Do you dream of running your own online store but worry about the formalities of business registration? Good news – you can start your e-commerce journey without officially registering a business! In this article, you will learn how to use an unregistered business to launch an online store, its advantages and limitations, and what to keep in mind to run your business legally.
What is an Unregistered Business?
Introduced in Poland in 2018 as part of the Business Constitution, an unregistered business is an innovative way to run a small enterprise. It is an ideal solution for those who want to start an online store without formally registering a company.
Key Features of an Unregistered Business:
- No requirement to register with CEIDG, ZUS, or the Tax Office
- Minimal formalities and startup costs
- The ability to test a business idea
- Attractive option for aspiring entrepreneurs
Conditions for Running an Unregistered Business
How can you set up an online store without registering a business? To operate under an unregistered business, you must meet the following conditions:
- Your monthly revenue must not exceed 75% of the minimum wage:
- January to June 2024: limit of 3,181.50 PLN per month
- From July 2024: limit of 3,225 PLN per month
- You must not have conducted a registered business in the past 60 months (5 years)
- You can run it alongside full-time employment – incomes do not combine
How to check if an online store is legitimate and trustworthy?
What are the advantages and limitations of an unregistered business? The following table provides a clear summary:
Advantages
- No need to register a business
- Exemption from ZUS contributions
- Ability to test a business idea
- Flexibility to combine with full-time work
Limitations
- Monthly revenue limit
- No ability to deduct costs
- Restrictions on business types
- Must transition to a full business after exceeding the revenue limit
How to Set Up an Online Store Without Registering a Business?
Starting an online store under an unregistered business model is possible and attractive for beginners. Here are key aspects to consider:
- Understanding online sales regulations
- Choosing the right e-commerce platform
- Organizing payment processing and logistics
- Effective marketing and promotion
Choosing an E-Commerce Platform
A crucial step is selecting the right e-commerce platform. SaaS (Software as a Service) solutions are worth considering as they offer:
- An intuitive interface
- A wide range of features
- Ease of use
- Customization options
- Integration with payment and delivery systems
- Technical support
Payment Processing and Logistics
For an unregistered business, consider:
- Payment gateways that support individuals without a registered business
- Partnerships with courier companies offering services for private individuals
- A dropshipping model, where the supplier ships products directly to customers
Marketing and Promotion for Your Online Store
Effective promotional methods for an unregistered business store include:
- SEO (Search Engine Optimization) for better visibility
- Running a blog with valuable content
- Active presence on social media
- Collaboration with influencers
- Affiliate programs
Complying with Legal Regulations
Now that you know how to start an online store without registering a business, it is essential to remember the legal requirements:
- Complying with the Consumer Rights Act
- Following distance selling regulations
- Providing a 14-day right of withdrawal
- Accurately describing products in line with reality
Who is a stakeholder – how to understand this concept in business and why it matters so much?
Taxes and Financial Reporting
Regarding taxes and financial reporting:
- Revenue is taxed under general rules and reported in the PIT-36 form
- No ability to deduct business expenses
- Taxes are paid on the total revenue
- It is advisable to use simple bookkeeping tools
- You must track revenue to ensure you do not exceed the monthly limit
Remember, running an online store under an unregistered business model is an excellent way to start your e-commerce journey with minimal financial risk. However, it is crucial to understand the applicable regulations and limitations to avoid potential legal issues in the future.
Data Protection and Consumer Rights
Protecting customer data is a fundamental aspect of running an online store, regardless of its legal structure. Entrepreneurs operating an unregistered business must also comply with GDPR (General Data Protection Regulation) and implement appropriate technical and organizational measures to ensure customer data security.
Equally important is adhering to consumer rights. Even as an unregistered business, an online store must have a clear set of terms and conditions outlining:
- Sales rules
- Delivery conditions
- Return procedures
- Complaint processes
- Privacy policy
Additionally, businesses must provide essential information to customers, including:
- Seller’s contact details
- Detailed product descriptions
- Transparent delivery cost information
- Disclosure of any additional charges
Following these regulations not only protects the entrepreneur from potential legal issues but also builds customer trust, which is crucial for success in e-commerce.
E-Commerce Without a Registered Business? Let’s Sum It Up
Unregistered business, introduced in Poland in 2018, allows for the establishment of an online store without formal business registration. This business model enables monthly revenues of up to 75% of the minimum wage without the need for registration with CEIDG, ZUS, or the Tax Office.
B2B E-Commerce – What Is It and How Does It Differ from B2C?
Operating an online store under an unregistered business model requires choosing the right e-commerce platform, organizing payments and logistics, and executing effective marketing. It is crucial to comply with regulations regarding data protection, consumer rights, and online sales rules. Despite limitations such as income caps and the inability to deduct costs, unregistered business presents an attractive option for aspiring entrepreneurs, allowing them to test business ideas with minimal financial risk.
