The difference between JDG and Sp. z o.o.
An Individual entrepreneurship is the simplest form of business activity:
- The JDG registration period is up to 7 working days;
- Making changes to the data takes up to one day and is free of charge;
- No share capital required;
- The sole owner is a taxpayer of personal income tax (PIT);
- Choice of tax system;
- Simplified accounting system;
- The entrepreneur can freely dispose of his money, but in the event of disputes, he is liable for all his property obligations;
- The entrepreneur has the exclusive right to represent his business;
- A much simpler and faster way (up to 24 hours) to suspend or close down your business if necessary.
A limited liability company (Sp.z o.o) - is a more complex form of business:
- The founders must sign the partnership agreement in the prescribed form, as well as a number of other documents required for registration;
- You have to pay a state fee to register your company;
- The deadline for registering a company lasts up to 30 days, the application for registration is considered, and the decision on registration is made by the court;
- You have to pay a state fee for making changes to your company, and it takes up to 30 days to make changes;
- When registering a company, it is necessary to create a share capital of at least PLN 5,000;
- Companies pay CIT (corporate income tax);
- One of the advantages of this legal form is that the co-founders are not responsible for the company's obligations, all obligations rest solely with the company. In the event of disputes, the company is liable with its assets and share capital.
- Requires full accounting, all cash flows must be documented and justified;
- The company is represented by the board;
- A more time-consuming process of closing the company, the decision to close is considered and made by the court, the closing process can take up to 2 years.
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