JDG as a Residence Legalisation Tool: When It Works – and When It Leads to Refusal or Revocation
Why the idea of “JDG as a way to legalise residence” appears at all
For some foreigners, a sole proprietorship (JDG) seems like the most accessible structure:
“I create my own source of income, and my purpose of stay is business.”
Formally, Polish law does allow temporary residence where the purpose of stay is conducting economic activity.
However, this is where the core misconception begins.
The law grants residence for real business activity, not for obtaining “any residence card”.
Administrative authorities — especially where financial indicators are weak — consistently assess such cases through one central lens: is the declared purpose of stay genuine and economically real?
The legal test that breaks “migration-driven” JDG cases: purpose of stay + economic reality
In practice, cases based on business activity are reduced to two fundamental questions:
- Is there a real purpose of stay (actual business activity)?
- Does that activity economically sustain the foreigner’s stay (income and indicators the authority considers sufficient)?
This is precisely why a JDG without invoices, contracts, or cash flow usually fails – even if it is formally registered.
It is also why the risk of revocation (cofnięcie) arises later, if the authority concludes that the purpose of stay has disappeared or the conditions are no longer met.
When JDG may be the only or a backup basis – and why that does not make it “easy”
There are situations where JDG objectively becomes:
- the only realistic legal basis (no employment, studies, or family ties, but a genuine market opportunity); or
- a fallback option when the primary residence title is unstable.
However, “only” does not mean “simple”.
Business-based residence involves a high evidentiary threshold.
In official procedural descriptions, authorities often refer to expected income at the level of twelve times the average monthly salary as an element of assessing economic sufficiency.
Why JDG is not a universal solution: five recurring problems in practice
1. Not every foreigner is legally allowed to operate a JDG
Access to JDG depends on residence status and rules governing economic activity by foreigners.
Before any migration procedure begins, there is a preliminary question: are you allowed to run a JDG at all, or only a company (spółka)?
2. Financial burden and debt risk
JDG means ZUS contributions, taxes, and accounting obligations.
Without a financial buffer, migration-toxic issues appear quickly: arrears (zaległości).
3. “Dormant” activity does not work
Authorities assess substance, not form.
If the business exists only on paper, applying for or extending residence is effectively a request for a residence card without fulfilling its material conditions.
4. Pseudo-B2B with a single client
Where the model resembles disguised employment without genuine business independence, authorities often treat it as weak justification of both the purpose of stay and economic relevance.
5. Greater administrative discretion than with “classic” residence titles
Employment, studies, or family reunification involve clearer criteria.
Business activity involves evaluative judgments:
Is income sufficient? Regular? Sustainable? Is the business real?
This makes outcomes less predictable.
The point where JDG turns into a strategic mistake
Using JDG as a residence basis is usually a mistake when three factors coincide:
- the real goal is “any residence card”, not business;
- there is no real or reasonably projected income at an acceptable level;
- there is no financial buffer for ZUS, taxes, and living costs during a lengthy procedure.
In this combination, the risk extends beyond refusal.
It includes debts, loss of legal stay, and revocation risk, even where a residence card has formally been issued.
The revocation mechanism follows directly from Article 101:
if the purpose disappears or requirements are no longer met, revocation becomes legally justified.
Who actually has realistic prospects for residence based on business activity
This residence title is usually coherent for:
- self-employed professionals with multiple clients and predictable turnover;
- entrepreneurs with real investments or binding contracts;
- managers or company owners whose physical presence in Poland is objectively necessary (the logic of Article 142 covers managerial functions).
Conclusion
Using a sole proprietorship (JDG) as a basis for legalising residence in Poland is formally permitted by law.
However, by its legal nature, this mechanism is not designed as a universal or compensatory solution.
Article 142 of the Act on Foreigners does not create an alternative to any other residence title.
It opens a pathway only for those whose economic activity is the real and dominant purpose of their stay.
The decisive element is not JDG registration or a declared intention to work, but the objective capacity of the business to economically justify residence.
In practice, this means assessment of real income, regularity, financial discipline, and the factual nature of the activity.
At this stage, JDG chosen merely as a tool to “hold” residence – without an established economic base – most often fails.
Due to the high level of administrative discretion, business-based residence carries a higher degree of legal uncertainty than employment-, family-, or study-based permits.
As a result, the cost of an incorrect strategic choice is significantly higher. JDG can function as an effective migration title only where it reflects a genuine professional model supported by an existing or credibly projected market.
In all other cases — where the business is formal, economically weak, or secondary – JDG becomes not a stabilising solution, but a source of systemic legal risk, including refusal or loss of already granted residence.
Ukrainian version of this article
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