Poland Immigrant Info

Starting a Business: JDG vs. sp. z o.o.

Sole proprietorship vs limited company in Poland — setup costs, taxes, liability, and which fits you.

Updated 2026-01-20 · 1 min read

Starting a Business: JDG vs. sp. z o.o.
On this page
  1. JDG (jednoosobowa działalność gospodarcza)
  2. sp. z o.o. (limited liability company)
  3. Other forms
  4. Choosing
  5. Steps for JDG

JDG (jednoosobowa działalność gospodarcza)

  • Sole proprietorship — you and the business are one legal person.
  • Register free in CEIDG online with Profil Zaufany.
  • Full personal liability for debts.
  • Tax options: skala, liniowy 19%, ryczałt.
  • ZUS reliefs: Ulga na start (24m), Mały ZUS Plus (24m).

sp. z o.o. (limited liability company)

  • Separate legal person; your liability is limited to share capital.
  • Minimum share capital 5000 PLN.
  • Setup: articles of association at a notary, registration in KRS (~600–1500 PLN + notary).
  • Accounting obligations heavier (full books).
  • Corporate income tax (CIT) 9% (small) or 19%.

Other forms

  • Spółka cywilna — civil partnership of JDGs (simple, no KRS).
  • Spółka jawna / komandytowa — partnerships with varied liability.
  • Spółka akcyjna (S.A.) — joint-stock, for larger firms.

Choosing

| | JDG | sp. z o.o. | |---|---|---| | Setup cost | free | ~1000–2000 PLN | | Liability | personal | limited | | Accounting | simple | full books | | Tax | personal (PIT) | corporate (CIT) | | Best for | freelancers, small | riskier, growing |

Steps for JDG

  1. CEIDG registration.
  2. Notify ZUS within 7 days.
  3. Choose tax form.
  4. Set up accounting.
  5. Start invoicing.

FAQ

Which is cheaper to start?
A JDG (sole proprietorship) is free to register in CEIDG and simplest. A sp. z o.o. costs ~1000–2000 PLN in notary and court fees but limits your liability.
When should I choose a sp. z o.o.?
When you want limited liability, plan to take investors, or your activity is higher-risk. JDG exposes your personal assets.

Sources

  1. gov.pl — Register a business (updated 2026-01-12)

This article is informational and not legal advice. Always confirm with the relevant authority.

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