Starting a business in Poland is a straightforward process, but it requires understanding the legal and administrative requirements. Whether you are an EU citizen or from outside the European Economic Area, Poland offers a friendly environment for entrepreneurs. This guide will walk you through the essential steps for registering a sole proprietorship in Poland.
To register a one-person business activity in Poland, you must be at least 18 years old. Minors can only operate a business through their legal representatives, typically their parents.
While Polish citizenship is not required, individuals from the EU and EEA can start a business under the same rules as Polish citizens. Non-EU residents need a valid residence permit that allows business activity, such as a permanent or temporary residence permit issued for work or study purposes.
Business activity in Poland is defined as an organized, profit-driven activity conducted continuously and independently. If your monthly revenue exceeds 75% of the minimum wage (PLN 3181.5 as of January 2024), you must register your business with the Central Register and Information on Economic Activity (CEIDG).
However, if your revenue stays below this threshold and you have not conducted business in the past 60 months, you can operate as a non-registered business without formal registration.
When registering with CEIDG, your business name must include your first and last name in the nominative case (e.g., “Jan Kowalski Locksmith Services”). You can add additional words to describe your business activity or location.
Your business can operate from various locations, including an office, co-working space, home, or even in a mobile format. If you register a physical location, you must have legal rights to the property, such as ownership, rental, or lease agreements.
Poland uses the Polish Classification of Business Activity (PKD) codes to categorize business activities. Selecting the correct PKD code is crucial, as it affects taxation, VAT registration, and regulatory requirements. You must choose a primary PKD code and may add secondary ones if needed.
Most businesses in Poland do not require a license, but certain industries—such as transportation, financial services, and legal professions—require specific permits. If your business falls into this category, apply for the necessary licenses after registering with CEIDG.
Sole proprietors in Poland can choose from three taxation methods:
Once chosen, the taxation method can only be changed at the beginning of the next tax year.
Entrepreneurs must register for VAT if their annual revenue exceeds PLN 200,000 or if they deal in VAT-applicable goods and services. VAT registration is done by submitting a VAT-R form before conducting taxable transactions.
Businesses in Poland must maintain financial records. Accounting can be done through:
A business bank account is necessary for transactions exceeding PLN 15,000 and for VAT-registered businesses.
Entrepreneurs must register with the Social Insurance Institution (ZUS) to pay health, retirement, and accident insurance contributions. However, new businesses can benefit from a 6-month startup relief, followed by 24 months of reduced contributions.
If you need someone to act on your behalf in legal or financial matters, you can appoint an attorney-in-fact. This is especially useful for managing business affairs remotely.
Registering a business in Poland is a structured yet accessible process. By following these steps, you can ensure compliance with Polish regulations and set up a successful enterprise. Whether you’re an EU citizen or a non-EU resident with a valid permit, Poland provides opportunities for entrepreneurs looking to build and grow their businesses. If you need to improve your level of Polish to conduct a business in Poland, don’t forget to check out Polish fro business section.
