Foreigners and business activity in Poland

• What forms of business can a foreigner choose?
• When is a residence permit required?
• How can I legalize my stay for business purposes?
• Summary
• FAQ

Choosing the right business structure is the first decision an entrepreneur faces. The regulations are quite precise regarding whether a foreigner can establish a sole proprietorship. Citizens of European Union, EEA, Switzerland, and the United States generally have this freedom. In their case, the rules are almost identical to those for Polish citizens. Other individuals must have appropriate residence permits to register a foreigner's business with the Central Registration and Information on Business (CEIDG). It's worth remembering that individuals without full legal capacity can still invest in Poland through capital companies, such as a limited liability company or a joint-stock company.

If you can't establish a sole proprietorship, the law offers other interesting business options. Available options include:

• a limited liability company (LLC);
• a simple joint-stock company;
• a joint-stock company;
• a limited partnership;
• a limited joint-stock partnership.

Many people wonder: can a foreigner start a business without additional formalities? The answer depends on the residence permit you hold. If you are a citizen of a country outside the previously mentioned group, you must have the appropriate documents to freely operate a business. Eligible individuals include those with a permanent residence permit, a long-term EU resident permit, or a temporary residence permit for family reunification. In such cases, foreigners and business activity in Poland are subject to procedures that put you on an equal footing with Polish entrepreneurs.

The process of applying for the right to run a sole proprietorship as a foreigner is closely linked to the requirements of your residence card and business activity. If you already have a temporary residence permit granted for the purpose of conducting business activity, it means that your company already exists and is registered in the CEIDG (Central Registration and Information on Business). Remember that in the event of legal complications, professional, comprehensive foreigner services may be helpful, as they will help you navigate the maze of regulations.

If you plan to stay in the country for longer than three months for business purposes, you will need a temporary residence permit for business purposes. For your application to be approved, you must prove the stability of your business. The office will verify, among other things, whether you generate sufficient income, employ a sufficient number of employees, and have the resources to support future investment development. Don't forget to also provide basic documents such as health insurance, proof of secured residence, and a regular source of income.

When preparing documents for the office, it's crucial to demonstrate that your business has a positive impact on the economy. Officials pay particular attention to the company's profitability. Remember that a work permit may be necessary for a foreigner if, during the course of your case, you will be performing activities beyond standard company management in specific roles. The entire process requires diligence, as each legalization of a foreigner's stay involves a detailed review of the submitted financial evidence and business plan.

The possibility of running a business in Poland for foreigners is real, although it depends on meeting specific formal requirements and holding the appropriate residence permit. While EU citizens enjoy complete freedom, other individuals must demonstrate the appropriate status and financial standing of their business. Understanding the differences between legal forms and accurately preparing documents for the provincial office is the foundation for success in this process.

Can any foreigner establish a sole proprietorship in Poland?

No, the right to establish a sole proprietorship without restrictions is primarily available to citizens of EU, EEA, Switzerland, and the USA. Other foreigners must hold an appropriate residence permit, such as a permanent residence permit or certain types of temporary residence permits.

What documents are required to apply for a temporary residence permit to conduct business activity?

The applicant must submit a completed application, photographs, a copy of a travel document, and documents confirming the company's profitability, such as a personal income tax return for the previous year, certificates of no arrears in taxes and social security contributions, as well as documents confirming the availability of funds for subsistence and health insurance.

Do Ukrainian citizens have any benefits when conducting business in Poland?

Ukrainian citizens who have obtained a PESEL number may establish and conduct business activity in Poland under the same conditions as Polish citizens, in accordance with the provisions of the Act on Assistance to Ukrainian Citizens in Connection with the Armed Conflict in the Territory of Ukraine.

Where can I obtain information on international agreements regulating the conduct of business by foreigners?

Information on international agreements that may introduce additional rights or restrictions for citizens of specific countries can be found in the online treaty database maintained by the Ministry of Foreign Affairs.