Earlier this week, we’ve posted a two–part rundown on the upcoming changes in the Polish entrepreneurial law. Today, we’re bringing you a glimpse of what’s to come, as the Ministry of Entrepreneurship and Technology has released some of the project they’ll be working on in the near future.
Simple joint-stock companies
With the goal of accommodating the modern ways of running a new business, the Polish government is planning to bring forth a new business entity designed for innovative companies, such as startups. Simple Joint-Stock Companies (Proste Spółki Akcyjne or PSAs in Polish) will be highly flexible in their structures – for instance, they will only require a management to operate, as a supervisory board will not be mandatory. Moreover, a Simple Joint-Stock Company’s cash capital will be more readily available than in other business models, and in the case of failure, they will gain access to a simplified liquidation procedure.
An entire extra package of legislative changes directed at SMEs
With the recent post about the Constitution for Business, you may think that we’ve already detailed the changes in Polish law regarding SMEs, but a whole new package of nearly 60 legislative improvements and simplifications are being prepared for a planned introduction in January of 2019. This time, the changes will focus on economic and fiscal law, and if all goes well, will lead to as much as 3,8 billion Zloty in savings over the course of the next decade. Here’s a quick rundown on the most important changes:
- The “small taxpayer” threshold will be increased from 1,2 to 2 million Euros in order to enable a larger percentage of entrepreneurs to be eligible for depreciation.
- In an effort to tackle the issue of issuing bonds being more profitable abroad, the government has decided to introduce new income tax rules for this sector. Issuers and their non-resident buyers will be exempt from income tax on the bond interest and discount. Taxpayers will pay a flat rate of 0,5% on the proceeds instead.
- Finally, limited liability companies will no longer need to convene a meeting in order to adopt any resolutions, as they will be able to do so in writing, in circulation mode.
The Ministry of Entrepreneurship and Technology goes green on Payment Gridlocks
SMEs in Poland are no stranger to the problem of payment gridlocks. We’ve touched upon the issue a few months ago, while introducing Finiata’s micro factoring solution to entrepreneurs dealing with payment blockages. With over half of Polish companies declaring that delayed payments are actively detaining their growth, the Ministry of Entrepreneurship and Technology has decided to take the matter into their hands. With no clear solution on the horizon, they have decided to issue a green paper on the problem of payment gridlocks to consult the wider public on the possible remedies.