What regulations regarding the operation of a business in Poland by foreigners? What formalities must digital nomads fulfill if they want to register a company in Poland and conduct business activities within the territory of Poland?
In Poland, foreigners can run a business on the same terms as Polish citizens, provided they fulfill certain formalities. The process of registering a company and conducting business activities by digital nomads is relatively simple, but it involves several key requirements and steps. Here are the details regarding the regulations and formalities that need to be fulfilled:
Types of Business Activities
Foreigners can run various types of businesses in Poland, such as:
- Sole Proprietorship – This is the simplest form of business in Poland, especially popular among freelancers, consultants, and digital nomads.
- Limited Liability Company (Spółka z o.o.) – A more formal legal structure that can be chosen by those who want to establish a more developed business.
Company Registration in Poland
To start a business in Poland, foreigners need to go through several formal steps:
Registration in the Central Register and Information on Business Activity (CEIDG)
- Digital nomads planning to run a sole proprietorship must register in the CEIDG. This process is fully online and takes just a few minutes.
- Foreigners must have a PESEL number (personal identification number) or a NIP number (if they do not have PESEL).
- A residential address in Poland is also required, although this can be obtained with the help of virtual office services.
Limited Liability Company (Spółka z ograniczoną odpowiedzialnością; sp. z o.o.)
To establish a limited liability company in Poland, foreigners must:
- Register the company in the National Court Register (KRS).
- Have a registered office address in Poland.
- Appoint a management board for the company, which may consist of foreigners.
- Submit relevant documents, including the company’s articles of association, notarial deed, etc.
Obtaining NIP and REGON Numbers
In order to conduct business activities in Poland, foreigners must obtain:
- NIP (Tax Identification Number) – essential for tax payments.
- REGON (National Business Registry Number) – statistical registry for entrepreneurs.
Registration with ZUS
Foreigners conducting business activities in Poland must also register with the Social Insurance Institution (ZUS) and pay contributions to social and health insurance. In the case of sole proprietorships, entrepreneurs pay contributions for their own insurance.
Tax Obligations
Digital nomads must comply with Polish tax regulations, including:
- Income tax – Individuals running a business in Poland must pay income tax (PIT) or corporate income tax (CIT) if they run a limited liability company.
- VAT – If the annual turnover of the business exceeds a certain threshold (currently 200,000 PLN), the entrepreneur must register for VAT.
- Forms of taxation – In Poland, there are several forms of business taxation, including:
- General rules tax (PIT).
- Lump-sum tax on registered income (a simplified form of taxation for small businesses).
- Flat tax (19% tax rate for companies).
Work Permit
Digital nomads who operate a business in Poland do not need to obtain a separate work permit if they have the right to stay in Poland, such as through a visa or residence card. However, individuals who plan to work under an employment contract in Poland must have the appropriate visa or work permit.
Special Regulations for Digital Nomads
Although there are no specific programs for digital nomads in Poland, like the “digital nomad visa” in other countries, many people take advantage of existing regulations, such as:
- The Startup Hub Poland program, which offers support to foreigners looking to start businesses in Poland.
- Use of the national visa for long-term stay and work in Poland.
Remote Work and Place of Residence
Digital nomads who wish to work remotely from Poland do not need to register a company if they are only working for foreign clients (e.g., clients from other countries), but they must comply with Polish tax and insurance regulations.
Summary
Foreigners, including digital nomads, can run a business in Poland by registering a company in CEIDG or KRS, fulfilling tax and insurance obligations. This requires several formalities, such as obtaining a NIP number, registering with ZUS, and complying with tax regulations. Poland provides favorable conditions for foreigners to run a business, and digital nomads can benefit from flexible remote work regulations.
As of: March 11, 2024
Cyberlaw by Judyta 