Hello everyone, this is Vitaliy, and welcome to the channel about business in Poland. Today, we will discuss an important and interesting topic that has been actively discussed over the past year – how Ukrainians who decided to start their own businesses in Poland have managed to avoid many fails and mistakes. Specifically for you, I’ve compiled a top 8 list of the most common mistakes made by newcomers when starting a business in Poland.
Mistake #1: Problems with ZUS
The first and probably one of the biggest mistakes entrepreneurs make in Poland is failing to follow the rules for paying ZUS contributions. Poland has a subsidy system for new entrepreneurs, allowing them to pay only part of the mandatory contributions for the first six months. If you don’t apply for this, you may receive a bill for around 2000 PLN. This could be a significant blow to your budget, especially if your business hasn’t yet reached a stable income level. Therefore, be sure to indicate in your documents that you want to take advantage of the ZUS discount.
Mistake #2: Comparing with Ukrainian Entrepreneurship
Many newcomers to Poland compare business activities in Ukraine and Poland, assuming that they are similar processes. However, this is far from true. Poland has much more bureaucracy, and it takes more time to process documents. Therefore, I recommend using an accountant’s services at the beginning to minimize risks. For example, in Ukraine, entrepreneurs often cannot work with VAT, while in Poland, every entrepreneur can register as a VAT payer and take advantage of the benefits.
Mistake #3: Incorrect Choice of Taxation Form
Choosing the right form of taxation is another common mistake. It’s important to understand which form of taxation suits you, taking into account your income and expenses. For this, there are tax consultants and online calculators. You should not just ask which form of taxation is the most beneficial but consider all the specifics of your business to avoid unexpected tax consequences.
Mistake #4: Delayed VAT Payer Registration
Sometimes, entrepreneurs doing business in Poland don’t become VAT payers on time. This is a mistake because, if you’re not registered, you won’t be able to reclaim VAT paid on imported goods. If you had registered for VAT in advance, you could have reclaimed the VAT paid during the import stage, thus optimizing your expenses.
Mistake #5: Premature VAT Registration
The opposite situation can also arise when entrepreneurs register as VAT payers too early. Clients often aren’t ready to pay a higher price for your product, which includes VAT. If your business is just starting, it may make sense not to register as a VAT payer until you reach a certain threshold, so you can keep more funds for development.
Mistake #6: Freezing Your Business
In Poland, many entrepreneurs register their business, but when faced with difficulties, they decide to freeze it. Remember that the discount period doesn’t stop, and even if you freeze your activity, you won’t be able to reapply for the discounts once this period ends. It’s best to open a business in Poland when you are ready to start operations to make the most of opportunities with minimal costs.
Mistake #7: Greed with Taxes
Entrepreneurs sometimes try to minimize their tax payments as much as possible, but this can have a negative impact on the future of their business. The government evaluates your entrepreneurial activity when granting residence permits (karta pobytu). If your business doesn’t bring any benefit to the Polish state, this can be grounds for refusal. Therefore, it’s important to plan your tax obligations properly.
Mistake #8: Lack of Planning
A lack of consideration for future business needs can lead to serious problems. For example, you may need a loan to expand your business, but if your financial reporting is not in order, getting that loan will be difficult. Discuss with a financial consultant how to best conduct tax optimization.
Conclusion
To conclude, I want to say that starting a business in Poland is exciting, but also a bit challenging. However, by knowing the potential mistakes, you can minimize risks and successfully grow your business. Share your stories in the comments because each story is an opportunity for others to learn from mistakes. If you liked this video, hit the like button and subscribe to our channel so you don’t miss future episodes!
