What is the difference between Sp. z oo and JDG in Poland?

A simple comparison

The differences between sp.zoo and jdg lie in responsibility, taxes, bureaucracy, and scalability. The choice directly impacts your risks, costs, and prospects.

According to the Central Statistical Office of Poland, as of the beginning of 2025, there were over 550,000 registered private limited liability companies (SPs) and approximately 2.7 million registered private limited liability companies (JDGs). Among foreign entrepreneurs, over 701,000 initially choose to operate as private limited liability companies (JDGs) and then, as their business grows, switch to SPs.

Need help choosing between Sp. z oo and JDG?

What is sp. z oo (spółka z ograniczoną odpowiedzialnością)

Sp. z oo, also known as sp. zoo or spółka z ograniczoną odpowiedzialnością, is the Polish equivalent of a limited liability company (OOO). It is a business form chosen by entrepreneurs seeking to scale and protect their assets. It is often used in IT, logistics, manufacturing, and when working with international partners.

Main characteristics of sp. z oo

  • The minimum authorized capital is PLN 5,000.
  • Liability is limited to contribution to the company.
  • Full accounting is required.
  • It is possible to have one or more founders.
  • Convenient for attracting investors and partners.

Example: A Ukrainian entrepreneur registered an sp. z oo in Warsaw for an online store. He was able to attract a German partner and an investor, while his personal assets were protected.

Advantages of sp. z oo

  • Protection of personal property (important for risky projects).
  • It is easier to attract financing and enter the B2B segment.
  • Generates greater trust among banks and counterparties.
  • Flexible structure: you can change participants and divide shares.

Fact: Over the past five years, the number of sp. z oo in Poland has grown by 221 TP3T. This demonstrates the popularity of this form among established and growing companies.

Disadvantages of sp. z oo

  • Double taxation: first tax on profits, then tax on dividends.
  • Mandatory monthly reporting and annual report.
  • The cost of accounting services is higher.
  • More formalities when registering and making changes to the structure.

What is jdg (jednoosobowa działalność gospodarcza)

A JDG, or sole proprietorship, is the Polish equivalent of a sole proprietorship (IP). It's the simplest form of business or self-employment. Ideal for freelancers, artisans, consultants, small traders, and service providers.

Key Features of JDG

  • Simple registration (can be done online in 1 day).
  • One founder/founder.
  • Liability - with all property, including personal property.
  • There is a choice of taxation: scale, linear tax, ryczałt.
  • Suitable for businesses without major risks and debts.

Fact: In 2025, there were over 2.7 million registered JDGs in Poland, of which over 300,000 were owned by foreigners.

Advantages of JDG

  • Minimal costs for opening and maintenance.
  • Simple accounting, especially with ryczałt.
  • You can start working immediately after registration.
  • Flexibility in choosing taxation.

Interesting: JDG is most often registered by representatives of such industries as IT freelancing, cosmetology, repair, marketing, and courier services.

Disadvantages of JDG

  • The entrepreneur bears full personal responsibility.
  • There is no possibility of attracting investors in a legal form.
  • It is difficult to scale a business, especially in B2B.
  • Some large partners and banks are distrustful.

Key differences between sp. z oo and jdg

Criterion sp. z oo jdg
Responsibility Only within the limits of the authorized capital Full, with all personal property
Authorized capital Minimum 5000 zł Not required
Taxes Income tax + dividend tax One tax according to the chosen system
Accounting Complete, mandatory Simplified (depending on taxation)
Investment opportunity Yes (entry of new partners, investors) No
Registration More difficult, longer Simple and fast
Closing a business More difficult and longer Fast and easy
Form of ownership Legal entity (LLC/LTD) Individual Entrepreneur (IE)

These differences are critical when choosing a form. They determine your liability, tax structure, reporting format, and growth prospects.

How to choose between sp. z oo and jdg?

When is it more profitable to open a sp. z oo?

  • You are planning to build a business with partners or investors.
  • Your activities are associated with risks (e.g. import, production).
  • You want to protect your personal assets.
  • Are you planning to work with large companies or banks?
  • It is important for you to build a brand and trust in the market.

Case: A logistics startup looking to attract investors—it's best to choose sp. zoo right away.

When is it better to choose jdg?

  • You are a freelancer, consultant, or provide services yourself.
  • You have low risks and no hired employees.
  • You want to minimize start-up costs.
  • The business is limited to the local market or operates on a one-man team.

Case: A freelance designer with orders for ryczałt is an ideal candidate for jdg.

Expert advises

Lawyer Andrzej Nowak, specialist in corporate law:

If you have any doubts, start with a JDG, but keep in mind that as you grow, you'll need to upgrade to an SP. z oo. It's important to remember: your business structure isn't just about taxes; it's also about your responsibilities to yourself and your clients.

Answers to frequently asked questions from entrepreneurs

Is it possible to switch from jdg to sp. z oo?

Yes, this is a common practice. Typically, the transition occurs when revenue grows or a desire to scale.

Which type is easier to close?

Jdg is closed faster and easier. Closing a sp. z oo requires liquidation through the court or a notary.

Where are taxes higher at the start of a business?

A JDG with a ryczałt or linear tax is cheaper at the start. A Sp. z oo is subject to two taxes, but can be advantageous when reinvesting profits.

Have there been any changes in legislation?

Yes. In 2022–2024, changes to the ryczałt system were introduced, as well as new electronic reporting forms for sp. z oo. Follow the updates on biznes.gov.pl и gov.pl.

Need help choosing between Sp. z oo and JDG?

Conclusion

Choosing between sp. zoo and jdg depends on your goals, risk level, and business scale. If you're starting out as a freelancer or self-employed, jdg will be simpler and cheaper. If you want to protect yourself from risks and build a scalable company, choose sp. z oo. Need help choosing or registering? We offer consultations, registration assistance, verification of your current form, and tax optimization.

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Damien Vice

02/11/2025

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Andrii Melnychuk

26/08/2025

I highly recommend Łatwy Start! Thanks to them, my two kids and I received 3-year residence cards without any stress. Special thanks to manager Kristina — she was extremely helpful and even managed to speed up the process for my children. Excellent service, very satisfied!

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Anton Mezhuiev

26/08/2025

Чудова робота, все відбулося швидко і дуже професійно, з чіткими інструкціями і нотатками про ті документи, що вимагалося надати з моєї сторони — і як саме їх правильно заповнювати. Запис на подачу і видача самої карти зайняла набагато меньше часу, ніж спочатку очікувалося (перше звернення у січні, подача документів і відбитків в березні — а в серпні вже отримав пластік).

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Anastasiya Balotnikava

26/08/2025

Недавно получила вторую карту с Łatwy Start, как и в первый раз – все было отлично, положительная децизия по итогу.

Благодарю менеджера Кристину за работу и своевременное напоминание про все нужные шаги, довольна совместной работой ✨

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Inna

03/08/2025

3 раза членами семьи сотрудничали с компанией по получению карт побыта в разное время и работали с разными специалистами. До этого были попытки с другими компаниями , но именно высочайший уровень профессионализма Latwy Start сделал нас постоянными клиентами. Каждый раз самое благоприятное впечатление за высокий уровень профессиональной работы и моральную поддержку. Особая отдельная благодарность Ольге! Ольга очень помогла, всегда на связи по любым вопросам, отличные профессиональные советы на каждом этапе, начиная с первого общения еще до заключения договора и до успешного получения карты. Как ангел-хранитель «провела за ручку» через все сложные перепитиии, поддержала словом и делом. Огромная Благодарность Ольге и всей компании! Процветания вам и хоррших клиентов!

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Oleksandr Drobyshev

15/07/2025

Все супер

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Yevgeniy Postebailo

14/07/2025

Всё понравилось, везде сопроводили, всё обьяснили.
Была пара непонятных вещей, но не стесняйтесь спрашивать — всегда отвечают и консультируют.
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Aliaksei Seniukovich

11/07/2025

Хочу выразить огромную благодарность Кристине из Łatwy Start за профессиональную помощь в получении вида на жительство в Польше. Благодаря её опыту, внимательности и доброжелательному отношению весь процесс прошёл легко и без лишнего стресса. Кристина всегда была на связи, подробно отвечала на все вопросы и помогала на каждом этапе оформления документов. Искренне рекомендую её услуги всем, кто ищет надёжную поддержку в решении миграционных вопросов в Польше!

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Gennady Bakunovich

11/07/2025

I had a really positive experience with Łatwy Start. Manager Kristina was supportive and always ready to help with any questions. I got my temporary residence permit without any issues and with minimal effort on my part. I really appreciate their work and highly recommend them 🙌

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