How Opening your Company can Raise your Game

Registering your Company

A company with solid business foundation acts as a leverage.

Whatever you do, wherever you are - If you find a way to provide some value to other in a more efficient way will bring you very interesting cash flow.

If you are still trapped in a 9-5 job and believe that your time is worth much more, there is nothing stopping you, but to try it.

Remember: A high paying job can make you wealthy, assets can make u rich

Here is how I tried it in two countries:

  1. Opening a B2B company in Poland
  2. Opening a Estonian OĂś

This is my story and definitely not financial/legal advice

AspectEstoniaPoland
E-ResidencyEasy to set up and manage remotelyNo need for e-residency
Business EnvironmentBusiness-friendly policiesLarge domestic market
Tech InfrastructureAdvanced digital servicesGrowing tech sector
Labor MarketSkilled workforce, particularly in techLarge and diverse labor pool
Ease of Doing BusinessHigh rankings in ease of doing businessCentral location in Europe

How to open a one person company in PL

Finding some financial leverage in PL with a B2B company

Once again, a lot of people was telling me that it was too difficult to even try it.

People that of course, heard from somebody else, but actually did not go through the process.

Business In Warsaw Poland
Business in PL - Opening a Company in Poland

What will you need to open a company in Poland?

  1. Your Passport
  2. Your PESEL number
  1. The upcoming steps of the process can be done completely online - And there are accounting firms that help you for free to setup your company (they guide you step by step on which options will suite your business the best)

I tried them and worked like a charm: https://www.ingksiegowosc.pl/

Once you are done - you can find your (or others) company details in Poland - https://wyszukiwarkaregon.stat.gov.pl/appBIR/index.aspx

If you use the code in the portal, they will call you after few days - You have the right to know your cpmpany status for free once every 6 months. And they will offer you some additional paid services

Registering for VAT in PL

It was just another day at work when I received a call from my business partner.

They had been trying to make a payment to my company, but the transfer wouldn’t go through.

They explained that they use the white list of VAT taxpayers and, unfortunately, my company’s account number wasn’t listed there.

WHAT?

Psychology of Finance for BikePacking
Do I really need ANOTHER document?

The white list of VAT taxpayers is a government initiative, aimed at increasing the transparency of business transactions and reducing VAT fraud. It’s a database available on the government website, where you can verify the status of a VAT taxpayer.

If an account number isn’t listed there, the transfer gets blocked.

After some research, I found that in ING Business, there’s a VAT account which seemed to be the one I needed to add. But how could I do that?

The answer lay in submitting a CEIDG application, where I could add my company’s bank account number. This was a new process for me, and it took some time to understand.

I learned that the VAT account is connected to the main account. This means that during a transaction, the net amount goes directly to the business partner’s company account, and the due VAT goes to a dedicated sub-account.

This was a revelation to me, and it helped me see the bigger picture of how VAT transactions work.

To help me through the process, a helpful accountant sent me a link to a step-by-step guide on how to add a bank account to the white list (https://www.youtube.com/watch?v=3xjMJE5Ld0s).

It was a lifesaver! (And of course you need to wait few days so that it gets processed)

Additionally, I checked that your account number has been added to the white list of taxpayers https://www.podatki.gov.pl/wykaz-podatnikow-vat-wyszukiwarka.

How to Operate your B2B Company in Poland

  1. Before the 10th of each month, the accountant will close the previous month
  1. They will generate a monthly summary
  1. You have to let them know that you paid those concepts:
  1. Enjoy the rest of the money left (if any)

When creating invoices in PL, normally they will ask for this info:

Sprzedawca: A Cool name you gave - Your personal name
Registered address: Calle Falsa 1/23
Postal Code: 01-234 MszczonĂłw (Poblao)
NIP: 1234567890
Regon: 123456789

There are also other options that allow you to operate without a 1 person company in poland - For example: twojstartup

How to have an Estonian OĂś

An OU? Yes - That’s a Limited Liability Company in Estonia

For Estonian residences, might be different - but thats how it was for me As Digital Citizen

  1. Apply for E-Residency
  2. Get the E-Residency Card from the EE Embassy
  3. Find an accountant that operates in Estonia
  • IT IS NOT a citizenship: You will never receive any consular support from the Estonian government for holding an e-residency.
  • IT IS NOT a travel document: It is not a picture ID. It cannot be used as a form of identification in the “real world.”
  • IT IS NOT an actual residency: It does not give you any rights to stay in Estonia, the EU, or the Schengen zone whatsoever. Nor any other social rights in Estonia or anywhere else.

Interesting Resources to manage your Estonian OU

Bank For Estonian OU

Why Estonia for Solo-Preneurs?

Simple rules leads to complex and rich systems, anyone?

John Gall from his book “Systemantics: How Systems Really Work and How They Fail”

John Gall's book “Systemantics: How Systems Really Work and How They Fail” explores the principles of system design, emphasizing that simple systems tend to be more effective and reliable. Here are some key points:

  • Evolution of Systems: Complex systems that work evolved from simple systems that worked.
  • Simplicity Over Complexity: Simple systems are necessary to deal with the real world effectively.
  • Design Principles: A complex system designed from scratch is unlikely to work and usually cannot be fixed by patching.
  • Starting Small: Effective systems often begin with a small, functional core that can be expanded.
  • Real-World Application: Gall's insights are applied across various fields, including engineering, management, and software development.

I really like this system as how simplicity in rules or design can foster adaptability and creativity, whereas other more complex systems can stifle and reduce functionality.