Sole Proprietorship (JednoosobowaDziałalnośćGospodarcza) in Poland
What is a Sole Proprietorship?
A Sole Proprietorship (in Polish: JednoosobowaDziałalnośćGospodarcza) is the simplest and most common form of business activity in Poland. It is owned and operated by one person, and there is no legal distinction between the business and the owner.
Key Features:
- Owned by One Individual
- No Legal Separation: The owner is personally liable for debts and obligations.
- Quick Registration: Can be registered online in 1–2 days.
- No Minimum Capital Required
- NIP and REGON assigned upon registration
Registration Process:
- Register via the CEIDG (Central Register of Economic Activity) portal: https://www.biznes.gov.pl
- Choose a PKD (business activity code)
- Decide on:
- Form of taxation (lump sum, linear, progressive)
- VAT registration, if needed
- Open a bank account for business transactions
- Optional: Register with ZUS (social insurance)
Taxation Options:
- General (Progressive): 12% / 32% income tax
- Flat Rate: 19% income tax
- Lump Sum Tax: Between 2%–17% depending on the type of activity
- VAT: 23% standard (if applicable)
Accounting:
- Simple bookkeeping (revenue and expense ledger) for most sole traders
- No mandatory audit
- Annual tax declaration (PIT-36, PIT-36L, or PIT-28 depending on the tax method)
Advantages:
- Easy and fast to set up
- Low costs and minimal bureaucracy
- Full control over business decisions
- Flexible taxation options
Disadvantages:
- Unlimited personal liability – the owner is fully responsible for all business debts.
- Harder to attract investors or scale compared to companies like Sp. z o.o. or S.A.
