Entrepreneurs – who are they?
An entrepreneur may be a natural person (every citizen of the Republic of Poland of legal age) who on their own behalf runs business or professional activities.
A legal person or an organizational unit that isn’t a legal person may be calledentrepreneur although in the second case we usually use the term enterprise.
Legal regulations regarding running business activities by natural persons within the area of the Republic of Poland are included in the provisions of the act of 2 July 2004 on freedom of conducting business activity – i.e. Journal of Laws of 2010 No. 220, item 1447 as amended.
Advantages of running business activities:
- greater freedom in managing own potential and skills
- possibility of implementing ideas and combining professional life with one’s passions and interests
- usually lower costs of running business (depending on the industry)
- simplified formalities – from registration to financial reporting
- it is easy to change the profile of running business
- flexible taxation form
- possibility of starting activities already on the day of submitting the application for entry into Register of Business Activities
- possibility of suspending activities at any time (if at that time no employees are employed)
Disadvantages of running business activities:
- bearing responsibility with one’s all personal assets for company’s liabilities (also spouses’ shared assets are subject to this responsibility)
- requirement to pay social insurance contribution irrespective of the amount of earned income
- difficulty in including a partner in the business – it possible only after changing the legal form of conducted activities (for example to civil law partnership)
- irregular working time and lack of longer leaves of absence – company’s development requires huge amount of time to be spent on managing the business
Foreign persons from European Union member states and member states of European Free Trade Association (EFTA) may take and run business activities under the same principles as Polish entrepreneurs. They are subject to registration in the register maintained by the commune competent for primary location of this business within the area of the Republic of Poland.
Other persons are entitled to take and run business activities only in the form of the following companies: limited partnership, limited joint-stock partnership, limited liability company and joint-stock company, as well as to join such companies, purchase their stocks and shares, unless international agreements stipulate otherwise.
Condition for starting business activities is entry to Central Registration and Information on Business. Application for entry into Central Registration and Information on Business may be also submitted in a commune office selected by entrepreneur.
Gdynia Entrepreneurship Support Centre serves this purpose within the area of the City of Gdynia.
Principles for making an entry into Central Registration and Information on Business