Spring-cleaning for companies
After I threw away the old magazines and closed the files on completed matters, I made a few inquiries as to what my firm may need to do on a corporate level. Not surprisingly, the New Year has brought with it the requirement to make some new filings.
Of greatest relevance, all companies registered in the National Court Register must update their registrations to include their NIP number. In accordance with the Act on the Implementation Provisions for the Act on Freedom to Conduct Business Activities, you must update your registration between January 1, 2005 and May 31, 2006. In a rare gesture of fiscal goodwill, the Polish government decided in the act that you do not have to pay any sort of fee for updating your register (if the update just involves your NIP). Granted, this filing may appear to be a trifle, but best to get it out of the way while it costs nothing. If procrastination gets the better of you, you can be fined if you file late.
Talking about procrastination, a February deadline for some filings awaits a few of you. The act contains a number of provisions designed to do away with some exceptions that had been permitted prior to the enactment of the Act on Freedom to Conduct Business Activities. If you are operating your company on the basis of an exception to the rule, take note.
If you are conducting business activity individually or as a sole proprietorship and you were able to conduct business without having registered anywhere, you must register in the economic activity evidentiary record (ewidencja działalności gospodarczej) by February 20, 2005. This is of particular interest to Polish advocates and legal counsel (or at least to one of my partners), who previously could take advantage of this no-registration exception. As to other professionals, please take a look at your records to make sure you filed either with the economic activity evidentiary record or the National Court Register. By the way, you will need to pay for this registration.
Formerly, a married couple could conduct a sole proprietorship under one evidentiary number. By February 20, 2005, that couple must decide which of them will adopt the number, and which of them will need to obtain a new number. This filing is also free of charge, but the penalty is harsh. If the couple fails to make an appropriate filing before December 31, 2005, their sole proprietorship will be deleted from the economic activity evidentiary record.
Finally, the act does allow some leeway. One unusual exception is for foreign joint-venture companies and branch offices of foreign companies that were established under applicable laws dating from when Poland was called the People's Republic of Poland. These foreign joint-venture companies may continue to take advantage of any relief or exemptions previously granted up to the expiration of the grant. Similarly, these branch offices of foreign entities may continue to operate on the basis of that filing until it expires.
Judith Gliniecki is an attorney with Rymar and Partners.
Of greatest relevance, all companies registered in the National Court Register must update their registrations to include their NIP number. In accordance with the Act on the Implementation Provisions for the Act on Freedom to Conduct Business Activities, you must update your registration between January 1, 2005 and May 31, 2006. In a rare gesture of fiscal goodwill, the Polish government decided in the act that you do not have to pay any sort of fee for updating your register (if the update just involves your NIP). Granted, this filing may appear to be a trifle, but best to get it out of the way while it costs nothing. If procrastination gets the better of you, you can be fined if you file late.
Talking about procrastination, a February deadline for some filings awaits a few of you. The act contains a number of provisions designed to do away with some exceptions that had been permitted prior to the enactment of the Act on Freedom to Conduct Business Activities. If you are operating your company on the basis of an exception to the rule, take note.
If you are conducting business activity individually or as a sole proprietorship and you were able to conduct business without having registered anywhere, you must register in the economic activity evidentiary record (ewidencja działalności gospodarczej) by February 20, 2005. This is of particular interest to Polish advocates and legal counsel (or at least to one of my partners), who previously could take advantage of this no-registration exception. As to other professionals, please take a look at your records to make sure you filed either with the economic activity evidentiary record or the National Court Register. By the way, you will need to pay for this registration.
Formerly, a married couple could conduct a sole proprietorship under one evidentiary number. By February 20, 2005, that couple must decide which of them will adopt the number, and which of them will need to obtain a new number. This filing is also free of charge, but the penalty is harsh. If the couple fails to make an appropriate filing before December 31, 2005, their sole proprietorship will be deleted from the economic activity evidentiary record.
Finally, the act does allow some leeway. One unusual exception is for foreign joint-venture companies and branch offices of foreign companies that were established under applicable laws dating from when Poland was called the People's Republic of Poland. These foreign joint-venture companies may continue to take advantage of any relief or exemptions previously granted up to the expiration of the grant. Similarly, these branch offices of foreign entities may continue to operate on the basis of that filing until it expires.
Judith Gliniecki is an attorney with Rymar and Partners.
