How to Launch Your Business Without Getting Lost in the Maze of Regulations

Choosing the Legal Form - A Decision That Pays Off

The first and most important step is selecting the legal form of your business.

A JDG offers simplicity, low start-up costs, and fast registration—ideal for those starting on a smaller scale. However, it is important to remember that the owner is personally liable for all obligations with their entire personal assets, and the business is not a separate legal entity.

A limited liability company (spółka z o.o.), as the name suggests, limits liability to the amount of share capital contributed and is a separate legal entity. Of course, this is a simplification—if certain statutory obligations are not met, members of the management board may still be held personally liable for the company’s debts. This, however, is a topic for another article. Nevertheless, a limited liability company is a solution for those planning to grow, seeking investors, or wishing to share responsibility with other partners. It does, however, require maintaining full accounting records and involves slightly higher initial costs.

Company Registration - Step by Step

The process of registering a business in Poland is now much simpler than it was just a few years ago. A sole proprietorship (jednoosobowa działalność gospodarcza – JDG) can be set up online via CEIDG – all you need to do is complete the CEIDG-1 form on the biznes.gov.pl website, sign it using a trusted profile (profil zaufany) or a qualified electronic signature, and submit it. Commercial companies are registered through the S24 online system or traditionally with the National Court Register (Krajowy Rejestr Sądowy – KRS).

Once registration is complete, your NIP (Tax Identification Number) and REGON (Statistical Number) will be assigned automatically—no additional applications are required. The next step is to register with the Social Insurance Institution (Zakład Ubezpieczeń Społecznych – ZUS), which can be done during the JDG registration process or within seven days of starting your business. If you plan to be a VAT payer, you must register with the tax office by submitting the VAT-R form—this is mandatory if you expect your annual turnover to exceed PLN 200,000, as well as for certain types of business activity for which VAT registration is required from the very first transaction. These include, for example, legal services, consultancy services (excluding agricultural consultancy), and certain types of online sales such as computers, electronic goods, electrical devices, cosmetics, and toiletries.

Do not forget to choose a bank account. While this is not always mandatory for sole proprietorships, it is strongly recommended. In practice, having a separate business account ensures convenience, security, and transparency in your finances. Businesses registered for VAT but using only a personal bank account (ROR) will not be listed on the official VAT taxpayers’ “white list,” which can cause problems with contractors who are legally required to verify VAT registration. For commercial companies, a business bank account is essential, and its number must be reported to the tax office so it can be included on the so-called VAT taxpayers’ white list.

Tax and Accounting Implications - What You Need to Know

The choice of legal form and taxation method is crucial for your future settlements and accounting obligations.

JDG daje możliwość wyboru spośród trzech form opodatkowania: skala podatkowa (12% i 32% z kwotą wolną 30 000 zł), podatek liniowy (19%) oraz ryczałt od przychodów ewidencjonowanych (stawki od 2% do 17% w zależności od rodzaju działalności). Każda z tych form różni się zasadami rozliczania kosztów, ulgami i sposobem wyliczania składki zdrowotnej.

A sole proprietorship (jednoosobowa działalność gospodarcza – JDG) allows you to choose from three taxation options: progressive tax scale – 12% and 32%, with a tax-free allowance of PLN 30,000, flat-rate income tax – 19%, lump-sum tax on registered income (ryczałt od przychodów ewidencjonowanych) – with rates ranging from 2% to 17%, depending on the type of activity. Each of these forms differs in terms of cost deductibility, available tax reliefs, and the method of calculating health insurance contributions.

A limited liability company (spółka z ograniczoną odpowiedzialnością – sp. z o.o.) is subject to corporate income tax (CIT) – 9% for small companies with revenues up to EUR 2 million, and 19% for others. It is important to remember that profit distribution in the form of dividends is additionally subject to 19% personal income tax (PIT), which results in so-called double taxation. A limited liability company must maintain full accounting records, which entails higher service costs but provides greater financial transparency and facilitates business growth.

The Most Common Mistakes Made by New Enterpreneurs

Many new entrepreneurs fall into the same traps – and their consequences can be costly and long-lasting.

The most common mistakes include:

• making an ill-considered choice of legal form and taxation method – decisions taken without proper analysis can lead to unnecessary costs and restrictions;
• inaccurately completing registration forms – errors in company details, PKD (Polish Classification of Activities) codes, or addresses can delay the start of operations;
• failing to register with ZUS or for VAT within the required deadline – this can result in penalties and loss of entitlement to certain reliefs.
• starting business operations on a non-optimal date – for example, on the 1st day of the month, which may require paying full ZUS contributions for the entire month, even if the business operated for only a few days;
• choosing an inappropriate business name – one that is too long, difficult to pronounce, or too similar to an existing name can cause both marketing and legal issues;
• neglecting the matter of a dedicated business bank account – using a personal account for business settlements can lead to tax ambiguities and problems with contractors;
• lack of a financial plan and control over cash flow – many new entrepreneurs act on a wave of enthusiasm, hoping that “things will work out,” but poor financial management is one of the main reasons why new businesses fail;
• unawareness of new reporting obligations – for example, starting in 2025, there is a requirement for companies to submit a monthly JPK_CIT (Standard Audit File for Corporate Income Tax) report, which requires adjustments to accounting systems.

PKF BPO - Your Partner in Starting a Business

At PKF BPO, we help entrepreneurs not only navigate the formalities but, above all, understand how the decisions made at the very start will shape the company’s future. Outsourcing accounting, tax advisory, and payroll & HR services is not just a matter of convenience—it is also a safeguard, especially in the ever-changing landscape of regulations.

That is why we created our Entrepreneur’s Compass series – a practical guide for business owners at every stage of their company’s growth. In future editions, we will cover topics such as budget planning, tax optimisation, controlling, and digital transformation in small businesses.

Remember: a well-planned start is not just a formality—it is an investment in the future of your business.