How to open a sole proprietorship of group 2 in Poland: key stages

Opening a sole proprietorship of the 2nd group (operating under the simplified taxation system) in Poland is becoming increasingly relevant for entrepreneurs from CIS countries considering the Polish market as a platform for small business development. The correct choice of organizational and legal form, understanding tax obligations, and compliance with local regulatory requirements directly affect the sustainability and legality of conducting business.

This material discusses the key stages of opening a sole proprietorship of the 2nd group in Poland: from preparing documents and registering in the relevant registers to choosing a tax regime and registering with ZUS. A step-by-step approach will help systematize the process and minimize the risk of errors at the start of entrepreneurial activity.

Preparation for registering a sole proprietorship of the 2nd group in Poland: legal status, types of activities, and requirements for the entrepreneur.

Before submitting an application, it is important to determine in which legal format the entrepreneur will operate and which types of activity codes (PKD) will be indicated in the register. The most common form for small businesses is an individual entrepreneur (jednoosobowa działalność gospodarcza), registered through the CEIDG register. When choosing PKD, it is advisable to think through both the main and additional types of services to avoid restrictions when expanding the business. It is recommended to check in advance whether the planned services fall under licensed or regulated activities, where separate permits or professional qualifications may be required.

Basic requirements are imposed on the entrepreneur, without which registration will be impossible. Key requirements include:

• Availability of PESEL a PESEL number or other identifier that allows data to be entered into Polish registers;
• Legal stay in the country (residence card, visa, EU resident status, etc.);
• Address for conducting business (can be a residence address, office, coworking space);
• Absence of a ban on entrepreneurial activity on the territory of Poland;
• Readiness for accounting and reporting — a contract with an accountant or understanding of the operation of online systems e‑Urząd Skarbowy and ZUS.

Step-by-step procedure for opening a sole proprietorship in Poland, choosing a tax form and registration in state registers

In practice, the path begins with choosing an organizational and legal form and the optimal tax regime. For individual activities in Poland, registration is most often used in CEIDG with simultaneous assignment of a number NIP and confirmation/receipt PESEL (if it was not previously obtained). At this stage, it is important to determine in advance how you will pay taxes: by general scale, by linear rate, on lump sum (single tax on turnover) or in rare cases by card tax. The decision is fixed at the moment of submitting the application, so it is advisable to analyze the planned turnover, expense structure, and type of services in advance. For clarity, a simple comparative matrix can be used:

After choosing the tax regime, the entrepreneur sequentially registers themselves in key registers and funds to ensure that the activity is legal and transparent to the state. The basic steps include:

• Registration in CEIDG indicating the activity code (PKD), tax form, and bank account that you plan to use in the business.
• Registration with ZUS — choice of contribution type (preferential for starting a business, standard or «Mały ZUS Plus» if conditions are met).
• VAT decision: registration as a VAT-UE payer when working with contractors from other EU countries or when exceeding the turnover limit.
• Choice of accounting method: simple income and expense book (KPiR) or revenue record for lump sum, as well as connection to online reporting services.

Tax and accounting obligations of individual entrepreneurs of group 2, payment of ZUS contributions, bookkeeping and reporting

After registration, it is important to immediately understand what contributions and taxes you will have to pay. An entrepreneur in group 2 is required to monthly transfer insurance contributions to ZUS, as well as regularly report on income tax and VAT (if registered as a VAT payer). Typical mandatory payments include:

• ZUS social contributions – pension, sickness, disability.
• Health insurance – a mandatory component that provides access to state healthcare.
• Income tax – depending on the chosen tax form (general system, linear tax, etc.).
• VAT – when exceeding turnover limits or voluntary registration.

For group 2, it is critically important to keep accurate records of income and expenses, store primary documents, and timely prepare reports. It is recommended:

• To maintain an electronic book of income and expenses with a breakdown by types of operations.
• To use accounting programs or accounting outsourcing to reduce the risk of errors.
• To archive invoices and contracts for at least the legally established period.
• To monitor changes in limits and rates, to avoid missing the transition to other taxation regimes.

Practical recommendations for optimizing expenses of individual entrepreneurs: choosing a bank, standard contracts, and electronic services for entrepreneurs

At the budgeting stage, it is advisable to think in advance about which expenses truly benefit the business and which can be optimized without losing quality. When choosing a bank, pay attention not only to the commission size but also to the availability of specialized offers for individual entrepreneurs: free service with minimal turnover, preferential transfers within the bank, convenient internet and mobile applications in Polish and English. It is useful to compare several options in a table in advance and consider how you will work with clients — offline or predominantly online.

• Bank — tariffs for entrepreneurs, cost of international transfers, integration with accounting programs.
• Standard contracts — templates in Polish and Ukrainian/Russian, sections on confidentiality, liability of the parties, and payment terms.
• Electronic services — ePUAP, e-Tax Office, document organization in the cloud, electronic signature.

Concluding thoughts

In summary, opening a sole proprietorship of the 2nd group in Poland requires a clear understanding of legal status, tax regime, and administrative procedures. Sequentially passing through key stages—from choosing the form of activity and preparing documents to registration in registers and accounting with tax and insurance authorities—allows minimizing risks and avoiding typical mistakes at the start.

When planning, it is important to assess the scale and specifics of future activities in advance to correctly choose the tax system and optimally structure financial flows. In the context of changing legislation, it is advisable to regularly check current regulations and, if necessary, seek advice from specialized professionals.

A well-prepared launch of a sole proprietorship in Poland creates a stable foundation for further business development, simplifies interaction with government agencies and counterparties, and contributes to a more predictable financial result in the long term.