Starting Your Own Business from A to Z

A for AMBITIONS

When deciding to start a business, you need to clearly define your ambitions. Your business goal should not be dictated solely by the desire for profit – success is easiest to build in combination with high skills, talents, many years of experience and passion! Before you start making plans for the future, think about the present. Do you have sufficient knowledge of the industry you want to become a part of? Have you obtained the appropriate education or professional qualifications? How well do you know the domestic market and the legal principles of running a business? Before you take action, focus on education so that ambitions do not cloud your common sense.

B for BUSINESS PLAN

Constructing a detailed business plan is not a necessary condition for registering a company. However, it is a basic document assessing the profitability of your business idea when applying for grants. The Polish State provides subsidies for opening your own business based on European Union funds. It is worth using them, especially if the purchase of items necessary for work (e.g. computer, professional tools), professional training, internships or postgraduate studies require a large financial outlay. If you are an unemployed person who is under 30 years of age, you can receive a one-time support of approx. PLN 20,000. These rates usually vary depending on the province. Unemployed people over 30 can also apply for subsidies for starting a business, but in this case it is required to indicate that the applicant’s situation on the labor market is difficult due to age, disability or insufficient education. The application for subsidy is submitted to the local Labor Office.

C for CEIDG

Centralna Ewidencja i Informacjon o Działalności Gospodarczej (CEIDG) is an electronic register of entrepreneurs that makes it much easier to set up a company step by step. All you have to do is visit https://prod.ceidg.gov.pl/ceidg.cms.engine/ and fill out the CEIDG-1 form there.

The following information should be included in the application:
– personal data (including full address of residence and correspondence),
– company name (full and abbreviated),
– company address (including electronic address for the e-PUAP system and tax systems),
– company telephone number, fax, website and dedicated e-mail address of the company,
– predominant type of business activity, i.e. the code Polish Classification of Activities (PKD)
– other types of business activity (remember that there is no limit to the number of PKD codes provided!),
– contact details (providing them is voluntary – consent to the publication of data in the CEIDG database often results in numerous phone calls from agents insurance, banking, telecommunications companies),
–main place of work (office or home) and secondary places of business (shops, service points)
–ZUS or KRUS insurer (in the case of paying ZUS contributions, additional documents are attached:ZZA – for an entrepreneur who additionally works full-time, results in paying only the health insurance contribution,ZUA – for an entrepreneur who additionally does not work full-time, results in paying all contributions,ZCNA – in order to register family members of the insured person)
–Tax Office data
–form of taxation (general principles 18% and 32%, flat tax 19%, tax card, recorded flat rate) biznes.gov.pl
– form of advance income tax payment (usually the monthly option is selected)
– type of accounting documentation kept (in this section you also select whether the company’s accounting will be handled by an external entity or the entrepreneur himself based on online accounting)
– address where accounting documentation is stored
– power of attorney
– information on marital property community
– bank account number

The completed application should be provided with an electronic signature or printed, signed and submitted to the nearest Commune Office. The CEIDG-1 form can also be completed in paper form, on site.

D for DOMAIN

If you are setting up an online store or intend to sell your services online, having your own website is an obvious necessity. However, this does not mean that in other cases you can skip maintaining online company profiles, because they are a database of information about your business activity on the web and an excellent advertising medium! If you cannot design a website yourself, use the offers of professionals.

E for E-MAIL

E-mail is an absolute “must-have” for every entrepreneur. Customers often contact entrepreneurs via e-mail, but it is also used for official correspondence and instant data exchange with accounting. You can set up an email account using free portals or paid hosting companies. The second option also guarantees server space for your website and the choice of an original email address for you and your employees, e.g. firstname.lastname@companyname.pl – it looks very professional!

F for FINANCE

Setting up a company is completely free! Remember that! Don’t let scammers use the data published in CEIDG to send young entrepreneurs letters demanding payment for registration. Such correspondence should simply be ignored.

G for GIODO

If your business involves the need to collect personal data (e.g. registering customers of an online store), you must obtain the consent of the Inspector General for Personal Data Protection. Reporting a personal data set for GIODO registration can be done using the ePUAP, ePK and eGIODO platforms electronically – Electronic Mailbox.

H for HEADHUNTING

Hiring employees takes time and dedication. Instead of posting offers and reviewing CVs, you can use professional HR companies (Human Resources) that will take care of searching for ideal candidates for the positions offered for you. Of course, for an appropriate fee.

I for IDENTIFICATION

Most companies have their own logo, which can be used to mark their product leaflets, websites, business cards, labels, and even pens and notebooks, given to customers as advertising. Building a unique image-symbol significantly supports the company’s recognition among customers. Graphic identification therefore helps in advertising and strengthens the position of your brand on the market. A creative logo should not be too complicated or copy the ideas of other brands. It will be best if its style is adapted to the type of business activity performed. If you can’t make graphics yourself, use the services of professionals.

J for JUST KEEP IT CLEAR

When preparing to set up a company make sure that all formal rules are clear to you – you know the different types of settlements with the tax office, you can find the most advantageous option for bookkeeping, you understand the forms of ZUS and KRUS insurance, you control the deadlines for submitting applications and paying tax fees. If you are setting up a company for the first time, you may get lost in the maze of information, especially if you do not have an economic education. Spend enough time searching for information on the Internet or gain knowledge from professional sources, e.g. from a proven advisor. Good preparation will save you later stress and potential complications.

K for KONTO BANKOWE (BANK ACCOUNT)

To run a business, you need to have a bank account. It is best if it is a separate, additional account, different from your private one, used exclusively for company financial operations. Most banks also prepare special offers for entrepreneurs, which are worth getting to know by visiting the institutions you have chosen in person.

L for LOCATION

The more famous the location, the greater the company’s prestige. However, if you do not need to rent expensive office space because you work independently from home, you can purchase the services of Virtual Office. For a small monthly fee, you get the opportunity to register your business at a known address, have a dedicated mailbox and professional correspondence service! It really pays off, especially for people running a sole proprietorship.

M for MAXIMUM KNOWLEDGE

Do not hesitate to participate in courses and meet-ups organized by people operating in the industry in which you want to exist. The experience of other people will help you face the first problems that await you and will make it easier to build your own scheme of action. Gaining knowledge is the basis on which you should focus first. There is a wealth of information available on the Internet and in specialist literature, but you will gain the most from meeting people who have been successfully running their own businesses for many years.

N for NAME FOR YOUR COMPANY

How to come up with the perfect company name? Start by gathering a database of words that best reflect the nature of your company, and then transform them into a creative, short phrase. A good name should not only draw attention to itself, but also suggest what industry the potential customer will be dealing with. Ask your friends for help, involve your family and relatives. Among your loved ones, there will certainly be many creative people who will help you choose the ultimate favorite. Also remember that the company name should be unique! You can always check your proposals by searching the most popular search engines, e.g. Google.

O for OUTSOURCING

In simple terms, outsourcing is the transfer of some of the company’s tasks to other business entities. In business, outsourcing is most often carried out by running a Virtual Office, which handles the company’s correspondence and lends its resources to the company. You can find more about this solution in article on our blog.

P for PERSONALIZED COMPANY STAMP

Having a stamp is not a requirement, but official documents always have a field for a company stamp. It contains the necessary data, such as company name, address, owner’s name and surname, phone number, e-mail, NIP and REGON, thanks to which it is possible to issue an invoice for a given business entity. Invoices are also stamped with a stamp, but of course it is not necessary. Due to the fact that the cost of making your own stamp is low, and having one makes it much easier, it is worth getting at least one.

R for REQUIRED ACCOUNTING

Every entrepreneur must record their income and expenses, and for this, of course, they need accounting. Using the services of experienced offices is cost-effective in terms of time (all formalities are handled by one qualified person), but can be a significant financial burden for beginners. However, it is possible to conduct your own online accounting, and although this option is more kind to your wallet, it requires the entrepreneur to have minimal knowledge and to meet deadlines independently.

S for SMARTPHONE

A modern company must also have communication tools. A reliable smartphone with access to fast internet is perfect for viewing documents, sending emails, conducting correspondence with employees and, of course, telephone calls to customers. Also, opt for a separate company number, intended for contact in matters related to the company. Indicating a private phone number as a way to contact clients is not a good idea.

T for TIME AND CALENDAR

There are a few important dates that you should absolutely remember. Write them down in your calendar! EVERY MONTH: 10th day – is the maximum deadline for paying salaries to employees and the maximum deadline for paying ZUS contributions for the employer 15th day – is the maximum deadline for paying ZUS contributions for employees 20th day – is the maximum deadline for settling income tax 25th day – is the maximum deadline for settling VAT QUARTERLY: In the quarterly VAT settlement, you make settlements in the months January, April, July, October – always for the past calendar quarter. EVERY YEAR: by January 31 – settlement of employee income tax using PIT-4R or PIT-8AR forms by February 28 – preparation of settlements for employees in three copies and sending them PIT-11 forms (the second copy must be sent to the Tax Office, while the third copy remains in the company archive) by April 30 – settlement of income tax by December 31 – preparation of a physical inventory, i.e. the current financial status of the company

W like WORK ON YOUR IMAGE

Your company’s image is based on 3 pillars: logotype with name, business profile and advertising! Properly arranged and conducted marketing activities can bring your company huge profits from the very beginning of your business. Don’t limit yourself to running a website – promote your products and services in social media, on local forums, in leaflets and industry magazines. The more publicity you gain at the beginning, the faster you will enter the path of sustainable development.

Z for ZUS

And now the cherry on the entrepreneurial cake, i.e. Social Insurance Institution. Currently, the full ZUS rate is 1230 PLN – no wonder that novice entrepreneurs want to pay as little as possible. However, there are tools that will help you reduce this amount to the bare minimum, at least in the initial period of your new business. However, you must meet certain conditions for a given tax relief. Unregistered business This is an excellent option for those who are not sure whether their business idea will bring the desired success. Entrepreneurs may then not pay any contributions until their income does not exceed 50% of the national minimum wage (in Poland this is PLN 1,050). Start-up relief This allows you to pay only the health insurance contribution for NFZ medical benefits (PLN 320) for the full 6 months of your business’s operation. The condition for receiving the “start-up relief” is not conducting any business activity in the last 5 years. Small ZUS An entrepreneur registering with ZUS using the ZUA form (all contributions), who also meets the conditions for the “start-up relief”, may apply for paying a preferential ZUS contribution of PLN 520 for the first 24 months from the company registration.