The Powiatowy Urząd Pracy (PUP, local labor office) pays a non-repayable grant for starting your own business to people registered as unemployed. In 2026, the amount can exceed PLN 55,000. Let’s look at the conditions, the application procedure, and what the money can be spent on.
- The maximum one-off grant amount is 6 times the average salary published by GUS (the statutory limit changes quarterly); for September-November 2026 this gives a maximum of PLN 55,398.78, although in practice individual local labor offices usually grant lower amounts, typically in the PLN 20,000-40,000 range, under their own internal rules.
- The grant is available to registered unemployed persons, graduates of social integration centers or clubs (CIS/KIS), and job-seeking caregivers of people with disabilities.
- Key conditions: not having run a business in Poland or abroad in the last 12 months, no convictions for economic crimes in the last 2 years, and not having previously used non-repayable public funds for the same purpose.
- After receiving the grant, the business must be run for at least 12 months, without suspending it for more than 6 months in total, and without taking up employment during that time.
- The funds are granted under an agreement with the county governor (starosta) and are classified as de minimis aid.
- Each PUP has autonomy in setting the maximum amount and additional conditions, so it’s worth checking the rules in your specific county.
- Who can get the grant
- How much you can get and what you can spend it on
- How to apply: step by step
- Required documents and forms of security
- Obligations after receiving the grant
- The most common mistakes and reasons for refusal
- Frequently asked questions
Who can get the grant
Funding to start a business is financial assistance for unemployed people and graduates of job-preparation programs. It’s available to people who aren’t employed and don’t run a business, including caregivers of people with disabilities. For foreigners, the key issue is having a status that allows registration as unemployed with a Polish PUP (e.g. a permanent residence permit, EU long-term resident status, or another status entitling registration with the PUP), so it’s worth verifying your status with the specific county office before applying. Since 5 March 2026, a Ukrainian citizen without temporary protection status (PESEL UKR) can no longer register as unemployed based on legal residence alone; a general residence title is required (e.g. permanent residence, refugee status, subsidiary protection, or an eligible temporary residence permit).
How much you can get and what you can spend it on
| Parameter | Value in 2026 |
| Maximum statutory amount | Up to 6 times the average GUS salary (quarterly limit; Sep-Nov 2026: max PLN 55,398.78) |
| Actual amount in most counties | PLN 20,000-40,000, depending on the decision of the specific PUP |
| Marketing expenses | Usually up to 10% of the amount (website, business cards, flyers) |
| Goods for resale or materials | 20-50% of the amount, depending on the PUP |
| Consulting (accounting, tax, legal) | 2-5% of the amount |
Each local labor office can introduce additional conditions regarding the type of planned business activity or the category of applicants for funding,
agreed with the county labor market council. Before applying for funding, it’s worth reviewing the internal rules for this form of assistance in your county.
How to apply, step by step
The application is submitted to the PUP responsible for the location where you’re registered as unemployed and should include the requested funding amount and a cost calculation (essentially a simplified business plan). The decision to grant the funds is made based on an agreement with the county governor (represented by the PUP director), which sets out the recipient’s obligations and requires establishing security for the performance of the agreement (e.g. a surety).
Required documents and forms of security
The application must include a complete set of attachments: a simplified business plan with a cost calculation, the form providing information for de minimis aid applications, statements confirming no arrears with the Social Insurance Institution (ZUS) and the Tax Office (US), a statement confirming you haven’t previously received non-repayable public funds for the same purpose, and a document confirming the bank account the funding should be transferred to. Some PUPs also require proof of professional qualifications (diplomas, certificates, completed course certificates) and a legal title to the premises where the business will operate.
Every funding agreement must be secured, and the office has the right to reject the proposed form if it considers it insufficient. The most commonly accepted forms of security are:
| Form of security | Characteristics |
| Civil surety | Usually two guarantors are required, each with a minimum net income (e.g. around PLN 4,000, the condition depends on the PUP) after deducting other liabilities |
| Promissory note with an aval (promissory guarantee) | The note issued by the applicant is additionally signed by two guarantors meeting the income criteria |
| Blocking funds in a bank account | Blocking a set amount in the applicant’s or a third party’s account for the duration of the agreement |
| Bank guarantee | The bank issues a guarantee in favor of the PUP up to the amount of the funding granted plus interest |
| Notarial deed of submission to enforcement | Usually assessed as the weakest form, requiring additional security to be established |
It’s worth planning the choice of security well in advance, since gathering documents from guarantors (e.g. income certificates) can take anywhere from a few days to a few weeks, and the lack of acceptable security is a common reason for refusing to sign the agreement, even if the application has already passed the substantive assessment.
Obligations after receiving the grant
After receiving the grant, you must run the business for at least 12 months and not suspend it for more than 6 months in total (the suspension period and a break longer than 90 days due to illness or rehabilitation benefit aren’t counted toward the business-running period). During this time, you also can’t take up employment. The funds are de minimis aid, so improperly spent amounts must be repaid.
It’s worth knowing that VAT on purchases financed from the grant can be deducted under the normal rules if the business is VAT-registered, but if the right to deduct arises, the recipient must repay the local labor office the equivalent of the deducted VAT within 90 days of filing the first VAT return in which the deduction could have been shown. In practice, you can’t both keep the VAT amount covered by the grant and deduct it at the tax office.
The most common mistakes and reasons for refusal
The first common mistake is submitting an incomplete application, for example missing a signature on one of the statements or a missing attachment, which results in a request to complete it or the application being rejected on formal grounds.
The second mistake is presenting a business plan that appears inconsistent or unrealistic to the office, for example planned expenses that don’t match the nature of the business or insufficient justification for some of the costs.
The third mistake is insufficient documentation of the qualifications or professional experience needed to run the planned business, which lowers the substantive assessment of the application, especially in PUPs that use a points system.
The fourth, and particularly common, mistake is proposing security that the office doesn’t accept, for example a guarantor without sufficient income, which can block the signing of the agreement even after the application has already received a positive decision.
The fifth mistake is having previously used non-repayable public funds for a similar purpose without clarifying this with the office in advance, which automatically excludes the possibility of receiving further funding.
Planning to register as unemployed and apply for a grant to start your own business in Poland? We help prepare the business plan, the cost calculation, and support the process of filing the application with the PUP.
Frequently asked questions
Can foreigners receive a grant from the PUP?
Yes, provided they have a status that allows them to register as unemployed with a Polish local labor office. It’s worth verifying the specific conditions with your PUP.
Does the grant need to be repaid?
The grant is non-repayable as long as the agreement with the county governor is followed, including running the business for at least 12 months. Improperly spent funds or funds used in violation of the conditions must be repaid.
How long does it take to process the application?
The whole process, including preparing the documents, usually takes from a few months up to 9-12 months, depending on the workload of the specific PUP.
Can I combine PUP funding with other grants?
Previously received non-repayable public funds for the same purpose exclude receiving PUP funding again, so it’s worth checking this condition in advance.
Which form of security is easiest to obtain?
The most commonly chosen options are a civil surety from two individuals with sufficient income or a promissory note with an aval. A notarial deed of submission to enforcement usually requires additional security.
Do I have to pay income tax on the grant?
One-off funds for starting a business granted from the Labor Fund are exempt from income tax, provided they’re used in accordance with the agreement and the regulations.
What happens if I suspend the business for more than 6 months?
Exceeding the combined 6-month suspension limit within the first 12 months of running the business can be considered a breach of the agreement’s conditions and result in an obligation to repay the grant with interest.
See also: What Taxes Does a Sole Proprietorship (JDG) Pay in Poland, Tax Systems for Sole Traders (JDG) in Poland, 2026 Guide, Running a Business in Poland Without Opening an Sp. z o.o..
Sources
- Act of 20 March 2025 on the Labour Market and Employment Services, Art. 147-153 (one-off funds for starting a business)
- Ministry of Family, Labour and Social Policy, labour office start-up grants
Legal status as of: August 30, 2026.
Author: Valerii Kushnirskyi, in-house legal practitioner at MojaFirma.
This article is not legal advice. The funding conditions are set by the specific local labor office and may vary, so we recommend consulting a specialist before applying. Sources: Wortal PSZ – business startup funding; Wprawieni – labor office funding 2026.
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