What’s Wrong with Sole Proprietorship in Poland
My name is Stas, and I’ve been living in Poland for 9 years. During this time, I’ve helped launch over 300 businesses in Poland. In this video, we’ll talk in detail about individual entrepreneurship (sole proprietorship) in Poland, what’s wrong with it, the nuances and risks involved, and how to deal with all of this.
The Tax System for Sole Proprietorship in Poland
So, what’s wrong with sole proprietorship in Poland? First of all, many people face problems with the tax system. This is one of the most painful topics that come up during consultations. Compared to other countries, many people simply don’t understand how to properly work with taxes, such as PIT and income tax for individuals.
It’s also hard to navigate the ZUS system. If you stop a Pole on the street and ask them how to pay taxes correctly, they might not even understand your question. This highlights how complicated the system is in Poland. That’s exactly why you’re watching this video — to understand these aspects.
Sole proprietorship in Poland is a topic for the select few. If you’ve lived in Poland for 9 years or even less and want to open a sole proprietorship, you need to consider a lot of factors. Of course, conditions have changed now, and Ukrainians can now legally open a sole proprietorship just by being citizens of Ukraine. This wasn’t possible before.
Problems with Opening a Sole Proprietorship for Foreigners
In one of the recent conversations, a Belarusian citizen contacted me. He has a work visa but can’t open a sole proprietorship in Poland. Unfortunately, if you don’t have the required documents, such as a Pole’s Card (Karta Polaka) or a residence card (Karta Pobytu), it becomes problematic to open a sole proprietorship. This is another issue faced by those who want to start a business in Poland.
Responsibility of Sole Proprietorship in Poland
Another important point is responsibility. When you open a sole proprietorship in Poland, you need to understand that in the case of any debts, all your personal assets can be at risk. If you have debts to contractors, clients, or counterparties, you risk your entire capital.
A sole proprietorship is a part of you, and any breach of obligations can lead to serious consequences. However, there’s good news. This can be sorted out if you understand the main criteria and requirements for opening a sole proprietorship in Poland.
Criteria for Opening a Sole Proprietorship in Poland
If you’re Ukrainian and have a PESEL number, you can open a sole proprietorship in Poland. If you don’t have a PESEL number but have documents confirming your legal stay in Poland (for example, a visa or a residence card), you can still open a sole proprietorship.
If you’re a Belarusian or Ukrainian citizen with a Pole’s Card or a long-term resident’s card, the process of opening a sole proprietorship will be even easier for you. There are several forms of taxation for sole proprietorships in Poland.
The first form is called “skala podatkowa,” which is suitable for those planning to earn up to 120,000 PLN per year. If your income exceeds this amount, you should consider another form of taxation called “podatek liniowy.” This form is ideal for more serious entrepreneurs.
The third form of taxation is “ryczałt,” which is suitable for those with low expenses and who find it more profitable to pay tax on turnover.
Taxes and Their Nuances
Thus, Poland has three main forms of taxation for sole proprietorships, and each one has its nuances and features. However, there are many other aspects to consider.
For example, you need to work with documents correctly, issue invoices, and understand how income limits work. If your income does not exceed 200,000 PLN, you can avoid VAT payer status.
How to Quickly Understand the Sole Proprietorship System in Poland
I asked myself, is there a way to quickly understand these issues on a strategic level, without diving into accounting and complicated details? We have an answer — we developed an exclusive course on starting and running a business in Poland.
In this course, we will guide you step by step on how to properly open and run a business in Poland. This course is suitable for business owners as well as employees. If you want to become a business consultant and help others start businesses in Poland, this course is also for you. All information about the course is available in the description below the video.
Conclusion
I wish you success in your business in Poland! If you have any questions or need help with company registration and accounting, feel free to contact us. We’re ready to assist you on this journey!
Thank you for watching this video. If you liked it, please like, subscribe to the channel, and leave questions in the comments. Good luck with your business in Poland!
