Poland has become a go-to destination for global entrepreneurs due to its EU access, booming economy, and startup-friendly infrastructure. Whether you’re a solo entrepreneur or experienced business owner looking for expansion, selecting the right business structure is crucial for your business growth.
In this guide, we’ll explore the types of business entities in Poland, their legal features, tax implications, and which are best suited for different kinds of ventures.
Why Choose Poland for Business?
- Strategic location: Access to both Western and Eastern European markets.
- EU member: Enjoy tariff-free trading, VAT advantages, and EORI support.
- Strong local economy: Poland ranks among the top 10 fastest-growing economies in the EU.
- Skilled workforce: High literacy, multilingual talent, and technical skills.
Types of Business Entities in Poland
Listed below are the various types of business entities in Poland:
1. Limited Liability Company (Spółka z o.o.)
A limited liability company is the most popular types of company in Poland for foreign entrepreneurs.
Pros:
- Limited shareholder liability
- Can be formed by a single person
- Only PLN 5,000 minimum capital
Cons:
- Annual financial statements are mandatory
- Subject to corporate income tax (CIT)
2. Sole Proprietorship
A simple, low-cost option where an individual conducts business without forming a separate legal entity.
Pros:
- Easy registration via CEIDG
- No capital requirement
- Direct income taxation
Cons:
- Unlimited personal liability
- Limited growth potential
3. Civil Partnership
A partnership agreement between two or more individuals or entities. It is not a legal entity, but partners are jointly responsible.
Pros:
- Simple setup and operation
- No capital requirement
Cons:
- Unlimited liability is shared among partners
- Not suitable for large-scale operations
4. Registered Partnership
A legal entity formed by two or more partners to conduct business under a common name. Requires entry into the National Court Register (KRS).
Pros:
- Legal personality
- Flexibility in management
Cons:
- Joint and several liability
- Public disclosure of accounts
5. Professional Partnership
Only available to licensed professionals (e.g., doctors, lawyers, architects).
Pros:
- Suitable for professions
- Limited liability to own acts
Cons:
- Restricted to specific professions
- Requires KRS registration
6. Limited Partnership
Involves at least one general partner (fully liable) and one limited partner (liable up to their contribution).
Pros:
- Investment-friendly
- Separation of management and funding
Cons:
- Complex structure
- Taxed at the partner level
7. Limited Joint-Stock Partnership
Combines elements of a limited partnership and a joint-stock company. Can issue shares.
Pros:
- Suited for fundraising
- Hybrid legal protection
Cons:
- Higher compliance burden
- General partners bear full liability
8. Joint-Stock Company
Ideal for large-scale enterprises and companies planning public offerings.
Pros:
- Share capital can be raised via IPOs
- Shareholders have limited liability
Cons:
- High minimum capital (PLN 100,000)
- Complex governance and audit requirements
Need Help Setting Up in Poland?
At OnDemand International, we provide end-to-end support to foreign investors:
- Entity selection & legal consultation
- Virtual office and registered address
- Company registration (KRS, NIP, REGON)
- VAT & bank account setup
Schedule your free consultation with our experts today.
Conclusion
Poland provides entrepreneurs with a diverse range of company types—from small-scale sole proprietorships to robust joint-stock companies. The flexibility, investor appeal, and EU alignment make it a prime choice for scaling across Europe. A Sp. z o.o. company remains the most versatile and accessible structure for foreign business owners.
Let OnDemand International help you get started with expert guidance, legal support, and complete setup assistance—including registration, VAT, and bank account opening. Contact us today.
FAQ’s
Yes, foreigners can fully own shares in entities like Sp. z o.o. and S.A.
Typically 7–14 business days, depending on entity type and documentation.
Sp. z o.o. is ideal for SMEs; S.A. is suited for larger firms with plans to raise capital via shares.
Yes, for capital contribution and VAT/tax payments.
Only if turnover exceeds PLN 200,000 annually or if you deal in certain services/products.
