A joint-stock company

A joint-stock company receives the legal personality when registering it in the registration system. It is law form for conducting medium and big companies. Cost of establishing a joint- stock company is the highest comparing with other forms of establishing firms, the minimum of capital amounts PLN 500.000.

Following documents are needed to establish this company:
1. a notary act of establishing a company,
2. covering establishment fund,
3. establishing the Board of Directors,
4. reporting a company to the registration office with all proper attachments,
5. signing a company in the registration office.

The mastery:
• The Management Board,
• The Board of Directors,
• The general meeting.

Advantages:
• Lack of shareholders’ responsibility for bonds of a joint-stock company,
• Profits are paid in dividends to shareholders,
• Easy ways to obtain new inflow of capital by issuing shares, debentures and other financial instruments,
• A company’s financial situation is public what enables checking a company’s financial condition by its contractors.

Disadvantages:
• Initial capital amounts minimum PLN 500.000,
• High costs of financial and law service comparing with other forms of economic activity,
• Difficult rules concerning conducting a company,
• Shareholders with small amounts of shares cannot influence a company’s conduct,
• Difficult process of liquidation a company.