Publication date: 27.11.2024
How to choose a business form in Poland: comparison of options
For Ukrainians planning to start a business in Poland, choosing the right business form is a critical decision. Legal advice at this stage will help to avoid many problems in the future. An online lawyer can conduct a detailed legal analysis of a situation and help you choose the best form of business.
Sole proprietorship
This is the simplest form of doing business in Poland, which requires legal analysis of documents before registration. A lawyer in Poland will help you to understand all the nuances and avoid common mistakes during registration.
Advantages of a sole proprietorship:
- Simplified accounting system
- Low registration and maintenance costs
- Full control over the business
- Ability to work remotely
- Fast registration procedure
Question
What are the risks of doing sole proprietorship in Poland?
Answer
When conducting a sole proprietorship, the owner is fully liable for all business obligations with his personal property, so a legal analysis of a situation and written advice from an experienced lawyer will help minimize potential risks and protect your interests.
Limited liability company (LLC)
This is the most popular form of medium-sized business in Poland. A legal opinion from a lawyer will help you determine whether this form is suitable for your business.
Key features of a limited liability company:
- Minimum authorized capital of 5000 PLN
- Limited liability of the shareholders
- Possibility to attract investors
- More complex management system
- The need to keep full accounting records
Business registration process
A lawyer's review of documents is a mandatory step when registering any form of business. A lawyer in Warsaw or a lawyer will help you to prepare all the necessary documents correctly.
Stages of registration:
Preparation of the necessary documents
Obtaining a PESEL or NIP
Opening a bank account
Registration with the relevant authorities
Obtaining permits and licenses
Joint stock company as a form of business
For a large business, a joint-stock company may be the best choice. A legal opinion from a lawyer will help you understand all the advantages and disadvantages of this form. An online lawyer can conduct a detailed analysis of documents and explain the peculiarities of the functioning of a joint-stock company.
Characteristics of a joint-stock company:
- The minimum authorized capital is 100,000 PLN
- Possibility to raise capital through the sale of shares
- Complex corporate structure
- High level of investor protection
- Prestige of the form of ownership
Limited liability company
This form of business is less common but has its advantages. Consulting a lawyer will help you determine whether it is suitable for your business. A legal analysis of a situation will show all the possibilities and limitations.
Features of a limited partnership:
- The presence of two types of partners
- Flexible system of profit distribution
- Possibility of tax optimization
- Lower reporting requirements
- Simpler management structure
Question
What are the tax advantages of a limited liability company?
Answer
A limited liability company allows you to optimize your tax burden due to a special management structure and profit distribution, but to properly use these advantages, you need legal advice and legal analysis of documents to avoid violations of tax laws.
Choosing a taxation system
Choosing the right taxation system is critical for a successful business. A legal opinion will help you choose the best option for your case.
Available taxation systems:
General system (19%)
Linear tax (19%)
Tax card.
Single tax on registered income
Simplified system for small businesses
Permits and licenses required
Some activities require special permits or licenses. A lawyer in Poland will help you determine which permits are required for your business and how to obtain them.
Areas requiring special permits:
- Financial services
- Medical activities
- Construction
- Transportation services
- Sale of alcohol
Question
What should I do if I was denied the necessary license?
Answer
In case of refusal to issue a license, it is necessary to conduct a legal analysis of a situation with the help of a qualified lawyer who will be able to appeal the decision or help eliminate the reasons for the refusal, as such situations often arise due to improperly prepared documents or formal errors.
Protection of the interests of foreign entrepreneurs
Foreign entrepreneurs in Poland have a special status and require additional legal protection. Legal analysis of documents and written advice will help to avoid problems with state authorities.
Important aspects for foreign entrepreneurs:
- Legality of stay
- Work permit
- Opening a bank account
- Registration with tax authorities
- Insurance
Common mistakes when starting a business
The wrong choice of business form can lead to serious problems in the future. Having your documents reviewed by a lawyer and getting a legal opinion will help you avoid common mistakes.
Common mistakes:
Insufficient authorized capital
Wrong choice of taxation system
Lack of necessary permits
Errors in the constituent documents
Violation of registration deadlines
Features of taxation of different forms of business
A proper understanding of tax obligations is critical for successful business. A legal opinion of a lawyer will help you understand all the nuances of taxation and choose the best option.
Tax rates for different forms of business:
- Sole proprietorship - from 12% to 32%.
- LLC - 19% of the profit
- Joint stock company - 19% of the profit
- Limited partnership - taxation at the level of partners
- Representative office - special taxation regime
Specifics of working with Polish counterparties
Cooperation with Polish partners has its own peculiarities that require legal analysis of a situation. Legal advice will help you to formalize your relations and protect your interests.
Question
What are the main risks when working with Polish counterparties?
Answer
When working with Polish counterparties, it is important to properly formalize all contractual relations, have the documents reviewed by a lawyer and obtain a legal opinion on the reliability of the partner, as this will help to avoid problems with non-fulfillment of obligations and possible financial losses.
Important aspects of cooperation:
- Conclusion of bilingual contracts
- Checking the partner's reputation
- Negotiating payment terms
- Adherence to local business traditions
- Consideration of cultural peculiarities
Starting a business in Poland is a complex process that requires a professional approach and attention to detail. Neglecting legal support can lead to serious problems: fines, additional expenses, loss of time to correct mistakes, and in the worst cases, to the forced closure of the business. Entrust your business to the professionals of the legal marketplace KONSULTANT, where experienced lawyers and attorneys will help you choose the best form of business, prepare all the necessary documents and accompany you at all stages of registering and doing business in Poland.
