LIMITED LIABILITY COMPANY
(SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ)
Advantages and disadvantages.
The Act on the Freedom of Conducting Economic Activities in Poland (Art. 13 p. 1-3) defines the possibility for non-EU citizens to establish the following structures of economic entities in Poland:
- limited company;
- limited liability company
- joint-stock company;
- mixed types of companies.
The most popular and simple form is the limited liability company (LLC).
Let's consider the advantages and disadvantages:
Disadvantages:
Once it was considered that the creation of LLC is too labour-intensive, but c the development of technology and the possibility of electronic registration, the process of creation is greatly simplified and now, it is safe to say that the creation of LLC - is not a labour-intensive event.
What then:
Full accounting.
The law on accounting, provides for the maintenance of full accounting for legal entities (accounting books), which includes the LLC. The procedure is quite complex and it will not be possible to do without the help of professionals.
Double taxation at the level of founders.
The company itself is a payer of corporate income tax (CIT). The founders, as individuals, if they wish to share dividends, must pay personal income tax (PIT).
Obligation to prepare and approve an annual financial report.
Every year, from the end of the first financial (turnover) year, there is an obligation to prepare and approve, by the responsible persons, the financial report of the company, with further submission to the business register (KRS) and the tax office.
Advantages:
Low cost of setting up an LLC.
This applies especially to the electronic registration of the LLC. Traditional registration is also not very expensive, at least in relation to some other EU countries.
Possibility to register using the internet.
We have written about it in detail above.
Low authorised capital.
At the moment the minimum authorised capital is only 5000 PLN (about 1200 EUR).
It consists of equal shares, the minimum share is 50 PLN.
Exclusion of the founder's liability with their own property.
The liability of the founders extends only to the number of contributed shares, i.e. the amount of the authorised capital. This means that in practice, the founders are not obliged to pay for the debts incurred by the company.
The possibility of creating a single-person LLC.
Unlike other companies, a single person can set up a Polish LLC by contributing 100% of the shares. Moreover, the same person can fulfil the function of the chairman of the management board of the company - the second obligatory body of any Polish LLC.