How to set up a limited liability company and why is it worth to do that?
A limited liability company is a form of business that can save you a lot of money. More and more entrepreneurs decide to establish a limited liability company, but some hesitate due to more complicated procedures than in the case of sole proprietorship. Contrary to appearances, establishing a limited liability company however, it is neither very difficult nor very expensive. Moreover, the transition to this form of activity gives much greater savings and better opportunities to optimize taxes. Is it worth setting up a limited liability company? Yes, we know all about it and share it.
Limited liability company - what is it and who can establish it?
Limited liability company is a form of business activity in the category of capital companies. This means that its establishment requires the initial (share) capital - according to the regulations: minimum PLN 5,000. Importantly, the partnership agreement specifies its coverage - it can be a cash contribution, but it can also be the so-called in-kind contribution. In practice, this means that we do not have to have the amount of PLN 5,000 in cash to be able to pay in the initial capital.
Who can set up a limited liability company? It's easier to say who can't - that is, a one-person limited liability company. In addition to this entity, a limited liability company may be founded by one or more people. The question arises - what kind of activity can I establish a limited liability company for? For each that complies with applicable regulations. Do you want to run an online store? Are you a marketing specialist? Or maybe you are setting up a cafe? Private Limited company. will give you benefits that you will not experience by running a sole proprietorship.
Partner in a limited liability company - who can become one?
One of the first steps in establishing a limited liability company there is a choice of partners (it can also be one partner). The requirements for shareholders are as follows:
- A natural person (of legal age) with full legal capacity (i.e. cannot be incapacitated);
- A person with limited legal capacity - only with the consent of the legal representative (i.e. legal guardian, parent, etc.);
- Legal person (except for a civil law partnership and a sole proprietorship limited liability company).
The costs of establishing a limited liability company and the ways of establishing it
The most important part for most entrepreneurs - i.e. the cost of establishing a limited liability company. There are two possibilities, and they depend on the method of establishing the company - traditional and via the Internet. Each of these methods has certain advantages and differs in upfront costs. The most important thing, however, is that in the long run, the limited liability company it allows you to save much more than a sole proprietorship, and - which is also important - the partners are not liable with their private property for the obligations of the company (as opposed to entrepreneurs running a sole proprietorship).
The costs of establishing a company in a traditional way
This method is more expensive than establishing a limited liability company. via the Internet, but it ensures that all provisions in the articles of association are created and checked by a professional in the field of law. You also have to take into account that the process of establishing a company will take some time. Nevertheless, in the case of larger activities, it is worth choosing this way. The costs are as follows:
- Notary fee, depending on the share capital, i.e .:
- With the share capital of PLN 5,000: PLN 160;
- With the share capital of PLN 5,000 - PLN 10,000: PLN 160 + 3% of the surplus PLN 5,000;
- With share capital <PLN 10,000 - PLN 30,000: PLN 310 + 2% of the surplus from PLN 10,000;
- With share capital <PLN 30,000 - PLN 60,000: PLN 710 + 1% of the excess PLN 30,000;
- With share capital <PLN 60,000 - PLN 1,000,000: PLN 1,010 + 0.4% of the surplus PLN 60,000;
- With share capital <PLN 1,000,000 - PLN 2,000,000 - PLN 4,770 + 0.2% of the surplus PLN 1,000,000.
- Company registration fee (entry in the National Court Register): PLN 500;
- Announcement of the registered company in the Court and Economic Monitor: PLN 100;
- Tax on legal transactions: 0.5% of the share capital, reduced by the notary fee and the cost of entry into the National Court Register by the cost of the announcement in the Court and Economic Monitor;
- Extract of a notarial deed 6 PLN + VAT / page (you can often count on a discount).
Such a list of costs may be discouraging but we will use an example to debunk the myth about the high costs of establishing a limited liability company. - assuming that the share capital is the minimum amount of PLN 5,000.
- Fees related to the National Court Register: PLN 600 (registration - PLN 500 + announcement in the Court and Economic Monitor - PLN 100);
- Notary fee: PLN 160;
- Tax on legal transactions: PLN 21 (approx.).
- Extract of a notarial deed - depending on the number of pages and a possible discount at the notary's office.
The costs of establishing a company via the Internet
If you want to reduce costs when setting up a limited liability company - choose an electronic option. In this case, the costs related to the notarial fee and the extract of the notarial deed are removed. Moreover, the remaining costs differ slightly, namely:
- Entry in the National Court Register: PLN 250;
- Announcement of the registered company in the Court and Economic Monitor: PLN 100;
- Tax on legal transactions (with share capital of PLN 5,000): approximately PLN 21.
You only need a qualified signature (you can use e-PUAP) to set up a limited liability company. from home or other place (with Internet access). If you are not sure about the details of the articles of association - contact us, we will help.
Limited liability company - how much can you save?
We have good news - you can save a lot. We are talking about amounts in the range of PLN 20,000 per year and more. How it's possible? Some useful information below:
- Share capital is required to set up a company, but can be paid out in the form of wages at the end of the month;
- There is no obligation to pay ZUS (it is probably not necessary to explain what this saving is);
- In order to have health insurance, it is enough to sign a contract of mandate with the company - for example, for PLN 300 net / month - ZUS and contributions will amount to about PLN 150. Another option is to work in a & frac14; full-time job (continuity and stability of employment are maintained and all social security contributions are transferred);
- In order to reasonably settle accounts with the company and minimize tax expenditures, you can, for example: rent the company your own car, equipment, space for an office, grant a trademark license, sign contracts for a specific work (with the transfer of copyrights) or an order (contracts with students include no ZUS and no tax).
By appropriately planning expenses (the company's costs described above), you can save even more - then there is no double taxation. What does this mean in practice? The fact that the real income tax is around 8-9%. Income tax for sole proprietorship is 18% or 19%, so the difference is significant. Let us also recall the perspective of the Nowy Ład order and its health contribution of 9%, which cannot be deducted - the real difference is the level of savings of 20%. Do you want to earn more? Do you have questions about establishing a limited liability company? Contact us - taxes, bills, companies - this is our natural environment, we will help you.
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