All residents of Poland, including those legally residing in the country, are entitled to register a PE (JDG). The initial steps include determining the PKD codes and the most suitable taxation system.
Entrepreneurs in Poland can use multiple PKD codes simultaneously (you’ll be provided with a list to choose from). PKD codes can be modified at any time during the fiscal year, but it is crucial to select codes that align with your business activity.
Taxation options for JDG
A JDG (owner) must select one of the following taxation systems:
- General Taxation Rules (ogólne zasady)
| Tax Base | Tax Rate |
| Up to 30,000 zł |
0% |
|
Up to 30,000 zł | 0% |
Up to 120,000 zł | 12% minus a tax deduction of 3,600 zł |
| Over 120,000 zł |
10,800 zł + 32% on amounts exceeding 120,000 zł |
- Flat Tax Rate (podatek liniowy): fixed at 19%
- Ryczałt (simplified tax system, e.g., for software developers): fixed at 12%
Each system has its unique advantages. Therefore, we recommend consulting with our specialist to choose the most suitable system for you. Find out more about taxation for sole proprietorships and Spolka in Poland.
In addition to taxes, entrepreneurs must contribute to ZUS (social insurance). The amount of the contribution is calculated using a complex formula and can vary depending on the business stage. To calculate contributions accurately while planning your business, we recommend using specialized online calculators.
For a quick online PE launch in Poland, you must have a PESEL number and an electronic signature (trusted profile). If you already possess both, you can begin the JDG registration process after selecting the PKD and taxation system. If you don’t have a PESEL or a trusted profile, our legal experts will help resolve this promptly.
If you plan to work with other EU countries or expect your turnover to exceed 200,000 zł, obtaining a VAT number is essential. VAT registration is the final step, completed after opening a bank account.
