How a Foreigner Can Register a Sole Proprietorship in Poland 2026

Can Any Foreigner Register a JDG in Poland?

No. The right to register a JDG depends on your residence status.

Right to Run a JDG Without Restrictions

• EU/EEA/Swiss citizens — full rights, no permits
• Family members of EU citizens — if residing in Poland
• Permanent residence card holders — full rights
• EU long-term resident card holders — full rights
• Holders of subsidiary protection / tolerated stay permit — full rights

Conditional Right — Residence Permit

• Temporary residence card — usually with the right to work / conduct business
• Karta Polaka (Polish Card) — simplifies procedures, but does not automatically grant JDG rights
• Visa — rarely with JDG rights; requires a special "work" visa

No Right to JDG

• Tourist visa (Schengen, type C) — does not entitle you to work or register a JDG
• Irregular stay — you cannot run a JDG
• Student visa — limited right to work, but not JDG

Step 1: Obtain the Right of Residence

Before registering a JDG, you must have legal residence in Poland that entitles you to conduct business.

EU/EEA Citizens

• Cross the border with an ID card or passport
• Stay up to 3 months without formalities
• Stay over 3 months: registration of EU citizen residence (voivodeship office)

Third-Country Nationals

• Temporary residence card — type: "conducting business activity"
• Permanent residence card — after 5 years of legal residence
• EU Blue Card — for highly qualified workers, with JDG rights

Step 2: Choose Your Form of Taxation

A foreigner has the same taxation forms as a Polish citizen:

• Tax scale (12% up to 120,000 zł, 32% above) — with a 30,000 zł tax-free amount
• Flat tax (19%) — no tax-free amount, but a constant rate
• Lump-sum tax (ryczałt) (2–17%) — lowest rates, but no cost deductions

Most foreigners choose lump-sum tax — simplicity, low rates, and no complicated cost accounting.

Step 3: Register in CEIDG

JDG registration takes place in the business registry (CEIDG — Central Registration and Information on Business).

What You Need:

1. Electronic signature (ePUAP, Profil Zaufany / Trusted Profile, qualified electronic signature)
   • Trusted Profile — free, via online banking
   • Qualified signature — paid (~200 zł/year)
2. Address in Poland — for correspondence
3. PKD — business classification (choose a main + additional codes)
4. Form of taxation — declared at registration
5. Business bank account (if you are a VAT taxpayer)

How to Submit the Application:

• Online via biznes.gov.pl (requires Trusted Profile / ePUAP)
• In person at the municipal office
• Registration is free
• Decision: usually within 1 business day

No PESEL?

If you do not have a PESEL number, CEIDG will assign you a NIP (tax identification number) automatically. You can run a JDG without a PESEL.

Step 4: ZUS and Insurance

After registering in CEIDG, you have 7 days to register with social insurance (ZUS).

ZUS Contributions for JDG:

• Start-up relief (6 months) — no social contributions, only health insurance
• Preferential small ZUS (24 months) — base amount 1,441.80 zł
• Large ZUS — base amount 5,652 zł (60% of average wage)

Health Insurance Contribution (always mandatory):

| Tax Form | Tier I | Tier II | Tier III | |----------|--------|---------|----------| | Scale / Flat | 9% up to 60,000 zł | 9% 60–300k | 9% above 300k | | Lump-Sum | 461.66 zł (up to 60k) | 699.11 zł (60–300k) | 1,258.39 zł (above 300k) |

Step 5: VAT — Optional Registration

If your revenue exceeds 200,000 zł annually, you must be a VAT taxpayer. Below that — you have a choice.

When It's Worth Being a VAT Taxpayer:

• You import goods (you can deduct VAT from customs duties)
• You buy a lot of equipment (you can deduct VAT on purchases)
• Your clients are other businesses (B2B)

VAT Registration:

• Submit on the VAT-R form (within 7 days)
• Fill out VAT-R online via biznes.gov.pl
• You receive your NIP as your VAT number

Step 6: Business Bank Account

If you are a VAT taxpayer or have employees — you must have a separate business bank account.

Documents for the Bank:

• Passport / residence card
• CEIDG extract
• Proof of address (utility bill)
• NIP

Banks offer business accounts for foreigners — Revolut Business, mBank, PKO BP, Alior.

Step 7: Accounting

Even on the lump-sum tax, you must keep records and settle taxes. Options:

• Independently — simple Excel or an app (but requires knowledge of regulations)
• Accounting office — from 49 zł + VAT / month (e.g., Oxyok)
• Accounting app — inFakt, wFirma (but in Polish)

Double Taxation Treaties

If you are a tax resident of another country, check the treaty between Poland and your country.

Most treaties allocate the right to tax to the source country (Poland). But some — such as with Germany or the United Kingdom — have special rules.

More: double taxation treaties.

FAQ

Do I need to know Polish to register a JDG?

No — CEIDG and applications are available in Polish, but an accountant or lawyer can help. ZUS and Tax Office documents are in Polish.

Do I need to live in Poland to run a JDG?

No. You can run a JDG while living abroad, but you must have an address in Poland and regularly settle taxes.

Can I hire employees as a foreigner?

Yes. But hiring a foreign national requires additional formalities — see our article on hiring foreigners.

How much does it cost to set up a JDG?

CEIDG registration is free. Costs: electronic signature (~200 zł), business account (0–200 zł/month), accounting (from 49 zł + VAT/month).

Need Help?

I provide accounting for foreigners setting up a JDG in Poland — registration, ZUS, VAT, PIT. From 49 zł + VAT per month. We serve clients in Polish and English.

Contact me at [email protected] or visit oxyok.com/en.

Note: A foreigner needs legal residence (residence card / EU status) to register a JDG. CEIDG registration is free, ZUS within 7 days. Consult an accountant before making a decision.