Starting a business in Poland requires careful consideration of the legal structure that best fits the entrepreneur’s goals, business size, and industry. Here’s a comprehensive guide to the primary legal forms of business in Poland, along with their benefits and potential drawbacks.
In this article, we will discuss the three popular forms of running a business in Poland:
This is the most popular form of running a business in Poland. From the formal side, choosing this form of business activity means significant time savings – because the application for company registration can be submitted online.
When establishing a sole proprietorship, you do not need to have initial capital. However, most importantly, it should be remembered that a sole proprietor is liable for all liabilities incurred while running the company with all his or her assets. Self-employed entrepreneurs keep accounting, which depends on the form of taxation. Taxation is allowed, among others: on general rules.
In the case of a limited liability company (spółka z ograniczoną odpowiedzialnością), it may be run by one partner. The company agreement must be concluded in the form of a notarial deed, and the establishment of this company requires a share capital contribution of at least PLN 5,000. For some time now, entrepreneurs have also been able to use a simplified procedure and set up a company online.
Importantly, the Company is responsible for its liabilities with its own assets. It is represented by the management board, and when the management board has many members, the cooperation of two of its members is necessary for effective representation.
A limited partnership (spółka komandytowa) can be established by two partners. One of them is referred to as the “general partner” and the other as the “limited partner”. The former is liable for the company’s obligations with all his assets. However, the limited partner’s liability is limited to the amount indicated in the agreement. This type of business activity is often chosen due to the possibility of making a limited liability company or a joint stock company a general partner in order to eliminate the personal liability of individuals.
The company agreement must be concluded in the form of a notarial deed, but, as in the case of a limited liability company, partners can also use the option of establishing a company online. The general partner represents the company independently, and the limited partner may represent it as its proxy.
GLC can help you choose the right form of running a business in Poland by conducting a detailed analysis of your needs, goals and financial situation. Based on this information, experts can propose the best option, taking into account legal, tax and administrative aspects. GLC provides consulting services that help you understand the differences between individual forms of business and the consequences of a given choice.
