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Simple Joint Stock Company - is it worth it? Company registration address.
The growing range of business models in the contemporary world increasingly creates new dilemmas for governments and entrepreneurs. When starting a business, we have many things to think about, from where to place our stationary headquarters or to use a virtual office, a virtual address for correspondence and a virtual address for company registration. However, the beginning of the considerations is the form of conducting business. PSA, or a simple joint-stock company, is a novelty in the Polish entrepreneurship system, and its features attract and encourage entrepreneurs to change. This article is to serve as information and a partial guide answering the main question of the entrepreneur
“Is it worth it?”
Let's start with a definition. A simple joint-stock company* (PSA) is defined as:
"a new, non-public type of commercial company that combines limited liability of partners for the company's obligations with a great deal of flexibility, both in terms of shaping the mutual relations between partners and the management system of such a company."
Virtual office as an address for company registration.
The main features of PSA include:
1. No major formalities when establishing or dissolving
2. A modern mechanism for protecting the company's creditors (prohibition on making payments to partners if they threaten the company's solvency)
3. The capital required to establish it is only PLN 1.
4. Can be installed by one person
5. The option of establishing a board of directors that combines the features of the management board and the supervisory board
6. Simpler procedures and greater freedom in adopting resolutions
7. Greater flexibility of types of shares and company operating rules
8. Possibility of setting up online
9. Possibility of keeping a register of shareholders in digital form
10. Easier management of company funds - no so-called "frozen" share capital
Such a company can use the service of a virtual office in Krakow, a company registration address in Krakow and a correspondence address in Krakow.
Virtual company registration address is a perfect solution and convenience.
When establishing a Simple Joint Stock Company, just like in the case of any other company, we must draw up an appropriate agreement. We can find agreement templates online, and instructions on government portals. Going further, let's pay attention to the real benefits, apart from the "simplification" itself. Shareholders are not liable for the obligations of a simple joint stock company - in practice, this means that we can make a non-cash contribution and it will cover our shares. And what is more interesting, shares do not have a so-called nominal value, and do not constitute part of the share capital and are indivisible. The share in profits is distributed among shareholders in proportion to the number of shares. It is worth remembering that after making payments from the share capital to shareholders, the amount of capital cannot be reduced below the sum of PLN 1. Going further, in PSA - the money paid into the share capital can be returned to the paying partner and it is not required to carry out a capital reduction procedure. Non-cash contributions, i.e. inalienable rights, work or services, do not constitute income for which we have a tax obligation in the scope of PIT. A shareholder is considered as a "person conducting non-agricultural business activity". This means that they are subject to insurance - retirement, disability, sickness and accident. It should be remembered that other shareholders, (making contributions in another subject), will not be subject to these obligations. There is also a kind of hidden cost, apart from the symbolic one złoty, because - you have to pay at least one thousand złoty for creating a register of shareholders.
Remember that the members of the company may live in different parts of Poland, and it would be an unnecessary expense to run a stationary office with a person employed to operate it. In such a situation, the service may be an excellent solution. virtual office in Krakow giving the possibility correspondence address in Krakow and an address for registering a company at a prestigious address that is difficult and expensive to rent as a stationary office.
PSA has its advantages, but because it is a new “creation” one should be careful when establishing and running it. The opinions of many experts on the subject at the moment (article written in January 2022) are often:
"we'll see", "I would be careful", "time is of the essence" and the significant "it has many advantages, but we'll see what the legal reality will show".It is worth seeking advice from a tax advisor to ensure whether PSA is the right choice for you.
If you are interested in registering a company in Krakow, we recommend our experienced virtual office Krakow, you can rent an address for company registration here Krakow is a great place for this. We invite you to visit us
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