Nov 2017

Polish gov’t adopts ‘constitution for business’

Poland’s conservative government has adopted a package of regulations to help businesses by cutting red tape and making life easier for entrepreneurs, officials said on Tuesday

The new regulations, collectively referred to as a “constitution for business,” aim to simplify procedures for people setting up and running their own businesses, according to the country’s development ministry.

The package details the rights and obligations of businesses and also regulates their relations with the public administration, Deputy Development Minister Mariusz Haładyj told Polish Radio’s IAR news agency.

Whatever is not forbidden is permitted

The new rules include a presumption of entrepreneurial honesty and a principle of friendly interpretation of regulations whereby any doubts will be resolved in favour of the entrepreneur, officials also said, adding that a general rule in business will be that “everything which is not forbidden is allowed.”

The programme will allow small entrepreneurs to run a business without the need to register it if their monthly income is less than half the national minimum wage. This measure could benefit about 75,000 people, including those who provide services such as private tutoring, according to the ministry.The aim is to reduce the unregistered, tax-evading segment of the economy where people receive undeclared cash payments, officials have previously said.

Start-up package

Budding businessmen will be given special start-up incentives by being exempt from an obligation to pay social security contributions for the first six months. Later for two years they will be able to take advantage of more preferential treatment as part of the so-called “small social insurance” programme. Some 200,000 businesspeople will be able to benefit from this new measure every year, according to officials.

The “constitution for business” consists of a slew of legislation, including a draft entrepreneurship law that is scheduled to enter into force on March 1 and replace a business freedom law that was introduced in 2014 and has been amended more than 80 times since then.

The government outlined plans for its “constitution for business” almost a year ago at a conference in the southeastern city of Rzeszów.

In late October, Finance Minister Mateusz Morawiecki, the main architect of the government’s “constitution for business,” said the programme would simplify the tax system to the tune of PLN 3.8 billion (EUR 900 million) in savings for businesses over 10 years, according to a report.