Starting a business - practical advice
Owning your own business is a dream come true for aspiring entrepreneurs. At the same time, it is quite a challenge, requiring many important decisions. It is essential to have a thorough understanding of the market and analyze the competition. It is also important to choose the form of business and the way it is taxed, on which the very process of business registration and the entrepreneur's tax obligations depend. How to open a business? About it in the article!
Running a business - where to start?
Every year there are more and more companies operating in a variety of industries. However, the very idea of trying one's hand at an often competitive market is not enough. Lack of a concrete plan is an easy way to spectacular failure. To avoid it, it is worth knowing the industry in which you intend to operate. Business Plan – is nothing more than a document containing the company's development concept. According to the rules, it should contain the short- and long-term goals of the company with their description. In addition, the business plan must not lack an analysis of the capabilities of the company in question with an indication of the means to achieve the objectives.
Market analysis i competition - The business plan should be accompanied by an analysis of the market environment, in particular the competition and customers and the activities they undertake. No less important is an analysis of the general atmosphere favorable, or not, to the planned business - it is worth taking into account, for example, current legislation, the amount of taxes, required licenses and permits, and the mechanisms governing the industry. W ConQuest Consulting Beginning entrepreneurs are provided with professional business consulting, which includes market analysis and preparation of company strategy.
Setting up a business step by step
1. choice of legal form - sole proprietorship or company?
The first decision facing future entrepreneurs is the choice of legal form of business. It is on it that the costs - registration and operation of the company, the amount of taxation and Social Security contributions, as well as the extent of personal liability for the obligations of the enterprise - depend. Each form of business has its advantages and disadvantages. In some cases, a sole proprietorship will be the better choice, and in others - a company.
The most popular form of business is the sole proprietorship, chosen for its simple, quick and also free registration. No share capital is required to set up a company, the entrepreneur is entitled to a number of concessions and subsidies, and up to a certain turnover limit he is also exempt from full accounting. This form will work well for small businesses with a single owner. In addition to sole proprietorship, Polish law provides for running a company within the framework of a partnership:
- limited partnership,
- limited joint-stock partnership,
- limited liability.
2 Choosing a form of taxation -. tax settlement methods
At the next stage, the entrepreneur is required to indicate the form of taxation of his business. Its choice should depend on the type of business, the size of the projected revenue and the desire to take advantage of tax benefits or settle with a spouse. Taxpayers have four forms of taxation to choose from:
- Tax scale (general rules) - tax of 17% or 32% is calculated on the basis of income, i.e. revenue less expenses incurred. A form recommended for entrepreneurs with sizable corporate expenses, who will not exceed the second threshold.
- Flat tax - a fixed 19% tax rate, calculated on income. Recommended for companies with higher incomes.
- Tax card - the simplest of the forms of taxation, in which the tax rate is set monthly and in a fixed amount by the Head of the Tax Office.
- lump sum from registered income - the tax rate depends on the type of activity, and the tax base is income alone, without costs. This form works well for companies that do not generate many costs.
It should be noted that not every activity can be voluntarily taxed. Tax card and registered lump sum are covered by additional regulations--only the combined fulfillment of certain conditions allows the activity to be taxed by these forms.
3. selection of PKD
When setting up a company, it is also necessary to determine the type of business you plan to conduct. PKD codes (Polish Classification of Economic Activities) serve this purpose.
4. Company registration - setting up online or in the office
In order to run a business, it is necessary to register it with the authorities. Depending on the form of business you choose, you will need to apply for an entry in either the Central Register of Business Activity and Information (CEIDG) or the National Court Register (search for entities listed in the KRS). As a rule:
- A sole proprietorship, is subject to registration with CEIDG,
- A civil partnership is subject to registration with the Central Statistical Office and the REGON register, while partners who are individuals should be registered with the CEIDG,
- Companies - limited liability, general, partnership, limited partnership, limited joint-stock partnership and joint-stock company must be registered with the National Court Register.
An application for entry in the CEIDG register can be submitted by an entrepreneur in person - in a city or municipal office, by correspondence, or electronically - directly on the CEIDG website. In the latter case, it is required to have an electronic signature or a trusted ePUAP profile. Also, an application to the National Court Register can be filed in person at the court appropriate to the company's registered office, by correspondence or online.
Business activity - other formalities
Registration with Social Security - Within 7 days from the date of commencement of business activity, the entrepreneur must also go to the Social Security Office to report to the appropriate insurance. In doing so, he reports what contributions he will pay for himself - on ZUS ZUA (social and health insurance) or ZUS ZZA (health insurance only) forms. Choosing a bank account for the company - changes in the law regarding the VAT whitelist and the split payment mechanism have made having a company account almost a necessity today.
A business account not only protects the entrepreneur from potential legal sanctions, but also allows him to separate business and private transactions and provides control over income and expenses. When looking for the right account, it is worth looking at the ranking of cheap, and often free, business bank accounts.
Bookkeeping - When planning to register your own company, you should consider entrusting its accounting to the hands of the staff of an accounting firm. Many, especially beginning entrepreneurs, are looking for savings in this area, meanwhile the help of accountants will allow them to focus on developing their business without worrying about all the paperwork.