Starting with considerations related to applying for a Temporary Residence Permit by foreigners running their own business in Poland, let’s look at the general rules that regulate the possibilities of setting up a company by individuals who are not Polish citizens.
Regardless of the form of business, whether it’s a sole proprietorship or a partnership, a foreigner has the right to apply for a residence permit, indicating the development of their enterprise in Poland as the main purpose of their stay.
Sole proprietorship as a form of business for foreigners
The possibility of establishing a sole proprietorship has been limited by the legislator in relation to citizenship or meeting additional conditions, such as the appropriate type of residence permit.
Who can apply for a residence permit based on conducting business activities?
- European Union and EEA citizens
Citizens of the European Union, the European Economic Area, as well as Norway, Iceland, and Liechtenstein, can open a sole proprietorship in Poland without the need to meet additional requirements. Their right to conduct business activity is the same as that possessed by Polish citizens. Citizens of these countries can run a Polish branch of a foreign company in Poland or provide cross-border services, meaning they operate a foreign company locally without the need for additional registration.
Their statutory obligation is to register their residence in Poland, but they do not have to apply for an additional Temporary Residence Permit.
- Citizens of the USA and Switzerland
The legislator granted special privileges for opening a sole proprietorship to foreigners holding passports from the USA or Switzerland. They can establish a business in Poland from the first day of their stay. The difference between them is that a Swiss citizen registers their residence in the same way as EU citizens, while a US citizen is required to apply for a Temporary Residence Permit in order to conduct business activities in Poland.
- Foreigners meeting additional criteria – regardless of citizenship
1. Holders of Permanent Residence Permits or Long-Term Resident Permits EU;
2. Foreigners for whom a temporary residence permit has been issued in connection with family reunification (a special type of temporary residence permits issued under Article 159 of the Act on Foreigners);
3. Students of full-time studies who have been issued a Temporary Residence Permit for the purpose of continuing their studies;
4. Persons granted temporary protection in Poland, refugee status, supplementary protection, or permission to stay for humanitarian reasons or tolerated stay;
5. Spouses of Polish citizens holding a Residence Permit issued in connection with marriage to a Polish citizen residing in Poland;
6. Entrepreneurs holding a temporary residence permit for the purpose of conducting business activity, granted for the purpose of continuing the business activity already conducted;
7. Holders of the Pole’s Card;
8. Family members of a spouse of an EU citizen, a child of a European Union citizen (up to 21 years of age) or dependent on an EU citizen or their spouse, or a parent of a European Union citizen or their spouse dependent on an EU citizen or their spouse.
Company as a form of doing business in Poland by a foreigner.
For foreigners who do not meet additional criteria, i.e., do not have one of the citizenships mentioned above, nor do they have the appropriate residence documents allowing them to register with CEIDG, the possibility of setting up their own business in Poland in the form of a company has been provided. The choice of company type depends on the nature of the business planned by the foreigner. These may include forms such as:
- Limited partnership;
- Limited partnership with shares;
- Joint-stock company;
- Limited liability company.
In summary, every foreigner in Poland has the opportunity to establish their own business in Poland, and regardless of its form, they can apply for the right to stay based on the enterprise they run.
Temporary residence permit for conducting business activities
A special type of Temporary Residence Permit is provided for foreigners running their own business in Poland. Both foreigners who have registered a sole proprietorship and persons running a company (partners), as well as members of company boards who do not own shares, can apply for this type of residence permit.
Criteria for applying for a residence permit based on conducting business in Poland.
Many foreigners wonder what income allows them to apply for a residence permit. The basic prerequisite enabling the application for this type of permit is documenting that in the year preceding the application, the company achieved the appropriate income. The required income is 12 times the average monthly gross salary in the national economy announced by the President of the Central Statistical Office.
Additionally, an entrepreneur applying for a Temporary Residence Permit is required to submit documents confirming that the company employed at least two Polish citizens or EU citizens or foreigners holding appropriate residence permits, based on an employment contract for an indefinite period and full-time, for a minimum of one year before submitting the application.
If the company has been on the market for less than a year and therefore the above-mentioned documents cannot be provided, the foreign entrepreneur is obliged to demonstrate, through contracts, invoices, investments made, and a business plan, that they have the ability to meet these criteria in the future.
