Publication date: January 15, 2025

Practical comments under Polish and EU law

Entrepreneurs use various types of contracts in the course of conducting business activity. In business transactions, there are named contracts (i.e. regulated by the provisions of applicable laws) and unnamed contracts (i.e. contracts permissible due to the principle of freedom of contract, but not regulated in any applicable legal act). The type of contract depends on the characteristics of the legal relationship established between the parties. The name of the contract itself does not determine its nature, which is why a civil law contract may be recognized as an employment contract.

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Publication date: January 14, 2025

When considering infringement of a company’s logo or name in light of the provisions of the Civil Code^[1], it is necessary to analyze in detail the claims to which the company is entitled and the legal grounds on which they can be based. The company’s logo and name are elements of the designation that individualizes the entrepreneur on the market, which is reflected in the provisions on the protection of personal rights and the right to a company.

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Establishing companies in Poland by foreigners

Publication date: January 13, 2025

general information about the profit and loss statement

Establishing a company in Poland by foreigners is possible, but requires meeting certain conditions, which vary depending on the origin of the foreigner. EU and EEA citizens can establish a business on the same terms as Poles. US and Swiss citizens can conduct business on the basis of international agreements. Ukrainian citizens can establish companies on the basis of specific regulations regarding assistance to Ukrainian citizens.

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Publication date: January 08, 2025

The classification of business activity is a system used to classify types of business activity and is regulated by the Regulation of the Council of Ministers on the Polish Classification of Activities. This system plays a key role when starting a business, because entrepreneurs are required to assign appropriate business activity codes, which precisely define the scope of the business activity conducted. In practice, however, as shown by the judgment of the Supreme Administrative Court of 7 July 2016 (ref. II GSK 342/15) [1], assigning the appropriate business activity code is not always unambiguous. The court ruled on a case in which the entrepreneur had doubts as to which category of activity he should choose to best reflect the actual nature of his company. What seems like a simple formality – assigning one of the many available business activity codes – in practice can become a problematic issue, with serious legal consequences. In this particular case, the entrepreneur indicated a code that he believed best suited his business, but the administrative authorities found that the assigned business activity code may not correspond to the actual activity, which led to the need to correct the registration. This judgment emphasizes how important it is for the business activity code to accurately reflect the scope of the business activity conducted. Correct classification is the foundation for the correct settlement of business activities in terms of tax liabilities, such as VAT or income, as well as other administrative obligations. Correct assignment of the business activity code affects what regulations will apply to the entrepreneur, and thus what VAT rates apply to his services or goods, or what group of tax reliefs he falls into. In the discussed judgment, the Supreme Administrative Court pointed out that incorrect assignment of the business activity code may result not only in problems with tax settlement, but also in negative consequences in the context of tax audits. In practice, the tax administration may question the incorrectly assigned code, and as a result of such verification, the entrepreneur is forced to correct tax returns, which is associated with additional costs and formalities. Moreover, the court indicated that entrepreneurs may be forced to re-verify their activities, which in the long term may lead to unnecessary administrative complications. An equally important aspect that appeared in the ruling is the issue of the ambiguity of some business code categories. In many cases, business activities may cover different areas that fit several business activity codes, which is why the entrepreneur may encounter difficulties in choosing the right one. The Supreme Administrative Court ruling shows that in such situations, the entrepreneur must demonstrate great diligence in choosing the code so as not to mislead the administrative authorities, and thus avoid potential consequences. For this reason, it is so important for entrepreneurs to take special care to correctly assign the appropriate business activity code already at the stage of registering the business.

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Publication date: January 07, 2025

What is the prohibition of discrimination?

The prohibition of discrimination at work is included in Article 18^3a) of the Labour Code and in the Constitution in Article 32, which requires equal treatment in all aspects, including those related to work.

Discrimination may be related to;

• gender,
• age,
• disability,
• race,
• religion,
• nationality,
• views,
• origin,
• religion or sexual orientation
• either due to employment for a fixed or indefinite period or on a full-time or part-time basis.

The above criteria are not socially acceptable and any unjustified unequal treatment of employees is considered discrimination.

Direct and indirect discrimination

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