Running your own business is a huge responsibility. In order for the work you put into developing your business to bear fruit, you need to be prepared to make long-term decisions. Sometimes, however, an entrepreneur's priorities change in the course of running a business, which directly affects the direction the company will take in the years to come. 
Although it might seem that setting up a company in a particular market sector is binding, in reality an entrepreneur can change the scope of the tasks carried out even after several years of business activity. If he has not been satisfied with his previous work and the profits generated by the company, he has the option of leaving the company altogether.
The expansion of activities, however, does not necessarily entail the cessation of existing activities. A company's activities may remain unchanged, while aspects of their performance will be expanded - e.g. through the introduction of innovative solutions as well as the expansion of product or service offerings.
However, it is worth emphasising that, regardless of the changes carried out, the expansion of the business involves a number of obligations for which the entrepreneur alone is responsible.
Expansion of activities - additional PKD codes
The basic obligation of every entrepreneur who decides to expand his or her business is to update the CEIDG application submitted when setting up the business. During this procedure, the founder not only provides information on contact details, the company's form of taxation or the required authorisations, but also the area in which the company will operate.
So-called PKD codes (Polish Classification of Activities) are used to classify business activities. Their task is to specify what the established company will actually do. If the company's activities are expanded to include other areas, the entrepreneur is obliged to update the data on the application. This can now be done online.
As there is no limit to the number of PKD codes to be entered, a person who already knows at the time of registering the company into which areas he will expand his business can take advantage of the opportunity to enter additional identification codes at the outset.
Existing taxes and the expansion of activities
Another important aspect of expanding a business is the verification of applicable taxes. The regulations clearly state that some entrepreneurs are obliged to pay VAT on the services or products they offer. It is important to note that this currently exists in several scales:
- 23% - basic rate,
- 8% - the rate for goods and services listed in Annex 3 of the VAT Act,
- 5% - the rate for goods and services listed in Annex 10 of the VAT Act (e.g. food, books).
What percentage of tax should be paid depends primarily on the nature of the business - the type of products or services offered. To this end, it is important for an entrepreneur expanding his or her business to check what rates will apply to him or her once this step has been taken. In cases where it is not possible to clearly determine the VAT rate, it is worth going to the tax office to discuss the problem with a competent official.
Can you apply for an expansion grant?
An entrepreneur deciding to expand his or her business can apply for a grant for this purpose. Getting money for business expansion is possible for micro, small and medium-sized companies. Funding usually comes from five main EU funds:
- European Social Fund,
- Cohesion Fund,
- European Regional Development Fund,
- European Agricultural Fund for Rural Development,
- European Maritime and Fisheries Fund.
There are also many programmes currently available to support business development - including Horizon 2020, COSME or Creative Europe. To take advantage of the above-mentioned grants for business expansion, contact the staff of the information point dealing with the granting of European funds.
Funding for business expansion - for whom?
There are no specific rules as to what kind of company can apply for business expansion funding. This is because such support is aimed at all companies that can boast an innovative and meticulously developed idea for expanding their business.
However, companies that rely on the power of modern technology or human potential stand the best chance. Furthermore, from the perspective of state development, companies based on computerisation, ecology and innovation are becoming attractive for funding. Companies that specialise in conducting all kinds of research projects also stand a good chance of gaining EU funds.
