Sole proprietorship in Poland – terms and conditions
The most popular form of running a business in Poland is registering a sole proprietorship.
However, sole proprietorship is possible only for Polish and EU citizens and foreigners with a permanent residence card, therefore economic activity is dominated by Polish citizens.
Individual entrepreneur in Poland
What you must have to register sole proprietorship
- PESEL – identification number of a natural person,
- NIP – tax number
- Registration with ZUS – you must register with ZUS in the form of a ZUA
Sole proprietorship (DG) must be registered. Registration is carried out remotely in electronic form or you can personally submit an application for registration at an office – a local government unit.
Business registration manual DG in electronic form
- Log in to the CEIDG website. The application is available at ceidg.gov.pl. After logging in to your account, select “Set up a business”.
- Fill in the CEIDG-1 application. The application should specify personal data, the scope of work carried out within the DG. The application is accepted automatically, an electronic signature or an ePUAP profile is required.
- Set up a free Trusted Profile – ePUAP. Details on ePUAP can be found at https://progressholding.pl/zakladanie-firm-w-polsce/#
- Sign the application and send it to the office
- Taxation on general principles (tax scale) – 17% up to the amount of PLN 85,528, above this amount, PIT tax is 32%
- Flat tax – income is taxed at a fixed rate of 19%
- Lump sum on recorded revenues – entrepreneurs who in the previous tax year did not exceed the amount of EUR 250,000 on account of their revenues
- Tax card – used for specific activities. The monthly tax is determined by the head of the tax office, based on the type and scope of business activity, the number of employees and the conditions of a given locality.
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