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Government approves first part of deregulation package


The government on 23 November approved the first tranche of a package of legislative measures designed to reduce administrative barriers for business and citizens in Poland.

The objective of the draft legislation, which is to take effect in mid-2011, is to cut red tape and slash real costs of doing business by easing various document-filing requirements. It does so above all by replacing statutory declarations or certificates with statements (e.g. in the case of statistical or tax identification numbers, criminal records checks, social insurance payments, etc., in a total of over 220 situations) and by allowing the submission of copies instead of original documents (such as diplomas, certificates, etc.), which required amendments to no fewer than 77 legal acts. Furthermore, the law reduces to PLN 5m (€1.3m) from PLN 20m (€5.5m) the maximum level of fines that can be imposed on collective entities such as companies or associations, and additionally caps them at 3% of annual turnover in the year that the offence was perpetrated; and makes it possible for self-employed entrepreneurs to transform into one-man capital companies.

The law is part of a wider deregulation reform package that is also to include e.g. a reduction in the number of permits and licences, or a liberalisation of the rules of entry to the professions.

The draft legislation was welcomed by the National Chamber of Commerce (KIG), which said the changes envisaged by the package were truly revolutionary and if enacted in their entirety, would go a long way towards reducing the bureaucratic burden on business.

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