3 Non-Obvious Questions About Doing Business in Poland That You Should Ask Before Registration

Starting a business in a new country is always a challenge. Poland attracts entrepreneurs from all over the world with its stable economy, favorable geographical location, and transparent system of doing business. However, before proceeding with registration, it is worth asking yourself several questions, the answers to which are not always obvious. This will help you avoid unpleasant surprises and lay a solid foundation for your future enterprise.

1. What is ZUS, and how do social contributions work?

ZUS (Zakład Ubezpieczeń Społecznych) is the Polish Social Insurance Institution. It is a key organization that every entrepreneur will have to deal with. ZUS is responsible for collecting social contributions, which provide access to healthcare, pensions, sick leave benefits, as well as unemployment and maternity benefits.

Why is this important?

• Mandatory contributions: For every officially registered employee, as well as for sole proprietors, paying contributions to ZUS is mandatory.
• Types of contributions: There are several types of contributions, calculated depending on the type of your activity and your status. The main ones include: pension contributions (emerytalne), disability contributions (rentowe), sickness contributions (chorobowe), accident contributions (wypadkowe), and health contributions (zdrowotne).
• Amount of contributions: The amount depends on your income. However, for beginner sole proprietors (after 6 months of registration), there is a preferential period called “Mały ZUS”. This allows reduced contributions for a limited time.

2. What taxes need to be paid?

Understanding the tax system is the basis of successful financial planning. In Poland, there are several key taxes that every entrepreneur should know.

Corporate Income Tax (CIT)

CIT (Corporate Income Tax) is a tax on company profits. The standard CIT rate is 19%. However, for small enterprises whose annual revenue does not exceed 2 million euros, a reduced rate of 9% applies. This incentive makes Poland particularly attractive for small businesses, as it allows them to reinvest most of their profits into growth.

Value Added Tax (VAT)

VAT (Value Added Tax) is a tax on goods and services. In Poland, there are several VAT rates, depending on the category of goods and services:

• Standard rate — 23%: Applies to most goods and services.
• Reduced rates — 8% and 5%: Apply to certain goods such as food, books, newspapers, medical products, and services.
• 0% rate: Applies to exports outside the European Union.

It is important to note that in some cases, you may be exempt from VAT if your annual turnover does not exceed a certain threshold. This is called a subjective VAT exemption.

3. How to open a bank account and what is required?

Opening a bank account is one of the most important and sometimes most challenging stages of business registration. Without it, you cannot carry out financial operations, receive client payments, or pay taxes and contributions.

Step-by-step guide

1. Choosing a bank: Poland has many banks offering a wide range of business services. Compare offers, focusing on account fees, lending conditions, and the availability of online banking.
2. Gathering documents: To open an account, you will need:

• An identity document (passport).
• Company registration documents (extract from KRS or CEIDG, articles of association).
• Proof of registered address.

1. Visiting a branch: Most banks require personal presence to open an account. A bank employee will verify your documents and help you complete the necessary forms.
2. Account activation: Once documents are successfully verified, your account will be activated. You will gain access to online banking and receive a bank card.

Why is this step important?

• Financial transparency: A separate business account allows you to clearly separate personal and corporate finances, making bookkeeping and financial reporting easier.
• Convenience of transactions: You can easily accept client payments, pay suppliers, and manage cash flow.
• Legal requirements: Having a business bank account is a legal requirement in Poland. Through it, you will pay taxes and social contributions.

If you still have questions, do not hesitate to consult specialists: magfin.pl. Readiness for dialogue and attention to detail are the keys to a successful start of your business in Poland.