JDG (jednoosobowa działalność gospodarcza, sole proprietorship) is the fastest and cheapest way to start a business in Poland. You register as an individual, there is no minimum capital requirement, and the whole process can be completed online in about fifteen minutes. This guide covers what JDG is, how to register it through CEIDG (Poland's business register), and the tax, ZUS (social insurance) and VAT decisions you need to make along the way. Everything below reflects the rules in force in 2026.
What is JDG, and who is it for
With a JDG, you and the business are the same legal entity: you register as a natural person, not a separate company. There is no capital requirement, registration is free, and it typically takes under half an hour online.
JDG works well for:
- Freelancers and specialists (IT, marketing, design, translation)
- Tradespeople and contractors
- Retail and e-commerce businesses
- Consultants and trainers
- Anyone testing a business idea before committing to a company structure
The tradeoff is liability. In a JDG, you are personally responsible for the business's debts with your entire personal estate: savings, car, real estate, all of it. If your business carries meaningful financial risk, it is worth comparing this against a sp. z o.o. (limited liability company), where liability is capped at the capital contributed.
What to prepare before you register
Before filling out your registration, have these ready:
- PESEL: your Polish national identification number, required for registration.
- Profil Zaufany (Trusted Profile): a free electronic signature you set up through your bank's online banking, used to sign the application.
- PKD codes: one main code plus any number of additional codes (see below).
- A business address: your home address works, you do not need to rent an office.
- A start date: today, or a future date of your choosing.
- A tax form decision: skala, liniowy or ryczałt (see below); you must decide before filing.
Choosing your PKD codes
PKD (Polska Klasyfikacja Działalności, the Polish Classification of Activities) is a four-digit code describing what your business does. It determines whether you can use ryczałt (a lump-sum tax explained below) and at what rate, which reliefs are available to you, and what records you are required to keep.
You declare one main code and as many additional codes as you like, and you can change them at any point through a CEIDG update. A few common examples: 62.01.Z for software development (ryczałt rate of 12%), 73.11.Z for advertising agencies, 74.10.Z for specialized design work such as graphic design, 69.20.Z for tax advisory, and 43.39.Z for construction work (ryczałt rate of 5.5%).
Choosing how you will be taxed
This is one of the most consequential decisions you will make when starting a JDG. You have three options:
| Form | Tax base | Rate | Best for |
|---|---|---|---|
| Skala podatkowa (tax scale) | Income | 12% / 32% | Lower income, family reliefs, joint filing with a spouse |
| Podatek liniowy (flat tax) | Income | 19% flat | Higher income (roughly above 150,000 PLN), no need for family reliefs |
| Ryczałt (lump sum) | Revenue | 2-17%, by PKD | Low business costs; IT (12%), construction (5.5%) |
If you do not declare a form when you register, skala applies by default. You can change your form once a year, by February 20.
Skala podatkowa: 0% up to 30,000 PLN of annual income (the tax-free amount, as of 2026), 12% from 30,001 to 120,000 PLN, and 32% on the excess above 120,000 PLN. The health contribution (składka zdrowotna) is 9% of monthly income, with a minimum of 432.54 PLN, and it cannot be deducted from your tax.
Podatek liniowy: a flat 19% on income, with no tax-free amount and no progressive brackets. The health contribution is 4.9% of monthly income (minimum 432.54 PLN), and, unlike on skala, you can deduct it from your tax base up to 14,100 PLN per year (as of 2026).
A timing note. The 432.54 PLN minimum above applies from February 2026 through January 2027. The health contribution has its own coverage year, running February to January rather than the calendar year, so January 2026 still fell under the previous year's, lower, minimum.
Ryczałt: tax on revenue rather than income, so you cannot deduct business costs. The rate depends on your PKD code: 2% for sales of your own agricultural produce, 3% for catering without alcohol and commission trade, 5.5% for construction and manufacturing, 8.5% for most services, 12% for IT and programming, 14% for medical, architectural and engineering services, and up to 17% for regulated professions such as lawyers and doctors. The health contribution is a fixed monthly amount tied to your annual revenue: 498.35 PLN up to 60,000 PLN of revenue, 830.58 PLN between 60,001 and 300,000 PLN, and 1,495.04 PLN above that, and you can deduct 50% of what you paid from your revenue. Ryczałt is only available if your prior-year revenue stayed under roughly 8,517,000 PLN (2 million EUR, as of 2026).
Registering through CEIDG
CEIDG (Centralna Ewidencja i Informacja o Działalności Gospodarczej, the Central Registration and Information on Business) is Poland's register for sole proprietorships. You register online through the government portal biznes.gov.pl, signing in with your Profil Zaufany or an e-dowód (electronic ID card).
- Go to biznes.gov.pl and choose to register a business through CEIDG.
- Sign in using your Profil Zaufany.
- Fill out the CEIDG-1 form: your personal details, business name, address, PKD codes, start date and tax form.
- Sign and submit the form electronically. It is automatically forwarded to ZUS, GUS (the statistics office) and your local US (urząd skarbowy, tax office), so you do not need to visit any office in person.
- You typically receive your NIP (tax identification number) the same day, and your REGON (statistical number) within 7 business days. Both appear in your CEIDG entry.
One naming rule to know: your business name has to include your first and last name. You can add an invented addition, for example "Jan Kowalski IT Services", but a logo or slogan on its own, without your name, is not valid.
ZUS: social insurance and start-up relief
Registering through CEIDG automatically registers you with ZUS (Zakład Ubezpieczeń Społecznych, Poland's social insurance institution). New businesses can significantly reduce their contributions through a sequence of reliefs:
| Relief | Duration | Covers | Approx. cost/month |
|---|---|---|---|
| Ulga na start (start relief) | 6 months | Health contribution only, no social insurance | ~432 PLN |
| Preferential contributions | 24 months | Reduced base (30% of minimum wage) | ~888 PLN (incl. health) |
| Mały ZUS Plus (Small ZUS Plus) | No time limit | Contributions based on actual income, if revenue stays under 120,000 PLN/year | From ~432 PLN, individual |
| Full contributions | After reliefs expire | Base equal to 60% of the forecast average wage | ~2,360 PLN |
The typical sequence runs: start relief for 6 months, then preferential contributions for 24 months, then Small ZUS Plus if your revenue stays under 120,000 PLN a year, and finally full contributions. You can also skip the start relief and begin directly with preferential contributions.
VAT: register, or stay exempt
New businesses can use the subjective VAT exemption if projected annual revenue does not exceed 240,000 PLN (the 2026 limit) and the business does not perform activities that require VAT registration regardless of revenue, such as certain advisory services. In your first year, the limit is prorated. Starting on July 1, for example, gives you a limit of 120,000 PLN (six of twelve months).
Staying exempt usually makes sense when your clients are mostly individuals who could not reclaim VAT anyway, your revenue is well under the limit, or you are just getting started.
Registering is usually worth it when your clients are businesses that reclaim VAT (so your net price is unaffected either way), you are buying expensive equipment and want to reclaim the VAT on it, or you expect fast revenue growth.
Bank account and bookkeeping from day one
A business bank account is not a strict legal requirement, but in practice it is close to essential. Payments over 15,000 PLN must go through a bank account to count for VAT and tax-deduction purposes, and Poland's VAT payer whitelist checks account numbers against a public registry. Many banks offer free business accounts for JDG owners.
From your first day of business, you are required to keep records: a KPiR (Księga Przychodów i Rozchodów, Revenue and Expense Ledger) if you are on skala or liniowy, a simplified revenue register if you are on ryczałt, a VAT sales and purchase register if you are VAT-registered, and a fixed-asset register once you start depreciating equipment.
What it costs to set up and run a JDG
| Item | Cost | Notes |
|---|---|---|
| CEIDG registration | 0 PLN | Free, online or in person |
| NIP and REGON | 0 PLN | Issued automatically at registration |
| ZUS (start relief, 6 months) | ~432 PLN/month | Health contribution only |
| ZUS (preferential, 2 years) | ~888 PLN/month | Social and health |
| VAT-R (VAT registration) | 0 PLN | Free if you choose to register |
| Business bank account | 0-50 PLN/month | Many banks offer free accounts for JDG |
| Accounting software | From 149 PLN net/month | Invoicing, bookkeeping, ZUS, VAT, JPK, KSeF |
JDG vs. sp. z o.o., at a glance
| Feature | JDG | sp. z o.o. |
|---|---|---|
| Cost to set up | Free | From 250 PLN (online, S24 procedure), plus 5,000 PLN of share capital |
| Liability | Your entire personal estate | Limited to the capital contributed |
| Income tax | PIT (12/19/2-17%) | CIT, 9% or 19% |
| Owners | You alone | One or more shareholders |
| Paperwork | Minimal | Management board, resolutions, KRS filings, annual reports |
| Good fit for | Starting out, freelancing, lower risk | Higher risk, multiple shareholders, planning to sell the business |
If your income regularly clears roughly 120,000-150,000 PLN a year, or limiting your personal liability matters to you, our guide to company taxes in Poland walks through the numbers.
Common questions
How much does it cost to register a JDG? Nothing. Registration is completely free, with no court or administrative fees. Your first real costs start once you are operating: ZUS, taxes, and optionally a bank account and software.
How long does registration take? Online, through CEIDG, registration takes about 15 to 30 minutes. Your NIP is usually issued the same day, and your REGON within 7 business days.
Can I run a JDG alongside a full-time job? Yes. There is no legal restriction on combining employment with a JDG, unless your employment contract includes a non-compete clause. If your salary is at least the minimum wage, you do not have to pay ZUS social contributions from your JDG, only the health contribution.
Do I need an office? No. Your home address works as your registered business address.
How do I close or suspend a JDG? Both happen through a free CEIDG update. A suspension has to last at least 30 days, and you can resume the business at any point after that. Closure takes effect immediately.
Once you start invoicing other businesses, you will also need to comply with KSeF, Poland's mandatory e-invoicing system. See our guide to KSeF for what that involves.
Plumm can set up your JDG's bookkeeping, taxes and KSeF invoicing from day one. Start a free trial.
This article is general information, not tax advice, and reflects the rules in force in 2026. Official filings in Poland, including CEIDG, ZUS and tax returns, are submitted in Polish.