{"id":2788,"date":"2020-11-16T10:52:02","date_gmt":"2020-11-16T10:52:02","guid":{"rendered":"https:\/\/assistpro.lt\/2020\/11\/16\/legal-form-of-companies-and-institutions-in-poland\/"},"modified":"2020-11-16T10:52:02","modified_gmt":"2020-11-16T10:52:02","slug":"legal-form-of-companies-and-institutions-in-poland","status":"publish","type":"post","link":"https:\/\/assistpro.pl\/en\/2020\/11\/16\/legal-form-of-companies-and-institutions-in-poland\/","title":{"rendered":"Legal form of companies and institutions in Poland"},"content":{"rendered":"<p><span style=\"font-size: 12pt;\">When registering a business in Poland, you can choose from many legal forms of companies in Poland.<\/span><\/p>\n<h2><span style=\"font-size: 12pt;\"><span style=\"color: #333399;\"><strong>But how to choose the right legal form for a company?<\/strong><\/span><\/span><\/h2>\n<p>Legal forms of companies in Poland:<\/p>\n<ul>\n<li><span style=\"font-size: 12pt;\">Individual activity ( <em><a href=\"https:\/\/pl.wikipedia.org\/wiki\/Osoba_fizyczna_wykonuj%C4%85ca_dzia%C5%82alno%C5%9B%C4%87_gospodarcz%C4%85\">Polish<\/a> :<\/em><\/span><\/li>\n<li><span style=\"font-size: 12pt;\">Civil Legal Partnership <em>( <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_cywilna\">sp\u00f3\u0142ka cywilna<\/a> )<\/em><\/span><\/li>\n<li><span style=\"font-size: 12pt;\">Economic partnerships <em>( <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_osobowa\">sp\u00f3\u0142ka osobowa<\/a> ),<\/em> public \/ limited partnership <em>( <a href=\"https:\/\/www.biznes.gov.pl\/pl\/firma\/zakladanie-firmy\/chce-zalozyc-spolke-osobowa\/spolka-jawna-podstawowe-informacje\">sp\u00f3\u0142ka<\/a> jawna \/ <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_komandytowa\">Komandytowa<\/a> )<\/em><\/span><\/li>\n<li><span style=\"font-size: 12pt;\">Capital companies <em>(Polish <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_kapita%C5%82owa\">sp\u00f3\u0142ki kapita\u0142owe<\/a> ),<\/em> limited liability company <em>(Polish <a href=\"https:\/\/en.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_z_ograniczon%C4%85_odpowiedzialno%C5%9Bci%C4%85\">sp\u00f3\u0142ka z ograniczon\u0105 odpowiedzialno\u015bci\u0105<\/a> ),<\/em> public limited company <em>(Polish <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_akcyjna\">sp\u00f3\u0142ka akcyjna<\/a> )<\/em> .<\/span><\/li>\n<\/ul>\n<p>Below is an overview of the legal form of companies in Poland.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h5><span style=\"color: #333333;\"><strong>Individual activity<\/strong><\/span> <em><a href=\"https:\/\/pl.wikipedia.org\/wiki\/Osoba_fizyczna_wykonuj%C4%85ca_dzia%C5%82alno%C5%9B%C4%87_gospodarcz%C4%85\">(<\/a> Polish:<\/em><\/h5>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 53.5141%;\">\n<p style=\"text-align: left;\"><span style=\"font-size: 10pt;\">      <strong> Advantages:<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"font-size: 10pt;\">Individual;<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">No <a href=\"https:\/\/assistpro.lt\/veiklos-sritys\/imones-steigimas\/\">authorized capital is<\/a> required for establishment;<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Matters are handled personally by the businessman;<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Small scale of activity;<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">All property belongs to the entrepreneur;<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Low prestige.<\/span><\/li>\n<\/ol>\n<\/td>\n<td style=\"width: 46.4859%;\">\n<p style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><strong>Disadvantages:<\/strong><\/span><\/p>\n<ol>\n<li style=\"text-align: left;\"><span style=\"font-size: 10pt;\"><span style=\"text-decoration: underline;\">The entrepreneur is liable for the debts with all his assets<\/span> ;<\/span><\/li>\n<li style=\"text-align: left;\"><span style=\"font-size: 10pt;\">Liability for debts may also extend to the spouse.<\/span><\/li>\n<\/ol>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h5><\/h5>\n<h5><strong>Civil Legal Partnership<\/strong> <em>( <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_cywilna\">sp\u00f3\u0142ka cywilna<\/a> )<\/em><\/h5>\n<p><span style=\"font-size: 10pt;\">A partnership established on the basis of civil law. It\u2019s not a company, but the partners are entrepreneurs. Established to achieve some economic objective described in the contract. Each of the partners has a separate entry in the business register, and the company has its own company code and VAT identification number. The individual partners are the owners of all the assets of the company. A civil law partnership does not have legal personality and is not a company &#8211; but its partners are entrepreneurs.<\/span><\/p>\n<ol>\n<li><span style=\"font-size: 10pt;\">&#8221; <strong>No &#8211; the company<\/strong> .&#8221; The company is not a separate legal entity. Only its partners are such entities.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">The company is treated as a separate entity for <a href=\"https:\/\/assistpro.lt\/buhalterine-apskaita\/\">VAT<\/a> and excise purposes.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\"> Entrepreneurs are separate partners in the company.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">The company does not operate as a company under civil law. In the civil law partnership agreement, the partners may specify the name of the company, which will be published in the Central Register of Economic Activities <em>( <a href=\"https:\/\/prod.ceidg.gov.pl\/CEIDG\/CEIDG.Public.UI\/Search.aspx\">Centralna Ewidencja i Informacja o Dzia\u0142alno\u015bci Gospodarczej<\/a> &#8211; CEIDG)<\/em> .<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Joint ownership of assets.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Equal distribution of profits.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-size: 10pt;\"><strong>Disadvantages:<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"font-size: 10pt;\">Each of the partners must receive an entry in the Central Register of Economic Activities (CEIDG),<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Without legal personality, partners cannot enter into contracts with a company.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">The partners are jointly and severally liable with all their assets for the company&#8217;s obligations, both civil and public.<\/span><\/li>\n<li><span style=\"text-decoration: underline;\"><span style=\"font-size: 10pt;\">Complications during transport activities (each partner must have its own <a href=\"https:\/\/assistpro.lt\/veiklos-sritys\/vilkiku-ir-imones-licencijos-transporto-priemoniu-registravimas\/\">license \/ permit<\/a> )<\/span><\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h5><strong>Public partnership<\/strong> <em>( <a href=\"https:\/\/www.biznes.gov.pl\/pl\/firma\/zakladanie-firmy\/chce-zalozyc-spolke-osobowa\/spolka-jawna-podstawowe-informacje\">sp\u00f3\u0142ka jawna<\/a> )<\/em><\/h5>\n<p><span style=\"font-size: 10pt;\">The Commercial Law Partnership was established to conduct the business activities of the partners. Decisions are made <\/span><span style=\"font-size: 10pt;\">in the form of unanimous resolutions, there are no specialized bodies, and all partners are appointed to manage the company <\/span><span style=\"font-size: 10pt;\">affairs and to represent it. This company is suitable for the management of medium-sized companies. The company is registered with the National <\/span><span style=\"font-size: 10pt;\">court register <em>(Polish <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Krajowy_Rejestr_S%C4%85dowy\">Krajowy Rejestr S\u0105dowy<\/a> )<\/em><\/span><\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 55.3213%;\">\n<ol>\n<li><span style=\"font-size: 10pt;\">A separate subject of rights and obligations<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Each of the partners can represent the company.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Possibility to exclude a specific partner from the representation of the company.<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">All partners are liable for the company&#8217;s liabilities with all their assets (subsidiary liability),<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Limited funding, not exceeding partner contributions,<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Possibility to freely formulate the content of contracts<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">Each partner has the right to distribute the profit (or loss) in proportion to the shares specified in the contract (if the shares are not specified, the distribution is assumed to be equal).<\/span><\/li>\n<li><span style=\"font-size: 10pt;\"> Each of the partners pays income tax on their share of the income<\/span><\/li>\n<li><span style=\"font-size: 10pt;\">There are no management bodies of the company (ie the board, the supervisory board, the general meeting).<\/span><\/li>\n<li><span style=\"font-size: 10pt;\"> For small activities.<\/span><\/li>\n<\/ol>\n<\/td>\n<td style=\"width: 44.6787%;\">\n<p style=\"text-align: center;\"><span style=\"font-size: 10pt;\"><strong>Disadvantages:<\/strong><\/span><\/p>\n<p><span style=\"font-size: 10pt;\">Liability with all its personal assets for the obligations of the company, if the obligations can not be fulfilled from<\/span> <span style=\"font-size: 10pt;\">the assets of the company, the so-called <strong>subsidiary liability.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h4><strong><span style=\"color: #333399;\">The most popular legal forms (types) of companies in Poland:<\/span><br \/>\n<\/strong><\/h4>\n<ul style=\"list-style-type: disc;\">\n<li>Limited Liability Company <em>(Polish: Limited <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_komandytowa\">Liability<\/a> Company)<\/em><\/li>\n<li><strong><span style=\"color: #333399;\">Limited liability company<\/span><\/strong> <em>(Polish <a href=\"https:\/\/en.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_z_ograniczon%C4%85_odpowiedzialno%C5%9Bci%C4%85\">sp\u00f3\u0142ka z ograniczon\u0105 odpowiedzialno\u015bci\u0105<\/a> )<\/em><\/li>\n<li>Limited partnership <em>( <a href=\"https:\/\/pl.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_komandytowa\">sp\u00f3\u0142ka Komandytowa<\/a> )<\/em><\/li>\n<\/ul>\n<p><span style=\"font-size: 10pt;\">A <span style=\"font-size: 12pt;\"><strong>limited partnership<\/strong><\/span> is a company whose purpose is to manage the business as its own company. This is a transitional period <\/span><span style=\"font-size: 10pt;\">form between partnerships (civil and public <em>(Polish: cywilna i jawna))<\/em> and capital companies (limited liability company, public limited company <em>(Polish: sp\u00f3\u0142ka zoo, akcyjna)<\/em> ). The company does not have the status of a legal entity, but has the legal capacity to perform legal acts (incomplete legal entity <em>(Polish) osobomna <\/em><\/span><span style=\"font-size: 10pt;\"><em>prawna)<\/em> ). This means that it can be subject to rights and obligations (legality) and carry out legal actions through its own actions (actions of persons authorized to represent the company).<\/span><\/p>\n<p><span style=\"font-size: 10pt;\">\u2022 <a href=\"https:\/\/assistpro.lt\/en\/2020\/11\/16\/legal-form-of-companies-and-institutions-in-poland\/\">FULL MEMBER<\/a> &#8211; is responsible for the company&#8217;s liabilities with all its assets. Responsibility of the real partner for <\/span><span style=\"font-size: 10pt;\">the liabilities of the company were formed in the same way as the responsibilities of the partner of the public partnership.<\/span> <span style=\"font-size: 10pt;\">The beneficial partner represents the partnership (manages the partnership) if he has not been deprived of this right under a partnership<\/span> <span style=\"font-size: 10pt;\">agreement or a final court decision.<\/span><br \/>\n<span style=\"font-size: 10pt;\">\u2022 COMMANDER &#8211; is liable only for obligations not exceeding the amount specified in the contract, the so-called <\/span><span style=\"font-size: 10pt;\">subsistence amounts, but he is not responsible for the amount of contributions. He can represent the company, but only as a <\/span><span style=\"font-size: 10pt;\">representative. If it goes beyond the scope of the mandate, acts without it, and does not disclose its mandate, it will <\/span><span style=\"font-size: 10pt;\">responsible for the consequences of its actions in the same way as the real partner. Commander also without <\/span><span style=\"font-size: 10pt;\">will be liable for the obligations of the limited partnership when its name (company) is disclosed<\/span> <span style=\"font-size: 10pt;\">in the name of the company (company name).<\/span><\/p>\n<p>&nbsp;<\/p>\n<h5><strong>Limited liability company<\/strong> <em>(Polish <a href=\"https:\/\/en.wikipedia.org\/wiki\/Sp%C3%B3%C5%82ka_z_ograniczon%C4%85_odpowiedzialno%C5%9Bci%C4%85\">sp\u00f3\u0142ka z ograniczon\u0105 odpowiedzialno\u015bci\u0105<\/a> )<\/em><\/h5>\n<p><span style=\"font-size: 10pt;\">An independent entity with legal personality, and is <span style=\"color: #333399;\"><strong>the most common of the corporate legal forms in Poland<\/strong><\/span> . For entrepreneurs planning for larger or high risk <\/span><span style=\"font-size: 10pt;\">the choice of a capital company, such as <a href=\"https:\/\/assistpro.lt\/veiklos-sritys\/imones-steigimas\/\">a limited liability company<\/a> , is usually <\/span><span style=\"font-size: 10pt;\">much more beneficial than community. The structure of a limited liability company can leave no doubt that <\/span><span style=\"font-size: 10pt;\">that you will be liable for the company\u2019s debts with personal assets. <\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><span style=\"text-decoration: underline;\">Limited Liability Company Partners<\/span> &#8211; May have one or more partners, which may be physical or <\/span><span style=\"font-size: 10pt;\">legal entities, i. y. other companies. The only exception is the provision that one person is limited <\/span><span style=\"font-size: 10pt;\">a limited liability company may not be established by a single-member limited liability company. <\/span><\/p>\n<p><span style=\"text-decoration: underline;\"><span style=\"font-size: 10pt;\">Companies <\/span><\/span><span style=\"font-size: 10pt;\"><span style=\"text-decoration: underline;\">contract and registration<\/span> &#8211; The contract of a limited liability company must be concluded by a notarial deed. Partners <\/span><span style=\"font-size: 10pt;\">(partner) must pay a contribution to cover the entire authorized capital. Limited liability companies <\/span><span style=\"font-size: 10pt;\">the registration must be entered in the national court register. The company acquires legal personality after <\/span><span style=\"font-size: 10pt;\">registration. The amount of the authorized capital should be at least <strong>PLN 5,000<\/strong> . The nominal value of a share cannot be <\/span><span style=\"font-size: 10pt;\">less than PLN 50. The <a href=\"https:\/\/assistpro.lt\/veiklos-sritys\/imones-steigimas\/\">authorized capital<\/a> of the company is divided into shares with a nominal value of <\/span><span style=\"font-size: 10pt;\">the same or different. Shares may not be subscribed for below their nominal value. If the stock is purchased for <\/span><span style=\"font-size: 10pt;\">at a price higher than the nominal value, the surplus is transferred to additional capital.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><span style=\"text-decoration: underline;\">Liability for liabilities<\/span> &#8211; the company is liable for its liabilities with all its assets, board members can <\/span><span style=\"font-size: 10pt;\">be jointly and severally liable, but only if enforcement against the company proves ineffective. <\/span><span style=\"font-size: 10pt;\"><strong>Partners are not responsible for the company&#8217;s obligations.<\/strong> Board members may be released from liability if <\/span><span style=\"font-size: 10pt;\">proves that he has filed for bankruptcy in due time or that the board has commenced settlement proceedings, or <\/span><span style=\"font-size: 10pt;\">that the bankruptcy petition was not filed and the arrangement process was not initiated through no fault of their own, that is <\/span><span style=\"font-size: 10pt;\">is despite the fact that no bankruptcy application has been filed and no arrangement procedure has been initiated <\/span><span style=\"font-size: 10pt;\">the creditor did not suffer any damage.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><span style=\"text-decoration: underline;\">The Board of the Company and other bodies<\/span> of the Company represent and manage the affairs of the Company. There may be one on the board <\/span><span style=\"font-size: 10pt;\">or several members. The board does not have to be composed of partners (the functions of the board may be performed by persons who <\/span><span style=\"font-size: 10pt;\">does not hold any shares in the company). The Board is appointed and dismissed by the decision of the <a href=\"https:\/\/assistpro.lt\/en\/2020\/11\/16\/legal-form-of-companies-and-institutions-in-poland\/\">shareholders<\/a> (if the company &#8216;s articles of association <\/span><span style=\"font-size: 10pt;\">unless otherwise specified). The optional body is the supervisory board.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When registering a business in Poland, you can choose from [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[22],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Legal form of companies and institutions in Poland - Assistpro.pl<\/title>\n<meta name=\"description\" content=\"% Legal form of companies and institutions in Poland Assistpro.pl - Legal form of companies and institutions in Poland Assistpro.pl\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/assistpro.pl\/en\/2020\/11\/16\/legal-form-of-companies-and-institutions-in-poland\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Legal form of companies and institutions in Poland - Assistpro.pl\" \/>\n<meta property=\"og:description\" content=\"% Legal form of companies and institutions in Poland Assistpro.pl - Legal form of companies and institutions in Poland Assistpro.pl\" \/>\n<meta property=\"og:url\" content=\"https:\/\/assistpro.pl\/en\/2020\/11\/16\/legal-form-of-companies-and-institutions-in-poland\/\" \/>\n<meta property=\"og:site_name\" content=\"Assistpro.pl\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-16T10:52:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assistpro.pl\/wp-content\/uploads\/2020\/11\/Imoniu-rusys-Lenkijoje.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"626\" \/>\n\t<meta property=\"og:image:height\" content=\"351\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"osix\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/assistpro.pl\/en\/#organization\",\"name\":\"Assistpro\",\"url\":\"https:\/\/assistpro.pl\/en\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/assistpro.pl\/en\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/assistpro.lt\/wp-content\/uploads\/2020\/11\/ASSIST-PRO-branding.png\",\"contentUrl\":\"https:\/\/assistpro.lt\/wp-content\/uploads\/2020\/11\/ASSIST-PRO-branding.png\",\"width\":799,\"height\":529,\"caption\":\"Assistpro\"},\"image\":{\"@id\":\"https:\/\/assistpro.pl\/en\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/assistpro.pl\/en\/#website\",\"url\":\"https:\/\/assistpro.pl\/en\/\",\"name\":\"Assistpro.lt\",\"description\":\"Esame specialist\\u0173 komanda galinti pad\\u0117ti Jums sukurti s\\u0117kming\\u0105 versl\\u0105 pa\\u010diame Europos centre \\u2013 Lenkijoje. 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