Jednoosobowa działalność gospodarcza (JDG) is the Polish equivalent of a sole trader / sole proprietorship, the simplest and by far the most common way to run a business in Poland, including among IT professionals working under B2B contracts. Below: who can open a JDG, what it costs, how registration works in 2026, and why registering as a sole trader alone doesn’t protect you from being reclassified as an employee.
- Who can open a sole trader business in Poland
- Advantages of a JDG
- Disadvantages and obligations
- ZUS contributions and health insurance in 2026
- Reliefs for new entrepreneurs
- Registration step by step
- JDG and the PIP 2026 reform
- FAQ
Who can open a JDG
Unlike a limited liability company (Sp. z o.o.), which registers in the KRS and which almost any foreigner can register, a JDG is not open to everyone. Under the Act of March 6, 2018 on the rules of participation of foreign entrepreneurs in economic activity in Poland (Dz.U. 2018 poz. 649), you can register a JDG if you, among other things:
- hold a permanent residence permit or an EU long-term resident permit;
- hold a valid Pole’s Card (Karta Polaka);
- are a citizen of an EU, EEA or Switzerland member state;
- hold a visa or residence permit issued under the Poland.Business Harbour programme;
- have refugee status or subsidiary protection;
- hold a temporary residence permit for study purposes at a Polish university, and in several other cases listed in the Act.
Ukrainian citizens are a separate case: the special assistance act (Act of March 12, 2022 on assistance to Ukrainian citizens in connection with the armed conflict on the territory of that country, as amended) allows them to register and run a JDG in Poland on the same terms as Polish citizens, provided they hold a PESEL number with UKR status.
Advantages of a JDG
Simple, free registration. The CEIDG-1 form is submitted through biznes.gov.pl or the CEIDG portal, free of charge: there is no registration fee. The easiest way is with a Trusted Profile (Profil Zaufany); without it you need to visit your local city or gmina office in person.
No share capital required. Unlike an Sp. z o.o., which requires a minimum share capital of 5,000 zł, a JDG requires no starting capital at all.
Free choice of taxation method. Registering a JDG, you choose one of: the general tax scale (skala podatkowa, 12%/32%), a flat 19% rate (podatek liniowy), or a lump-sum tax on registered revenue (ryczałt od przychodów ewidencjonowanych, rate depends on the type of activity). An Sp. z o.o., by contrast, always pays CIT.
Flexible suspension and closure. A JDG can be suspended (zawieszenie) temporarily without being liquidated, or closed (likwidacja): both done online through CEIDG in a single day.
Disadvantages and obligations
The main downside of a JDG is unlimited personal liability: the owner is liable for business debts with their entire personal estate, unlike an Sp. z o.o., where liability is limited to the company’s capital.
The second point is mandatory monthly ZUS contributions regardless of whether the business generated income that month (except during the relief periods described below). The owner is also required to keep a Revenue and Expense Ledger (KPiR), either personally or through an accountant, and to pay personal income tax and, where applicable, VAT on time.
ZUS contributions and health insurance in 2026
Since 2022 (the Polski Ład reform), the amount of the mandatory health insurance contribution (składka zdrowotna) depends on the chosen taxation method. For 2026 (minimum wage: 4,806 zł gross), the applicable rates are:
| Taxation method | Rate | Minimum monthly health contribution (2026) |
|---|---|---|
| General tax scale (12%/32%) | 9% of income | 432.54 zł |
| Flat tax (podatek liniowy) | 4.9% of income, minimum | 432.54 zł (partially deductible from the tax base; the 2026 annual deduction limit is 14,100 zł) |
| Lump-sum tax, annual revenue up to 60,000 zł | fixed amount | 498.35 zł |
| Lump-sum tax, revenue 60,000-300,000 zł | fixed amount | 830.58 zł |
| Lump-sum tax, revenue above 300,000 zł | fixed amount | 1,495.04 zł |
Note: these amounts apply from February 2026 to January 2027 (the annual recalculation period for the minimum health contribution is tied to the minimum wage in force from February 1), per the official ZUS communiqués on 2026 contribution rates.
Reliefs for new entrepreneurs
If this is your first JDG (or you haven’t run a sole proprietorship in the last 60 months) and you aren’t providing the same services to a former employer, three consecutive reliefs are available:
– full exemption from social security contributions (retirement, disability, accident insurance);
– the health contribution is still paid in full, at the rate tied to your taxation method.
– social contributions are calculated on a reduced base equal to 30% of the minimum wage, i.e. 1,441.80 zł in 2026 (4,806 zł × 30%);
– the health contribution is paid separately, in full.
– the social contributions base is calculated individually from average monthly income in the previous year;
– available for a maximum of 36 months within any 60-month period of running the business.
Once all reliefs are exhausted, the owner pays the full ZUS rate (Pełny ZUS) plus the health contribution at one of the rates from the table above.
Registration step by step
1. Complete and submit the CEIDG-1 form via the CEIDG website (prod.ceidg.gov.pl) or biznes.gov.pl: online with a Trusted Profile, in person at your local city/gmina office, or by mail with a notarised signature. 2. Choose your taxation method on the CEIDG-1 form. If you don’t specify one, the general tax scale applies by default. 3. Receive your REGON and NIP numbers, assigned automatically when you file online, if you didn’t already have them. 4. Your JDG is entered into the CEIDG register on the same day you submit the form, free of charge, usually within minutes if the data is correct. If a NIP is being issued for the first time, that can take up to 3 business days. 5. Within 7 days of starting the business, notify ZUS of your insurance status by filing form ZUS ZUA (full insurance) or ZUS ZZA (health insurance only, for example if you’re already fully insured under an umowa o pracę). 6. ZUS contributions are due by the 20th of each month (by the 15th if you employ staff).
We recommend opening a separate business bank account. Because of the split payment mechanism, this is more practical than using a personal account.
JDG and the PIP 2026 reform
Registering a JDG on its own does not protect you from having a cooperation reclassified as an employment relationship. Since July 8, 2026, inspectors of the State Labour Inspectorate (Państwowa Inspekcja Pracy, PIP) can independently, without a court ruling, determine that a de facto employment relationship exists where a civil-law or B2B contract has been formally signed, if all the subordination criteria from Art. 22 § 1 of the Labour Code are present: a specific role within the team, direction by the client, fixed working hours/location, and pay for the work itself rather than for a result.
The highest-risk profile is an IT specialist on a JDG who works with a single client for years, has a fixed schedule, mandatory daily stand-ups, and reports to a team lead the same way a regular employee would. A transitional window runs until July 8, 2027, during which you can voluntarily switch to an employment contract without a retroactive fine. More detail in our series on the PIP 2026 reform here.
FAQ
Can I open a JDG while also employed under an umowa o pracę? Yes, combining both is allowed. If you’re already insured under a full-time employment contract (at least the minimum wage), you only need to file ZUS ZZA for your JDG: health insurance only, with no duplicate social contributions.
Do I need a registered address (meldunek) to register a JDG? No, a current meldunek is not required to register a JDG.
Can I change my taxation method during the year? No, the taxation method is chosen for the whole tax year; it can only be changed from the start of the following year (the declaration is usually filed by February 20).
Bibliography and Legal Basis
- Act of March 6, 2018 on the rules of participation of foreign entrepreneurs and other foreign persons in economic activity on the territory of the Republic of Poland (Dz.U. 2018 poz. 649)
- Act of July 26, 1991 on Personal Income Tax (Dz.U. 1991 No. 80, item 350)
- Act of March 12, 2022 on assistance to Ukrainian citizens in connection with the armed conflict on the territory of that country (Dz.U. 2022 poz. 583, as amended)
- ZUS.pl, communiqués “Nowe wysokości składek na ubezpieczenia społeczne w 2026 r.” and “Minimalna składka na ubezpieczenie zdrowotne w 2026 r.”
- biznes.gov.pl: CEIDG portal, guidance on registering, suspending and closing a JDG
Legal status as of: September 27, 2026.
Author: Walery Kusznirski, in-house legal practitioner at MojaFirma.
This article is for informational purposes only and does not constitute legal advice. Every situation depends on the specific contract and individual circumstances. If something about your own situation isn’t quite clear, feel free to book a free consultation with our team.
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