Opening a Sole Proprietorship or Company in Poland

It is worth opening a sole proprietorship (JDG) or company in Poland due to the relatively simple registration process, stable market, and advantageous geographical location within the European Union. Poland also offers access to a large consumer market, developing infrastructure, and support for entrepreneurs.

You do not need to be a Polish citizen to establish a company in Poland. Citizens of the European Union, European Economic Area (Norway, Iceland, Liechtenstein), the USA, and the Swiss Confederation can open their own business in Poland (known as a sole proprietorship), any type of commercial company (limited liability company, joint-stock company, simple joint-stock company, general partnership, professional partnership, limited partnership, limited joint-stock partnership), as well as establish a branch or representative office in Poland.

Additionally, foreigners have the opportunity to set up a company or sole proprietorship in Poland without the need to personally travel to Poland, but for the proper functioning of the company in Poland it is necessary at a later stage to obtain a so-called trusted profile (electronic Polish ID), the establishment of which, however, requires a personal 1-day visit to Poland.

To establish a business in Poland, you must first make decisions regarding:

• the name (company name) of the business in Poland,
• the registered office and address for the business in Poland (it is worth considering the option of a virtual office),
• the type of business activity in Poland (the entrepreneur registering the company must assign their business to a specific code in the Polish Classification of Activities, i.e., choose a PKD code),
• the number and identity of partners, if there are to be any,
• the number and identity of members on the management board of the business in Poland,
• the initial capital of the business in Poland,
• the duration of the business venture in Poland, if it is to be specified.

A sole proprietorship is the simplest form of running a business in Poland because:

• it can be registered online, and registration is free of charge,
• it does not require start-up capital,
• the entrepreneur is a personal income tax (PIT) payer and has the option to choose the form of taxation,
• they do not have to be a VAT payer if their income is below a certain threshold,
• in most cases, for revenues that do not exceed 2 million euros, simplified accounting or record-keeping is sufficient,
• the entrepreneur is personally liable for the company’s obligations with all of their assets,
• the entrepreneur has the exclusive right to represent their business.

Compared to other countries, Poland stands out with favorable tax rules. In 2024, the tax-free amount is PLN 30,000. This means the tax reduction is calculated from this amount: PLN 30,000 x 12% = PLN 3,600.

Companies are a more complex form of business operation in Poland. Establishing them requires going through a formal process. Partners must sign an agreement in a specific form. Company registration involves fees, and the management and liability for obligations depend on the type of company. Initial share capital is often required as well.

A company in Poland is a corporate income tax (CIT) payer. The CIT rate is 19% or 9% – for small taxpayers and new businesses.

The reduced 9% rate is available to:

• small taxpayers whose gross revenue from sales (including VAT) did not exceed 2 million euros in the previous tax year, converted according to the average euro exchange rate announced by the NBP on the first working day of October of the previous tax year, rounded to the nearest thousand PLN,
• whose net revenue in the tax year did not exceed 2 million euros, converted according to the average euro exchange rate announced by the NBP on the first working day of the tax year, rounded to the nearest thousand PLN (usually January 2nd of the given year).

Additionally, the 9% CIT rate applies to businesses starting operations – in their first tax year.
With the support of a lawyer from SOS Legal, we will ask the right questions to examine and assess which company type in Poland will best suit your business goals, prepare the necessary documents, and represent you before the registration court and notary. Registering a company in Poland is not everything. After the company is entered into the court register, appropriate notifications must be made, for example, to the Tax Office and the Central Register of Beneficial Owners in Poland.

CONTACT US FOR MORE INFORMATION

E-mail: [email protected]

Mobile WhatsApp 24/7: + 48 668 841 990

SOS-Legal-Law-Firm

Lawyer in Poland

opening a sole proprietorship or company in Poland without Polish citizenship, setting up a JDG by a foreigner, setting up a company in Poland by a foreigner, simple process of registering a company in Poland, sole proprietorship in Poland, commercial company in Poland, branch in Poland, taxes in Poland, favorable tax rules in Poland