Business Constitution - new regulations facilitating the running of a company
The Business Constitution is a set of laws designed to reform and simplify the rules governing business conduct. The changes introduced by the Constitution of Business concern such areas as:
- relations between the entrepreneur and authorities and handling official matters,
- starting a business,
- suspension of activity,
- principles of creating economic law,
- duties related to the performance of activity.
The most important act within the framework of the Business Constitution will be the new Economic Law, which will define the most important rights of the entrepreneur and the rules for conducting business activity.
Business Constitution - what benefits for entrepreneurs
1. In the entrepreneur-official relations
- Introduction of a rule what is not prohibited by law, is allowed
Entrepreneur can run a business freely if he does not break prohibitions or restrictions.
- Presumption of the honesty of the entrepreneur
Entrepreneur does not have to prove his honesty, doubts about the circumstances of a particular case will be settled in favour of the entrepreneur.
- Friendly interpretation of regulations
Regulations will be decided in favour of entrepreneurs
- Proportionality principle
Office must not impose unjustified burdens on the entrepreneur, it will not be able to request the documents it already holds.
- Appointment of the Ombudsman for Small and Medium-sized Entrepreneurs
Ombudsman who will be able to e. g. request ministers to clarify the most complicated provisions and to intervene in cases of infringement of the law.
2. When setting up a company - the starter package
Within the framework of the Business Constitution a package of facilitations for entrepreneurs starting their business activity has been prepared.
- Introduction of so-called a non-registration activity
It will relate to small gainful activity of natural persons, e. g. casual trade or occasional services. If revenues from this activity do not exceed 50 percent of minimum salary in any month, it will not be considered as a business activity and will not need to be registered in the Central Business Activity Register and Information. Revenue from such activity will be taxed on a general rules.
- Introduction of a new discount in ZUS contributions for new companies.
Beginner entrepreneurs will be exempt from social security contributions for the first 6 months of operation. The entrepreneur will have to apply for obligatory social insurance within 6 months from the start of business activity, and not 7 days - as it is currently. Then they will be able to use for 2 years the so-called "small ZUS".
3. When suspending operations
- Possibility of suspending activity in case of hiring an employee on maternity or parental leave
Currently the activity cannot be suspended if employees are hired. You will be able to suspend your company for a longer period than the current 24 months or for an indefinite period of time.
Upon expiry of the suspension period, the business activity will resume automatically. If the entrepreneur forgets to apply for a resumption, he or she will not be removed from the register (as it is currently the case).
4. In contacts with offices
- A new web portal for entrepreneurs
The portal will be a development of www.biznes.gov.pl. It will explain how to deal with individual official matters, and will enable e. g. payment of official fees or obtaining a tax or contribution clearance certificate. The section will remind entrepreneurs (by text message or e-mail) of upcoming official dates and inform them about the most important changes in law.
- Possibility of handling some simple official matters by phone, e-mail or other means of communication.
The office will thus be able to quickly inform e. g. about the need to submit annexes or documents ready to be received.
- Progressive winding-up of REGON.
The basic identification number of the entrepreneur will be Tax Identification Number (NIP).
5. When using attorneys-in-fact
- Possibility of appointing attorneys-in-fact by entrepreneurs - natural persons
Publication of information about an attorney-in-fact in CEIDG shall be tantamount to granting a power of attorney in writing.
6. For state regulated activity
- Subordination of the catalogue of forms of economic activity regulation.
There will remain three main forms: concessions, authorisations and registers of regulated activities. Consents and licences will be abolished as separate forms of regulation. The principle will be introduced that authorisations cannot be discretionary and should always be granted if the entrepreneur fulfils the conditions laid down by law
7. When creating regulations for entrepreneurs
- Creation of a catalogue of basic rules to be followed when creating economic law.
These include the principle of proportional reduction of burdens on SMEs, according to which it should be analysed whether the intended effect cannot be achieved by other means before drafting a new law. The following principles will also be introduced: striving not to impose new administrative obligations and the principle of limiting information obligations.
- Ministers and central authorities will issue legal clarifications
Guides written in a simple language on how to apply the most difficult regulations. Compliance with them will protect the entrepreneur, e. g. in case of control. Ministers and central authorities may be required by the Ombudsman for Small and Medium-sized Entrepreneurs to issue clarifications.
8. When foreigners do business
- Introduction of new regulations concerning the rules of participation of foreign entrepreneurs and other foreign persons in economic transactions in Poland.
Until now, these regulations have been scattered across three different laws and inconsistent.
When will the Business Constitution come into force?
The new law is due to enter into force on 1 March 2018, with the exception of the provisions on "reliefs for start up". These will take effect on 31 March 2018.
The Constitution of Business is established by laws:
- Entrepreneurs' Law,
- Legislation introducing the act - Entrepreneurs' Law and some other acts from the "Business Constitution"package,
- Law on the Joint Commission of Government and Entrepreneurs and the Ombudsman of Entrepreneurs,
- Act on Central Register and Information on Business Activity and the Entrepreneur Information Point,
- Act on the rules of participation of foreign entrepreneurs and other foreign persons in economic trade in the territory of the Republic of Poland.