Who Is Allowed to Register and Run a Sole Proprietorship (JDG) in Poland
Two Separate Legal Regimes: Business Activity vs. Legal Stay
The right to register and operate a sole proprietorship (jednoosobowa działalność gospodarcza – JDG) and the right to stay in Poland for more than 3 months are two independent legal regimes.
They are regulated by different legal acts, pursue different objectives, apply different conditions, and fall under the authority of different public bodies.
The right to conduct business activity derives from commercial law, primarily the Act of 6 March 2018 – Entrepreneurs’ Law (Prawo przedsiębiorców).
In contrast, the right of a foreigner to stay in Poland is governed by the Act of 12 December 2013 on Foreigners and depends on holding a specific residence title.
This distinction is fundamental, yet often ignored in practice – which leads to incorrect and legally fragile migration strategies.
Different Sources of Law and Different Legal Logic
1. Business Law Regime (JDG)
The freedom to establish and conduct business activity in Poland is a general principle under Polish law.
For foreigners, however, this freedom is not universal and applies only within limits explicitly defined by statute.
A key role is played by the Act of 6 March 2018 on the Rules of Participation of Foreign Entrepreneurs in Economic Activity in Poland, which determines:
- which foreigners may conduct business on the same terms as Polish citizens;
- when foreigners are limited to corporate forms only;
- which forms of business activity are entirely prohibited.
This regime answers one core question:
Is a given foreigner legally allowed to be an entrepreneur in the form of a sole proprietorship (JDG)?
2. Residence Law Regime (Temporary Stay)
The residence regime answers a completely different question:
Is the foreigner allowed to stay in Poland for more than 3 months, and under what conditions?
In residence proceedings, the authority (voivode) assesses, among others:
- the declared purpose of stay and its credibility;
- sources of income;
- accommodation;
- health insurance;
- absence of threats to public order and security.
Importantly, registration in CEIDG or running a business does not constitute a residence title.
Who Is Allowed to Register and Run a JDG in Poland
The right of a foreigner to operate a sole proprietorship is not universal and depends strictly on citizenship or residence status, as defined by Polish law.
1. EU, EEA and Swiss Citizens
On the same terms as Polish citizens, the right to register and run a JDG applies to:
- citizens of EU Member States;
- citizens of EEA countries (Norway, Iceland, Liechtenstein);
- Swiss nationals.
For this group, access to JDG is full and unconditional and does not depend on the type of residence document.
2. Third-Country Nationals Treated as Polish Citizens for Business Purposes
Non-EU nationals may run a JDG only if they hold one of the statuses explicitly equated with Polish citizens under business law, including:
- permanent residence (pobyt stały);
- EU long-term resident status;
- Karta Polaka (combined with a legal right to stay);
- refugee status;
- subsidiary protection;
- humanitarian or tolerated stay;
- temporary residence permits issued in connection with:
- family reunification;
- studies in Poland;
- scientific research;
- EU Blue Card employment;
- other cases provided for by special laws or international agreements.
In these cases, the foreigner may legally operate a JDG, but this does not automatically mean that JDG can serve as the legal basis for a temporary residence permit.
3. Temporary Access Under Special Legal Regimes
Certain foreigners obtain access to JDG under special temporary laws, most notably:
- holders of PESEL UKR under the Ukrainian special legislation.
This access is temporary and conditional.
It does not create a permanent right of residence and does not provide a stable basis for long-term migration planning.
4. Foreigners Who Are NOT Allowed to Run a JDG
Third-country nationals who:
- do not hold permanent residence or EU long-term resident status;
- do not belong to any privileged category listed above;
- stay in Poland on a visa or short-term residence without special status,
are not allowed to register or operate a JDG.
For them, only corporate forms are permitted, such as:
- limited liability company (sp. z o.o.);
- joint-stock company;
- limited partnership;
- limited joint-stock partnership.
Operating a JDG despite these restrictions constitutes a violation of Polish law.
Key Legal Warning
The right to conduct business is not equivalent to the right to stay in Poland.
These are two autonomous legal constructs that only occasionally intersect.
Why This Distinction Is Critical
At this stage it must be determined:
- whether JDG is legally available at all;
- whether the migration strategy is built on a lawful premise;
- whether the choice between JDG and a company is legally valid or merely illusory.
JDG ≠ Automatic Right of Stay
Many foreigners run a JDG thanks to an independent residence title, such as:
- permanent residence;
- EU long-term resident status;
- certain types of temporary residence;
- Karta Polaka combined with a residence right.
In such cases, JDG is an economic activity, not a migration basis.
Applying for a temporary residence permit for business purposes is a separate procedure with its own economic criteria — not derived from business registration alone.
Conclusion
The right to register and operate a sole proprietorship (JDG) is an independent institution of Polish business law and must not be confused with the right of residence.
Access to JDG depends not on migration intent, but on specific statutory rules limiting entrepreneurial freedom based on citizenship and residence status. Failing to distinguish between these regimes leads to structural legal errors – when residence strategies are built on a form of activity that is either unavailable or legally irrelevant for migration purposes.
Therefore, the issue of access to JDG must be resolved before planning any residence permit strategy – not as its supplement or corrective measure.
Ukrainian version of this article
Contact For professional assistance regarding Polish immigration, residence procedures, and administrative compliance, you may contact me via Telegram: @aleks_dokumenty