200. Together that is PLN 9,200, below the quarterly limit. On 12 June she accepted a wholesale order from a café and issued a receipt for PLN 2,000 — the quarterly total rises to PLN 11,200, i.e. above PLN 10,813.50.
- From 12 June she has 7 days, i.e. until 19 June, to file the CEIDG-1 application.
- She files it on 15 June and declares start-up relief; by operation of law her business activity has been running since 12 June, i.e. from the day the limit was exceeded.
- Revenue received by 11 June she will show on PIT-36 as unregistered activity, and later revenue she will settle as company revenue.
- From June she pays the health contribution; social contributions she will only start paying after the 6 months of relief.
Most common slip-ups
- Counting the limit from inflows rather than from issued receipts.
- Delaying the application until the end of the 7-day deadline and rushing the PKD codes.
- Omitting revenue from the unregistered period in the annual return.
- Failing to choose the form of taxation on time and being settled unplanned under the tax scale.
- Assuming that the VAT limit and the cash register limit start running from the day of registration.
The rules of unregistered activity itself, including industries excluded from this form, are described in the article who unregistered activity is for.
How Good Balance can help
We will prepare the CEIDG-1 application with the correct start date, PKD codes and ZUS registration, compare forms of taxation in view of your revenue and set up the settlement of the transition year. The scope of support in setting up a business is described in the service registration of a sole proprietorship.