Which company form to choose in Poland?
An overview of the advantages and disadvantages.
Choosing the right company form in Poland is one of the most important decisions for founders and entrepreneurs. It influences not only liability and tax burden, but also the administrative effort and opportunities for company development.
As an experienced law firm in Krakow, we regularly advise German and international clients on choosing the optimal legal form.
Sole proprietorship (sole trader / JDG)
Advantages:
• Simple and quick to set up,
• Low costs,
• Full control by the entrepreneur.
Disadvantages:
• Unlimited personal liability,
• Limited financing options.
Limited liability company (Sp. z o.o.)
Advantages:
• Liability limited to the capital contribution,
• High flexibility in structure,
• Also suitable for larger projects and investors.
Disadvantages:
• Higher establishment and accounting costs,
• Formal requirements (e.g. annual financial statements).
Public limited company (S.A.)
Advantages:
• Suitable for large companies,
• Possibility of raising capital through shares,
• Clear structures and professionalisation.
Disadvantages:
• Complex establishment procedure,
• High costs and extensive reporting requirements.
Other legal forms in Poland
In addition to the examples mentioned above, there are other forms of companies in Poland, such as partnerships (e.g. general partnership, limited partnership) or special forms for specific business purposes. Each variant has its own opportunities and risks.
Conclusion:
The right choice depends on your situation
Whether a sole proprietorship, Sp. z o.o. or S.A. – or one of the other forms of company – every form of company in Poland has its advantages and disadvantages. The optimal solution depends on factors such as capital, business model, risk and future plans.
Contact our law firm in Krakow
Choosing the right legal form requires not only legal knowledge, but also experience in Polish commercial law. Our law firm in Krakow provides comprehensive support – from incorporation to ongoing legal advice.
👉 Contact us today to arrange an individual consultation with an experienced solicitor in Krakow. Together, we will find the best solution for your business in Poland.
Tel.: 514 993 995