Establishing a one-man company is simply a popular choice especially among those who want to start working on their own account. This process is rather simple, but it is worth knowing all the rights and obligations of a beginner.
Selection of economical activity
Before you know it, how to start your own one-man company, you must read all possible forms of moving it. The most frequently chosen by persons starting business in Poland is one-person business (JDG). This is the simplest form of business, in which the owner and the company are one. This means that the entrepreneur is liable for all the obligations of the company, both financial and legal.
Another frequently chosen form of moving a one-man company is limited liability company. It is simply a separate legal entity, which means that its owner is liable for the company's obligations only up to the amount of the share capital contributed – not all of his individual property. Its advantage is besides the ability to attract external investors, which can be peculiarly crucial in the improvement phase of the company. However, the establishment and operation of the company with o.o. entails higher costs than in the case of JDG.
Choice of the form of taxation
While conducting a single business activity, entrepreneurs can choose 1 of 3 forms of taxation. The taxation scale is the most commonly utilized form of taxation in which the company's income is taxed as follows:
12% on yearly income to PLN 120 000,
32% on yearly income above PLN 120,000.
A linear taxation is simply a form of taxation in which income is taxed at 1 fixed rate. It is 19% regardless of income. The 3rd form is simply a lump sum on recorded revenue, which depends on the kind of activity and is between 2% and 17% on revenue.
In the case of a limited liability company, taxation is different due to the fact that the company is simply a legal individual and its income is taxed at company level alone. The basic form of taxing the company's income is corporate income taxation (CIT), and its standard rate is 19%. tiny companies with revenues up to EUR 2 million per year can benefit from a CIT allowance and pay a taxation of 9%
Company registration in CEIDG or KRS
Registration of one-man business activity in Poland is simply a simple and free process.This can easy be done by making an application in Central registry and Information on Business Activity. simply fill in the form available on their website online – it contains all the essential data.
Company of the o.o. requires an application for registration in the National Court registry (KRS). This can be done in 2 ways: by registering an online company through the S24 strategy on the website of the Ministry of Justice or in a conventional way with a notary who will draw up a notarial act of the company's contract.
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