How do I set up a business and what form of business should I choose?

The decision to set up your own business is one of the key moments in the life of any future entrepreneur. When considering how to set up a business, it is worth exploring the options available. There are many forms of business, but the most popular are the sole trader and the limited company. In this article, we will discuss how to set up a company step by step, discussing these two forms, their key differences and what steps you need to take to set them up.

Company registration process - how to set up a business online?

1. Sole trader - possibility to register via the portal https://biznes.gov.pl. The process is simplified and, once completed, a TIN is automatically assigned. The company can start operating immediately.
2. Limited liability company - Registration takes place via the S24 system, available at https://ekrs.ms.gov.pl/s24/. After the conclusion of the articles of association and before it is made visible in the KRS (this may take from a few days, to a few weeks), we are dealing with a limited liability company in organisation. A company in organisation does not have a TIN (although it may apply for one to the Tax Office, otherwise it will be granted automatically at the same time as its listing in the KRS) and can operate to a limited extent until it is listed in the KRS and a TIN is granted.

By registering your company online, you speed up the entire process. It is worth noting that, in the case of companies, registration in the traditional manner makes it impossible to subsequently make changes, such as modifying the articles of association or changing the registered office, online. Any such issues must then be regulated traditionally, which is time-consuming and more expensive than changes made online via S24.

Consultation with experts

It is recommended to use the help of an accounting office or a tax advisor, especially in the case of companies. Each change to the company's articles of association involves a cost that is approximately PLN 300, so consulting and choosing the right company structure can save us costs and time in the future.In addition, choosing the right form of taxation, whether in a sole proprietorship or a company, can have an impact on minimising the tax burden.

What form of business to choose when setting up a company?

Thinking about it, how to set up a businessIt is worth choosing the form that best suits your objectives. If you are wondering, how to set up a sole proprietorship, it is a suitable form for small businesses. On the other hand, if you want to grow a large company, a limited company may give you more flexibility. In both cases, consider a few things:

1. Scale of the business - companies are flexible in terms of development: it is easier to attract investors, list the company on the stock exchange or sell it in whole or in part, which is not possible with a sole proprietorship. It is worth noting that when selling a company, all concluded agreements, rights and obligations remain unchanged and the company functions as it did before the transaction.
2. Cost and complexity of running - running a company is more costly and complicated than a sole proprietorship. One of the first issues a prospective entrepreneur must understand is the need to separate private and company capital and the consequences of this, which do not apply in the case of a sole proprietorship.
3. Responsibility - In a company, liability for liabilities incurred is limited. Nevertheless, in certain situations, board members may be liable with their private assets. The key is to file for bankruptcy in good time. In a sole proprietorship, on the other hand, one is liable with all personal assets.
4. Protection of assets - in the case of one-person businesses, if you are married, it is worth considering establishing a separation of assets (prenup) and giving your spouse, for example, half of the property, which in practice makes it impossible to seize that part of the property. Information about the established separation of property must be public - CEIDG/ relevant provisions in contracts with contractors.

Although sole proprietorships and limited liability companies are the most popular forms of business, there are also many other, less popular forms, such as civil partnerships, joint stock companies, limited partnerships and others. However, these are chosen by people who know very well what benefits a particular form entails and how to use it effectively.

What else is worth bearing in mind?

There are many opportunities to obtain capital for business development, but of particular note is the non-refundable grant from the Labour Office for those registered as unemployed. As of today, the grant can amount to a maximum of approximately PLN 40 000, and the process of obtaining these funds and the formalities involved are relatively uncomplicated and manageable without the need for assistance from specialised consultants. The business subsidy is often such an attractive offer that even people who have never before considered registering as unemployed opt for it. However, if you want to find out, increase company profits and successfully grow your business, it is worth learning the strategies that will allow you to effectively manage your finances and increase your profitability.

Choosing a business registration address - Office31 as an excellent option

If you are wondering where to register your company, Office31 is a great option. With our services, you can register your business at a prestigious address without the need for a physical office. Our company offers professional address for company registrationwhich makes it much easier to get started. In addition, it provides mailing addresswhich ensures that all documents reach the right address. If you need a full office service, virtual office is a great solution that saves time and money.

How do you start a business? Summary

How to set up a business is a question that would-be entrepreneurs often ask themselves. It is worth choosing the right form of business, such as sole trader or limited liability companydepending on the planned scale of the business. By using the internet, the process of setting up a business becomes simpler and quicker. If you want to find out, how to set up a sole proprietorship, use the online tools available and start your business step by step.