General partnership accounting – partnership accounting

Partnerships, such as limited partnerships, general partnerships or professional partnerships, offer various organisational and tax advantages, but also involve unique accounting challenges. Each of these forms of business requires precise accounting and compliance with Polish commercial and tax law. Our EFEKTA Accounting Office offers comprehensive accounting for partnerships, helping entrepreneurs to manage the finances of their companies. We act in accordance with the mission: “Complete Accounting, Complete Peace of Mind.”

Why do you need a professional accountant?

A professional accountant ensures compliance, minimising the risk of errors and penalties, while saving you time, allowing you to focus on growing your business. It is an investment in the financial security and efficiency of your business.

Why choose EFEKTA?

• Dedicated accountant
  On signing the agreement, you get a dedicated accountant who will be your main point of contact. They are familiar with the specifics of your business and ensures that your accounting is carried out with the utmost care.
• HR and payroll
  Professional management of employee records, payroll preparation, preparation of contracts and certificates. Taking care of staff is a key part of the operation of any company.
• Tax consultancy
  We help with tax optimisation, interpretation of regulations and identification of tax relief opportunities. In this way, you can reduce your tax burden and increase your profitability.
• Legal consultancy
  We provide commercial, business and tax law support to ensure that your business operates in compliance and is protected from legal risks.
• Representation before the authorities
  In the event of a tax audit or other proceedings, we represent your company before the authorities, saving you stress and time.
• Modern online tools
  We provide digital access to your accounting documentation and reports, allowing you to conveniently view your company’s finances at any time.

EFEKTA – Complete accounting for partnerships

Our accounting office offers comprehensive accounting support tailored to the needs of limited partnerships, general partnerships and professional partnerships:

1. Bookkeeping (revenue and expenses ledger or complete accounting)
   We ensure compliance with the law, providing both simplified accounting for smaller companies and complete accounting where required.
2. Settlements of shareholders and taxes
   We deal with the recording of contributions, tax settlements of shareholders and the preparation of PIT, CIT and VAT returns.
3. Financial reporting
   We prepare annual financial statements and documentation required by supervisory bodies and shareholders.
4. Representation before the authorities
   We represent your company in its dealings with the tax offices, the Social Insurance Institution and other authorities.
5. Financial and tax planning
   We help with tax optimisation and long-term financial planning, supporting the growth of your company.
6. Modern accounting solutions
   We provide access to digital accounting tools that make it easy to track company finances and generate reports.

What is a partnership?

Limited partnerships, general partnerships and professional partnerships are examples of partnerships that share several common features that distinguish them from other forms of business:

1. Lack of legal personality
   Spółka jawna nie posiada osobowości prawnej, ale ma zdolność prawną, czyli może we własnym imieniu nabywać prawa i zaciągać zobowiązania, na przykład zatrudniać pracowników, nabywać nieruchomości, być stroną umowy pożyczki.
2. Personal nature of the cooperation
   Działalność spółek osobowych opiera się na zaangażowaniu wspólników. To ich praca, decyzje i wkład kapitałowy stanowią podstawę funkcjonowania spółki.
3. Organisational flexibility
   Partnerships do not require a minimum share capital and their governance structure is less formalised than that of incorporated companies such as limited liability companies or public limited companies.
4. Liability of shareholders
   Shareholders in partnerships are liable for the company’s obligations, although the extent of this liability varies depending on the type of partnership:
   • In general partnerships and professional partnerships, liability is joint and several.
   • In limited partnerships, the general partners are liable personally and the limited partners up to the amount of their contribution.
5. Distribution of profits in accordance with the agreement
   Profits in partnerships are distributed to the partners according to the rules set out in the articles of association. In the absence of such provisions, the provisions of the Code of Commercial Companies or the Civil Code shall apply.
6. Tax at the shareholder level
   The income of partnerships, with the exception of CIT-taxed limited partnerships, is settled at the shareholder level, which affects flexibility in financial management.

Accounting challenges for limited, general and professional partnerships

1. Different accounting requirements
   Some partnerships, such as general partnerships, may keep simplified accounting (revenue and expense ledger), while others, such as limited partnerships, are required to keep complete accounting under certain conditions. Managing these requirements requires precise knowledge.
2. Settlement of shareholders
   In partnerships, it is necessary to accurately document the shareholders’ contributions, profit and loss accounts and responsibility for liabilities.
3. Tax obligations
   Different taxation rules – from settlements at the shareholder level (general and professional partnerships) to double taxation in the case of limited partnerships – require careful management.
4. Changing legislation
   Regular changes in tax law, e.g. regarding CIT for limited partnerships, can cause difficulties in maintaining accounting compliance.
5. Representation before the authorities
   Partnerships often require support when dealing with the tax offices, the Social Insurance Institution or during tax audits.

Comparison of accounting for limited partnerships, general partnerships and professional partnerships

Feature	Limited partnership	General partnership	Professional partnership
Accounting requirement	Complete accounting	Revenue and expense ledger or complete accounting (if turnover > EUR 2 million)	Revenue and expense ledger or complete accounting (if turnover > EUR 2 million)
Taxation	CIT (company) + PIT (shareholders)	PIT at the shareholder level	PIT at the shareholder level
Liability of shareholders	General partners personally liable, limited partners up to the amount of their contribution	Shareholders shall be jointly and severally liable with their personal assets	Shareholders are solely responsible for their own actions
Form of activity	Limited liability for limited partners	Lack of legal personality	Lack of legal personality
Management	General partners manage the company	Shareholders manage the company	Partners manage the company
Purpose of the activity	Any economic purpose	Any economic purpose	Mainly professional activity

How much does general partnership accounting cost?

The cost of general partnership accounting varies depending on the scope of services, the number of shareholders and the nature of the business. Although general partnerships often use simplified accounting, some may be required to keep complete accounting, which affects the price. The detailed cost is determined on the basis of individual requirements and the specifics of the company’s operations.

Your company, our support

Accounting for limited partnerships, general partnerships and professional partnerships requires precision and experience. EFEKTA Accounting Office is a partner that provides comprehensive accounting and tax support, tailored to your needs.

Contact us today to find out how we can help your company. Make an appointment for a free consultation and find out that our mission: “Complete Accounting, Complete Peace of Mind”, is a reality that we can provide for your business too.

---

---

---

---

---

What are the forms of accounting for a registered partnership?

A registered partnership can maintain a Revenue and Expense Ledger (KPiR), a revenue registry (in the case of lump-sum taxation on recorded revenue), or full accounting books, depending on the amount of revenue generated and the partners’ decision.

When is a registered partnership obliged to maintain full accounting?

A registered partnership is obliged to maintain full accounting books if its net revenue from the sale of goods, products, and financial operations for the previous financial year exceeds the equivalent of EUR 2,000,000. Regardless of the revenue, partners may also choose this form of accounting voluntarily.

Can a registered partnership choose lump-sum taxation on recorded revenue?

Yes, partners of a registered partnership may decide on lump-sum taxation, provided that the partnership’s activities meet the statutory requirements for this form of taxation.

Is a registered partnership a CIT taxpayer?

A registered partnership in which the partners are natural persons does not become a Corporate Income Tax (CIT) taxpayer. However, a partnership that meets specific conditions may become a CIT taxpayer—for example, if it fails to disclose information about its partners within the appropriate deadline.

What are the benefits of choosing the Revenue and Expense Ledger (KPiR)?

The Revenue and Expense Ledger allows for simpler income tax settlements, which can lead to lower business operating costs. It is a popular form of accounting for registered partnerships that do not generate high turnover.

Who is liable for the obligations of a registered partnership?

The partners of a registered partnership are jointly and severally liable for the partnership’s obligations with their personal assets. Each partner acts on behalf of the partnership and may acquire rights and incur obligations in its name.

Can a registered partnership acquire rights and incur obligations?

Yes, a registered partnership, as an entity without legal personality, can acquire rights and incur obligations in its own name. It is also entitled to conduct business activities, which means it can undertake actions aimed at generating profits.

How does the taxation of income in a registered partnership work?

The income of a registered partnership is taxed at the partner level, according to their share in the profits. Partners settle based on Personal Income Tax (PIT) or, if the partnership has become a CIT taxpayer, the income is subject to Corporate Income Tax.

What accounting obligations does a registered partnership with its registered office or management in Poland have?

A registered partnership with its registered office or management in Poland is obliged to maintain appropriate accounting records and settle taxes within the country. The form of record-keeping depends on the chosen taxation method and revenue thresholds.

What services does the accounting support for registered partnerships offer?

Accounting services for registered partnerships include, among others: maintaining the Revenue and Expense Ledger (KPiR), revenue registries, preparing tax declarations, maintaining full accounting books, CIT and PIT settlements, as well as accounting and tax advisory. If you have additional questions or need help with registered partnership accounting, please contact us!