8 Types of Business Entities in Poland

This guide covers the various types of business entities in Poland that will asisst you in making informed decisions and establishing a successful presence in this diverse and thriving business landscape.


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    types of business entities in poland

    Types of Business Entities in Poland

    Poland, with its dynamic economy and strategic location in Central Europe, has become an increasingly attractive destination for business ventures. Entrepreneurs exploring opportunities in this vibrant market must navigate through various legal structures, each tailored to meet specific needs and objectives. Understanding the types of business entities in Poland is crucial for making informed decisions and establishing a business in Poland successfully.

    Types of Business Entities in Poland

    The different types of business entities in Poland are listed below:

    1. Sole Proprietorship 

    One of the simplest types of business structures in Poland is a sole trader or a sole proprietor. In a sole proprietorship, individuals register their own business activity without creating a separate legal entity. This form is appropriate for small firms and sole proprietors.


    • Simplicity in registration and management
    • No minimum capital requirement
    • Direct control over the business


    • Unlimited personal liability
    • Income is taxed as personal income

    2. Civil Partnership 

    A civil partnership is a commercial agreement between two or more persons. It’s not a separate legal entity, meaning that the partners bear full personal liability for the partnership’s obligations.


    • No minimum capital requirement
    • More resources and expertise due to multiple partners


    • Unlimited personal liability for all partners
    • Income is subject to personal income tax for each partner.

    3. Polish Registered Partnership 

    This is a form of partnership in which all partners are equally liable for the partnership’s responsibilities. It is an independent legal body with the capacity to obtain rights, incur liabilities, sue, and be sued.


    • Separate legal personality
    • Flexibility in management and operations


    • Partners have unlimited liability
    • Requires registration in the National Court Register

    4. Polish Professional Partnership

    This entity is designed for members of liberal occupations like law, medicine, or architecture. It allows them to conduct their professional activities under a common name.


    • Suitable for professional services
    • Partners are exclusively accountable for their activities, not the behaviors of their other companions.


    • Can only be created by members of recognized liberal professions
    • Requires registration in the National Court Register

    5. Polish Limited Partnership

    There are two types of partners in a limited partnership: general partners with unlimited responsibility and limited partners with liability restricted to their contribution.


    • Limited liability for limited partners
    • Attracts investors who prefer limited exposure


    • General partners bear unlimited liability
    • More complex structure and management

    6. Polish Limited Joint-Stock Partnership 

    This is a variation of the limited partnership but resembles a joint-stock company in that it can issue shares. It’s suitable for larger businesses that aim to attract external investors.


    • Can issue shares to raise capital
    • Limited liability for shareholders


    • Complex structure and formalities
    • The responsibility of general partners is unlimited.

    7. Limited Liability Company 

    One of the most common types of business structures in Poland is limited liability company. The liability of the stockholders is capped at their contributions.


    • Limited liability for shareholders
    • Flexible management and organizational structure
    • Able to be founded by one person


    • Minimum share capital required (PLN 5,000)
    • Requires registration in the National Court Register

    8. Joint-Stock Company 

    joint stock company in Poland is suitable for large businesses and those aiming to be listed on the stock exchange. It has a more rigid structure compared to the limited liability company.


    • Can issue shares and bonds, suitable for large capital investments
    • Limited liability for shareholders


    • High minimum share capital requirement (PLN 100,000)
    • Complex management structure and governance requirements


    Poland offers a diverse range of business entities catering to a range of demands, from small business owners to multinational enterprises. Among the various types of business entities in Poland, choosing the right form depends on the business size, nature, capital, and level of liability an entrepreneur is willing to assume. 

    It’s essential to seek advice from OnDemand International when determining the most suitable business entity for your venture in Poland. Our expert team will walk you through the appropriate procedure. Contact us today to register your business in Poland.


    The simplest form is the Sole Proprietorship. It’s easy to establish and is suitable for single individuals running small businesses.

    Joint-stock companies and Limited Liability Companies are generally the preferred structures for larger corporations and those targeting foreign investment due to their share-based structures and clearer corporate governance.

    In a Sole Proprietorship, for example, the owner is fully liable. Meanwhile, shareholders in a Joint Stock Company or members in a Limited Liability Company are personally accountable for their contributions to the company’s share capital.

    Generally, sole proprietors and partnerships (except for limited joint-stock partnerships) are subject to personal income tax. On the other hand, Limited Liability Companies and Joint-Stock Companies are liable for CIT. However, specifics might vary depending on various factors and tax planning strategies.

    The minimum share capital required for a Limited Liability Company (sp. z o.o.) is PLN 5,000.

    The duration varies. A Sole Proprietorship can be registered in a few days, while a Limited Liability Company might take a few weeks, given the necessary paperwork and approvals.

    Yes, foreign individuals and entities can establish and own businesses in Poland. However, some industries might be subject to particular limitations or need further authorization.