What is the deregulation package? What changes does it include?
The most important element of the deregulation package currently being prepared is the introduction of facilitations for entrepreneurs. These are to concern, among other things, the establishment of business activities. In addition, business law and the rules for its creation will be changed. The final pillar of the deregulation package – going hand in hand with easier start-ups – is a series of facilities covering the running of an already operating company.
Assumptions of the deregulation package
Such wide-ranging changes are guided in theory by one general goal – to make it easier for entrepreneurs to do business. In reality, however, there are several main assumptions behind it, such as:
- Reducing the number of regulations on entrepreneurs,
- Reducing the execution time of administrative procedures,
- Support for the development of micro, small and medium-sized companies,
- Reducing the inspection time of enterprises,
- Reduce the number of inspections carried out based on risk categories.
The full list of legal acts that will be affected by the planned changes has not been published. Thanks to statements by Deputy Minister Jacek Tomczak, however, we know that the package’s creators plan to update, among others, the Administrative Procedure Code and the Civil Code.
The entire planned changes are to cover three areas – each with a specific set of facilitators:
- easier steps in business,
- Simpler rules for doing business,
- Entrepreneur-friendly business law.
Area one: easier steps in business
This area includes changes to regulations for new entrepreneurs. It is primarily a matter of clarifying provisions that have raised doubts among those starting a business and have been the subject of disputes in the past.
What will the clarified regulations change?
First: they will introduce a rule proclaiming that those engaged in unregistered activities can only use their PESEL number.
Second: they will eliminate practical doubts about the possibility of conducting small business (non-registered activity) by foreigners.
Third: they will eliminate doubts about the possibility of taking advantage of preferential Social Security contributions again (under Small Social Security Plus) – this is primarily a matter of detailing the rules for calculating the grace period.
Fourth: they will regulate the taxation of civil law contracts concluded in the framework of non-registered activities.
Area two: simpler rules for doing business
Polish entrepreneurs often complain of being overwhelmed by the responsibilities they must oversee on a daily basis. The Ministry of Development and Technology has decided to propose specific changes. They are intended not only to relieve companies, but also to make it easier for them to cooperate with public administration authorities.
How is the deregulation package expected to make doing business easier?
Area three: entrepreneur-friendly business law
Representatives of the Ministry of Technology and Development have announced that they are keen on the stability of the legal system and minimizing the regulatory burden. One of the means to achieve this goal is to make legislative bodies that influence the shape of economic law take into account in their work not only new ideas and regulations, but also regulations already in place.
What changes will occur in this area?
What about the next deregulation packages?
Most publications on the subject, as well as statements by representatives of the Ministry of Development and Technology , include the term “first deregulation package,” which naturally implies the existence of a second and perhaps subsequent packages of changes for entrepreneurs.
Dr. Mariusz Filipek, Plenipotentiary of the Minister of Development and Technology for Deregulation and Economic Dialogue, spoke directly on the subject. According to his words, a second and third deregulation package is in the pipeline. The assumptions of the second were supposed to be known as late as July or August of this year. While nothing of the sort has happened, it is to be expected that sooner or later we will know the ministry’s plans for the next packages.
When will the first deregulation package go into effect?
The draft deregulation package is currently (as of October 23, 2024) in the opinion phase. Public consultations, which lasted until August 30 of this year, have already ended. According to the ministry’s announcements, the draft will become the subject of deliberations in the Sejm at the end of 2024 and the beginning of 2025, and should come into force in July 2025 – subject, of course, to a six-month vacatio legis.
