Poland is an attractive place to do business, but you need to be aware of certain obstacles. Some forms of economic activities are restricted for foreigners. One of the most significant practical problems is that not everyone can register a sole proprietorship in Poland on the same terms as Polish citizens.
A sole proprietorship (jednoosobowa działalność gospodarcza, JDG) is a simple and common form of business run by one individual in their own name, where the owner is personally liable for the business's obligations.
So, who can register a sole proprietorship in Poland?
Let’s dive into this and divide these cases into a few categories. You can scroll through the points quickly; probably most of them won't apply to you, but it is useful to have them collected in one place. If you fall into one of the categories, you are probably eligible to register a sole proprietorship in Poland. Here they are:
1. You have one of the two strongest residence statuses:
permanent residence permit;
long-term EU resident permit.
2. You have a temporary residence permit, but not every kind, only the temporary residence permit for:
performance of work under highly qualified employment (EU Blue Card) or long-term mobility of an EU Blue Card holder;
pursuing studies;
conducting research;
family reunification;
a holder of a residence permit for a long-term EU resident granted by another Member State of the European Union or their family member;
any other reason, but you are the spouse of a Polish citizen.
3. This one is a little bit complicated, so let’s make it a separate point. If you started a sole proprietorship because you had a temporary residence permit given above, you can continue, and get a new residence permit based on your economic activity, which becomes your main purpose of stay. And if your prior purpose was conducting research, and you completed this research or development works, it’s enough just to plan to start conducting economic activity, and that is a sufficient reason to give you a temporary residence permit, which enables you to have a sole proprietorship.
4. You benefit from some kind of international protection in Poland, including:
refugee status;
subsidiary protection;
consent for residence for humanitarian reasons or tolerated residence;
temporary protection.
5. You have a Pole’s Card (Karta Polaka).
6. You are a citizen of the European Union, Norway, Iceland, Liechtenstein, Switzerland, or the United States (this may not be obvious, but there’s a treaty between Poland and the US enabling that).
7. You are a family member of an EU citizen joining them in Poland.
8. You were eligible to conduct a sole proprietorship in Poland, you submitted the application for an EU long-term residence permit, you are still waiting for a decision, and your current resident status expired in the meantime.
9. You are a member of some special government program. However, the only relevant program I know of, “Poland.Business Harbour”, is currently suspended.
That’s basically all. Other foreigners can establish and conduct business activities exclusively in the form of a limited partnership (spółka komandytowa), a limited joint-stock partnership (spółka komandytowo-akcyjna), a limited liability company (spółka z ograniczoną odpowiedzialnością), a simple joint-stock company (prosta spółka akcyjna), or a joint-stock company (spółka akcyjna), as well as to join such companies and to subscribe to or acquire their shares.
Is a limited liability company the best option for foreigners in Poland?
In practice, a limited liability company (spółka z ograniczoną odpowiedzialnością, abbreviated often as sp. z o.o.) is often the most accessible and practical option for non-EU entrepreneurs who cannot register a sole proprietorship. It is also a structure that many clients, partners, and contractors already understand. This is why, in many real-life cases, a limited liability company is the best starting point. Very often, it’s also chosen by people who are eligible for a sole proprietorship because of the advantages it gives.
There are several practical reasons why people often choose a limited liability company.
First, the minimum share capital is PLN 5,000, which makes this form relatively accessible compared with some other company structures.
Second, registration can be done through the online S24 system, so you can set up a company even if you haven’t had a chance to visit Poland yet.
Third, limited liability makes your personal financial situation more secure, which is especially useful when your activities involve risk.
Fourth, there can be some advantages regarding taxes and social insurance, but it depends on the company structure.
What about the disadvantages?
One of the issues that is often considered a disadvantage is related to accountancy. Unlike a sole proprietorship, limited liability companies have to keep so-called full accounting records (comprehensive bookkeeping according to specific regulations). It's not easy, even for Polish entrepreneurs. That is why many people entrust their books to external accounting firms. This comes at a cost, but there is also a bright side to this. Such a precise overview of the company’s financial situation allows for prudent decision-making regarding future business steps. Accountants will also help with your taxes and social security obligations, and you can focus on your business.
Another thing often pointed out by the critics of limited liability companies is the problem of double taxation. The company is a separate entity that is taxed, and you, as a shareholder or member of the management board, may be taxed again. I will discuss it in a separate article, but generally, that is a significant problem only if your company becomes big enough, and so is your income. For smaller companies, often the opposite is true; the structure of a company lets you save on money taken by the government.
What does the registration process look like in practice?
1. Choosing the structure and checking eligibility
Before anything is filed, you should confirm which form of economic activity you’re eligible to register (maybe sole proprietorship isn't even possible). Then, you need to choose the best option for your business, considering taxation, risks, and economic rationale. A lawyer like me can help with the decision. The next steps refer to registering a limited liability company.
2. Preparing the company details
You need a company name, business activity codes (so-called “PKD codes”, which are basically categories of different activities you plan to perform that you choose from an official catalogue), shareholder and management details, and a clear plan for how the company will operate. You need a registered address in Poland, whether a virtual office or a physical address.
3. Drafting and signing the documents properly
If you use S24, the system requires properly prepared documents and signatures by the relevant persons. The documents can be signed with a qualified electronic signature or a Trusted Profile (Profil Zaufany).
4. Filing with KRS
The next step is submitting an application to the court. It currently costs 200 PLN, and you do it through the same S24 system. A new limited liability company is entered into the National Court Register (KRS). After registration, tax and statistical numbers are assigned automatically.
5. Post-registration formalities
This is the stage many people underestimate. You still need to handle matters such as NIP-8 (tax declaration with supplementary information about your company), relatively small tax on civil law transactions (PCC), accounting setup, electronic service address issues, and information for the Central Register of Beneficial Owners.
Maybe I should choose another European country for my business?
Of course, Poland is not the only option. I think you can find countries with slightly more favorable regulations and taxation. However, differences between EU countries, although existent, can be smaller than you imagine. They are all operating within the same EU law framework. And remember, legal formalities are not everything that matters. Poland is a fast-developing country with a big economy integrated with other major European markets. It’s a safe land with a high quality of living. Many people see its potential, but it can still be considered a hidden gem for ambitious entrepreneurs around the world. This may be a place for you.
Final thoughts
If you are a foreigner planning to do business in Poland, the best structure depends on your status and your goals. In some cases, a sole proprietorship is possible. In many others, especially for non-EU foreigners, a limited liability company is the most practical and realistic option.
If you are interested in finding out more, if you consider professional help with registering your company and dealing with your immigration matters, fill out the contact form on my website. It’s free and involves no commitments, and you can see how exactly I can help you and what costs to expect. Feel free to get in touch.
Sources:
Legal acts:
Ustawa z dnia 6 marca 2018 r. o zasadach uczestnictwa przedsiębiorców zagranicznych i innych osób zagranicznych w obrocie gospodarczym na terytorium Rzeczypospolitej Polskiej (t.j. Dz. U. z 2025 r. poz. 89 z późn. zm.).
Ustawa z dnia 12 grudnia 2013 r. o cudzoziemcach (t.j. Dz. U. z 2025 r. poz. 1079 z późn. zm.).
Ustawa z dnia 15 września 2000 r. Kodeks spółek handlowych (t.j. Dz. U. z 2024 r. poz. 18 z późn. zm.).
Ustawa z dnia 6 marca 2018 r. - Prawo przedsiębiorców (t.j. Dz. U. z 2025 r. poz. 1480 z późn. zm.).
Relevant links: