When you are an adult, you can manage a sole proprietorship. Generally, entrepreneurs can operate freely. Sometimes, however, in order to conduct business, it is necessary to have certain professional licences, to own certain equipment or premises.
- Member States of the European Union and Member States of the European Economic Area are entitled to undertake and pursue economic activity on the same principles as Polish citizens;
- countries outside the European Union or Member States of the European Economic Area are entitled to undertake and pursue economic activity in the territory of Poland on the same principles as Polish citizens, - provided they have in Poland, for example, a permanent residence permit, a residence permit for a long-term European Union resident or a temporary residence permit issued for a specific purpose, for example due to studying
How to establish a company
- Specify your company name
- The business name must include at least your first and last name in the nominative case - for example: Jan Kowalski. The order is significant - when entering the name, give your name first and then your surname.
- You may want to add other elements to your name, for example describing your business profile – “Jan Kowalski, key cutting” or any other phrase.
- Decide what business address you will provide in the register
- The business can be conducted in one or more fixed locations, for example a service point, an office, including a virtual or co-working office, your own home or without a permanent address, as well as mobile, for example if you provide services at a client's premises.
- Select PKD code
- An entrepreneur who registers a company is required to assign its activity to a specific code in the Polish Classification of Activities, i.e. to select a PKD code. The codes are used for official statistics. Some are linked to specific forms of taxation, the obligation to use a fiscal cash register or VAT registration.
- Select one main code, i.e. related to the activity that should generate the most revenue, and any number of secondary codes.
PKD code search engine https://www.biznes.gov.pl/pl/tabela-pkd
- Verify whether your activity requires a licence
Generally, entrepreneurs can operate freely. Sometimes, however, in order to conduct business, it is necessary to have certain professional licences, to own certain equipment or premises. There are also some activities that may only be carried out after obtaining permission from the relevant public authorities.
In such cases, you may need a licence, concession, permit or entry in the register of regulated activities. These must be applied for as soon as the company is registered.
- Select the form of income taxation
As a sole proprietor, you are liable for personal income tax, known as PIT.
Four forms of business income taxation are available here:
- according to general principles of taxation, according to the tax scale (tax rate 17% and 32%)
- according to the flat rate (19% tax rate)
- tax on registered income without deductible costs
- according to the fixed amount tax.
- Ensure that you have to pay VAT
VAT is a tax charged at each stage of the marketing of goods or services. Its value is added to each transaction.
The VAT is paid independently of income tax.
As an entrepreneur, you are in principle obliged to register for VAT. However, there is no need to register if:
- your sales do not exceed the limit of PLN 200,000 per year
- you sell exclusively VAT-exempt goods and services
- Learn what contributions you will pay to ZUS (Social Insurance Institution)
As an entrepreneur, you are required to account for and pay social security contributions for yourself for:
- social insurance, of which pension, disability and accident insurance is compulsory while sickness insurance is voluntary
- Labour Fund and Solidarity Fund
- health insurance.
Businesses that are just starting out or have closed a previous enterprise at least 60 months earlier and do not plan to provide services to a former employer for the first 6 months of operation may be eligible for the Start Up Relief (Ulga na Start). The relief exempts from paying contributions for:
- social insurance, i.e. pension, disability and accident insurance
- Labour Fund
- Solidarity Fund.
After 6 months, another option to reduce your contribution can be taken and you can pay reduced contributions on a preferential basis for 24 months. See more:
The application for entry of a company into the Central Register of Economic Activity (CEIDG) can be submitted:
- Online - via the Internet
- via Biznes.gov.pl - log in with Trusted Profile
- via the CEIDG website - register at Firma.gov.pl, complete the CEIDG-1 form and sign it with your Trusted Profile or Qualified Signature
- via the bank's website - you can also apply online via Internet banking services of selected banks
- In the office
The application can be submitted in person at any Warsaw district office or at the municipal Smolna Entrepreneurship Centre. At the office you will be required to confirm your identity, so do not forget to take your identity card or other document confirming it with you.
- By post
The completed application may be sent by registered mail. In this case, it should bear the applicant's handwritten signature certified by a notary public.
The application for entry in CEIDG is free of charge!