Registration of Sole Proprietorship (Jednoosobowa Działalność Gospodarcza)

A Sole Proprietorship (Jednoosobowa Działalność Gospodarcza or JDG) is the simplest and most common form of business in Poland. It is easy to set up, has low administrative costs, and offers simplified accounting options. However, it is not available to everyone.

Who Can Open a JDG?

Unlike an LLC, a JDG is strictly linked to the individual. It is available to:

• Polish citizens.
• Citizens of EU/EFTA countries.
• Foreigners with specific residence titles, such as: Permanent Residence, Long-Term EU Residence, Pole's Card (Karta Polaka), Refugee status, or certain Temporary Residence Permits (e.g., students, graduates of Polish universities, family reunification, Poland. Business Harbor visa holders).

The Process

Registration is done through the CEIDG (Central Register and Information on Economic Activity). It is generally free and quick, often completed in one day.

Taxation Options

One of the main benefits of a JDG is the choice of taxation:

• General Scale (Skala Podatkowa): 12% up to 120,000 PLN, then 32%. Includes a tax-free allowance.
• Flat Tax (Podatek Liniowy): Fixed 19% rate, regardless of income. Good for high earners.
• Lump-sum (Ryczałt): Rates from 2% to 17% depending on the type of activity. Expenses are not deductible.

J&R Consult verifies your eligibility, advises on the best tax form for your specific business, and handles the registration process for you, ensuring you start on the right foot.