How to open a sole proprietorship in Poland: a step-by-step guide

Opening a business in Poland in the form of a sole proprietorship (individual entrepreneur, Polish equivalent — jednoosobowa działalność gospodarcza) allows for legal work, issuing invoices, paying taxes and contributions, as well as benefiting from small business incentives. For foreigners, this process may seem complicated: registration rules, differences in taxation forms, and document requirements often raise questions.

This step-by-step guide systematizes the key stages of opening a sole proprietorship in Poland: from checking legal status and preparing necessary data to registration in CEIDG, choosing a taxation form, and registering with ZUS and the tax authority. The material is aimed at those planning to start entrepreneurial activities in Poland and who want to minimize risks associated with formal errors and non-compliance with local requirements.

Preparation for opening a sole proprietorship in Poland analyzes legal forms and selects the optimal taxation regime.

At the first stage, it is important to understand in what capacity you will conduct business: as a sole proprietor in the form of sole proprietorship (the equivalent of a sole proprietorship) or possibly through other legal forms (spółka z o.o., spółka cywilna, etc.). For most freelancers, IT specialists, and small service businesses, basic entrepreneurial activity remains the most flexible and economical option. When choosing a form, consider:

• the scale of the business — planned turnover, number of clients, growth prospects;
• the level of risk — the likelihood of claims from counterparties, the need to protect personal property;
• administrative burden — complexity of accounting, reporting requirements, cost of accounting services;
• the need for partners/investors — the necessity of joint ownership and distribution of shares;
• image factors — client and counterparty expectations regarding the form of business.

The choice of taxation regime determines the actual burden on income and the level of profitability of working in Poland. The main options for the entrepreneur: general scale (17%/32%) with the possibility of family deductions and benefits, linear tax 19% without progression, but with limited deductions, as well as flat-rate tax on recorded income, when tax is calculated on turnover at a fixed rate, depending on the type of activity. When analyzing regimes, consider:

• expense structure — if costs are high and documented, the general or linear system is more advantageous;
• income level — with stable and high incomes, a linear tax is often advisable;
• type of activity — for some IT services and creative professions, flat rates may be significantly lower;
• future plans — turnover growth, change of business format, possible transition to another form of business;
• social contributions (ZUS) — the impact of the chosen regime on the contribution base and available benefits.

Registration of activity in CEIDG, selection of PKD code, and arrangement of necessary electronic signatures

The first formal step is filling out an online application on the portal CEIDG (Central Register and Information on Economic Activity). During the registration process, you specify the business address, tax form, data for ZUS, and also choose codes PKD — the official classification of types of activities. It is recommended to add not only the main but also additional codes to avoid limiting yourself when expanding services. Before submission, review the descriptions of types of activities on the GUS website or in official registers, comparing them with your plan: incorrect selection of PKD may complicate subsequent obtaining of licenses or registration as a VAT payer.

• Trusted Profile (ePUAP) — free, convenient for most sole proprietors;
• Qualified electronic signature — paid, suitable for frequent transactions with contractors and signing commercial documents;
• Signing through a banking profile — available in a number of Polish banks and often sufficient for submitting an application to CEIDG.

Tax accounting and reporting, choice of tax office, NIP registration, and obligations to ZUS

After registering a business activity, it is necessary to determine the tax regime and submit the corresponding notification to the tax office. In Poland, the most commonly applied for sole proprietors are: general taxation system at the scale of 12/32%, flat tax 19% or lump sum (turnover tax at fixed rates depending on the type of services). Registration in KAS is accompanied by the issuance of NIP (if you do not have it yet) and, if necessary, registration as a VAT payer (VAT-R). When choosing a tax regime, it is important to consider the expected turnover, expense structure, and the presence of VAT-paying clients. It is recommended to assess the tax burden in advance to avoid overpayment and cash flow problems.

• Accounting and reporting: maintaining a book of income and expenses or turnover accounting under ryczałt, storing primary documents, timely submission of PIT declarations and, if necessary, VAT.
• Obligations to ZUS: registration of the entrepreneur in ZUS, payment of insurance contributions (mandatory and voluntary), submission of DRA calculation declarations.
• Payment deadlines: taxes and contributions are usually paid monthly or quarterly, depending on the chosen regime and turnover.

Practical recommendations for choosing a bank for liability insurance and minimizing administrative risks

When choosing a financial partner for FOP, focus not only on «zero service» but also on the set of tools for daily work. Pay attention to:

• Internet banking and mobile application — availability of an English version, payment templates in ZUS and US;
• Rates for international transfers and servicing of foreign currency accounts if counterparties from the EU are planned;
• Integration with accounting services (wFirma, inFakt, etc.) for automatic export of statements;
• Limits on cards and security — 3D-Secure, push notifications, the ability to quickly block;
• Loyalty to foreigners — minimal package of documents, support for PESEL/NIE instead of a Polish passport.

Below is an example of a comparative matrix of criteria to consider when choosing an account:

An entrepreneur's liability insurance policy in Poland often costs less than one serious fine or lawsuit, so it is advisable to consider it as an element of the administrative risk reduction system. When choosing insurance, analyze:

• Industry risks — in IT, consumer services, logistics, and construction, the requirements for insurance and the level of claims are higher;
• Covered cases — errors in service, damage to the client's property, data leaks, defamation in advertising;
• Liability limit and the presence of a deductible, so that minor losses are not transferred to the insurer;
• Compatibility with contractual practice — so that the policy conditions cover standard clauses about penalties and compensations in your contracts;
• Legal support as an additional service: consultations during inspections by ZUS, the tax office, PIP.

A systematic approach — written contracts with clients, internal data processing policies, counterparty verification, and a well-chosen policy — significantly reduces the likelihood of fines and disputes with regulators in the first year of operating as a sole proprietor.

Concluding thoughts

In summary, opening a sole proprietorship in Poland is a structured process that, with careful attention, does not require excessive resources. A clear understanding of the registration stages, choice of activities, tax system, and obligations to government authorities allows for minimizing risks and avoiding typical mistakes at the start.

Before submitting documents, it is advisable to double-check the selected status, the specified codes of activities, and the terms of cooperation with counterparties. If necessary, it is worth consulting an accountant or lawyer to adapt general recommendations to your specific situation.

Timely fulfillment of formal requirements and a systematic approach to accounting create a reliable foundation for sustainable business development in Poland and allow focusing on its operational and strategic components.