Many times owners, when starting or running a company, encounter the concept of the PKD classification. Its provisions are obligatory for every entrepreneur - it is in their interest to correctly classify the area of activity of the company and provide data that is truthful. What is the PKD classification? How to find the PKD of a given company? In the following article, we will answer these questions.
What are PKD codes?
The Polish Classification of Activities (PKD) helps to organise the economic activities carried out by various types of business entities. PKD codes systematise the activities of companies for REGON purposes and are statistical in nature.
The PKD classification allows industries and sectors to be organised and sorted into groups, which many entrepreneurs find helpful and useful. The code enables activities to be described as precisely as possible and has a five-level structure. It is divided into sections, divisions, groups, classes and subclasses.
An example of such a division would be Section A and Section F:
Section A - agriculture, forestry, hunting and fishing:
- Division 01: agricultural crops, animal husbandry, hunting and related service activities,
- Division 02: forestry and logging,
- Division 03: Fisheries.
Section F - construction:
- Division 41: construction work for the erection of buildings,
- Division 42: civil engineering works,
- Division 43: specialised construction work.
The other sections with a detailed breakdown can be found on the website of the Central Statistical Office.
The obligation to label themselves with a PKD code is:
- sole traders registered with CEIDG,
- entities required to be registered with the National Court Register (e.g. partnerships, companies, cooperatives or foundations).
How to check a company's PKD - where to look for information?
A fledgling entrepreneur just starting out must face a number of obligations. One of them is to establish the aforementioned PKD code. Unfortunately, many of them do not know how to do it. Questions such as:
- Where do I check the company's PKD?
- How do I check a company's PKD by its TIN?
These questions are being addressed by the Ministry of Finance, which is providing an efficient tool on its government website, the PKD code search engine. Using the search engine is not complicated; it can easily be found on the internet.
Entering the appropriate password helps to extract potential codes for our business. It is worth remembering that the PKD code can also be checked using the VAT number.
If you have questions and are unsure what PKD code is appropriate for your business or need help verifying a contractor, you can contact the accountancy firm you have chosen for your business - a short conversation should clear up any doubts. You can also use the search engines available on the web to take a look at what PKD your competitors have entered.
Is there a limit to the number of PAC codes assigned to one company?
When registering an activity in CEIDG, we specify:
- One main activity code (refers to the predominant share of revenue from the sale of goods or provision of services),
- any number of codes for other activities.
PKD codes are not entered as a back-up. The list can be updated at any time. In the event of a change of business profile, it is obligatory to indicate the new code or remove the outdated one within seven days of the change.
When registering, a maximum of 10 PKD codes (including the subject of the predominant activity at subclass level) can be stated in the company.
What might a company's PKD be needed for?
The PKD code is of great importance. With it you can:
- report a change in the company profile, i.e. change the main code;
- expand the scope of activities, i.e. by adding new codes;
- reduce the scope of activities, i.e. delete outdated codes.
It is mainly used for statistical, record-keeping and accounting purposes. It makes it possible to determine how many and which enterprises are active in each industry.
PACs in limited liability companies
Entrepreneurs have to include a description of the object of their activity in the articles of association. They do not have to include PKD codes there, as they show them in the company register. The KRS makes visible a maximum of 10 codes that are consistent with the company's object of activity included in the agreement. The agreement must be amended if the area of classification entered in the KRS is expanded.
A limited liability company requires an amendment to its articles of association by a resolution of the shareholders' meeting in the form of a notarial deed. The shareholders report the changes to the National Court Register within no more than six months from the date of the resolution. In a joint-stock company, it is necessary to amend the articles of association with regard to the subject matter of the business.
The modification is undertaken by the general meeting of shareholders also in the form of a notarial deed. We subsequently notify the KRS within a maximum of 3 months. The notification is made via the Court Register Portal in both cases.
In summary, when starting or running a business, at least one PAC code should be chosen. The right choice requires thought, as later interference in this area may be problematic.
It is also important to note that activities that are not included in the classification cannot be performed. Law enforcement authorities may impose a fine on the company, strike it off the CEIDG register and even punish the owner with imprisonment. Therefore, let's make a sensible and well-considered decision on choosing the right PKD codes so as not to expose ourselves to unnecessary legal complications.
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