How to open and run a business in Poland

1. Choosing the organizational and legal form

1. Individual entrepreneurship (Jednoosobowa Działalność Gospodarcza, JDG) — suitable for small businesses. Registration is simple, and the tax system is flexible: a linear rate of 19% is available, a progressive scale of 12% and 32%, or fixed rates (5.5%, 8.5%, 12%, and others) depending on the industry. However, the entrepreneur bears full property liability, which can pose a risk.
2. Limited liability company (Spółka z o.o.) — the most popular form for medium and large businesses. The minimum share capital is 5000 zlotys. Founders are only liable up to their contributions, which reduces personal risks. Registration is more complex than in JDG and requires full accounting.

 2. Choosing a niche and market analysis

Before registering a company, a detailed market analysis must be conducted. The Polish economy is growing in several key areas:

1. Information technology (IT): Poland is gradually becoming a technology hub in Europe. There are qualified specialists here, and the cost of services remains competitive.
2. Manufacturing: the country is known for its strong industry, particularly in the automotive and aviation sectors. Factories such as Volkswagen, Solaris Bus & Coach, and others are located in Poland.
3. Agriculture and food industry: Poland is a major exporter of agricultural products — grains, beets, potatoes, apples, berries.
4. Tourism: thanks to its rich culture and nature, the country attracts millions of tourists every year. The most popular destinations are Krakow, Warsaw, Wroclaw.

3. Company registration

• Preparation stage
• Choosing a unique company name
• Determining the legal address
• Preparing the company’s statute
• Forming the management structure

1. Submitting documents to the National Court Register (KRS)
2. Obtaining a tax identification number (NIP) and statistical code (REGON)
3. Registering in the social insurance system (ZUS)
4. Online registration through the S24 portal — the fastest option for launching a company via the internet

4. Taxes and accounting

There are three main types of taxes in Poland:

1. Corporate income tax (CIT): the basic rate is 19%. For companies with a turnover of up to 2 million euros, a reduced rate of 9% is available. Since 2021, the "Estonian CIT model" has been in effect — tax is not levied on undistributed profits, but only if certain criteria are met.
2. Value-added tax (VAT): the standard rate is 23%. Reduced rates of 8% and 5% are provided for certain goods and services. If the annual income of the company is less than 200,000 zlotys, VAT registration is not mandatory — this reduces administrative burden.
3. Personal income tax (PIT): for individual entrepreneurs, a progressive scale applies: 12% up to an income of 120,000 zlotys and 32% on everything above. A fixed rate of 19% is also available for certain types of activities or flat rates — 3%–12% depending on the industry, without the right to deduct expenses.

5. Legalization of stay and work permit

1. Business visa: issued based on an invitation from a Polish company or documentation confirming the intention to start entrepreneurial activity.
2. Residence card (Karta Pobytu): issued to those who have already registered a business in Poland and are actively operating. The procedure takes 3 to 6 months.