Embarking on the entrepreneurial journey to establish a one – person business (sole proprietorship) in Poland is a thrilling prospect. The process is designed to be accessible for aspiring business owners, and with the right guidance, you can seamlessly navigate the steps to set up your enterprise. In this comprehensive step-by-step guide, we will walk you through the essential steps, ensuring you have a solid understanding of the procedures involved in starting your one-person business in Poland.
12-step guide on setting up a one-person business in Poland:
- Check Eligibility
Ensure that you meet the criteria to conduct economic activity in Poland. Generally, individuals from EU and European Economic Area member states can operate on equal terms with Polish citizens.
Understand the circumstances requiring business registration. If you anticipate low revenue, you might qualify to operate without additional formalities.
- Choose a Business Name
During registration, specify the name under which you’ll operate. Include at least your first and last name, and consider adding elements describing your business profile.
- Decide on the Registered Address
Determine whether your business will operate from a fixed location or be mobile. Choose from various premises types, such as a service point, an office, a virtual office, or even your home.
- Select the Appropriate PKD Code
Assign your business activity to the relevant code in the Polish Classification of Activities (PKD). These codes are crucial for statistical purposes and may impact taxation and other obligations.
- Check for Necessary Permits
Certain businesses may require specific licenses or permits. Confirm whether your planned activity falls into a regulated category, as you might need approval from public authorities.
- Choose the Taxation Method
Decide on the method of income taxation for your business. Options include the general scale, linear scale, or a lump-sum tax on recorded revenues.
- Verify VAT Obligations
Check if you’re obligated to register for Value Added Tax (VAT). Small businesses with low revenues may be exempt from VAT registration.
- Establish Accounting Procedures
Determine how you’ll manage your accounts and which bank account you’ll use for transactions. Choose between simplified accounting or a full accounting system.
- Understand ZUS Contributions
Familiarize yourself with the social security contributions to ZUS. New businesses may qualify for “Start-Up Relief,” exempting them from certain contributions during the initial period.
- Decide on a Proxy
Consider whether you need to appoint a proxy to act on your behalf. This person will represent you in various matters related to your business.
- Register Your Business Online
Once prepared, register your business online on biznes.gov.pl. A Trusted Profile or a qualified electronic signature is essential for the registration process.
Note:
Before starting the online registration, prepare the data you will be asked for in the application for entry into the register. You must provide:
- First name, last name, names of parents, date, and place of birth
- Type, series, and number of identity document
- PESEL (Personal Identification Number), if you are a Polish citizen or have been assigned one
- All citizenships held
- NIP (Tax Identification Number) and REGON, if assigned
- Residential address and other addresses related to the planned business activity
- Name of the intended business activity
- Abbreviated name
- PKD codes
- Number of employees you plan to hire
- Date of commencing business activity
- Information about insurance in ZUS (Social Insurance Institution), KRUS (Agricultural Social Insurance Fund), or abroad
- Data of the tax office relevant to your place of residence
Summary:
Launching your one-person business in Poland is an exciting journey filled with opportunities. We’ve covered the essential steps, from understanding the legal framework and choosing a suitable business name to completing the necessary registrations and ensuring compliance with tax and social security requirements. Remember, thorough preparation and attention to detail are key as you navigate the intricacies of starting a business in Poland. Adwisen offers you qualified and helpful assistance throughout the implementation of each of the mentioned steps.
