Starting a business? Accounting and formalities for a good start

A sole proprietorship (in Polish: jednoosobowa działalność gospodarcza, JDG) is the simplest way to run your own business. It is run by one person, in their own name and for their own account, and the business name must always include their first and last name. You do not need start-up capital or a partnership agreement, you can employ staff, and if it stops paying off, the business can be suspended or closed. You register it online in CEIDG using a Trusted Profile, and the whole registration takes a quarter of an hour or so. Your data is passed automatically to ZUS, Statistics Poland (GUS) and the tax office. If you want to test your idea first, you can start with unregistered business activity. From 2026 its limit is calculated quarterly and amounts to 225% of the minimum wage.

You do not have to go through CEIDG, choose PKD codes or register with ZUS yourself. At Parakairon we set up your business for you, from the first conversation to the day you can issue your first invoice.

You can choose between the progressive tax scale, flat tax or lump-sum tax on recorded revenue. Each form pays off at different levels of revenue and costs and in different industries, and you can usually change it only from the following year. Then there is VAT: from 2026 you can be exempt up to PLN 240,000 of sales per year. Sometimes, however, registering for VAT from day one is more beneficial, e.g. when you sell to businesses and have large purchases. On the tax scale you pay 12%, or 32% on income above PLN 120,000, with a tax-free allowance of PLN 30,000. Flat tax is a fixed 19% with no tax-free allowance, and lump-sum tax is paid on revenue, without deducting costs, at the rate assigned to your industry. The amount of your health insurance contribution also depends on the form of taxation, so it is worth calculating everything together.

From 1 April 2026 most businesses issue invoices in the National e-Invoicing System (KSeF). The smallest businesses, with sales of up to PLN 10,000 per month, have until 1 January 2027. In addition, every month you have to keep track of deadlines for contributions, advance tax payments and returns, and keep your documents for years. A single delay can cost you interest and stress. You can grant permissions in the system to your accountant, who will take care of the rest. ZUS contributions are due by the 20th of the month, and active VAT payers submit the JPK_VAT file by the 25th of the month.

Business-related expenses reduce your tax. The most common are a car, phone and internet, laptop and equipment, software, training and, if you work from home, part of your housing costs. The devil is in the details: not every expense can be deducted in full, and an incorrectly described invoice may be challenged. A good accountant will show you what you can deduct and make sure it is done safely.

• Car: if it is also used privately, 75% of the expenses are deductible, and you can recover 50% of the VAT.
• Working from home: part of the rent, electricity and heating, in proportion to the floor area of your office.
• Equipment: a laptop, phone or furniture up to PLN 10,000 net is expensed immediately; more expensive equipment is deducted through depreciation.
• Software: office suite, hosting, domain and online advertising.
• Professional development: courses, conferences and industry books related to your business.
• Business travel: tickets, accommodation, parking and motorway tolls when visiting clients.
• Accounting: your accounting firm's monthly fee and a virtual office are also business expenses, and as an active VAT payer you can also recover the VAT on the invoice. The costs of setting up a company are deductible only partly, in specific cases.

A sole proprietorship is the simplest and cheapest to run, but you are liable for the business's debts with all your personal assets. A limited liability company (sp. z o.o.) protects your private assets and works better with higher revenue or partners, but it requires full accounting and more formalities. The choice depends on scale, risk and growth plans. Company profits are subject to corporate income tax (CIT), at 9% for small taxpayers, and paying out dividends to shareholders means an additional 19%. For some companies the Estonian CIT is beneficial, where tax is paid only when profits are distributed. We will help you work out which form is the most cost-effective in your case.

Don't want to register your business at your home address? At Parakairon we offer a virtual office in Gdynia: a prestigious address for your business and handling of your mail. It is a convenient solution at the start, especially if you work remotely or at clients' premises and want a professional address on your invoices and website. Price: PLN 200 net.