Comprehensive Guide to the Polish Code of Commercial Companies

Classification and Fundamental Provisions of Commercial Companies

• Definition of Commercial Companies (Art.1): The following are defined as commercial companies in Polish law:     * Spółka jawna (general partnership)     * Spółka partnerska (professional partnership)     * Spółka komandytowa (limited partnership)     * Spółka komandytowo-akcyjna (limited joint-stock partnership)     * Spółka z ograniczoną odpowiedzialnością (limited liability company / sp. z o.o.)     * Prosta spółka akcyjna (simple joint-stock company / P.S.A.)     * Spółka akcyjna (joint-stock company / S.A.)

• Applicability of the Civil Code (Art. 2): For matters not regulated by the Commercial Companies Code, the provisions of the Kodeks cywilny (Civil Code) apply. These are applied appropriately if the nature of the commercial company's legal relationship so requires.

• The Company Agreement (Art. 3): Through a commercial company agreement, partners or shareholders commit to achieving a common goal by making contributions and, if the agreement or statute specifies, by cooperating in other defined ways.

• Categorization of Companies (Art. 4 § 1):     * Spółka osobowa (Partnership): Includes spółka jawna, spółka partnerska, spółka komandytowa, and spółka komandytowo-akcyjna.     * Spółka kapitałowa (Capital Company): Includes spółka z ograniczoną odpowiedzialnością, prosta spółka akcyjna, and spółka akcyjna.     * Spółka jednoosobowa (Single-member company): A capital company where all shares belong to a single partner or shareholder.

• Definitions and Substitutions (Art. 4 § 2):     * The term "company agreement" includes the akt założycielski (founding act) prepared by a sole partner/shareholder of a capital company.     * In a prosta spółka akcyjna with a rada dyrektorów (board of directors), references to a "management board" (zarząd) or "board member" (członek zarządu) refer to the rada dyrektorów or a dyrektor.     * Shareholder participation in the share capital of a prosta spółka akcyjna is defined as the ratio of shares held to the total number of issued shares.     * Recording a change in share capital for a prosta spółka akcyjna in the register refers to recording the change in the number of shares.

General Provisions for Partnerships (Spółki Osobowe)

• Legal Capacity (Art. 8): A partnership can, in its own name, acquire rights (including ownership of real estate and other property rights), incur obligations, and sue or be sued. It conducts business under its own firma (business name).

• Amendments to the Agreement (Art. 9): Changing the provisions of a partnership agreement requires the consent of all partners, unless the agreement states otherwise.

• Transfer of Rights and Obligations (Art. 10):     * The "totality of rights and obligations" of a partner can only be transferred to another person if the company agreement allows it.     * Transfer requires the written consent of all remaining partners (unless the agreement states otherwise).     * Liability: In the event of a transfer, the withdrawing partner and the joining partner are solidarily liable for the withdrawing partner's obligations related to company participation and the partnership's obligations.

Formation and Characteristics of Capital Companies

• Companies in Organization (Art. 11): Spółki kapitałowe w organizacji (capital companies in organization) can acquire rights, incur obligations, and sue/be sued in their own name. Provisions for the registered form of the company apply appropriately to these entities. Their name must include the suffix "w organizacji".

• Transition to Legal Personality (Art. 12): Upon entry into the register, the company in organization becomes the final legal entity (spółka z ograniczoną odpowiedzialnością, prosta spółka akcyjna, or spółka akcyjna) and gains full legal personality, becoming the subject of all rights and obligations of the company in organization.

• In-kind Contributions (Art. 14):     * Non-transferable rights or the provision of work/services cannot be in-kind contributions for spółka z o.o., spółka akcyjna, or the share capital of a prosta spółka akcyjna.     * Defective contributions: If a partner provides a defective in-kind contribution, they must compensate the company for the difference between the value in the agreement and the fair market value.     * Set-off prohibition: A partner/shareholder cannot set off their debts to the capital company against the company's claim for unpaid share/stock payments, though contractual set-off is not excluded.

Spółka Jawna (General Partnership)

• Definition (Art. 22): A partnership that conducts a business under its own name and is not another type of commercial company.

• Liability (Art. 22 § 2, Art. 31):     * Every partner is liable for company obligations without limitation with their entire assets, solidarily with other partners and the company.     * Subsidiary Liability: A creditor can only conduct execution from a partner's assets if execution from the company's assets proves ineffective. This does not prevent a creditor from suing the partner before company execution fails.     * Subsidiary liability does not apply to obligations incurred before registration.

• Formation (Art. 251): Created upon entry into the register. Persons acting in the company's name after founding but before registration are solidarily liable.

• Representation (Art. 29 & 30):     * Every partner has the right to represent the company in all judicial and extra-judicial activities.     * This right cannot be restricted with effect against third parties.     * A partner can be deprived of representation rights only for important reasons via a final court judgment or via the company agreement (e.g., joint representation with another partner or proxy).

• Management (Art. 39): Every partner has the right and obligation to manage company affairs. Ordinary activities do not require a resolution unless another partner objects.

• Contributions (Art. 48): Unless specified, contributions are assumed equal. They can involve transferring ownership, encumbering property, or providing services. If using a standard template agreement, only monetary contributions are allowed.

• Interest on Capital (Art. 53): Partners may demand annual interest of $5\,$ on their capital share, even if the company suffered a loss.

Spółka Partnerska (Professional Partnership)

• Purpose (Art. 86): Formed by partners (partnerzy) for the purpose of practicing a free profession in a company conducting business under its own name. Multiple professions may be practiced within one company unless prohibited by law.

• Partners (Art. 87 & 88): Only natural persons authorized to practice specific free professions can be partners. This list includes:     * Adwokata (advocate), aptekarza (pharmacist), architekta (architect), fizjoterapeuty (physiotherapist), inżyniera budownictwa (civil engineer), biegłego rewidenta (statutory auditor), brokera ubezpieczeniowego (insurance broker), diagnosty laboratoryjnego (laboratory diagnostician), doradcy podatkowego (tax advisor), maklera papierów wartościowych (securities broker), doradcy inwestycyjnego (investment advisor), księgowego (accountant), lekarza (doctor), lekarza dentysty (dentist), lekarza weterynarii (veterinarian), notariusza (notary), pielęgniarki (nurse), położnej (midwife), psychologa (psychologist), radcy prawnego (legal counsel), rzecznika patentowego (patent attorney), rzeczoznawcy majątkowego (property appraiser), and tłumacza przysięgłego (sworn translator).     * Note: A new version of this list takes effect on $19.05.2028$.

• Liability (Art. 95): A partner is NOT liable for company obligations arising from the professional practice of other partners or the actions of employees who were under the direction of another partner. The agreement can specify that one or more partners agree to be liable like a partner in a spółka jawna.

• Management (Art. 97): The agreement may entrust management and representation to a zarząd (management board). At least one partner must be on the board, but third parties are allowed.

Spółka Komandytowa (Limited Partnership)

• Structure (Art. 102): Consists of at least one komplementariusz (general partner) who has unlimited liability and at least one komandytariusz (limited partner) whose liability is limited.

• Suma Komandytowa (Art. 105 & 111): The limited partner's liability toward creditors is limited to a specific amount defined in the agreement called the suma komandytowa.

• Liability Rules (Art. 112):     * A limited partner is free from liability to the extent of the contribution made to the company.     * If a contribution is returned, liability is reinstated for the value of the return.     * If company assets are reduced by loss, payments made to the limited partner before the contribution is restored to its original value are treated as a return of contribution relative to creditors.     * Limited partners are not required to return profits received in good faith based on financial reports.

Spółka Komandytowo-Akcyjna (Limited Joint-Stock Partnership)

• Structure (Art. 125): At least one komplementariusz (unlimited liability) and at least one akcjonariusz (shareholder).

• Capital Requirements (Art. 126):     * The kapitał zakładowy (share capital) must be at least $50,000\,PLN$.     * Regulations for spółka jawna apply to general partners; regulations for spółka akcyjna apply to other matters (share capital, contributions, shares, supervisory board, general meeting).

Spółka z Ograniczoną Odpowiedzialnością (Limited Liability Company)

• Formation (Art. 151 & 163): Can be formed for any legal purpose by one or more persons, but not solely by another single-member limited liability company. Steps include:     1. Concluding the company agreement.     2. Partners making contributions to cover the entire share capital.     3. Appointing a management board (zarząd).     4. Establishing a supervisory board (rada nadzorcza) or audit committee if required.     5. Entry into the register.

• Capital and Shares (Art. 152 - 154):     * Minimum share capital: $5,000\,PLN$.     * Minimum nominal share value: $50\,PLN$.     * Shares cannot be taken below their nominal value. Excess payments go to the kapitał zapasowy (reserve capital).

• Representation and Disputes (Art. 210): In contracts or disputes between the company and a board member, the company is represented by the rada nadzorcza or a proxy appointed by the shareholders. If the sole shareholder is also the sole board member, a notarial deed is required for legal acts between them and the company.

• Supervision and Control (Art. 212 & 213):     * Every partner has individual control rights (inspecting books, asking for explanations).     * Zarząd can refuse if there is a fear of significant harm to the company. A shareholder can then demand a resolution or appeal to the registry court within $7$ days.     * A rada nadzorcza is mandatory if share capital exceeds $500,000\,PLN$ and there are more than $25$ partners.

Prosta Spółka Akcyjna (Simple Joint-Stock Company)

• Purpose (Art. 300(1)): Can be formed by one or more persons for any legal purpose (except by another single-member sp. z o.o.). Shareholders are not liable for company obligations.

• Shares and Capital (Art. 300(2) & 300(3)):     * Shares have no nominal value and do not constitute part of the share capital.     * Minimum kapitał akcyjny (share capital): $1\,PLN$.     * In-kind contributions can include work or services (Art $300(2) § 2$).     * Capital is not specified in the agreement; its changes do not require amending the agreement.

• Governance (Art. 300(52) & 300(73)): Can establish either a zarząd (management board) or a rada dyrektorów (board of directors). The rada dyrektorów manages, represents, and supervises simultaneously.

Spółka Akcyjna (Joint-Stock Company)

• Formation (Art. 301 - 310):     * Minimum share capital: $100,000\,PLN$.     * Minimum nominal share value: $0.01\,PLN$ ($1\,grosz$).     * Founding requires a statute in the form of a notarial deed.     * Company is established once all shares are taken.

• Corporate Bodies:     * Zarząd: Management and representation. Members appointed by the rada nadzorcza unless the statute says otherwise.     * Rada Nadzorcza: Mandatory in all S.A. companies (Art. 381).     * Walne Zgromadzenie: General meeting of shareholders.

• Key Powers of the General Meeting (Art. 393): Approval of reports, profit distribution, claims for damages during founding/management, sale/lease of the enterprise, acquisition of real estate (unless stated otherwise), and issuance of bonds/warrants.

Models of Management and Supervision

• Dualistic System (Two-level):     * Traditional Polish model for S.A. and sp. z o.o.     * Clear separation: Zarząd (management) and Rada Nadzorcza (control).     * Prohibition of combining roles (a member cannot be on both boards).

• Monistic System (One-level):     * Found in Prosta Spółka Akcyjna.     * Single body: Rada Dyrektorów.     * Combines management and supervision; can distinguish between executive and non-executive directors.

Summary of Registration and Legal Principles

• Principle of Unity of Civil Law: Commercial and civil law are parts of a single system. The Kodeks cywilny is the foundation. Lex specialis derogat legi generali applies: specialized acts like the Kodeks spółek handlowych take precedence over general civil code rules.

• Definition of Entrepreneur: An individual, legal person, or organizational unit with legal capacity performing economic activity. Partners in a spółka cywilna are also entrepreneurs.

• Registration (KRS vs. CEIDG):     * KRS (Krajowy Rejestr Sądowy): For commercial companies, cooperatives, state enterprises, and certain foundations/associations.     * CEIDG (Centralna Ewidencja i Informacja o Działalności Gospodarczej): For natural persons conducting individual business (JDG).