Company registration and what next?
If you are an entrepreneur who has just registered a commercial company and runs a business in Poland and is wondering what to do next, we encourage you to read this article.
Registration of a commercial company and the Tax Office
Registration of a commercial company and the Tax Office Registering a company and submitting its entry in the National Court Register (KRS) gives rise to numerous obligations on the part of the management board that must be met. Otherwise, the company is exposed to financial penalties.
What is NIP-8?
NIP-8 is an identification / update application, which is submitted by entities subject to entry in the National Court Register. This application contains information data that are not included in the content of the entry in the National Court Register, and are mandatory in relations with the tax administration, GUS (Central Statistical Office), ZUS (Social Insurance Institution). From the moment the company is registered in the National Court Register, the company's management board has 21 days to register the company with the Tax Office by correctly completing and submitting the NIP-8 official form. In the event of failure to comply with the above-mentioned obligation within the time limit, the company acts against the law and is exposed to criminal sanctions. According to the wording of art. 81 § 1 of the Fiscal Penal Code, a taxpayer or payer who, contrary to the obligation: fails to submit an identification application or update the data covered by it within the deadline, or provides in it data that is inconsistent with the actual state or incomplete (…) is subject to a fine. This means that a fine may be imposed on the company in the amount of one-tenth to twenty times the amount of the minimum wage or a fine not exceeding five times the amount of the minimum wage.
With the above in mind, it is worth remembering that obligation to register the company with the Tax Office.
What is the beneficial owner and CRBR?
The real beneficiary is the natural person or persons who directly or indirectly control the commercial company. By way of example, real beneficiaries in capital companies are natural persons who hold, directly or indirectly, 25% of shares in such a company. Companies registered in the National Court Register are required by law to register with the CRBR within 14 days of their entry in the National Court Register. This notification is signed by the board of directors in accordance with the representation established in the articles of association. They can be signed with a trusted e-PUAP profile (link below). Failure to comply with the commented obligation to register the company in the CRBR on time entails very serious consequences. Failure to notify the beneficial owner within 14 days from the date of entry in the National Court Register, and in the case of a change in the data in the register, within 14 days from the date of the change, as well as providing data in the CRBR that are inconsistent with the facts may result in the imposition of a fine on the business entity up to in the amount of PLN 1,000,000. Therefore, if you have registered a company or there has been a transfer of shares in your company, we encourage you to contact us in order to conduct a due diligence study to verify whether such an application should be submitted to the CRBR.
What is PCC-3?
PCC-3 is a tax on civil law transactions. If you have concluded a limited liability company agreement, then, in accordance with the law, you are obliged to correctly calculate the tax amount, complete the PCC-3 official form and submit it to the Tax Office within 14 days. The amount of PCC-3 from the conclusion of the limited liability company agreement amounts to 0.5% of the share capital. In the case of transfer of shares in a limited liability company, there is also an obligation to correctly calculate the tax amount, complete the PCC-3 official form and submit it to the Tax Office within 14 days. The amount of PCC-3 on the sale of shares in a limited liability company is 1% of the sale price. Failure to submit and pay the PCC-3 in the appropriate amount is punishable by a penalty for failure to comply with this obligation, ranging from one-tenth of the minimum remuneration for work to 20 times the minimum remuneration for work. This means a fine of PLN 349 to PLN 69,800.
What is VAT-R?
If you run a business in Poland and intend to be an active VAT payer, you must complete and submit the VAT-R official form to the Tax Office. According to Art. 54 of the Fiscal Penal Code, a taxpayer who, while evading taxation, does not disclose the subject or tax base to the competent authority or does not submit a declaration,
which exposes the tax to depletion, shall be liable to a fine of up to 720 daily rates or to imprisonment, or to both penalties jointly.
What is a financial statement?
The financial statement is a document prepared by the accounting office, which contains information about the company's annual activity. It is submitted to the Repository of Financial Documents. Pursuant to the disposition of Art. 79 points 4 of the Accounting Act, failure to submit the financial statements for the last financial year to the Repository is classified as an offense against economic information and also constitutes a violation of the Act on the National Court Register. Violation of this obligation exposes the company to a fine.
With the above in mind, if you are an entrepreneur who established a commercial company and are wondering what to do next, what notifications should be made in order to fulfill the statutory obligations, please contact us now by filling out the contact form below.
