Starting your own company in Poland is an interesting challenge. However, it requires a solid plan and understanding of the process. In today’s post, we’ll dispel some secrets around the subject by discussing most important issues involved in setting up a company in Poland.
Start with good accounting
Reliable accounting is a key component of any successful business. Finding an experienced accountant or using the services of a professional accounting company will certainly make your task easier.
Treat them like business best friends
Choosing the right one is a decision that will affect the smooth operation of your business. Get the help of specialists who will not only keep your accounting in order. Choose ones who will give you the right support in every step.
This is the key to a successful start. We know that at first it doesn’t look very clear to a foreigner who wants to try it. However, working with experienced people will allow you to get a more complete understanding of the requirements and costs of doing business in Poland.
Let’s go to opening the company in Poland….
Before you send in your registration application, it is important to prepare properly. It is understanding the regulations and, most importantly, choosing the right legal form for your business.
There are several legal forms of business in Poland. However, we will focus on the two most popular, and among foreigners, practically the only ones chosen. It is about a sole proprietorship and a limited liability company.
1. Registration of a sole proprietorship
Before you settle on this form, check if, being a foreigner, you can afford it at all. You can read about it in this post.
You can register a sole proprietorship in two ways. In person by filling out an application at the city hall or online via biznes.gov.pl. We recommend the latter way, as it is faster, simpler and we can help you with it seamlessly, even remotely.
Several things are needed to complete the application, such as:
- The name of the company, which must include your name.
- The address of the business to which you must hold legal title. It can be a rented premises, a virtual office or even your home.
- Codes of business activity. It is worth remembering that some types of activity require a cash register or VAT registration from the very beginning. Sometimes licenses or concessions are also required. It is worth considering before registering.
- Taxation form. This is an extensive topic for a separate article, which you can also find on our blog at this link [odnośnik]. There you will find out which form of taxation will be most favorable in your case.
- You must have a bank account. However, as long as you do not register for VAT, you can use a private account. Once you register for VAT, you must have a business account.
VAT topic
VAT is the kind of tax that comes with every step in the trade of goods or services. Its amount is added to each transaction.
It is paid regardless of income tax and its form. It is a completely separate tax.
Basically, as an entrepreneur, you are required to register for VAT. Nevertheless, you don’t have to do it if:
- Your turnover does not exceed 200 thousand. PLN per year,
- You sell only VAT-exempt goods and services,
- You do not perform activities that require VAT registration without limit.
If you meet the above criteria and don’t need to register for VAT, it’s worth considering whether to do so. Generally, the profitability of VAT registration depends on who you sell goods to or provide services to. If they are companies, VAT registration is usually cost-effective. However, if they are private individuals, it is better to remain, so called, non-VAT person.
We have reached Social Security – see how much you will pay for National Insurance!
As an entrepreneur, you must registr for and pay National Insurance contributions for yourself at:
- social insurance, including pension, rent, accident and sickness, which is optional,
- Labor Fund and Solidarity Fund
- health insurance.
New enterpreneurs for the first 6 months can take advantage of the so-called “start relief“. During start relief, they pay only a health insurance, the amount of which depends on the chosen taxation form.
After 6 months, you have the option to pay lower social insurance contributions for another 24 months. At the moment, they amount to 442,90 PLN. After this time, full social insurance must be paid, which in 2025 amount to 1 773,96 PLN per month.
2. Registration of a limited liability company
Just like a sole proprietorship, a limited liability company (LLC, Ltd.) can also be registered online, through the S24 system. In this case, however, it comes with certain limitations. The shape of the company’s contract of incorporation is set in a ready-made, rather poor template. The content of this can be changed to a limited extent, and the share capital can only be contributed by cash.
If you don’t need an elaborate contract of incorporation, primarily to protect the special interests of the shareholders, then forming a company online is a great idea. It is not only a simpler procedure and less time-consuming, but it also saves money. In such a procedure, a notary is skipped, and court fees are lower than registration in the traditional way. What’s more, in the registration of a company through the S24 system, we are able to help you and are happy to do so, if necessary!
How to start a company in S24
As with a sole proprietorship, you need to specify the company’s name and business address. The next step is to fill out a contract of incorporation.
The company’s contract of incorporation template contains more than a dozen paragraphs, covering provisions on various issues, such as:
- business activity object,
- shareholders with the definition of their role in the company,
- amounts of contributions,
- the duration of the company,
- the possibility of selling all the rights and obligations of a shareholder,
- procedure for amending the contract of incorporation,
- representation of the company.
After completing the contract of incorporation and other required documents, a registration application is created, including all these documents. Then all shareholders must sign the application electronically using a trusted profile or qualified signature. Once the application is paid and sent to the KRS, if the court has no complains, the company is registered.
Once company is registered, you are faced with several responsibilities, such as:
- Payment of the civil tax (PCC), the rate of which is 0.5% on the amount of share capital. Deadline is 14 days from the date of the contract of incorporation.
- Submission of NIP-8 declaration to the tax office within 21 days from the date of registration of the company.
- Providing information on the company’s beneficial owners to the Central Register of Beneficial Owners (CRBR). You must do it within 7 days from the date of registration of the company.
What about income tax and VAT?
In the case of a limited liability company, we have no space for maneuver when it comes to income tax. There is only one form. As for VAT, the rules are the same as for sole proprietorships.
Concluding
That’s it. We encourage you to use the available resources, to consult with experts, but also to be confident in your decisions. The Polish business market has much to offer. Your company can become an integral part of this dynamic economic space.
So we wish you a wonderful entrepreneurial journey, full of joy from the successes you achieve. If you need support in this, which for foreigners seems to be essential, feel free to contact us.
More about registration of sole proprietorship you can find here
More about registration of limited liability company you can find here
Updated on 19/02/2025
