Accounting

Polish Business Partnership

Accounting


Business partnership registration in Poland

Business Partnerships were one of the most popular forms of doing business in Poland in early nineties. Due to enactment of the Polish Commercial Companies Code in 1997 and establishment of „competitive” Registered Partnership, Business Partnership became less popular. Recently they are generally exercised to carry out small business or short-term business. This was confirmed by the Parliament by requiring partners to transform their business into Registered Partnership after their turnover overcomes 800 000 EUR per year.

Essence:

In a Business Partnership, you and your business partner (or partners) personally share responsibility for your business. You can share all your business’ profits between the partners. Each partner pays tax on their share of the profits.  Business Partnership does not have a ‘legal personality’ separate from the individual partners (as opposed to Registered Partnership). Therefore it shall be considered as simple agreement of two or more partners who what to carry out a small business together.

Partnership of Foreigners:

EU nationals are free to do business in this form in Poland. Non EU nationals are not allowed to exercise this form of business.  Exceptions to this rule are very rare but they may be provided by bilaatheral agreements between two countries. 

Capital of the partnership:

In the contract of association partners shall contribute something towards the partnership in order to build up its capital. In terms of capital, Business Partnership is very flexible. First of all there is no specific minimum capital. Besides each partner's may contribute to the partnership ownership of movable or immovable properties, other rights or even his own services.

Representation:

Each partner is authorized to represent the partnership.

Liability:

The partners bear joint, several and unlimited liability for the partnership's liabilities.

Taxes:

As mentioned before, Polish Business Partnership does not create any separate legal entity, as a result, each partner pays taxes on their share of the profits.

Business Partnership are still popular amongst small businesses due to tax reasons. Partners pay only PIT TAX – Personal Income Tax. CIT TAX – Corporate Income Tax is not applicable to Business Partnership

Steps necessary to establish Business Partnership:

  1. Drafting and signing Contract of Association by all the partners
  2. Registration of each partner at CEiDG

As a result you of above steps you would get:

  1. Each partner would be registered in business registry (CEiDG)
  2. Each partner will get tax identification no. (NIP) and will be registered as a taxpayer
  3. The Partnership will get its own tax identification no. (NIP)
  4. The Partnership will get its own statistical no. (REGON)
  5. The Partnership would be registered in Social Security Agency (ZUS)

 

Contact our partnership registration lawyers

Please address your enquiries to: info@dudkowiak.com, we will do our best to answer to you e-mail within 24 hours. 


Michał Dudkowiak

Lawyer

Michał Dudkowiak

Barrister, Managing Partner

Michał Dudkowiak
Piotr Putyra

Lawyer

Piotr Putyra

Barrister, Managing Partner

Piotr Putyra