Running a sole proprietorship (JDG) in Poland comes with numerous formal obligations. A business owner must not only handle invoices, taxes, and ZUS contributions, but also remember to submit timely notifications to various offices. Proper management of these responsibilities is essential for operating a legal and secure business. 

Obligations when starting a sole proprietorship

Registering a sole proprietorship in Poland must be done before starting economic activity. This can be done online via the trusted profile (profil zaufany) or in person.

Within 7 days of starting the business, the entrepreneur must register with ZUS. Depending on the situation, the ZUS ZUA form is used (full insurance coverage) or ZZA (health insurance only – for example, when also working under an employment contract or benefiting from the “start-up relief”). 

If the entrepreneur intends to be a VAT payer, the VAT-R form must be submitted before performing the first taxable activity. To be safe, it is best to do this at least one day in advance. 

After opening a business bank account, it must be reported to CEIDG (or directly to the Tax Office for VAT taxpayers, so the account appears on the so-called white list of VAT taxpayers). 

If a tax advisor or accounting office is handling tax declarations and JPK files, a UPL-1 power of attorney must be submitted to the Tax Office before the first submission. 

Updating business information when running a sole proprietorship

Any change in company data – such as address, company address, last name, PKD codes, authorized representatives, or bank account number – must be reported in CEIDG within 7 days. 

Note that CEIDG automatically forwards this information to ZUS, the Tax Office, and GUS, but not all changes are reflected in all systems.

For example, when VAT-related information changes (like PKD codes affecting VAT status), update of the VAT-R form may be required. 

Recurring obligations for sole proprietors

In day-to-day business, the entrepreneur must also fulfill regular obligations. Each month, ZUS contributions must be paid – the deadline is always the 20th of the month. Additionally, depending on the selected form of taxation, an advance payment for income tax (PIT, flat tax, or lump-sum) is also due by that date. 

If the company is a VAT payer, monthly or quarterly JPK_V7 files and VAT declarations must be submitted – the deadline is the 25th of the month. 

In specific cases, such as running a store or warehouse, there may be a requirement to prepare a physical inventory (stocktake).

Suspending and resuming business activity when running a sole proprietorship

An entrepreneur can suspend business activity at any time, even retroactively, for a minimum of 30 days. Suspension is submitted via CEIDG, and business resumes automatically after the indicated reactivation date. 

After resuming operations, the business must be re-registered with ZUS within 7 days. Automatic re-registration will only occur if no changes affecting insurance obligations occurred during the suspension. If the “start-up relief” ended, full-time employment began, or the entrepreneur became eligible for retirement. In such cases, entrepreneurs must submit the appropriate ZUS form with updated insurance codes.

During suspension, there is no obligation to pay tax advances, lump-sum taxes, or submit VAT and ZUS declarations. No revenue may be generated from business activity. However, the suspension period still counts toward relief limits such as the “small ZUS plus”. 

Closing a sole proprietorship

To close a sole proprietorship in Poland, the entrepreneur must submit in CEIDG a request to deregister the business.

After closing the business, the entrepreneur still needs to settle VAT and final income tax.

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Text based on: INFORLEX