Last week Poland implemented a simplified procedure of starting a business in Poland for Ukrainians immigrating to the country because of war in Ukraine.
From now on, Ukrainian citizens can become entrepreneurs or set up a company in Poland on the same terms as Polish citizens. The main requirements for establishing a business in Poland for Ukrainian citizens are legal residence in the territory of Poland and possession of a Personal ID Number (Pesel). That is why the citizens of Ukraine can be private entrepreneurs (they need to be registered in the Central Register and Information on Economic Activity) or to set up partnerships, limited liability companies, or joint-stock companies (in this case, they need to be registered in the National Court Register). In addition, a husband or a wife of a citizen of Ukraine who does not have Ukrainian citizenship will have the same rights and responsibilities as their spouse if they came to Poland from the territory of Ukraine after February 24.
What are forms of business activity are available in Poland?
To become a private entrepreneur is the simplest form of running a business:
- a citizen of Ukraine can register it online;
- a future private entrepreneur does not need any capital to start this form of business;
- a private entrepreneur is subject to personal income tax and may choose the form of taxation;
- a citizen of Ukraine does not have to register for VAT if the revenues are below a specified threshold;
- in most cases – for revenues below EUR 2 million – only simplified accounting or a revenues registry is required;
- a private entrepreneur is personally liable for all business obligations;
- only the private entrepreneur may represent the business.
Companies and partnerships are more complex forms of conducting business activity. The process of setting up a partnership or a company includes more formal procedures. Partners or shareholders need to draw up a partnership agreement or a company deed in a specified form. Registration of a company or a partnership is subject to a fee, and the rights to represent the business entity as well as the scope of liability for business obligations depend on the type of the entity. Most often a share capital is required.
What is needed to register a sole entrepreneur business activity in the Central Register and Information on Economic Activity?
A sole entrepreneur business can be registered online or traditionally – at any municipality office. Registration of a business run by a foreigner in the Central Register and Information on Economic Activity may take up to 30 days. However, usually, the entire process is completed in around 7 days.
To obtain a Personal ID Number, they need to set up their Trusted Profile. They will need it to create their account at Biznes.gov.pl. They need this account to complete the application online.
An application for an entry in the register to be submitted online may be signed with their Trusted Profile or an electronic qualified signature.
Additionally, regardless of whether they are registering a company online or traditionally – if they have a residence title that authorizes them to stay in Poland, they must present a document confirming that this stay is legal.
What is needed to register a company in the National Court Register?
The registration process is completed online:
- in the S24 system, or
- through the PRS portal
To register a partnership or a company, they need to create an account in the selected system and confirm it with their Trusted Profile or a qualified signature. If they wish to register a general partnership or a professional partnership, they need to present a document that will confirm that their stay is legal.
Source: Information by Biznez.gov.pl
