Sole proprietorship in Poland

What is a sole Proprietorship:

A sole proprietorship is a type of business entity where an individual operates and owns the business entirely on their own. 

It is the simplest and most common form of business structure. In a sole proprietorship, there is no legal distinction between the owner and the business itself. 

The owner assumes all rights and responsibilities, including the profits, debts, and liabilities of the business.

Here are some key characteristics of a sole proprietorship:

1. Ownership: The business is owned and controlled by a single individual, known as the sole proprietor. The owner has complete authority over all business decisions.

2. Liability: The sole proprietor is personally liable for all debts and obligations of the business. This means that their personal assets can be at risk if the business incurs any financial liabilities.

3. Taxes: The income generated by the sole proprietorship is typically reported on the owner’s personal tax return. The business itself is not taxed separately, unlike some other business structures.

4. Decision-making: The sole proprietor has full control over all aspects of the business, including decision-making, management, and operations. They can make decisions quickly without needing to consult with partners or shareholders.

5. Flexibility: Sole proprietorships offer great flexibility in terms of business operations. The owner has the freedom to make changes, adapt strategies, and pivot the business as needed without any formal processes or approvals.

6. Transfer of ownership: In a sole proprietorship, the business ceases to exist upon the death or retirement of the owner. It cannot be easily transferred or sold to another individual.

Sole proprietorships are popular among small businesses and freelancers due to their simplicity, low startup costs, and minimal legal requirements. However, it’s important to note that the sole proprietor assumes full responsibility for the business’s liabilities, which can be a potential risk factor. Consulting with a legal or financial professional is advisable before setting up a sole proprietorship to ensure compliance with local laws and regulations

Who is Eligible to open a sole Proprietorship in Poland:

Every foreigner who holds specific residence statuses has the opportunity to establish a sole proprietorship in Poland.

This option is available to citizens of the European Union, EFTA members, and EEA members from countries not involved in the EEA Agreement. If they fulfill the necessary criteria, these individuals can operate a sole proprietorship in Poland under the same conditions as Polish citizens. Non-European Union citizens can also register a sole proprietorship, but they must possess a suitable residence basis, such as:

• permanent residence permit,
• residence permit for a long-term EU resident,
• a temporary residence permit granted in connection with the circumstances of full-time studies (according to Article 144 of the Act on Foreigners), for family reunification (Article 159 of the Act on Foreigners), with exceptions, has a long-term EU residence permit ( Article 186 (3) – temporary residence permit),
• temporary residence permit granted to a family member residing in the territory of the Republic of Poland for the purpose of family reunification pursuant to Art. 159 paragraph 3 and 4;
• refugee status,
• subsidiary protection,
• permit to stay for humanitarian reasons or permit for tolerated stay,
• Poland Business Harbor visa,
• a temporary residence permit and a marriage contract concluded with a Polish citizen residing in the territory of the Republic of Poland,
• temporary residence permit for the purpose of economic activity, granted due to the continuation of already conducted economic activity on the basis of an entry in the CEIDG,

As well foreigners who meet the below criteria:

• benefit from temporary protection in the Republic of Poland,
• have a valid Pole’s Card,
• are family members (pursuant to art. 2 point 4 of the Act of 14 July 2006 on entry into the territory of the Republic of Poland), joining the citizens of the states referred to in sec. 1 or staying with them.

How to register a sole proprietorship:

To establish a sole proprietorship, individuals can complete the registration process by submitting an entry in the Central Register of Information on Economic Activities (CEIDG). 

Foreigners who wish to register must provide supporting documentation, such as a scanned copy of the document verifying the basis for setting up the sole proprietorship (e.g., residence card and decision). 

In the case of online registration, the foreigner must have a Trusted Profile to sign online.

Required documents for the registration process:

• Pesel number
• Resident card + Decision
• Trusted profile
• Company Headquarter (Office address / Virtual office)

Fees: 

There are no administration fees for the registration of a sole proprietorship in Poland.

Do you have any additional questions? We invite you to check our website: www.investya.pl or reach us at hello@investya.pl

Read Next

Work permits in Poland 2026 — types, requirements, and what you’ll actually need

29 May 2026

A no-nonsense guide to work permits in Poland — who needs one, what types exist,…

What is the cost and how long does it take to register a Sp. z o.o. (limited liability company) in Poland?

3 November 2025

When registering a company in Poland, two main factors are to be considered, which are…

Can you open a Sp. z o.o. (limited liability company) in Poland without having a valid TRC (temporary residence card)?

3 November 2025

The Sp. z o.o. Or limited liability company is the most popular kind of company…