Financial reporting of Polish companies: everything you need to know

A successful business in Poland is impossible without a clear understanding of the requirements for financial reporting. Polish legislation in the field of accounting and taxation clearly regulates these rules, which documents companies must submit, by what deadlines and to which authorities. For entrepreneurs who are just entering the Polish market or are already operating in it, financial reporting is not only an obligation to the state, but also an important tool for transparency and trust in business.

In this article, we will consider in detail who is obliged to submit financial reporting in Poland, what reporting forms exist, what reporting deadlines are, and what consequences can be expected in case of violation of the requirements.

The financial year in Poland and the reporting obligations of companies

In Poland, the financial year by default coincides with the calendar year and lasts from January 1 to December 31. However, Polish legislation allows enterprises to establish a different period of the financial year if this is provided for in the company’s charter. For example, a company may choose a fiscal year from July 1 to June 30, which is often done to align with the fiscal years of parent companies or holding companies.

Reporting obligations for Polish companies

Every company registered in Poland (in particular, Sp. z o.o. – a limited liability company) is obliged to prepare annual financial statements based on the provisions of the Accounting Act (Ustawa o rachunkowości). These obligations arise regardless of whether the company actually carried out activities in the reporting period.

The main obligations of the owners and managers of the company regarding financial statements are:

• Preparation of the annual financial statement within the established deadlines;
• Signing the report by all members of the management board and the person responsible for accounting (e.g. the chief accountant or an outsourcing company);
• Holding a meeting of participants to approve the report;
• Submission of the report to the KRS (National Court Register) in electronic form;
• Transfer of data to the Tax Service (KAS).

The main types of reporting that are submitted:

1. Financial statements (Sprawozdanie finansowe) that include:
   • Balance Sheet (Bilans);
   • Profit and Loss Statement (Rachunek zysków i strat);
   • Additional informations (Informacja dodatkowa), sometimes with explanations;
   • Cash flow statement (depending on the company`s size);
   • Statement of changes in equity (if required).
2. Board report (Sprawozdanie z działalności zarządu) – describes the company’s activities in the reporting period, its condition, risks and development prospects. It has not been submitted to microenterprises and some small companies.
3. Minutes of approval of financial statements – a document confirming that the meeting of the company’s participants/shareholders approved the report.
4. Report to the tax service (e-Sprawozdanie do KAS) – must be sent separately in electronic format (XML) via the ePUAP profile or the e-Tax system.

Deadlines for submitting financial statements and liability for violations

Polish law clearly regulates the deadlines within which companies must fulfil their obligations to prepare, approve and submit financial statements. Failure to comply with these deadlines may result in financial penalties and other negative consequences for the company and its managers.

Main financial reporting deadlines in Poland

For companies whose fiscal year coincides with the calendar year (i.e. ends on December 31), the deadlines are as follows:

1. Preparation of financial statements – within 3 months after the end of the financial year: by March 31.
2. Signing of financial statements – by all members of the board and the accountant with an electronic signature (kwalifikowany podpis elektroniczny or ePUAP profile) by the same date.
3. Approval of financial statements by the shareholders’ meeting – within 6 months after the end of the financial year: by June 30.
4. Submission of reports to the KRS (National Court Register) – within 15 days after approval: by July 15.
5. Submission of financial statements to the Tax Service (KAS) – also by July 15, if the company is obliged to send reports separately to the KAS.

Important: All documents are submitted in the electronic form, otherwise they will not be accepted.

Liability for failure to submit financial statements in Poland

Failure to comply with the obligation to prepare, sign and submit financial statements in Poland entails serious legal liability. According to the provisions of the Polish Criminal Code and the Accounting Act, members of the management board or liquidators of a company who fail to prepare and submit statements may be held liable, including criminal liability.

Possible sanctions include:

1. Fines: The court may initiate a procedure to compel the submission of financial statements. In case of failure to comply with the court order within 7 days, the court imposes a fine. The amount of the fine is determined individually:

• Initial fine — usually 1 000 PLN;
• Maximum one-time fine — can reach 15 000 PLN;
• In case of repeated violations, the amount of fines may be cumulative.

1. Criminal liability: For systematic or intentional violation of obligations to maintain and submit reports, criminal proceedings may be initiated against board members.
2. Deregistration of a company from the register (KRS): If a company fails to submit reports for two consecutive reporting periods, the court has the right to initiate the procedure for deregistration of the company from the state register without liquidation. This is a last resort measure applied for repeated disregard of the court’s requirements.
3. Damage to reputation: Having a company listed as “inactive” or “at risk” due to a lack of financial reporting can be an obstacle to:

• opening bank accounts;
• participation in tenders;
• conclusion of contracts with new partners;
• obtaining financing.

Important: if the company eliminates the violation (i.e. submits the report even if it is late), sanctions may not be applied. The court takes into account the fact of voluntary correction of the situation.

Who is entitled to simplified reporting, and when is a mandatory audit required in Poland?

In Poland, the legislation provides for a simplified form of financial reporting for small and micro enterprises. This allows for the reduction of the administrative burden and costs of preparing reports. At the same time, certain categories of companies are obliged to conduct a mandatory audit of their financial statements.

Who is entitled to simplified reporting?

Simplified reporting can be submitted by companies that meet the criteria for micro or small enterprises according to the Polish Accounting Act.

Microenterprise – if the company meets at least two of the three conditions:

• Average annual number of employees — less than 10 people;
• Total assets — not exceeding PLN 2,000,000;
• Net sales revenue — not exceeding PLN 4,000,000.

Small business – if the company meets at least two of the three conditions:

• Average annual number of employees — less than 50 people;
• Total assets — not exceeding PLN 33,000,000;
• Net sales revenue — not exceeding PLN 66,000,000.

Such companies have the right:

• not to prepare a statement of cash flows and changes in capital;
• not to prepare a board report (for micro-enterprises);
• to use abbreviated forms of the balance sheet and profit and loss statement.

Important: The right to simplified reporting does not exempt the company from the obligation to submit it to the KRS register in a timely manner.

When is an audit mandatory for Polish companies?

Financial statements are subject to mandatory audit if the company has exceeded at least two of the following three indicators in the reporting year (or in two consecutive years):

1. Average annual number of employees – more than 50 people;
2. Total assets at the end of the year – more than 3,125,000 EUR,
3. Net sales revenue – more than 6,250,000 EUR.

Auditing is also mandatory for the following companies, regardless of their financial performance:

• Joint-stock companies (S.A.);
• Financial institutions (e.g. insurance companies, banks, investment funds);
• Companies are required to prepare consolidated financial statements;
• Companies receiving state funding or implementing projects involving EU budget funds.

The audit results must be included in the financial report, and the auditor’s opinion must be submitted together with other documents to the KRS.

How to file financial statements in Poland: step by step

In Poland, financial statements are submitted exclusively electronically through the relevant state platforms. This is mandatory for both companies with Polish founders and companies with foreign participation. The process has a clear structure, and failure to comply with formal requirements (for example, lack of an electronic signature) leads to rejection of the report.

Step 1: Preparation of financial statements

Financial statements must be prepared in Polish in a structured electronic file format (XML) in accordance with the requirements of the Ministry of Finance. If the accountant prepares the report in PDF, it must be converted, or the report must be prepared again in XML format.

Step 2: Signing the report

The report must be electronically signed by all members of the board. The following are allowed for this:

• Qualified electronic signature (podpis kwalifikowany);
• ePUAP profile (only for persons with a Polish PESEL).

Foreign managers without a PESEL are required to use a qualified signature recognised in Poland.

Step 3: Submission via eKRS

After signing, the documents are submitted to the National Court Register (KRS) via the eKRS portal.

Step 4: Submission to KAS (if necessary)

If the company is not obliged to submit electronic reports to the KRS (for example, it is not subject to mandatory registration), then the report is submitted directly to the KAS tax office via the e-Sprawozdania platform.

What package of documents should be prepared for reporting?

The package of mandatory documents includes:

• Financial Statements (XML);
• Minutes/decision of the meeting on approval of the report;
• Board report (if the obligation is not cancelled);
• Audit report (if audit is mandatory);
• Decision on profit distribution/loss coverage.

If you are not sure about the correctness of reporting or you have foreign directors without a Polish PESEL, don’t take the risk. It is better to entrust this matter to professionals – contact Azola Legal Services.

Our team will help:

• Prepare financial statements in accordance with the requirements of Polish law;
• Ensure electronic signing of documents by managers from abroad;
• Submit reports to the relevant authorities within the established deadlines;
• Avoid fines and preserve the reputation of your company.

Contact us today – and we will take care of the reporting of your Polish company while you are doing business.