How to estimate the costs of doing business in Poland

How to estimate the costs of doing business in Poland

How to estimate the costs of doing business in Poland

What mistakes can entrepreneurs encounter when starting a business in Poland?

Each entrepreneur creates his or her own business model. It can be a business related to trade, services or production – these will be the main expenses. But there will also always be fixed costs associated with running a company. They will mainly depend on the volume of your business and here we include the maintenance of the office, a certain number of employees who will be engaged in administrative work or keep accounting records.
We want to highlight three main mistakes that entrepreneurs often make:

1. Ignorance of expected taxes and costs of running a company

One of the major mistakes entrepreneurs make is not understanding their expenses. When starting a business, it should be clear whether your firm is obliged to pay Value Added Tax (VAT) or not. If the company’s income does not exceed 200.000 PLN per year, which is divided proportionally by months – the company is not obliged to pay VAT. In addition, for all imports you have to pay VAT! But it should be noted that there are a number of activities that require you to pay it. From the main types we can distinguish as consulting services, vtch:
– accounting and legal services
– consulting
– IT services

This is crucial to avoid mistakes and unpleasant situations. In addition, it is important to determine the form of taxation when choosing between Spółka z.o.o. and Individual Entrepreneur registration. As far as taxes are concerned, in case of spółka z.o.o., it is necessary to study the form of taxation and determine which form of taxation will be optimal for the company. By determining this form, it is possible to understand what expenses and taxes await the company.
When employing employees and calculating their salaries, it is necessary to take into account the tax on this salary and put it into the price-forming of the company. You can calculate the salary of an employee by using a salary calculator.Taxes should also be taken into consideration while employing employees and price-forming the services.

2. Incorrect determination of the price of the service, which can lead to unpleasant consequences

Determining the correct price for a service is the second common mistake made by entrepreneurs. Incorrect pricing of services can lead to problems with taxation and the country registration card.
After some time, the company receives information on taxes and it has problems: either the company does not receive the profit required by the state for obtaining the Card of побыту, or the entrepreneur starts to combine with these taxes, accordingly, his company is at a loss.
It is important to always remember that in order to receive the Card on the basis of doing business, the company’s profit must bear 12 average salaries during the year. And if this amount has not yet been earned, it is important to show that the firm can earn this money.
In simple words, it is important to show what the company actually does and how it earns or intends to earn the expected profits.

3. Dishonest or illegal activities, which may eventually lead to problems with the legalisation of the business

Business should be legal and its conduct should be transparent! Running a transparent business and consulting a financial advisor can help in optimising costs and avoiding mistakes. Sound tax management and transparent business conduct can help your company grow and avoid unnecessary problems.