Opening an Individual Entrepreneur in Poland
One of the ways to legalize business in Poland is to register an individual entrepreneurial activity (Jednoosobowa działalność gospodarcza).
Step-by-Step Instructions for Opening an Individual Entrepreneur in Poland
To open an individual entrepreneurial activity, you need to legally stay in Poland and have an individual tax number PESEL. Legal residence can be based on temporary protection, on the basis of a Pole's Card, residence permit, visa, or it is necessary to have a note in the passport that the applicant has already submitted documents for the legalization of their stay in Poland.
When applying for PESEL, you need to indicate that you have a trusted profile – the ability to sign documents with a digital signature. To open an individual entrepreneur, you will need to choose a PKD – the Polish equivalent of the Ukrainian KVED. It can affect the tax rate, but also – not all types of activities are available for opening by an individual entrepreneur, not all types of activities are available to foreigners.
And, of course, you will need an address to be used for correspondence.
After collecting all the necessary documents, the next step for opening an individual entrepreneur will be to register in the Central Register of Entrepreneurial Activity – CEIDG. This can be done online. When registering online, the necessary NIP (tax identifier for entrepreneurs) and REGON (unique identifier for legal entities) numbers are assigned automatically. Registration with ZUS must be done within 7 days if not done immediately.
The certificate of registration of an individual entrepreneur can be downloaded through CEIDG.
Main Requirements for Registering an Individual Entrepreneur in Poland
The main requirements in Poland for registering entrepreneurial activity are legal residence in Poland and having a PESEL.
The reasons for canceling a Polish individual entrepreneur (jednoosobowa działalność gospodarcza) are the expiration of the residence permit, the expiration of temporary protection for Ukrainians. It is not possible to conduct individual entrepreneurial activity in Poland while staying in another country.
On the marketplace “Consultant,” you can get legal advice on opening a private business in Poland, as well as order a full support service for registering this form of business.
Documents Required to Open an Individual Entrepreneur in Poland:
- a document confirming legal residence in Poland – residence card, long-term EU resident card, visa based on a Pole's Card, stay in Poland under the Poland.Business Harbour program;
- individual tax number PESEL;
- identity document;
- company information, a list of PKDs, company registration address may be needed.
Advantages of Opening an Individual Entrepreneurial Activity:
- the ability to register a business online through biznes.gov.pl;
- no need for statutory capital;
- tax payment depends on income and you can independently choose the form of taxation;
- free registration;
- simplified accounting due to high income limits;
- VAT exemption if income is below a certain level, or if selling goods that are not subject to VAT.
Disadvantages of Opening an Individual Entrepreneur in Poland:
- the entrepreneur is fully liable with all their property for their obligations;
- monthly ZUS contributions must be paid regardless of income;
- individual entrepreneurial activity is not suitable as a form of business registration for the purpose of selling it later.
Taxes for Individual Entrepreneur Status
With a flat rate, the tax rate is 19% with no income limits.
The tax rate on a scale is as follows:
- 0% with an income of 30,000 PLN per year;
- 12% - 3600 PLN with an income from 30,000 to 120,000 PLN per year;
- 10,800 PLN + 32% of the excess amount after 120,000 PLN per year.
To maintain accounting for an individual entrepreneur, you need to hire a Polish accountant. Also mandatory are the submission of declarations and reports to the tax office. Late submission or non-submission at all can lead to fines or criminal liability.
Bank Account for Opening an Individual Entrepreneur in Poland
A bank account is required when paying taxes and for receiving payments for your services. For individual entrepreneurship, you can use a personal account, or you can open a separate business account. It is needed if:
- it is necessary to accept or make Split Payment transfers;
- the service bills are from 15,000 PLN and above. In this case, you need to enter your account number in the so-called white list of VAT payers – a personal bank account cannot be entered in this list. It is entered through CEIDG;
- to separate work and personal accounts in case of an audit.
Conclusion
The simplest way to register a company in Poland is to open an individual entrepreneur (Jednoosobowa działalność gospodarcza). However, registering a business involves knowledge of legislation and taxation. On our portal "Consultant," you can get individual consultation on opening an individual entrepreneur, choose an accountant to support you as an individual entrepreneur, and order full legal support for opening an individual entrepreneurial activity jednoosobowa działalność gospodarcza.
