New biz-loving government?
My colleague described in last week's issue some of the positive changes, including the restrictions placed on government audits, the obligation of government authorities to be "helpful," and the ability to rely on a legal interpretation offered by a government official without fear that such interpretation will change the following week.
What else is new? For starters, an EU-based individual, and for that matter any non-EU individual who has been granted a residency permit (permanent or temporary) or status as a refugee, may engage in business activities in Poland on the same terms and conditions as a Polish citizen.
So what terms and conditions apply to a Polish citizen? First, the definition of what constitutes 'business activity' has been broadened to include previously excluded professions, such as attorneys and accountants. As such, those of us who prefer to think of ourselves as "professionals" (as opposed to businesspeople) are now required to register with either the Register of Entrepreneurs or the Register of Sole Proprietors, depending on whether we work alone or in the form of a company.
Second, the number of business activities requiring a special license has been reduced to the following sectors: mining, the production and sale of energy sources, explosives, security services, broadcasting and air transport. A license is granted by administrative decision for a period of from five to 50 years. Other activities may require a permit (as opposed to a license), such as insurance, banking, brokerage and business conducted in special economic zones. Unlike a license, a permit may, with some exceptions, be obtained simply upon the applicant's declaration that it meets the applicable requirements.
Third, the new Act raises the threshold from 3,000 to 15,000 at which business is required to utilize bank transfers to execute payments.
A fourth change regards the imposition of penalties for failure to comply with the registration requirements prior to conducting business activity. Failure to properly register or to obtain the required license or permit, if necessary, will subject the offender to a monetary fine of up to zł.5,000 and/or limitations on the offender's personal freedom for one month. Notice, I did not say imprisonment. A limitation on personal freedom could be the imposition of an injunction or restriction on one's freedom of movement.
What is missing? Tax reform. Despite these improvements, the government is flirting with the idea of raising personal income taxes to 50 percent. Bad, bad, bad...
Paul Fogo is a senior attorney with Miller Canfield W. Babicki & Partners
What else is new? For starters, an EU-based individual, and for that matter any non-EU individual who has been granted a residency permit (permanent or temporary) or status as a refugee, may engage in business activities in Poland on the same terms and conditions as a Polish citizen.
So what terms and conditions apply to a Polish citizen? First, the definition of what constitutes 'business activity' has been broadened to include previously excluded professions, such as attorneys and accountants. As such, those of us who prefer to think of ourselves as "professionals" (as opposed to businesspeople) are now required to register with either the Register of Entrepreneurs or the Register of Sole Proprietors, depending on whether we work alone or in the form of a company.
Second, the number of business activities requiring a special license has been reduced to the following sectors: mining, the production and sale of energy sources, explosives, security services, broadcasting and air transport. A license is granted by administrative decision for a period of from five to 50 years. Other activities may require a permit (as opposed to a license), such as insurance, banking, brokerage and business conducted in special economic zones. Unlike a license, a permit may, with some exceptions, be obtained simply upon the applicant's declaration that it meets the applicable requirements.
Third, the new Act raises the threshold from 3,000 to 15,000 at which business is required to utilize bank transfers to execute payments.
A fourth change regards the imposition of penalties for failure to comply with the registration requirements prior to conducting business activity. Failure to properly register or to obtain the required license or permit, if necessary, will subject the offender to a monetary fine of up to zł.5,000 and/or limitations on the offender's personal freedom for one month. Notice, I did not say imprisonment. A limitation on personal freedom could be the imposition of an injunction or restriction on one's freedom of movement.
What is missing? Tax reform. Despite these improvements, the government is flirting with the idea of raising personal income taxes to 50 percent. Bad, bad, bad...
Paul Fogo is a senior attorney with Miller Canfield W. Babicki & Partners
