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Setting Up a Polish Sp. z o.o. — Step by Step and Common Mistakes

Why a Sp. z o.o.?

The limited liability company is the most popular business form in Poland — over 500,000 active sp. z o.o.s. Key advantages: limited shareholder liability, flexible structure, single-person setup possible, minimum capital PLN 5,000.

Two Registration Methods

Traditional — notarial deed, KRS court registration, 2-4 weeks. S24 (online) — electronic form via Ministry of Justice system, 24h registration, but limited customization of the articles of association.

Articles of Association — What to Include

Company name and seat, business activity (PKD codes), share capital amount, shareholders' shares, corporate bodies, representation method, financial year. Critical: optional provisions — share transfer restrictions, additional contributions, share redemption, pre-emptive rights, board term.

Post-Registration — Mandatory Steps

Tax office notification (NIP-8), VAT registration (if applicable), bank account opening, share capital payment, beneficial owner registration in CRBR (within 7 business days), accounting firm selection.

Most Common Setup Mistakes

Too narrow PKD scope, no shareholder exit mechanism, minimum capital inadequate for business needs, no shareholders' agreement in multi-person companies, overlooking IP matters (who contributes the technology).

Costs

Notarial deed: approx. PLN 200-500 + VAT. KRS fee: PLN 500 (traditional) or PLN 250 (S24). Court Gazette: PLN 100. Share capital: min. PLN 5,000. Total: approx. PLN 6,000-7,000 including legal fees.

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