Register company in Poland – 5 steps to starting a business

Registering a company in Poland is a process that requires making several key decisions that will affect the further development of the business. How to properly choose a name, business address, and form of taxation? What steps should be taken to register your company in the Central Register and Information on Economic Activity (CEIDG) and report it to the Social Insurance Institution (ZUS)? This article provides practical information on the steps to be taken when registering a company in Poland.

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Steps to register a company in Poland

The process of establishing a business in Poland follows a clearly defined sequence of actions necessary to ensure that the company operates legally and efficiently. The first step involves choosing a name, address, and scope of activities in accordance with Polish Classification of Activities (PKD) codes. Next, it is essential to decide on the taxation form, which will affect how accounting and tax settlements are handled. The subsequent step includes selecting the appropriate accounting method, opening a business bank account, and formally registering the company with the CEIDG. Once the registration is complete, the company must be reported to ZUS, and a schedule for paying contributions must be established. The following sections of the article provide a detailed explanation of each of these steps.

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1. Choosing the name, address, and scope of the business

Name of the business in Poland

Choosing a company name is an important decision that serves not only an identifying function, but also a marketing one. Regardless of the legal form of the business, the name should clearly identify the company in the market and reflect its business profile. In the case of companies, regulations in Poland require the use of appropriate designations, for example, “sp. z o.o.” for limited liability companies. For sole proprietorships, the name must include the entrepreneur’s first and last name.

The company name should be short, easy to remember, and positively perceived by customers. When determining the name, it is also worth considering whether it will be easy to use in promotional materials and if there is an opportunity to register an appropriate domain name.

Business address

Entrepreneurs in Poland have a great deal of flexibility when it comes to choosing the location of their business – it can be a permanent service point, an office, a coworking space, or even a private apartment. In the case of mobile businesses, where services are provided at the client’s location, it is possible to operate without a permanent address.

When registering the company, it is necessary to specify an address for official correspondence, such as from ZUS or the Tax Office. If accounting documents are kept elsewhere, for example in an accounting office, that address must also be reported. The entrepreneur must have legal title to any property reported as a place of business – this can be ownership, lease, rental or lending.

Scope of activity

When registering the company in Poland, the entrepreneur must select the appropriate PKD code that best reflects the profile of their business. The PKD code is important not only for public statistics but also for tax matters, such as the obligation to register VAT or use of a cash register. The main code corresponds to the main area of business, with additional codes for other activities if applicable.

It’s worth remembering that an entrepreneur can register multiple PKD codes, even if not all the activities listed are currently being carried out. This can be beneficial if the company plans to expand into new areas in the future. Registering “inactive” PKD codes does not entail any consequences or require their removal.

However, the opposite situation should be avoided – selling a product or service without first registering the appropriate PKD code. In such a case, the application would need to be updated, which could involve additional formalities.

PKD codes can be searched using the government search engine available on the Biznes.gov.pl portal: https://www.biznes.gov.pl/pl/portal/szukaj-pkd.

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2. Choosing the form of taxation

The choice of the form of taxation in Poland is up to the entrepreneur who should take into account the financial aspects, the nature of the business, and expected level of income. New entrepreneurs in Poland have three forms of taxation to choose from:

• Progressive tax scale (general rules) – This is the most commonly chosen form of taxation. The rates are 12% for income up to PLN 120,000 and 32% of the surplus. It applies to income obtained both from business activities and from other sources, such as civil law contracts or ZUS benefits (e.g. pensions, retirement pensions). Additionally, within the tax scale, there is a tax-free allowance of PLN 30,000.
• Flat tax – Entrepreneurs who choose this option pay a fixed income tax rate of 19%. This is a beneficial option for those with higher income, as the tax rate does not increase with income. However, unlike the progressive tax scale, there is no tax-free allowance.
• Lump-sum tax on recorded revenues – This form of taxation involves paying tax on revenue rather than profit. Entrepreneurs do not need to keep full accounting records, and tax rates depend on the type of business and PKD code. This option is limited by the type of activity, as not all businesses are eligible for the lump sum tax.

The choice of the form of taxation is crucial for the entrepreneur, because it affects the method of keeping accounts, the amount of tax burdens and the possibility of using various tax reliefs.

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3. Determining the form of accounting and opening a bank account

Accounting method

Every entrepreneur in Poland is required to keep appropriate accounting documentation, which includes invoices, receipts, and records. Depending on the chosen form of taxation, entrepreneurs may use different accounting methods.

There two main forms of accounting to choose from:

• Simplified – involves maintaining a tax revenue and expense ledger (KPiR) or an income record in the case of a lump-sum system.
• Full – based on keeping accounting books, which are more complex and require detailed documentation of financial transactions.

Companies may choose to handle accounting internally or use the services of external accounting firms. Collaboration with professionals allows you to save time and avoid mistakes in settlements. getsix® offers comprehensive accounting, bookkeeping, and HR and payroll services, particularly for medium and large enterprises, helping with tax optimization and ongoing compliance with regulatory changes. We invite you to contact us.

Bank account

Every entrepreneur in Poland must have a bank account for transactions related to business activity. This can be either a business or private account, as long as it is a single-person account. However, in practice, to simplify settlements and to meet legal requirements, the vast majority of entrepreneurs opt for a business account.

A business account is necessary to conduct transactions exceeding PLN 15,000, as cash payments above this amount are prohibited in transactions between businesses. Furthermore, business accounts are required for tax and ZUS settlements as well as for the use of the split payment mechanism. Companies that are VAT taxpayers must also have a business account to be listed on the VAT White List.

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4. Business registration in CEIDG

To start a business in Poland, the entrepreneur must register it in the Central Registration and Information on Economic Activity (CEIDG). This can be done online, at the office, or by sending the form by regular mail.

Registration is done on the CEIDG-1 form, which contains basic information about the company, such as its name, address, and type of activity. Registration is free of charge and applies primarily to sole proprietorships and partners in civil partnerships.

For partnerships and corporations in Poland, an entry in the National Court Register (KRS) is required. It is also possible to conduct unregistered business if monthly revenues do not exceed half of the minimum wage.

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5. Registering the business with ZUS and contributions

The entrepreneur has 7 days from registering the company in CEIDG to report the business to ZUS. This can be done while filling out the CEIDG-1 form, which makes it easier to handle these formalities at the same time as registering your business.

Every entrepreneur who starts a business in Poland must pay ZUS contributions, which include social insurance (retirement, disability, accident), health insurance, as well as contributions to the Labor Fund and Solidarity Fund.

New entrepreneurs can take advantage of several reliefs that reduce ZUS costs. If the company is newly established, it can benefit from a start-up relief. This means that for the first 6 months, the entrepreneur does not have to pay social insurance contributions, and only pays health insurance contributions. This reduces the monthly costs of running the business.

After 6 months, it is possible to take advantage of another relief – preferential ZUS contributions, which are lower for the next 24 months. If the entrepreneur does not meet the conditions for relief, they must pay social insurance contributions on a base amount of at least 60% of the average salary. It’s important to remember that ZUS relief applies only to the entrepreneur and does not cover employees hired in the company.

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Summary

When registering a company in Poland, it is essential to plan each stage of the process to avoid unnecessary complications. The most important steps include choosing an appropriate company name and address, deciding on the form of taxation and accounting method, as well as registering the company in CEIDG and reporting it to ZUS. At each stage, decisions are made that affect future obligations and costs of running the business. A well-planned business registration can facilitate daily management of the company and allow you to focus on business development instead of formalities.

To learn how to get support with registering a company in Poland, take a look at our offer: Company Registration in Poland.

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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