How to start a JDG in 2026 — step by step through CEIDG

A sole proprietorship (JDG — jednoosobowa działalność gospodarcza) is the simplest form of running a business in Poland. Registration is free of charge, fully electronic and in typical cases takes just over ten minutes via the biznes.gov.pl portal. The entrepreneur receives a NIP, a REGON and an entry in CEIDG, and the data are automatically forwarded to the tax office, ZUS and GUS. Below we describe step by step what to prepare, which decisions to make before setting up the business and what to do in the first days after registration — under the law in force in 2026.

Who can set up a JDG

A JDG may be set up by a natural person with full legal capacity. For nationals of Poland and other EU/EEA states there are no additional requirements. Nationals of non-EU states may register a JDG on the same terms as Polish nationals if they are in Poland on one of the titles listed in Article 4 of the Act on the rules for participation of foreign entrepreneurs:

• permanent residence (permit);
• EU long-term resident status;
• Pole's Card;
• a temporary-residence permit, including for family reunification with a Polish or EU-resident citizen, for studies, for scientific research, or for foreigners working in a regulated profession;
• refugee status or subsidiary protection;
• US citizens (under reciprocity based on international agreements).

Foreigners outside this list, in particular people working on a type-A work permit, cannot run a JDG in Poland — they can, however, set up a sp. z o.o. (limited liability company) or a limited partnership.

What to prepare before the application

Before opening the CEIDG-1 form it is worth gathering:

• ID document — PESEL (Polish nationals) or passport number and the foreigner's PESEL (assigned by the municipal office after registration of residence or on application).
• Trusted profile, e-ID or qualified electronic signature — to sign the online application. Alternative: a paper application filed at any municipal office.
• Business name — must include the entrepreneur's first and last name; a fanciful element may be added (e.g. "Jan Nowak Kreatywnia").
• Address of the main place of business and address for service of documents (they may differ; a virtual office address is allowed).
• PKD codes — one predominant and any number of supplementary. It is best chosen from the PKD 2007 list on biznes.gov.pl. For IT and advisory industries, details are covered in the article on PKD codes and ryczałt rates for IT.
• Form of taxation — scale, flat tax or ryczałt (the tax card has been closed to new taxpayers since 2022).
• ZUS option — start-up relief, preferential small ZUS or full ZUS from day one.
• Bank account — can be indicated in the CEIDG-1 form or added later via an update.

Step 1. Choosing the form of taxation

The form of taxation is ticked in the CEIDG-1 form. In 2026 the choices are:

• General rules (scale) — 12% up to PLN 120,000 of annual income, 32% above; PLN 30,000 tax-free amount; joint settlement with a spouse; child relief; health contribution of 9% of income. A favourable option for people with low and medium revenue and where costs are high.
• Flat tax 19% — no brackets and no tax-free amount; health contribution of 4.9% of income, not less than 9% of the minimum wage. Mainly profitable at incomes clearly above PLN 120,000 a year with stable costs.
• Ryczałt (lump-sum tax on recorded revenue) — a levy calculated directly on revenue, with no right to deduct costs. The 2026 rates are (highest 17% for the liberal professions, 15%, 14%, 12%, 10%, 8.5%, 5.5%, 3% for trade and 2% for sales of farm products). The health contribution is set in three annual-revenue bands — up to PLN 60k, between PLN 60k and PLN 300k and above PLN 300k.

Each form has its advantages and limitations. It is worth simulating the choice in a spreadsheet — projected revenue, costs and the health contribution side by side. The form can be changed in the following year by the 20th day of the month after the first revenue.

Step 2. Choosing the ZUS title

When setting up the business, the entrepreneur has three ZUS paths:

• Start-up relief — for 6 months no social or Labour Fund contributions are paid; only the health contribution is mandatory. The relief is available to a person who has not run a business in the last 60 months and who does not perform work for a former employer. Insurance code: 05 40.
• Preferential ZUS (small ZUS) — the next 24 months with social contributions calculated on 30% of the minimum wage. Code 05 70. Start-up relief may be skipped and small ZUS used straight away.
• Mały ZUS Plus (Small ZUS Plus) — after preferential ZUS, you can use for 36 months contributions calculated on the previous year's income if revenue does not exceed PLN 120,000 a year.
• Full ZUS — contributions on 60% of the forecast average wage; paid once all reliefs are exhausted or straight away (for people cooperating with a former employer).

The choice of relief is worth thinking through especially in the context of retirement — a lower contribution base means a lower benefit in the future. A full description of the system can be found in the article on ZUS in Poland.

Step 3. The CEIDG-1 application

The CEIDG-1 application acts simultaneously as:

• an application for entry in CEIDG;
• a notification to the tax office (assignment of NIP, choice of form of taxation);
• a notification to ZUS as a contribution remitter;
• a notification to GUS (assignment of REGON);
• a statement choosing VAT status (optional — VAT-R can also be filed separately).

The form is filled in at biznes.gov.pl, you log in with a trusted profile, e-ID or qualified signature and sign electronically. Registration takes place no later than the next business day after filing. In the paper version the application is filed at any municipal office in Poland — regardless of place of residence. There are no fees: the service is entirely free.

The start date of the business can be set up to 30 days in the future. This leaves time for formalities (contracts, bank account, office) before the launch.

Step 4. Bank account, VAT-R, accounting office

After registration the entrepreneur:

1. Opens a business bank account and enters its number in CEIDG (update of the entry). The account automatically appears on the white list of VAT payers.
2. If they plan to be an active VAT payer (mandatorily — for industries without the right to the turnover-based VAT exemption, or by choice to optimise input VAT), they file form VAT-R — no later than the day before the first taxable sale.
3. Decides on accounting: keeping KPiR themselves (general rules, flat tax) or a revenue record (ryczałt), or cooperation with an accounting office.
4. Registers with ZUS on the appropriate form (ZUS ZZA — health only; ZUS ZUA — full insurance).

Which professions require additional permissions

A CEIDG entry does not yet mean the right to practise all professions. If the planned activity is regulated, in addition to the CEIDG entry you must:

• obtain a concession (e.g. energy, trade in fuels, air transport);
• obtain a permit (e.g. sale of alcohol, detective services, collection of municipal waste);
• obtain an entry in the register of regulated activity (e.g. labour agency, tourism, telecommunications);
• meet qualification requirements and be entered on the relevant chamber's list (e.g. tax advisers, legal counsels, chartered auditors, architects).

The list of concessions and permits can be found on biznes.gov.pl. Before registering, it is worth checking whether the chosen PKD code may actually be used without additional consent.

How much does it cost and how long does it take

JDG registration is free, both electronically and on paper. Any sites offering "help with registration" for a fee are not official. Timing:

• online application — usually 1 business day until entry in CEIDG;
• paper application — up to 7 business days;
• assignment of NIP and REGON — automatic on entry;
• confirmation of ZUS registration — up to 7 days after entry;
• VAT registration (VAT-R) — usually up to 30 days, in practice less.

The most common mistakes when setting up a JDG

1. Choosing the form of taxation without a simulation — ticking "scale" out of habit instead of checking whether ryczałt or the flat tax would yield lower tax and health contributions.
2. Too narrow a set of PKD codes — one predominant code is just the start; it is worth adding supplementary codes (even several dozen if needed) so that a change of profile does not require a hasty update of the entry.
3. Start-up relief while cooperating with a former employer — contrary to the Act; may result in back contributions being assessed for the first 6 months.
4. Not reporting the bank account — a counterparty will pay a transfer bypassing the white list and will not count the expense as a cost above PLN 15,000.
5. Failure to file VAT-R before the first invoice as an active VAT payer — a late correction requires explanations, often an application for restoration of the deadline.

JDG vs unregistered business activity

If planned revenue in the first months is low, an alternative to JDG may be unregistered business activity (działalność nierejestrowana) — without a CEIDG entry, without ZUS, with a limit tied to the minimum wage. We describe it in detail in the article on unregistered business activity. Moving from unregistered activity to a JDG is seamless at any time via the CEIDG-1 entry.

How Good Balance helps

Good Balance specialists guide clients through the whole registration process — from choosing the form of taxation and PKD codes, through filling in the CEIDG-1 and VAT-R forms, to the ZUS notification and launching ongoing accounting. Within our sole proprietorship services we run JDG in full: books, contributions, returns, dealings with authorities. For clients registering their first business we have also prepared a company-set-up support package — get in touch.