If you start a sole proprietorship, you must register Registering the enterprise with the Register of Legal Entities.
In the role of owner, you make all the decisions within the business, and there are no specific rules or separate laws concerning sole proprietorships. Specific requirements apply if a business has more than 30 employees.
As regards tax, sole proprietorships are assessed with the owner personally. This means that any profit will be taxable (and any deficit will be deductible) together with the owner's other income, such as salary.
If you register a sole proprietorship, you must:
- Submit a tax return for businesses every year, including the year in which you wind up the business. This applies regardless of whether or not you have any turnover.
- If you register as a sole proprietorship without starting any commercial activity, you must still submit a tax return for self-employed persons every year.
If you are considering starting up a sole proprietorship, you should read more about registration.