Since 2020, the number of sole proprietors (Jednoosobowa Działalność Gospodarcza) in Poland has been steadily increasing. According to statistics, today this figure is about three million firms. Moreover, this form of doing business is chosen by many foreigners who have only recently arrived in Poland. However, not all persons are allowed to officially register a business here. To find out who can and cannot open a sole proprietorship in Poland, read this article until the very end.
Most people think that a sole proprietorship is the most profitable and best option for running a risk-free business. But is this really the case? In this article we would like to share with you the key features of opening a JDG in Poland. Many things have changed significantly recently, so we provide the most up-to-date information in 2025!
JDG in Poland – what is it?
JDG (Jednoosobowa Działalność Gospodarcza) is one of the most common forms of doing business in Poland. It is often chosen by business start-ups and visiting foreigners. This form is intended for natural persons.
What example can we give? Imagine that you know where you can buy clothes cheaply and you know where you can sell them more expensive. To conduct such activities, you need legal grounds, including registration of a sole proprietorship. After opening a JDG, you can quietly do business, pay taxes and ZUS contributions on time without worrying.
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*US – Tax Office (similar to HMRC in the UK)
*ZUS – Social Security Institution (equivalent to National Insurance contributions)
*GUS – Central Statistical Office (for business activity codes and official business data)
Key features of Jednoosobowa Działalność Gospodarcza
Let us delve into the features and nuances of such a form of business activity as JDG. What are its pros, what are its cons, what is the tax rate and much more, let us consider below.
Registration of a sole proprietorship in Poland is done through Centralna Ewidencja i Informacja o Działalności Gospodarczej (CEIDG) unlike a limited company which is registered through (KRS).
Registration from scratch takes from a few days to a few weeks.
As a sole proprietor, you are fully liable to customers, partners and third parties.
Personal funds and business assets are not segregated. Thus you bear all possible financial risks.
It is necessary to register with ZUS to pay social and health contributions for your employees.
Simplified accounting models are available for sole proprietorships.
There are several taxation options: general system, linear system and simplified system. Depending on the option chosen, the final rate may vary. For example, under the general system, the tax rate is 12% if your annual revenue is less than 120,000 PLN. Otherwise, you will be taxed at 32% on all profits over 120,000.
Based on all of the above, we can conclude that JDG is ideal for aspiring entrepreneurs. That is to say, small business owners and aspiring startups find it most profitable to start their entrepreneurial activities with JDG. However, over time you can easily transform JDG into a Spółka z o.o.
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Do you want to discover new opportunities for your business? → Find out more about the reorganization of JDG into Spółka z o.o. here!
Persons who can open a sole proprietorship in Poland in 2025
So, finally we come to the main part of this article, namely “who is eligible to open a sole proprietorship in Poland”. Below in the table we will detail all those who can and cannot officially register a JDG in 2025.
Who can open the JDG? | Detailed explanation |
|---|
Citizens of the Republic of Poland | Obviously, you can easily register as a sole proprietor if you have a Polish passport. Moreover, Poland has a rather loyal policy on this issue. For example, minors (from 13 to 18 years old) can legally engage in entrepreneurial activities in Poland. More information about this can be found on the official portal Biznes.gov. |
Foreigners holding a passport in other EU countries | This list includes persons holding a passport of a citizen of any of the European Union countries + Norway, Iceland, Liechtenstein and Switzerland (these countries are not in the EU, but they are part of the Schengen area). |
Foreigners with a long-term residence card | Such a document gives a foreigner many rights, including the possibility of opening a JDG. Moreover, you can open a sole proprietorship with an EU long-term resident card. |
Persons with temporary residence (in some cases) | You can count on opening a sole proprietorship with temporary status only in the following cases: legal family reunification, marriage to a citizen of the Republic of Poland, full-time study at a Polish university or various humanitarian circumstances. |
Refugees from Ukraine | Since February 2022, Ukrainian citizens have been granted special conditions in Poland, which also affect businesses. If you have a Ukrainian passport, a PESEL number and you are legally staying in Poland, you can open a sole proprietorship here. |
Blue Card holders | The Blue Card is an alternative to the temporary right of residence in EU countries. Blue Card holders have recently been able to register sole proprietorships in Poland since June 1, 2025. |
Until January 2024, there was another option for foreigners to start a business in Poland. We are talking about the Poland.Business Harbour program. However, by decision of the Polish Ministry of Foreign Affairs, the Poland.Business Harbour program was cancelled. What was the reason? It is said that it could have harmed the national security of the country because of the large flow of migrants from the neighboring countries. Moreover, some foreigners found a loophole in the system and actively used it for their own benefit.
Potential limitations in opening a sole proprietorship
Are there any restrictions or a list of persons prohibited from doing business in Poland? Yes, first of all, you must match one of the above mentioned points in the table. If you do not have a legal basis for this, there is no possibility to legally conduct business. Among other restrictions in opening a JDG we can highlight certain areas of activity. Here they are:
You may have a logical question about what to do if you want to engage in exactly one of these types of activities. It is important to realize that no one prohibits you from running an insurance business or engaging in fire protection activities. It is just that other forms of business activity are designed for these areas of activity, including Spółka z o.o.
We would like to remind you that it is possible to run a business in Poland without official registration. However, this requires that you clearly fall within the specified limits. In this case, your monthly income must not exceed 75% of the minimum wage, which is PLN 3,499 in 2025.
Taxes and insurance fees for JDG in Poland
When talking about any form of business activity, it is worth considering tax rates and insurance premiums. Why? These are usually the key points for most entrepreneurs (especially beginners). One of the most important advantages of JDG is the possible benefits for newcomers. That is, if you open a sole proprietorship in Poland for the first time, there are favorable conditions for you. What is meant by this? For six months (6 months), start-up entrepreneurs do not pay any taxes except for health insurance. There are also opportunities to get reduced ZUS contributions for the first 24 months from the first day of running a sole proprietorship. Learn more about JDG tax benefits on the official website Biznes.gov. We suggest you to familiarize yourself with the table below.
Contribution | Based on January 1, 2024 | Based on July 1, 2024 | Based on January 1, 2025 |
|---|
Pension | 248,41 zł | 251,81 zł | 273,24 zł |
Disability | 101,81 zł | 103,20 zł | 111,98 zł |
Sickness | 31,18 zł | 31,61 zł | 34,30 zł |
Accidents | 21,25 zł | 21,54 zł | 23,38 zł |
Labor Fund | — | — | — |
Total | 402,65 zł | 408,16 zł | 442,90 zł |
Let's talk separately about health insurance contributions. Every individual entrepreneur is obliged to contribute a certain part of his income to the health care system. However, the final amount of the tax rate may differ in each case. However, there is a single rule - the monthly amount of health insurance contribution cannot be lower than PLN 314,96.
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What is better to choose: sole proprietorship or LLC?
We want to start by saying that we cannot say that one form of business is better than another. Why not? It all depends on your goals, requirements and specific case. In certain situations, a sole proprietorship may be better, while in other circumstances it may be better to favor Spółka z o.o.. Now let's get down to a more detailed analysis and comparison of these two most popular forms of business in Poland.
For example, at first glance it may seem that JDG is easier and safer. In fact, it is not the case. An important nuance: all responsibility is yours. There is no separation between personal property and business. Let's say a sole proprietor owes 200,000 PLN to a supplier - you are obliged to pay from your own funds, even from your salary or savings. Spółka z o.o., on the contrary, protects your capital, because the risks are evenly distributed among the founders of the company and the company, not the individual, is responsible for everything.
One more point we want to tell you about. If you want to open a sole proprietorship, you need to have an EU passport, temporary protection or a residence permit in Poland. And Spółka z o.o. can be opened by every adult foreigner, provided that there is no criminal record. However, for an LLC you need to deposit the authorized capital (at least 5,000 PLN).
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Personalized assistance with opening a JDG
As you may have already realized, Jednoosobowa Działalność Gospodarcza is a great option for foreigners to start a business in Poland. If you have a passport from an EU country, a work permit or any of the other grounds mentioned in this article above, you can apply for registration of a sole proprietorship. Surely, you can open a JDG in Poland on your own. Two current ways to register a sole proprietorship in Poland can be found at this link. However, even the simplest form of doing business in Poland can cause some difficulties, especially for beginners. That is why we offer our personalized assistance in all matters related to starting a business in Poland.
How can we help? Our experienced aksis agency has many years of expertise in starting a business, taxation and other issues related to entrepreneurship. You can contact us to receive comprehensive services: pre-opening a PESEL number, registration of residence (zameldowanie), filling out an application, creating accounting documents, choosing a tax form and business counseling. Start your way in business by contacting aksis!
