Better legal environment of business

The Act of 16 December 2016 on Amending Certain Acts to Improve the Legal Environment of Business (the “Act”) came into force on 1 January 2017. Its main objectives are to liberalise certain aspects of conducting business activity, ease administrative obligations and introduce changes regarding control of business activity.


The Act introduces numerous changes aimed at deregulation of certain obligations of an administrative nature by, among other things: (i) abolishing the requirement for entrepreneurs to provide the Central Registration and Information on Business with their place of residence; (ii) raising the threshold for keeping a revenue and expense ledger; (iii) releasing certain categories of civil structures from the need to provide notification about themselves and obtain a construction permit for them.

Control of business activity

In accordance with the new regulations, business inspections will be carried out on certain conditions. Before an inspection, the authority will have to assess the probability of the law having been violated whilst conducting business activity. Said analysis will cover identification of subjective and objective areas with the greatest risk of violation. The authority will be released from the above obligation should it reasonably suspect that a given business activity may lead to putting someone’s life at risk, a crime, a breach of a legal prohibition or a failure to meet a legal obligation, among other things.

Other changes

Apart from the changes described above, the Act restores the institution of the so-called joint irregular representation in the Polish legal system. It means that a company may stipulate in its articles of association or deed that the authorised signatory may only act jointly with a management board member in the case of a corporation or an authorised partner in the case of a partnership.

In accordance with the amended provisions of the Civil Code, Saturday is now treated as a public holiday in calculating time limits. Therefore, if the end of a time limit for a legal act falls on a Saturday, the time limit will expire on the following day not being a public holiday.

Moreover, the new Act introduces general explanations of provisions to the Tax Law, which, unlike tax interpretations, provide information on the practical application of tax laws and examples of their correct application.

But not all of the changes provided for in the Act are for businesses. The Act also introduces an important law to improve the protection of employee rights, extending the time limit for an appeal following termination of an employment contract from 7 to 21 days of receipt of the termination of employment letter.

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Biuletyn Polskiej Izby Handlu (PIH)