JDG for Foreigners – How to Set Up a Sole Proprietorship in Poland

Increasingly, foreigners are opting to establish their own businesses in Poland.

One of the most popular forms of running a business is a sole proprietorship (JDG) – simple, quick to set up, and inexpensive to maintain. But can a foreigner also open one? What are the requirements?

In this article, we explain step by step how a foreigner can register a JDG in Poland.

What is a JDG?

A jednoosobowa działalność gospodarcza (JDG), or sole proprietorship, is the simplest form of doing business in Poland. An individual runs the business independently, bears full financial responsibility, and settles taxes with the Tax Office and ZUS (Social Insurance Institution).

For many foreigners, it’s the first step toward professional independence — especially for IT specialists, marketers, translators, or construction workers working under B2B contracts.

Who Can Set Up a JDG in Poland?

The right to establish a JDG is granted to foreigners who:

• are citizens of an EU, EEA, or Swiss Confederation country,
• have permanent residence in Poland
• hold an EU long-term resident permit,
• have a temporary residence permit granted for business purposes,
• have UKR status (temporary protection for Ukrainian citizens),
• or are legally residing spouses of Polish citizens.
  

Other foreigners (e.g., from outside the EU without the above residence titles) can only operate a business in the form of a company, such as a limited liability company (sp. z o.o.).

How to Set Up a JDG Step by Step

1. Check Your Legal Basis for Residence

First, make sure your residence title allows you to run a business. If you have a residence and work permit, UKR status, or a permanent residence card – you can register a JDG.

2. Submit the CEIDG-1 Application

Registration is done via the Central Registration and Information on Business (CEIDG) system. You can apply:

• online at www.biznes.gov.pl,
• at your local municipal office,
• or through a proxy.
  

The CEIDG-1 form automatically registers you with:

• the Tax Office (NIP),
• the Statistical Office (REGON),
• and ZUS (social insurance).
  

3. Choose a Taxation Form
Most foreigners choose:

• Lump-sum tax – simple, no deductible costs,
• Flat tax (19%) – best for higher incomes,
• General rules (tax scale) – 12% or 32%.
  

4. Register with ZUS

You have 7 days from the start of your business to register with ZUS. You may benefit from:

• Start Relief (6 months without social contributions),
• Reduced ZUS (24 months of lower rates).
  

5. Open a Business Bank Account and Choose Accounting

Open a business account (recommended) and select an accounting office or an online bookkeeping system.

JDG for Citizens of Ukraine, Belarus, and Other Countries

Ukrainian Citizens

Those with UKR status can legally open and run a JDG without a residence card. All you need is a PESEL number marked “UKR” and an address in Poland.

Belarusian Citizens

Belarusians can open a JDG if they have:

• permanent residence permit,
• temporary residence permit with the right to run a business,
• or are family members of Polish citizens.
  

Citizens of Other Non-EU Countries

In most cases, foreigners from outside the EU who don’t hold the above permits cannot operate a JDG but can establish a limited liability company (sp. z o.o.), a more flexible form for non-EU nationals.

Advantages and Disadvantages of JDG for Foreigners

Common Mistakes When Registering a JDG

• Starting a business without verifying your residence title
• Incorrect data in the CEIDG-1 form
• Missing certified translations of documents
• Failing to register with ZUS on time
• Choosing the wrong tax form (e.g., lump-sum for low-margin work)
  

How We Can Help

At Migration Matters, we have years of experience assisting foreigners with residence legalization and business registration in Poland.
Contact us to confidently and stress-free start your business in Poland.