What is self-employment?

Self-employment is a form of entrepreneurial activity in which a person works on their own account, without formalizing a legal entity. It is a sole proprietorship in which the entrepreneur does not employ any employees, and all activities are carried out at the entrepreneur's risk, without the supervision of another person. Self-employed people in Poland benefit from a number of privileges, including the right to pension and health insurance, tax breaks and others.

In this article you will learn how to obtain a work permit in Poland if you want to be self-employed. We will also look at what requirements apply to self-employed people in Poland and what advantages and disadvantages this status has.

Main element:

1. Requirements for the self-employed

To obtain a work permit in Poland as a business person, you must meet the following requirements:

• A natural person must have legal capacity;
• A natural person must have permanent or temporary residence in Poland;
• A natural person cannot be a self-employed person in Poland who has started a business activity on his or her own account;
• A natural person cannot be punished for intentional crimes;
• A natural person cannot have tax debts and fees in Poland.

2. Self-employment law

A person who decides to become self-employed transfers responsibility for work that is subject to the Civil Code. The rigid regulations of the Labor Code are no longer in force, these regulations are replaced by the freedom to conclude and shape economic contracts, specified in the Civil Code. Rights and obligations are determined by the provisions of contracts signed with clients.

3. How to obtain a permit?

To obtain a work permit in Poland as self-employment, you must submit an application to the local office. The following documents must be attached to the application:

• application for a work permit;
• a copy of your identity document;
• a copy of a document confirming place of residence in Poland;
• a copy of a document confirming education and qualifications (if applicable);
• a copy of a document confirming professional experience (if applicable).

4. Advantages and disadvantages of self-employment

What are the benefits of becoming self-employed?

• higher take-home earnings, i.e. what remains after paying taxes, ZUS contributions and other public levies.
• tax benefits;
• flexible working hours;
• increasing your economic security due to independence in decision-making.

Disadvantages of self-employment:

• lack of job security;
• business risk related to the loss of a client, which results in lower remuneration;
• no paid holidays;
• the need to be responsible for one's own actions;
• difficulties in obtaining loans and other financial services.

5. Case studies

Here are some examples of people who have obtained a work permit in Poland as self-employed:

• Ivan is a programmer from Belarus. He moved to Poland to look for work. Ivan obtained a work permit as a sole proprietor and began providing software development services.
• Maria is a photographer from Ukraine. She moved to Poland in search of new opportunities. Maria obtained a work permit as a business person and opened her own photography studio.
• Andrei is a manicurist from Belarus. He moved to Poland in search of a better life. Andrei obtained a permit to work on his own and started working in a beauty salon.

Summary:

Self-employment is a good way to start a business in Poland. If you want to work for yourself and have more freedom in making decisions, this status may be right for you.

More information

1. The amount of taxes for self-employed people in Poland depends on their annual income. For annual income up to PLN 60,000, the tax rate is 17%, and for annual income above PLN 60,000, the tax rate is 32%.
2. Self-employed people in Poland are entitled to pension insurance, which provides them with a pension after retirement. The amount of the pension depends on the length of service and the amount of contributions paid.
3. Self-employed people in Poland are entitled to health insurance, which provides them with medical care in public health care facilities. The amount of insurance premiums depends on your annual income.
4. People running a business may choose the form of taxation in the form of a lump sum. If an entrepreneur provides services and has few costs, a profitable choice for him will be to pay a lump sum, i.e. tax charged on invoiced revenues. An additional benefit of paying a lump sum is a significant simplification of accounting, which is much cheaper if the entrepreneur uses the services of an accounting office or less time-consuming if the entrepreneur performs accounting work on his own.

Therefore, before making a decision, it is worth carefully calculating which taxation option will be more optimal.

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