Deregulatory package – less formalities for entrepreneurs

The first deregulatory package will make it easier to set up and run a business in Poland. Its objective is to reduce the administrative burden on entrepreneurs, simplify procedures and solutions to promote development of the smallest firms, including those in the crafts sector. The package will include solutions such as digital version of the leasing agreement or digital version of the promissory note.

Deregulation of commercial law regulations – key solutions

The deregulation package is the result of a dialogue with representatives of the business community. Many of the proposals included in the bill, such as shortening the time of inspections of micro-enterprises, result from the postulates formulated by the Prime Minister. The government’s goal is to create a law that is friendly to entrepreneurs – stable, understandable and better consulted. The deregulation package includes almost 50 solutions in 35 amended acts (among others, the Code of Administrative Procedure and the Civil Code).

The main assumptions of the deregulation package:

• Reduction of regulatory obligations
• Speeding up administrative procedures
• Support for the development of micro-enterprises
• Reducing the time of inspections of micro-enterprises (from 12 to 6 days)
• Making the number of inspections dependent on the risk category (low – no more often than once every 5 years, medium – once every 3 years, high – once every 2 years)

The above actions are to significantly improve the conditions for entrepreneurs to start and conduct business activity in Poland. The package will include digital leasing agreements or a digital version of the promissory note. From the point of view of the entire process, this will facilitate the functioning of micro, small and medium-sized enterprises. The changes are also aimed at introducing entrepreneur-friendly commercial law through, for example, a “one in, one out” principle (each added obligation will entail the need to eliminate another burden).

As part of the facilitation for business, the law makers propose:

• Possibility for persons conducting unregistered activity to use only the PESEL number
• Extension of the list of legally permissible forms of conducting business activity in the crafts sector
• Clarification of the provisions relating to the program known as Small ZUS Plus (Mały ZUS Plus)
• Regulating the issue of contributions on civil law contracts concluded as part of the unregistered activity
• Clarification of the possibility of conducting unregistered activity by foreigners

Longer vacatio legis – a response to the needs of entrepreneurs

The government strives to ensure that the law facilitates business activity and does not constitute a barrier to the development of enterprises. Therefore, one of the priorities is the principle of appropriate vacatio legis for introduction of new bills.

In response to the need to provide adequate time for entrepreneurs to adapt to new regulations, the law makers propose to extend the vacatio legis for bills that result in an increase in the regulatory burden on firms. The point is that the date of entry into force of such a law should be no less than 6 months from the date of its publication.

Law for business, or when deregulation will become a fact

The changes proposed in the bill will certainly create favourable conditions for development of entrepreneurship in Poland, fostering economic growth and the creation of new jobs. The elimination of interpretative ambiguities in the regulations, the improvement of procedures for companies or the provision of greater legal certainty for entrepreneurs when it comes to running a business should be assessed positively.

The deregulation package is currently in the consultation process. The Ministry of Development that prepares deregulation package, expects it will be debated by the Sejm at the end of this and the beginning of the next year.

The bill is on the list of the Government Legislation Centre.

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