What type of business activity may be conducted in Poland by foreigners

You may run your business in Poland even if you are not a Polish citizen. Read below to find out about the available forms of business and what is needed to register a company.

Who can conduct business activity in Poland
What are the forms of business activity available in Poland
Restrictions on the choice of legal form
When foreigners may run a business in any form of their choice
When a foreigner may not conduct business activity
What is needed to register a one-person business activity in CEIDG
What is needed to register a company in the National Court Register (KRS)
Cross-border provision of services
Branch of a foreign entrepreneur in Poland
Representative office of a foreign entrepreneur in Poland
Where foreigners can pay their taxes
Where foreigners can pay their social security contributions
Where to look for the answers

Who can conduct business activity in Poland

Citizens of the Member States of the European Union and of the European Economic Area who wish to run a business in Poland may:

• set up a one-person business or a commercial company
• provide cross-border services – without registering their business in Poland
• set up a branch or a representative office in Poland.

The Member States of the European Union are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

The Member States of the European Economic Area, apart from the Member States of the European Union, are: Norway, Iceland, Liechtenstein.

Citizens of the USA and of the Swiss Confederation may also set up a business, a commercial company, a branch or a representative office in Poland.

International agreements:

• Treaty between the United States of America and the Republic of Poland Concerning Business and Economic Relations, signed in Washington on 21 March 1990
• Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons

provide the possibility of setting up a business by citizens of the United States of America and of the Swiss Confederation under the same principles as those applicable to Polish citizens.

Citizens of countries that do not form part of the European Union may:

• set up in Poland a one-person business or a commercial company – if they have a relevant residence permit
• set up in Poland a limited partnership, a partnership limited by shares, a limited liability company, a simplified joint-stock company and a joint-stock company
• join a limited partnership, a partnership limited by shares, a limited liability company, a simplified joint-stock company or a joint-stock company, and buy and take up shares in such companies or partnerships
• set up a branch of a foreign entrepreneur in Poland, if the international agreements ratified by Poland do not exclude such possibility.

The list of ratified international agreements may be found in the Online Database of Treaties kept by the Ministry of Foreign Affairs.

What are the forms of business activity available in Poland

In Poland, business activity may be conducted in the form of:

• one-person business activity (sole trader)
• civil law partnership
• partnership
• company.

A one-person business (sole trader) is the simplest form of running a business:

• you may register it online free of charge
• you do not need any capital to start this form of business
• a sole trader is subject to personal income tax (PIT) and may choose the form of taxation
• you do not have to register for VAT if your revenues are below a specified threshold
• in most cases – for revenues below EUR 2 million – only simplified accounting or a revenues registry is required
• a sole trader is personally liable for all business obligations
• only the sole trader may represent the business.

Companies and partnerships are more complex forms of conducting business activity. The process of setting up a partnership or a company includes more formal procedures. Partners or shareholders need to draw up a partnership agreement or a company deed in a specified form. Registration of a company or a partnership is subject to a fee, and the rights to represent the business entity as well as the scope of liability for business obligations depend on the type of the entity. Most often a share capital is required.

Read about:

• the differences between various forms of business activity in Poland
• what you need to know before registering your business
• how to choose a taxation form that suits you best.

Restrictions on the choice of legal form

Certain types of business activity require a specified legal form, or a specific legal form may be restricted only for persons with certain competences.

According to law, some types of business activity may not be just registered in CEIDG – in order to run this type of business, an entrepreneur needs to register a company or a partnership in the National Court Register (KRS). This concerns cultivation of certain plants and the breeding of certain animal species, insurance and reinsurance activity, business activity related to fire protection, trade unions, and sports clubs.

A professional partnership, on the other hand, may be set up only by independent professionals: lawyers, pharmacists, architects, construction engineers, certified auditors, insurance brokers, tax advisors, stockbrokers, investment advisors, accountants, doctors, dentists, veterinarians, notaries, nurses, midwives, legal counsels, patent agents, property valuers, and sworn translators.

In certain special situations the law specifies the type of a company or a partnership required for certain types of business – for instance, in the financial sector, for banks or insurance companies.

If you are not sure whether your business activity is subject to additional requirements, you can check this in the PKD code search tool (Polish Classification of Business Activity).

When foreigners may run a business in any form of their choice

You may set up your business in Poland in any form of your choice (that is register a one-person business activity or become a partner or shareholder in any partnership or company) if you meet any of the following conditions:

• you are a citizen of a Member State of the European Union or of the European Economic Area
• you are a citizen of the United States of America or of the Swiss Confederation
• you are a citizen of another country and:
  • you have a permanent residence permit
  • you have an EU long-term residence permit
  • you have a temporary residence permit, granted in relation to your reunion with your family staying in Poland legally, or in relation to your university studies
  • you have a refugee status
  • you have a subsidiary protection status
  • you have a humanitarian residence permit or a permit for tolerated stay
  • you have a temporary residence permit and you are married to a Polish citizen residing in the territory of Poland
  • you have a temporary residence permit for the purpose of business activity, granted in relation to continuation of your business activity based on an entry in CEIDG
  • you have been granted temporary protection in Poland
  • you have a valid Polish Card (“Karta Polaka”)
  • you are a family member, that is:
    • a spouse of an EU citizen
    • a direct descendant (child) of an EU citizen or his/her spouse, under the age of 21, being a dependent of the EU citizen or his/her spouse
    • a direct ascendant (parent) of an EU citizen or his/her spouse, being a dependent of the EU citizen or his/her spouse
    • a person who has submitted an application for a temporary residence permit or a permanent residence permit – until the time when the decision issued in response to such application becomes final

More information on how to register:

• one-person business activity (sole trader)
• a general partnership
• a professional partnership
• a partnership limited by shares
• a limited partnership
• a limited liability company
• a simplified joint-stock company
• a joint-stock company.

When a foreigner may not conduct business activity

A one-person business activity, a professional partnership or a general partnership may not be set up by a person who:

• is not a citizen of a Member State of the European Union
• is not a citizen of a Member State of the European Economic Area
• is not a citizen of the United States of America or Switzerland
• does not hold any residence permit which allows them to start business activity under the same rules that apply to Polish citizens.

Those foreigners may:

• conduct business activity in the form of:
  • a limited partnership
  • a partnership limited by shares
  • a limited liability company
  • a simplified joint-stock company or a joint-stock company
• join such partnerships or companies, and buy and take up shares in them
• set up a branch of a foreign entrepreneur in Poland, if the international agreements ratified by Poland do not exclude such possibility.

The list of ratified international agreements may be found in the Online Database of Treaties kept by the Ministry of Foreign Affairs.

Please note! If you wish to buy or take up shares in a company which owns real property, you need to obtain a special authorisation.

In an application to make an entry in the National Court Register (KRS), or an application to change the entry as regards the details on the purchase or taking up of shares or general rights and obligations, or as regards the partners or shareholders in a partnership or a company, you need to include a statement indicating whether you are:

• a foreigner within the meaning of the Act on the purchase of real properties by foreigners
• an owner of real properties located in Poland, or a holder of the right to perpetual usufruct of such real properties.

More information on how to register:

• a partnership limited by shares
• a limited partnership
• a limited liability company
• a simplified joint-stock company
• a joint-stock company
• how to obtain an authorisation for a foreigner to purchase or take up shares in a company being an owner or a holder of the right of perpetual usufruct of real properties.

What is needed to register a one-person business activity in CEIDG

A one-person business may be registered online or in a traditional manner – at any municipality (gmina) office. Registration of a business run by a foreigner in CEIDG may take up to 30 days. However, usually the entire process is completed in around 7 days.

If you want to register your one-person business online, you need to have a PESEL number.

In order to obtain a PESEL number, set up your Trusted Profile. You will need it to create your account at Biznes.gov.pl or in CEIDG. You need this account in order to complete the application online.

More information​​​​​ how to create an account at Biznes.gov.pl.

An application for an entry in the register to be submitted online may be signed with your Trusted Profile or an electronic qualified signature.

See the list of qualified signatures that can be used at Biznes.gov.pl.

If you do not have a PESEL number, you may register your one-person business in a traditional manner – at the municipality (gmina) office.

In this case, you need to present your passport or another document confirming your identity and citizenship to an office employee.

Please note! If you are granted your PESEL number after having registered your business at a municipality (gmina) office, and you wish to submit any further applications to CEIDG online, you need to add your PESEL number to your entry in CEIDG – this must be completed at the municipality (gmina) office. Only then you will be able to create your account at Biznes.gov.pl.

Also, regardless of whether you register your business online or in a traditional manner, if you are not a citizen of a Member State of the European Union or of the European Economic Area, or a citizen of the United States of America or Switzerland, you need to provide a document which confirms that your residence permit allows for registration of one-person business activity.

Check which documents need to be attached in order to register one-person business activity in Poland:

Please note! Since 1 August 2021, family members of EU citizens have been issued with residence cards for a family member of an EU citizen and permanent residence cards for a family member of an EU citizen. Those cards are valid until the end of the period for which they were issued, however, no longer than until 3 August 2026. If you hold such a card, attach its scan when registering your business in CEIDG.

Find out how to register one-person business activity.

Register your business online at Biznes.gov.pl.

What is needed to register a company in the National Court Register (KRS)

To set up a general partnership, a professional partnership, a limited partnership, a partnership limited by shares, a limited liability company, a simplified joint-stock company, and a joint-stock company, you need to register it in the National Court Register (KRS). The registration process is completed online:

• in the S24 system, or
• through the PRS portal.

In order to register a partnership or a company, you need to create an account in the selected system, and confirm it with your Trusted Profile or a qualified signature.

Through the Court Registers Portal you can also sign the documents with your personal signature (electronic ID).

In order to create your Trusted Profile, you will need your PESEL number.

Even if you register your partnership or company without the PESEL number, it is worth to apply for a PESEL number. There will be situations when using the Trusted Profile will be required for your business, for instance:

• in order to submit the financial statements of the company in the Financial Documents Repository, in the case of a company with one-person management board (financial statements may be submitted only by the person authorised to represent the company whose PESEL number is entered in the National Court Register)
• in order to register a beneficial owner in the CRBR register – this should be completed within 7 days of the date of the company’s entry in the National Court Register.

Please note! The company may be also registered on your behalf by your attorney-in-fact.

If you wish to register a general partnership or a professional partnership and you are not a citizen of a Member State of the European Union or of the European Economic Area, or a citizen of the United States of America or Switzerland, when registering the company you need to provide a document which confirms that your residence permit allows for registration of such type of a company. For instance, in the case of a permanent residence permit, this will be a permanent residence card.

More information on how to register:

• a general partnership
• a professional partnership
• a partnership limited by shares
• a limited partnership
• a limited liability company
• a simplified joint-stock company
• a joint-stock company

Cross-border provision of services

When it is possible to provide cross-border services

Are you a citizen of a Member State of the European Union or of the European Economic Area and you wish to provide services in Poland? If you will be doing this for a specified period and occasionally, you do not need to register your business in Poland.

According to EU law, services are benefits performed usually for payment, as far as they are not covered by legal provisions on the free movement of goods, capital and persons. This may be in particular:

• industrial activity
• trade activity
• craftsmen activity
• activity of independent professionals.

Cross-border services may be performed based on:

• self-employment – the service provider has registered business activity in one of the EU Member States and performs services for payment in another EU Member State
• posting of workers – an entrepreneur may post workers for the purpose of performing a specified service in another EU Member State based on a contract.

In Poland, cross-border services may be performed only if they are a temporary activity.

EU law does not provide a definition of temporary provision of services. According to the Court of Justice of the European Union, all of the following should be taken into consideration:

• duration
• frequency
• regularity
• continuity
• intention of the entrepreneur as regards the type of business activity planned to be performed in another EU Member State

In practice, an assessment whether services are provided temporarily requires an individual approach and an in-depth case analysis.

Not every type of services may be performed as cross-border services. Limitations are related mainly to services which can be performed solely by persons with specialist licences or diplomas. The list of services excluded from cross-border provision of services can be found in the Act on the principles for participation of foreign entrepreneurs and other foreigners in the economy in the territory of Poland. Services which may not be provided as cross-border services include: transport, notarial, pharmaceutical, medical and gambling services.

Please note! If Polish legal provisions concerning a specific type of business activity provide that in order to conduct such business activity, a licence, a permit or an entry in a register must be obtained, those requirements must be met as well.

Read about situations when an entrepreneur needs a licence, a permit or an entry in the register of regulated activity.

Rights of service providers

Under the law of the European Union, service providers have rights that may not be limited by the Member States. According to the decisions of the Court of Justice of the European Union:

• a service provider may not be requested to set up a registered office in the territory of the country where the services are to be performed
• it is forbidden to require from the service provider that his key staff members have a permanent residence address in the territory of the country where the services are to be performed
• it is forbidden to request a permit for provision of certain services without considering a due performance warranty for a service already granted in the home country where the service provider is based
• it is forbidden to force a Polish service provider to pay social security contributions for his employees in the country where the services are provided, if those contributions are already paid in Poland
• it is forbidden to require from the service provider to have a specified legal form

However, it is possible to apply additional limitations to provision of services that are of special nature, such as medical services.

Obligations of service providers

At the request of a service recipient, service providers from an EU Member State must provide information on:

• the conducted activity directly related to the offered services
• companies and partnerships in which the service provider is involved and which are directly related to the provided services
• measures taken in order to avoid any conflict of interest.

The same information should be provided by a service provider from an EU Member State in documents which describe the services he offers.

Before signing a written contract (and if there is no written contract – before starting the provision of a service), the service provider from an EU Member State must present the following information to his service recipient, in an unambiguous manner:

• business name, address of the registered office or the place of residence and the principal place of business
• the body keeping the register and the number in the register in which the service provider from an EU Member State is entered as an entrepreneur, or information on the entry in CEIDG
• e-mail address or other data which allow for direct contact with the service provider from an EU Member State
• name of the body or entity that has issued a licence, a permit or a certificate, has made an entry in the register, or has issued another document authorising the service provider from an EU Member State to provide services
• address of an individual contact point within the meaning of Article 6 of Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market (EU OJ 376 of 27.12.2006), relevant for the service provider
• address of a professional self-government to which the service provider from an EU Member State belongs, his professional title and the country in which this professional title has been granted
• main characteristics of the service
• the price of the service, if determined
• model contracts used by the service provider from an EU Member State, and contractual provisions specifying the governing law for the contract, a court or another body relevant for settling any disputes
• tax identification number (NIP) or another identification number that the service provider from an EU Member State has to use for VAT purposes
• having obligatory insurance or a financial guarantee, together with the details of the insurer or a guarantor, and the territorial scope of the insurance
• any quality guarantees for the services performed that are not required by law

Branch of a foreign entrepreneur in Poland

Do you run a business in a Member State of the European Union or of the European Economic Area? If you do, you may open a branch in Poland. Branches may be set up by citizens of other countries as well, if those countries have relevant mutual agreements signed with Poland.

The list of ratified international agreements may be found in the Online Database of Treaties kept by the Ministry of Foreign Affairs.

Opening a branch costs less than setting up a new company. Also, a branch is not subject to obligations related to company operations, such as having own capital, convening meetings of partners or shareholders, or appointing a management board.

A branch may start to operate after it is entered in the register of entrepreneurs of the National Court Register (KRS). Also, a person authorised to represent the foreign entrepreneur has to be appointed at the branch.

A branch is an independent organisational unit of a foreign entrepreneur, however, it has no legal personality. This means that the foreign entrepreneur is responsible for all rights and obligations arising as a result of the operations of the branch.

Please note! Under operations of the branch, a foreign entrepreneur may conduct business activity only within the same scope in which he runs his business abroad.

A foreign entrepreneur should:

• refer to the branch by using the original name of the foreign entrepreneur, together with the name of its legal form translated into Polish, and with an addition of the following words: “oddział w Polsce” (branch in Poland)
• keep accounting records for the branch separately and in Polish, in accordance with the legal provisions on accountancy
• inform the minister competent for economic matters of any changes in the facts and the legal status (for instance, if a liquidation procedure has been initiated in relation to the foreign entrepreneur, or if the entrepreneur is no longer entitled to conduct business activity).

Please note! The minister may ban operation of the branch if the branch is in violation of the Polish law.

Find out how to register a branch of a foreign business in the National Court Registers (KRS).

Representative office of a foreign entrepreneur in Poland

Representative offices are set up only for the purpose of promoting and advertising a foreign entrepreneur. A representative office may not conduct any other activity.

According to the decisions of the Polish Supreme Administrative Court, advertising may consist in press announcements, broadcasting advertising material on the radio or on TV, as well as publishing posters and sending folders and other commercial information to clients.

A representative office may be set up for 2 years only, with the option to extend this period for another 2 years. In order to set up a representative office, it has to be entered in the register of representative offices of foreign entrepreneurs. The following has to be attached to the application for an entry in this register:

• a copy of the entry from the foreign register, together with its translation into Polish, and possibly also other documents specifying the registered office and the rules of representation
• a power of attorney authorising a person to represent the representative office, together with a statement that this person accepts this power of attorney.

Please note! A foreign entrepreneur must hold a legal title to the real property indicated as the registered address of the representative office in the register of representative offices of foreign entrepreneurs. However, such title does not have to be attached to the application for an entry.

The minister may refuse to enter a representative office in the register if the foreign entrepreneur has not met all requirements. Also, the minister may remove the representative office from the register if the office does not observe Polish law.

The decision to remove the representative office from the register (issued by the minister) replaces the decision banning the operation of the representative office.

Find out how to apply for:

• entry in the register of representative offices of foreign entrepreneurs
• change of the entry in the register of representative offices of foreign entrepreneurs.

Where foreigners can pay their taxes

Persons who have their place of residence for tax purposes in Poland – that is residents for tax purposes – have an unlimited tax obligation. This means that they pay taxes in Poland on all of their income, regardless of whether earned in Poland or abroad.

A person who has a place of residence in Poland is a natural person who:

• has his/her centre of vital or economic interests in Poland
• stays in the territory of Poland for more than 183 days in a tax year.

This means that if you have your registered office or the management board in the territory of Poland or you stay in Poland for more than 183 days in a year, you have to pay taxes in Poland on all of your income – regardless of the place where you earn them.

On the other hand, persons who do not have their place of residence for tax purposes in Poland – that is non-residents – have a limited tax obligation.

If you run your business in Poland or in another country, your obligation to pay taxes is regulated by double taxation treaties. They specify when and where you need to pay your taxes:

• when your income is subject to taxation in both countries, the method for avoidance of double taxation laid down in the treaty is applied
• if there is no treaty signed with a specific country, the method for avoidance of double taxation is regulated in the Act on personal income tax
• double taxation treaties take precedence over national law.

Double taxation treaties may specify various methods, depending on the countries signing the treaty. Before you settle your taxes, check whether your country has a double taxation treaty signed with Poland.

Please note! According to a general rule on avoidance of double taxation, profits of an enterprise based in the contracting country are subject to tax only in this country, unless the enterprise conducts its business operations in the other contracting party, through a business establishment (such as a trade office). Therefore, if you do not have a business establishment in another country, you will pay taxes on foreign income in Poland.

See the list of double taxation treaties.

More information:

• where to pay your taxes on foreign income
• the White List of VAT Payers – a new tool to verify your business partners
• how to submit tax returns and pay taxes.

Where foreigners can pay their social security contributions

There is a general rule concerning social security – you may be subject to social security only in one country and social security contributions are paid only in one country.

This will be the country where:

• you have your place of residence – if you perform most of your work there
• you have your centre of interest for your business – if you do not reside in the country where you perform most of your work.

In order to determine whether you perform most of your work in a given country, calculate your turnover, working time, number of provided services or income.

More information:

• what social security contributions have to be paid by foreigners running a business in Poland
• Information for foreigners on the website of Social Insurance Institution (ZUS).

Where to look for the answers

If you have any questions concerning registration of a one-person business in CEIDG, contact the helpline at 801 055 088 or 22 765 67 32.

If you need more information on online registration of a limited liability company or a partnership, send your questions to: s24@gdansk.sa.gov.pl or call (71) 748 96 00. After dialling the phone number, you need to press “4” (online access to registry courts).

If you have any questions concerning social insurance, you can contact the ZUS Helpline Centre at 22 560 16 00 (the cost of calls according to your agreement with the telecommunications operator) or

• through the form
• by e-mail: cot@zus.pl
• over Skype at zus_centrum_obslugi_tel

If you have any questions concerning taxes to be paid in Poland, contact the National Tax and Customs Information Office (KIS) at:

• 22 330 03 30 (for mobile phones)
• 801 055 055 (for landline phones)
• +48 22 330 03 30 (from abroad)

You can also use the Help Centre at Biznes.gov.pl.