Law / Setting up SPZOO and SPK in Poland [16]

ok, let's forget the SPZOO / SPK construction for arguments sake.

Another option would be the spolka cywilna (civic partnership), with 2 partners. This is not a legal entity for the law, which means that my partner and I are personally liable, and that I will be taxed PIT, not CIT. Basically the same rules apply as for a sole proprietorship. This does not have to be a problem, as there are no large liabilities or long term commitments (there will be no risk of personal bankruptcy). If the risk increase at a later stage I can always change the structure of the company.

This would bring the taxation to the same level as the SPK (if I understand it correctly), with the drawback of personal liability. An advantage would be much lower accountancy fees and a easier legal structure to maintain.

Are my assumptions correct?
What is the difference between a spolka cywilna and a spolka jawna (which is a legal entity) as far as running the business is concerned? Signing contracts (e.g. renting an office / phone lines / etc), or conducting business (signing agreements etc) for example?

Law / Setting up SPZOO and SPK in Poland [16]

Thank you for your replies! This is very helpful.

Why would this structure lead to any legal problems / so much additional accountancy cost? It is quite a common structure in the Netherlands / Germany / ...

I did receive the advise to have a third party MD in the SPZOO, although I don't completely understand why. Will we have liability problems when we have a shareholder / MD combination? Will the SPK face liability issues because of this?

The SPZOO will not conduct any business after the first 1-2 months. All I need for this business is a 0 declaration once a year. This cannot be that expense, can it? This should be billed as a one time fee (say 1 month fee).

The SPK will be the 'vehicle' with the income & expenses and in need of the accounting services.

I have contacted some accounting offices in Krakow, and the rates are very different. There will only be a few transactions every month (10-20) plus the ZUS payments of the 2 partners. I have quotes for a structure with only a SPZOO, and these range from 200 - 800 PLN. This is a huge difference for me. I understand there are quality differences between accountants, but a factor 4?

The easiest way would be to start as a Spółka cywilna, but this means limitless liability which is exactly what I want to avoid.

The turnover in the first year will be nowhere near 1mln (target is around 300K), but this is exactly why I like the SPK single taxation.

Work / What jobs pay 10,000 zlotych per month? and Where can i find one? :o) [101]

It depends on what your goals are in life, and what your definition of a vegetative state is… Yes, I have a new car; Yes, I have a huge plasma TV; Yes, I live in an apartment in the middle of the center of my city… Does this all define happiness for me? No!

I know enough about personal finance to make sure I can live a life that is comfortable for my standards. Do I need > 10.000 pln for that? No! According to the OECD’s purchasing parity index, I need to earn about 65% of what I am currently earning to keep the same purchasing power. I am not going to earn this much, this means I will have less expendable income, but enough to lead a comfortable life…

Everybody has to make this decision for them self…

Work / What jobs pay 10,000 zlotych per month? and Where can i find one? :o) [101]

I pity the people who only care about money... poor people!! I gave up my current job, paying the equivalent of 16.000 PLN a month with excellent benefits, and accepted a job offer paying less than half this amount without decent benefits, just to have a chance to move to Poland and live my life in Krakow!

I love this city and I love the people!! Sure, there will be times of regret, but this will not outweigh the good times!