Company Registration Step by Step – Online Business Registration

A business can now be registered not only in person, but also online. Before completing the CEIDG-1 application, several important matters must first be determined. This information is needed when completing the application. How long does company registration take? Does it involve any costs?

Company registration – stages

Thanks to registering a business online, there is no need to submit several documents to different offices. We do not waste time standing in queues or travelling around the city. However, before submitting the application, it is essential to determine several important details related to the company being established. It is worth using the step-by-step company formation guide available on the website https://wspieramyfirmy.pl/zakladanie-firmy-krok-po-kroku-jak-zalozyc-dzialalnosc-gospodarcza/.

Legal form of the business

Every legal form has advantages and disadvantages. In Poland, running a sole proprietorship is very popular. It can be registered in as little as one day and does not involve any costs. It is also possible to establish, among other things, a general partnership, professional partnership, limited liability company or joint-stock company. In the case of companies, certain expenses arise, such as a court fee of PLN 250 or the cost of announcing the first entry in the „Monitor Sądowy i Gospodarczy”. For each type of business, it is worth checking in advance the current costs associated with registration.

Some businesses require a permit. Specific premises requirements or the possession of particular equipment may be required. A licence, concession, permit or entry in the register of regulated activities may be necessary. For example, a concession is required for the protection of people and property, air transport or the distribution of electricity.

Form of income taxation

The available options depend on the legal form. In the case of a sole proprietorship, personal income tax, or PIT, is paid. Under the current regulations, in such a case income can be settled:

According to the tax scale – up to PLN 120,000 in income, the tax is 12%. Above this amount, the tax is PLN 10,800, plus 32% on the surplus over PLN 120,000.
At the flat rate – 19%, regardless of the amount of income.
Under the lump-sum tax on registered income – different rates apply depending on the type of business activity. They range from 2% to 17%.

In the case of a company, the available forms of taxation depend on its type.

Choosing PKD codes

PKD is an abbreviation for the Polish Classification of Activities. An entrepreneur establishing a company must choose a PKD code indicating the business they conduct. This does not mean that the company must operate in only one industry. Multiple codes can be selected. This data is used to compile statistics on business activity in Poland. However, it is also important for other reasons. The choice of a particular PKD code may entail the need to use a specific form of taxation, register for VAT or use a cash register. The code search engine is available at biznes.gov.pl/pl/tabela-pkd. One main PKD code must be selected, but any number of additional codes can also be added.

Keeping accounts

Entrepreneurs may keep accounts in simplified or full form. In the first case, this may be a tax revenue and expense ledger or a revenue register in the case of lump-sum taxation. Full accounting, on the other hand, is kept in accounting books.

Before starting business activity, it is necessary to determine who will be responsible for settlements. This may be an employee hired by the company or an external accounting office. In the case of the self-employed, it sometimes happens that they handle their own accounting.

Completing the CEIDG-1 application

An online business can be registered by completing the online document available here: biznes.gov.pl/pl/e-uslugi/00_0736_00. Submitting it is simultaneously an application for entry in the REGON register, an identification notification for the assignment of a NIP number, a declaration on the choice of taxation form and a notification to ZUS.

How much does online company registration cost? Using this option is free of charge. Costs arise in the case of companies – for example, in connection with a court fee. However, all such charges can be paid online.

Opening a bank account

In theory, having such an account for the company is not mandatory. In practice, not every transaction can be carried out in cash. Regulations prohibit this when the parties are entrepreneurs or when a single payment exceeds PLN 15,000. It is also needed by VAT taxpayers and those carrying out transactions using the split-payment mechanism.

Entrepreneurs need a bank account to pay tax or ZUS contributions. Micro-entrepreneurs are exempt from this obligation. These include companies that employed fewer than 10 people in one of the last two financial years and whose annual turnover did not exceed EUR 2 million.

It is also worth getting a company stamp, although regulations do not impose such an obligation. In practice, forms often include a space for one. If we do not have a stamp, we must then write a handwritten declaration stating that we do not possess one. It is better, however, simply to be able to use one.