Beware of the pitfalls you may encounter in the beginning of your business

Service Business

More and more simplifications are used when setting up a company. However, there are still many pitfalls for novice entrepreneurs. It is worth reading what pitfalls can be hidden behind the different stages of starting a business and how to protect yourself from them!

Bureaucracy when registering a company

It is widely known how much bureaucracy can take its toll. Beginning entrepreneurs must be extremely patient. Although some facilities have already been introduced, such as "one counter" or one form to be submitted to the commune office, the telephone line of the Social Insurance Institution or the National Tax Information is still notoriously busy, and the queues in public institutions are not decreasing.

The solution to the above situation is the possibility of using the electronic form of sending registration forms. Here, however, entrepreneurs who do not have a qualified electronic signature (i.e. most beginner sole proprietorships) must be careful:

  • without an electronic signature, electronic registration is possible only with the use of the so-called a trusted profile, therefore a one-time visit to the city or commune office will be required to confirm your data,

  • if you want to register as an active VAT taxpayer by submitting the CEIDG-1 application, you must submit / send the VAT-R application in person to the tax office.


The VAT-R form for CEIDG-1 can only be attached by entrepreneurs who independently submit a registration application with CEIDG and have an electronic signature verified with a qualified certificate

Paid entries in the databases of entrepreneurs - when registering a company, do not be fooled

Company registration in CEIDG-1 is free of charge. The database of companies run by the Central Register and Information on Economic Activity is public, which some entities decided to use for the purposes of conducting unethical business. On the basis of the published entry to the address of newly established companies, they send an offer (which usually looks like an invoice) consisting in entering the company into the "Central Register", "Register of Polish Entities" or a similarly named register. It is a simple "trick" of inexperienced entrepreneurs who think that it has to do with the state CEIDG and it is not. Company registration is free!



Read correspondence carefully, especially what is written in small print! If in doubt, do not be afraid to contact the contractor or a public institution that could be related to the letter received. Remember that it's all about your money and your safety!


The same method of unethical conduct may affect entrepreneurs who have decided to register their rights in the patent office (e.g. by registering a trademark). After the mark is announced in the database of the patent office, the company receives a letter with the valued item on "trademark publication". Only when we read the details written in a small print, we will notice that it is also an attempt to make an entry in the character base, which does not really serve anything in practice and costs not so little ...

Raising capital when setting up a business

Unfortunately, a good business idea is not everything. Enthusiastic entrepreneurs often struggle to raise the funds they need. Grants from the European Union can help in this. They provide a safe financial support and, which is very beneficial, money from these sources usually does not have to be returned.


When verifying the type of assistance, it is necessary to check whether the assistance we are applying for is "non-returnable" or granted in the form of a returnable loan.


However, there is a risk that a given entrepreneur will not qualify for the EU program.

Then the next thought is to take out a loan or a loan. These are more expensive and usually more dangerous. Even if you choose a loan on preferential terms under activation programs, installments must be paid regularly. Therefore, before making a decision to take out a loan, you should carefully analyze your cash needs and repayment options.


Read the grant agreement and the terms and conditions of granting it carefully. By breaking one of the conditions stipulated in the contract, you may have to return the money you have received!


However, if you manage to get a subsidy - it's not the end of formalities. You have to document and control the expenses financed with the subsidy on an ongoing basis, and also take into account additional provisions of the agreements regarding the subsidies (e.g. the company accepting the subsidy usually undertakes to operate on the market for a period specified in the agreement, or to employ a certain number of people).


As a rule, the subsidy is not income and the expenses financed with it cannot constitute a tax cost, and therefore do not lower the income from the activity!

Business Angels as an opportunity for setting up a company

Although the name itself may suggest greater security than in the case of loans, there are pitfalls here. Business Angels are entrepreneurs with experience, good market position and financial resources, who also want to invest in new companies. What's more, you can often count on substantive support and rely on their well-established reputation. However, Business Angels most willingly bet on those companies from which they expect very high profits. Therefore, it should be remembered that the contract with an experienced entrepreneur should include terms favorable to both parties.

Traps can also lurk in the regulations - they are not unambiguous. Therefore, in order to avoid unnecessary nerves and problems, it is good to be in constant contact with an experienced accountant, lawyer or entrepreneur who has been running his own business for some time.