Administrative and legal status of foreign entrepreneur in Poland

Poland is a stable and dynamically developing country with a very favourable geographical location. It links trade routes between eastern and western Europe, surrounded by countries of the European Union from the west and the Commonwealth of Independent States from the east.

It represents a large market because it counts close 38,000,000 residents.

An important asset is the fact that from 2004 is a member of the European Union, which means that obtaining permission to conduct business activity in Poland opens up a foreign entrepreneur from the country third, also markets of other Member States and gives access to EU grants which are able to significantly finance the foreign business venture in compliance with the relevant criteria.

In this article we will look at the administrative and legal requirements of foreign entrepreneurs in Poland.

In the ranking “Doing Business 2020” Poland among 190 classified countries 40. place for “easy” business. The impact on such a good result was, among others, so-called A Constitution for Business that entered into force 30 April 2018. This was the largest reform of economic law in many years.

It has introduced many facilitations and reliefs in doing business and, among others, created the Office of the Ombudsman of Small and Medium Entrepreneurs. This is a very important change for the SME sector (Small and Medium-sized Enterprises), which consists of a vast majority of all companies in Poland.

The legislative authority's attitude towards entrepreneurs is also crucial. The Constitution for Business postulates that anything that is not forbidden is allowed. It is also difficult not to mention a reduction in the preferential corporate tax rate for small taxpayers to assess the attractiveness.

It was introduced in the amount 9% In 2019, a in the year 2020 has increased the turnover threshold for the application of the reduction rate from 1,500,000 EUR to 2,000,000 EUR. In the year 2022 there has been a reduction in the tax rate on a scale with 17% to 12%.

After so many statutory changes, Poland has undoubtedly become more attractive to foreign entrepreneurs.

It is also worth noting that interest is growing after second because the situation of the armed conflict in Ukraine and the repression of local authorities in Belarus bring not only financial capital to Poland, but also intellectual capital of our eastern neighbours.

The subject matter of this article is a presentation of how the bureaucratic situation of foreign entrepreneurs is shaped, starting with the definition of who the foreign entrepreneur is according to various laws, by presenting possible legal forms of conducting business, to draw attention to restrictions on conducting business in relation to the status of an entrepreneur – a foreigner.

The article examines the statutory definitions and also presents a reform in the form of a Constitution for Business. The situation of foreign entrepreneurs has also been discussed in detail and how they can become participants of the economic trade in Poland.

Legal definitions of the concept of entrepreneur

The best way to present legal and administrative conditions of economic activity is to raise the question of statutory definitions, namely to present specific definitions of statutory economic activities and entrepreneurs in Polish law.

It is worth noting that these definitions are very extensive and are in very different laws, and their linguistic interpretation is not always consistent and uniform. A large number of definitions introduce conceptual chaos and give rise to problems in selecting the right definition in specific situations.

The question may arise as to what is caused by such a large number of statutory definitions. This is due to the fact that economic activity itself affects various social spheres. It is an important source of revenue for the state budget, creates jobs and is an important entity in tax law.

Depending on the type of specific activity, we must also take into account the whole industry and the specific nature of its activities, such as whether it is regulated, whether it is a strategic industry, whether it is a socially useful industry, or perhaps vice versa, harmful to the environment and public health.

Unfortunately, the multiplicity of definitions can make it difficult to establish and operate. This applies especially to foreigners, due to lack of linguistic proficiency and frequent ignorance of the law. The largest discrepancy in statutory definitions can be seen in the Civil Code and the Entrepreneurs' Law Act.

The definition in KC is broader as it also takes professional activity into account as an economic activity. Here I will present the most important statutory definitions, starting with the Civil Code.

On the ground Article 431 The Code of Civil Entrepreneur is: „The entrepreneur is a natural person, a legal person and a legal entity and an organisational unit in question under Article 331(1), conducting business or professional activities on his own behalf’ 1.

On the other hand, the Law of Business defines under Article 4(1) The concept of entrepreneur is slightly different: „The entrepreneur is a natural person, a legal person or an organisational entity not a legal person whose separate law confers legal capacity, performing an economic activity’[2].

The Personal Income Tax Act refers to the definition contained in the Civil Code. Act dated from 16 February 2007 on competition and consumer protection (Journal of Laws of 2020, items 1076, 1086) also refers to another law, namely Act dated 6 March 2018 Business law (Journal of Laws of 2020, items 424, 1086).

However, this article focuses on entrepreneurs who are foreigners.

The legislator also defined this concept under Article 3(7) Act dated 6 March 2018 on the rules for the participation of foreign entrepreneurs and other foreign persons in economic trade in the territory of the Republic of Poland (Journal of Laws of 2022, item 470): The terms used in the Act mean: (...) foreign entrepreneur – a foreign person doing business abroad and a Polish citizen doing business abroad[3].

Unfortunately, this definition is incomplete because it does not cover a very large group of people i.e. foreigners operating in the Republic of Poland in the form of legal persons established in the territory of the Republic of Poland.

Such a definition includes Act dated 24 March 1920 on the acquisition of immovable property by foreigners (Journal of Laws of 2017, item 2278).

According to this law, a legal person and a commercial company not having legal personality established in the territory of the Republic of Poland, controlled directly or indirectly by natural persons not having Polish citizenship or legal persons established abroad, are foreigners within the meaning of the Act[4].

The subject of the interest of the article are foreigners who live in the territory of the Republic of Poland and do not have Polish citizenship and operate as legal persons established in the territory of the Republic of Poland.

Due to the large number of economic immigrants from the east, this form of activity is most often chosen by foreigners. There are some important reasons for this. After first, foreigners have limited access to business activity in Poland (this will be the subject of further analysis of the phenomenon).

After second, When they establish a legal person in the territory of the Republic of Poland, they gain access to the intra-EU market, which undoubtedly has many economic advantages.

After third, immigrants, starting their business path in Poland, often move further west – in the case of a legal person, it does not give a foreign entrepreneur any problem to sell or continue business through a foreign branch. Another advantage is the fiscal policy of Poland.

In 2019 the preference rate for small taxpayers has been amended. It was reduced from 15% to 9%. This is a very attractive change, not only for people from the eastern border but also from across the EU. In addition 2022 brought us a reduction in the rate of personal income tax on a scale with 17% to 12%.

Business Constitution as a tool to facilitate business in Poland

Since the entry into force of the Business Constitution, 4 years. It undoubtedly contributed to the increase in the number of entrepreneurs in the country by introducing a more liberalised system. The Business Constitution is a set of laws that entered into force 30 April 2018. This is the largest reform of economic law from above 30 years. It replaced the vaguely readable, repeatedly amended and not adapted to the dynamics of changes in the conduct of business with the Freedom of Business Act 2004. Today the Business Constitution regulates the basics of business, including business conducted by foreigners, because in the package five set one is devoted exclusively to this issue. It is clear that the main objective of the reform is to amend regulations that no longer follow the dynamics of development and the need of entrepreneurs. The aim is to simplify business, to focus on reliability and openness of entrepreneurs. The aim of this set is the Law of Entrepreneurs, which describes the rights (and not obligations) of entrepreneurs and the principles of cooperation with state institutions. The constitution of business is constructed in the spirit of economic freedom, its focus is on the entrepreneur, not on making him a subject to regulatory and control bodies. The change in the approach to economic law is that the legislator and the power are to be closer to business and even to cooperate with each other on some issues. Economic law reform has brought about a different legal order based on third main values:

• • General principles of business rights.
• • Legal certainty.
• • New rules for creating economic law.

The creation of value-based pillars is insufficient. Someone has to control their compliance. It is worth noting that institutions have been established to protect these principles of economic law and are headed by the Ombudsman of Small and Medium Entrepreneurs.

Following the model of the basic law, the legislator places the preamble at the outset of the Business Constitution.

This underlines the fundamental importance of this legislation: Following the constitutional principle of freedom of economic activity, as well as other constitutional principles relevant to entrepreneurs and their economic activities, including the rule of law, legal certainty, non-discrimination and sustainable development, recognising that the protection and promotion of the freedom of economic activity contribute to the development of the economy and to the growth of social welfare, in order to guarantee the rights of entrepreneurs and taking into account the need to ensure the continuous development of economic activity under conditions of free competition, the following...5 General principles are the basis for the functioning of entrepreneurs in the new legal order.

They define the relationship between business and public authority. This principle is explicitly described in the Business Constitution, so that we can be guaranteed direct application and adherence. Systematising these rules leads to a coherent system and leaves no doubt about the application of specific solutions.

This allows the creation of a framework for public administration in business matters, and their infringement leads to the repeal of any incorrect decision. Here. 9 the rules applicable in the Business Constitution:

• Freedom of activity – "what is not a law prohibited is allowed".

The overriding nature of public administration activities has been excluded in terms of freedom of decision, restrictions and orders. Entrepreneurs have been given full freedom to choose their business, but of course they must be within the limits of the law.

• Presumption of the integrity of the entrepreneur.

Public authorities cannot treat entrepreneurs as unfair a priori. They should assume that they act in good faith and in accordance with the law.

• Real doubts in favour of the entrepreneur.

In the absence of evidence, the Authority may not take a decision against the trader.

• Principle of favourable interpretation.

Entrepreneurs must not suffer negative effects in the case of unclear rules and their interpretation must not make the situation of the entrepreneur worse.

• Proportionality principle.

Each procedure should be carried out in the least burdensome way for the trader. The Authority may not impose an obligation to collect unnecessary evidence.

• The principle of impartiality and equal treatment.

Prohibition of any discrimination against entrepreneurs. All must be treated equally. The authority handling the business cannot have a legal interest in this matter.

• The principle of information.

The entrepreneur has the right to obtain any relevant information for the conduct of his business.

• The principle of speed.

All cases should be handled without undue delay.

• The principle of organ interaction.

Public administrations are obliged to exchange information on business matters. A catalogue of principles contained in the Act, which should be regarded as a specific normative act – the business constitution, ensures stability and uniformity in the application of the law in economic relations[6]. The explanatory memorandum to the draft underlines that the anchoring of the rules in the Act is an additional and strong reminder to the public authorities that in their relations with entrepreneurs these rules have full legal power and must be strictly respected, as they are not only programming standards of the Polish Constitution or non-binding appeals.[7]. These rules are the legal standards of par excellence and must be respected by public authorities as well as all other legal standards contained in the Act[8]. This emphasizes the position of the entrepreneur. The freedom of business activity of entrepreneurs, their autonomy in the taking up, pursuit and termination of their activities and equality with the law strengthen their freedom (freedom), setting their limits[9]. This position confirms the wording of the provision Article 16 Act dated 6 March 2018 The law of entrepreneurs, which shows that the Ombudsman of Small and Medium Enterprises, as a body of legal protection, is in charge of the rights of micro and small and medium-sized entrepreneurs[10]. In the doctrine of public law, attempts are made to categorize the principles of law adopted by the Entrepreneurs' Law. The breakdown as a basic applies to those which are addressed to traders and those intended for public authorities, as binding in their relations with traders[11]. To first The principle of freedom of economic activity (Article 2), the principle “which is not prohibited by law is allowed” (Article 8) and the principle of Article 9, which introduces an obligation to conduct business in accordance with the principles of fair competition and respect for good manners and the legitimate interests of other traders and consumers. To second categories, apart from the above mentioned rules resulting from Article 2(9), the principle of presumption of fairness of the trader should be included (Article 10(1)), the principle of settling factual doubts in favour of the entrepreneur (Article 10(2)), principle of friendly interpretation (Article 11), the principle of enhancing trust, proportionality, impartiality and equal treatment (Article 12), principle of liability of officials for infringements (Article 13), the principle of legal certainty (Article 14) and the principle of providing information (Article 15)[12]. It is also possible to apply the division into rules taken directly from the Constitution of Poland, which were removed from universal values and are the result of interpretative procedures, as well as those introduced into the Polish legal system by the Law of Entrepreneurs.[13]. The benefits for entrepreneurs from the Business Constitution are very much. Of course. first new rules will be found. However, there are other practical facilitations in doing business. It is worth noting that entrepreneurs get relief at the start. Currently, it is possible to operate unregistered activities provided that the monthly income does not exceed half the minimum wage. The relief for the conduct of undeclared activities relates to the minor economic activity of natural persons. An alternative relief for persons with registered activity is the possibility of exemption from contributions to ZUS in first 6 months of operating. Then for a period 2 years there is a stake, the so-called small ZUS. It is impossible to discuss all the benefits that came with the Business Constitution, but it is worth highlighting the most important:

• • The possibility to suspend activities for a limited and indefinite period, the absence of deletion in the event of a non-resumption request.
• • Creation of an information portal www.biznes.gov.pl. It clearly and transparently describes how to handle its official affairs (unfortunately, it turns out not to be helpful to foreigners because it only has one language version).
• • Increase communication via email/telephone. It turned out to be very useful during the pandemic. Covid-19.
• • The possibility for natural persons to grant the prosecution.
• • Reduce the catalogue of regulated activities. Currently remaining concessions, permits and RDRs.
• • The possibility of issuing an individual interpretation (also the possibility of requesting tax interpretations) by Ministers and tax authorities. The Ombudsman may be obliged to provide such explanations.
• • Unification of rules on how foreigners conduct business.

Restrictions on the freedom of business of foreigners

The Polish legislature decided that the economic system of the Republic of Poland is based on the social market economy (Article 20 Constitution of Poland)[14]. It is assumed that "pillars supported by social market economy are freedom of economic activity and private property, as well as solidarity, dialogue and cooperation between the social partners"[15]. Continues this thread also Article 2 Business Law: “Activities, pursuits and termination of business activities are free for everyone on equal terms.” The jurisprudence of the Constitutional Court has consistently assumed that ‘freedom of economic activity is not absolute and can therefore be subject to restrictions’[16]. Based on Article 22 The Constitution of the Republic of Poland may be restricted by means of the Act and by reason of important public interest. These restrictions may be introduced in particular because of the protection of values such as security, public order, environmental protection, health and public morality, freedom and rights of others.17 This means that the introduced restrictions on economic activity are to be so important that the principle of economic freedom prevails. The division into the relevant and the subject-matter restrictions is accepted. These concern specific areas and sectors, but they tell us about who does not have access to specific economic activities. These restrictions are characterised by difficult access to industries, e.g. by obtaining concessions, permits or registration in the register of regulated activities. The concession is the most stringent type of business licence and is required in the following sectors: exploration, exploration of minerals, extraction of minerals from deposits, underground non-containable storage of substances, underground storage of waste or carbon dioxide (grants to the Minister responsible for the environment or in non-proprietary matters to that Minister voivod or the governor), manufacture and trade of explosives, weapons, ammunition, military and police products (gives the Minister responsible for internal affairs), manufacture, processing, storage, transport and sale of fuels and energy (gives the President of the Energy Regulatory Office), transfer of carbon dioxide for its underground storage (gives the Minister responsible for the environment), protection of persons and property, i.e. the activities of the so-called security agency (gives the Minister responsible for internal affairs), air transport (gives the President of the Civil Aviation Authority), distribution of radio and television programmes (gives the Chairman of the National Radiophonia and Television Council), running casino (gives the Minister of Finance). At a time when concerns arise about mismanagement or the interests of the State of the concession may be revoked. A less restrictive form is an authorisation which is issued after having met the requirements for specific activities. Subject-matter restrictions in the conduct of business activity, in principle concern individuals who do not have Polish citizenship. There are different degrees of restriction:

• • EU citizen (European Union),
• • Citizens from the OEG (European Economic Area) and Switzerland,
• • National third.

Virtually each of these groups has restrictions on the acquisition of real estate, for example, if an EU citizen (who is not a citizen of the Republic of Poland at the same time) wants to acquire shares in a company which owns the property, he must apply for a proper permit to the Minister of the Interior.

It also operates on the basis of the applicable Polish citizens. It is worth noting that citizens of the state third They're most limited. They may not, for example, undertake an economic activity if they do not fulfil certain conditions.

These restrictions are mentioned in the Act on the Rules of Participation of Foreign Entrepreneurs and Other Foreign Persons in Economic Trade in the territory of the Republic of Poland under Article 4, which states that foreign nationals and nationals of the Member States third, Having several permanent or temporary residence permits in the Republic of Poland, they may undertake and perform economic activities in the territory of the Republic of Poland on the same terms as Polish citizens.

Paragraph second, in which the circumstances for starting a business are mentioned, is a closed catalogue. Other circumstances apply section 3 that article, in which the legislator claims that the other persons not mentioned Under section 1 and 2 are entitled to enter into business only in the form of a company[18].

General principles for foreign trade participation

The legal framework for cross-border business is now governed by one of the five Acts that form the Business Constitution. It is the Act on Rules of Participation of Foreign Entrepreneurs and Other Foreign Persons in Economic Trade in the territory of the Republic of Poland.

The Act regulates the taking up and pursuit of business activity by foreign persons in the territory of the Republic of Poland, the temporary offer or provision of services in the territory of the Republic of Poland by foreign persons who are entrepreneurs and lays down rules for the creation of branches and representative offices in the Republic of Poland.[19].

The main objective of this law was to codified as widely as possible the basis for cross-border activities. This law also contains issues concerning cross-border service activities, rules for the creation of branches by foreign entrepreneurs and their representations.

Before the amendment, these areas were regulated by two Act: Act on Freedom of Economic Activity and Act on the provision of services in the territory of the Republic of Poland.

The new law does not introduce many changes in legal matters, but rather takes a more detailed approach to the question of the participation of foreign entities in economic trade. The entity restrictions on the taking up of economic activities, which have been described in detail in the previous part of this Article, have been retained.

Reasoned restrictions under the Treaty on the Functioning of the European Union, such as public security, public policy, public health or environmental protection, have also been taken into account. There have been changes in the formation of foreign branches and representations.

The main objective of these changes is to simplify cross-border activities. The remaining essence of the branch is still a form of doing business by foreign companies.

The entity authorized to establish a branch in the territory of Poland is still any willing foreign entrepreneur, under conditions such that the range of products offered cannot exceed the offer in the country of origin.

Opening of the branch still requires entry in the national court register and the establishment of a person authorised to represent in Poland. The representation was qualified as a form of the foreign entrepreneur's organisational unit, which operates exclusively for the promotion of the company.

The establishment of a representation also requires registration, although it is purely informative. The responsible person should also be appointed, accompanied by written approval of the representative concerned. The obligation to provide evidence of having a legal title for the seat of the representative was also waived.

In conclusion, this law is an integral part of the Business Constitution and its provisions lead to the liberalisation of international business.

Criteria for the choice of legal form

The legal form of the company shall specify the form of ownership and the inherent forms of responsibility and the organisation of management. Due to this inextricable relationship, the term ‘organising and legal form’ applies[20]. It means the legal basis of the company to which the whole organisation, management, regulates legal relations and organisational forms of superiority, subordination and interlinking both within and in its external relations with the environment should be adapted[21]. Possible forms of business activity in Poland are:

• • individual economic activity,
• • civil partnership,
• • public company,
• • partnership,
• • a limited partnership,
• • Joint Stock Company,
• • public limited liability company,
• • a simple joint stock company,
• • limited liability company.

Each of these forms has a number of specific characteristics which the company must carefully assess before starting its business. The criteria relevant for the selection of the relevant activity are:

• • the country of origin of the entrepreneur,
• • the type of activity,
• • the scale of activity,
• • financial liability,
• • the need for personal commitment,
• • the possibility of financing the project,
• • taxation of income,
• • operating costs,
• • formalism of conducting business.

For foreign entrepreneurs, their country of origin is crucial. It first settles the question of what legal form future economic activity will have. Cases in which a foreigner cannot take up business activity in Poland mentions Article 4 Law on the Rules of Participation of Foreign Entrepreneurs.

If a person comes from Belarus to Poland, for example, to start studying at the university on the basis of a temporary residence permit, then according to Article 4 may take up an economic activity.

However, if someone comes to Poland for gainful purposes, also on the basis of a temporary residence permit, then according to the same provision they will not be allowed to start business, except for a company with company status. This is a solution transferred from the Business Act, the predecessor of the Business Constitution.

When we consider the type of activity, there are generally no specific restrictions.

At times, however, the Act requires the use of a well-defined form of activity, such as banks, insurance companies and general pension societies, which can only operate in the form of a public limited liability company, while loan institutions can only operate in the form of a limited liability company or public limited liability company[22].

Its scale is undoubtedly of great importance when deciding on the form of activity. The main principle is the use of partnerships (with the exception of limited-shared partnerships) for smaller business activities, and capital companies and limited-shared partnerships for major business ventures.[23].

This usually involves risk distribution, the possibility of accepting a new partner and the need for personal supervision of the company. Financial responsibility for commitments is also one with key elements when choosing the legal form.

When we decide to start a business on our own, we get the full unlimited responsibility for the company's obligations, and in certain circumstances the commitments may be transferred to the spouse. The same situation is in the open company. All partners have full liability. In other companies we can make some combinations.

In a limited partnership and a limited partnership, responsibility rests only on the subcontractors. The limited partnership in the limited partnership corresponds only to the amount of the limited partnership, while the limited partnership is completely exempt from liability.

A similar situation exists for capital companies: public limited liability and limited liability. The shareholders of these companies shall not be liable for the obligations of the companies. Their risk is limited to the share capital transferred in monetary form or in the market.

When considering the need for personal commitment, consideration should be given to the fact that partnerships are obliged to participate in company matters, whereas in limited and limited-activity companies, personal involvement may be limited to a minimum, provided that they act as a limited-stakeholder.

In capital companies, the obligation to participate in the business process is also minimal for shareholders (they only adopt resolutions). In order to carry out its activities, it is the duty to establish a board of directors. There are also significant differences between the forms of activity in matters of income taxation.

In personal companies, despite the obligation to keep accounts, there is no income tax, the taxable persons in such companies are only partners. The tax is paid by the partners for income from participation in the company.

In capital companies, the tax is due at company level when they have legal personality and are direct corporate income tax taxable persons. Unfortunately, there may be double taxation of the same income. First it happens at the level of a legal person and then at the level of a natural person for paying dividends to a shareholder.

In terms of costs incurred and the degree of formalities, the least required are single-person business activities and partnerships. This is due to the fact that they do not require the share capital to be paid up and the contribution to personal companies may consist in providing services to their own partners.

Both forms of business also use simplified accounting and thus incur lower costs. In equity companies, mandatory share capital is minimum 5,000 PLN. The question of the choice of the legal form of the activity of foreign nationals third It's not complicated.

Most often, they are not entitled to undertake a single-person business and are forced to select capital companies. They choose limited liability companies due to low capital requirements and limited liability of shareholders.

Business tax liability

When undertaking economic activity in Poland, no matter in what form and with what nationality, we must count on paying taxes. The most important taxes that every entrepreneur is obliged to pay are:

• • income tax (PIT, CIT),
• • VAT,
• • property tax,
• • tax on civil law (PCC).

Income tax on natural persons applies to one-person business activity and to partnerships. There is a possibility to choose the form of taxation. As a general rule, 12% up to income threshold above 120,000 PLN, and after exceeding that amount it is already 32%.

In the PIT, there is a wide range of possibilities not only to choose how to settle with the tax, but also a large number of reductions, exemptions and a tax-free amount which is available from 2022 is 30,000 PLN. The corporate tax structure is more rigid.

This form of taxation applies to legal persons, so-called defective legal entities and entities without legal personality. The percentages of tax are 9%, 10%, 19% and 20%. VAT on goods and services, i.e. value added tax, always charges the added value of goods or services.

The VAT to be paid by the entrepreneur is a tax constituting the difference between the amount due and the amount paid. The current VAT rates are 23%, 8% and 5%. The so-called preferential VAT rate is also distinguished 0%, which applies only after the appropriate conditions have been met (e.g.

in the intra-Community supply of goods or international transport). In practice, you can also meet the rate of ‘called’ (VAT exemption) or ‘e.g.’ (not subject to). Information on the VAT rate for specific activities can be obtained from the Goods and Services Tax Act and its annexes.

If the entrepreneur owns the property, he should also pay tax on it. In economic practice, there is also sometimes a tax on civil-law activities, e.g. when a sale contract is concluded with a natural person or the contract of partnership is amended, increasing the share capital of the company.

Summary

The subject of this article is to present a question concerning the status of foreign entrepreneur.

The examination of this status was carried out on the basis of an analysis of the diversity of business definitions, statutory restrictions on taking up business through foreigners, criteria for selecting legal form and basic tax obligations.

Although in Poland there are some difficulties in establishing a business, such as a complicated system of legal regulations, slow operating economic courts or constantly changing tax law, the number of companies with foreign participation increases from year to year.

In addition, the number of companies with foreign capital accounts for about 1/3 all registered companies in Poland. Poland can be classified as a good place to invest capital. Many factors encourage a positive assessment of such a solution. It is a large local outlet with a constantly growing population.

Moreover, there is a possibility of using EU funds and a very convenient geographical location, which is actually a buffer between EU countries and Eastern European countries. We live in a very dynamic world.

Events of the year 2020, or pandemic COVID-19, and the war that began In February 2022 on the territory of our eastern neighbour, they have radically changed the terms of the game on the global economic arena. These events are shocking to the economy, and this means that entrepreneurs face huge challenges.

A key issue is no longer the institutional environment or economic indicators, but the search for new solutions and ideas to adapt activities to existing conditions and to provide them with a perspective for further development. Poland seems to be a good place to do business, also for foreign entrepreneurs.

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1 Act dated 23 April 1964 Civil Code (Journal of Laws of 2019, items 1145, 1495. 2. Act dated 16 April 1993 On combating unfair competition (Journal of Laws of 2019, items 1010, 1649.) 3.

Act dated 6 March 2018 on the rules for the participation of foreign entrepreneurs and other foreign persons in economic trade in the territory of the Republic of Poland (Journal of Laws of 2019, item 1079) 4. Act dated 24 March 1920 on the acquisition of immovable property by foreigners (Journal of Laws of 2017, item 2278) 5.

Act dated 6 March 2018 Business law (Journal of Laws of 2020, item 424) 6. M. Sieradzka, Basic rules applicable to the taking up, pursuit and termination of activities and their impact on the legal situation of the entrepreneur in: Act of 6 March 2018 – Business law – analysis and evaluation of the most important regulations, ed. M.

Sieradzka, MoP 2018/13 – dd., p. 21. 7. M. Wierzbowski and others, the Business Constitution. Commentary. Warsaw 2019 p. 30. 8. Ibid. 9. A. Powałowski, New law of entrepreneurs and their business against the background of the social market economy [in:] Infrastructure sectors – legal issues, ed. M. Królikowska-Olczak, Warsaw 2018, p.

79 10. Mr Lissen, Legal protection and support of business activities as a task of Ombudsman for Small and Medium Entrepreneurs, RPEiS Directive 2018/4 11. M. Sieradzka, Basic rules applicable to the taking up, pursuit and termination of activities and their impact on the legal situation of the entrepreneur ed. M.

Sieradzka, MoP 2018/13 – dd., p. 23. 12. M. Sieradzka, op.cit..., p. 23. 13. M. Wierzbowski and others, the Business Constitution. Commentary. Warsaw 2019 p. 31. 14.

By Article 20 The Constitution of the Republic of Poland "social market economy based on the freedom of economic activity, private property and solidarity, dialogue and cooperation of social partners is the basis for the economic system of the Republic of Poland" 15. Dec. 7 May 2001, K 19/00, OTK 2001, No 4, item 82. 16.

TK: from 10 April 2001, U 7/00 17. Constitution of the Republic of Poland dated 2 April 1997 Article 31(3) Journal of Laws of 2019, item 114, item 946. 18.

Act dated 6 March 2018 on the rules governing the participation of foreign entrepreneurs and other foreign persons in the economic trade in the territory of the Republic of Poland Journal of Laws of 2019, items 1079, 1214, 1495, 1655 19.

Act dated 6 March 2018 on the rules governing the participation of foreign entrepreneurs and other foreign persons in economic trade in the territory of the Republic of Poland Journal of Laws of 2019, items 1079, 1214, 1495, 1655. 20. A.

Jagodziński Forms legal – organizational companies scientific journals of the Polish Academy of Sciences, Płock 2015 p.81 21. Ibid. 22. B. Kozuch Science about the organization. Warsaw Ce-DeWu 2010 p. 114. 23. Ibid.