The very process of establishing a company in Poland is extremely simple, but before you make the right applications, it’s worth analyzing a few issues to get the most out of your business. What is it worth knowing to not overpay for your business?
Form of activity
Which form of company’s business will be selected influences the largest number of factors. Responds to m.in. for the amount of tax contributions, the method of settling accounts with tax authorities, and accounting. The simplest and also the least demanding form is a sole proprietorship. The establishment of such a company is free, and the costs associated with running finances are also the cheapest. However, with larger companies, all types of companies are well-suited, and many more conditions must be met with them.
IMPORTANT! A company in Poland can be suspended, closed or opened at any time (after prior settlement of offices, clients, etc.). It is also possible to change the form of activity and taxation – by 20 January each year.
Form of taxation
In Poland, tax forms are available for selection:
- on general terms – 18% to 85,000 income, after exceeding this amount increases up to 32%,
- lump sum – depending on the industry (from 3% to 20%),
- a flat tax – 19%.
Each of the above options has its advantages and disadvantages. Small enterprises usually choose general rules, because they give the right to apply concessions, but with a surplus of 32% tax can be very noticeable. On the other hand, a flat tax, although it seems the most convenient, prevents, for example, joint tax settlements with the spouse.
It is worth considering whether the company will be a VAT payer. At the same time, a full accounting is required, but it allows you to save a lot of money especially for companies that trade goods. In the case of service companies, the self-determination of VAT payers can generate losses.