Polish Business Partnership Registration

Business partnership registration in Poland

Business Partnerships (Civil Partnership) used to one of the most popular forms of doing business in Poland in early nineties. Due to enactment of the Polish Company Code (Commercial Companies Code of 1997) and availability 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 2 mln EUR per year.

Absence of separate legal personality

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 for foreigners

EU nationals are free to do business in this form in Poland. Non EU nationals are not allowed register business partnerships in Poland.  Exceptions to this rule are rather rare and may be provided by international bilateral agreements.

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:

  • there is no specific minimum capital
  • each partner’s may contribute to the partnership ownership of movable or immovable properties, other rights or
  • even services may constitute contribution to capital.

Representation of Business Partnership

Every single partner of the Civil Partnership is authorized to represent it.

Liability of Partners

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

Taxation of partnership

As mentioned before, Polish Business Partnership does not create any separate legal entity, as a result, each partner pays  personal 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

Establishment of business partnership may be completed in two simple steps:

  1. Drafting and signing Contract of Association (Partnership Agreement) by all the partners
  2. Registration of each partner at CEiDG (Entrepreneurs Register of Poland)

The second step is really simple, it is just a formal notification of business launch in Poland.

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)

Contact our partnership registration lawyers

Please address your enquiries to: [email protected], we will do our best to answer to you e-mail within 24 hours.

Expert team leader DKP Legal Michał Dudkowiak
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