In Poland, every limited liability company and other entities with full accounting are obliged to prepare, approve and submit financial statements within certain deadlines. Failure to meet these deadlines may result in serious legal and financial consequences. Below, we provide detailed information on these deadlines and the possible sanctions for failing to meet them.
Deadlines for approval and submission of financial statements
1. Preparation of financial statements
Financial statements should be prepared within three months of the end of the financial year. For most entities, this means by 31 March.
2. Approval of the financial statements
Approval by the competent authority (e.g. the shareholders’ meeting in a limited liability company) should take place within six months of the end of the financial year, i.e. by 30 June.
3. Filing the financial statements with the National Court Register
The approved financial statements must be submitted to the National Court Register (KRS) within 15 days of approval, which for most entities means by 15 July.
Consequences of Failure to Meet Deadlines
Failure to meet these deadlines may lead to a number of consequences:
1. Financial penalties and criminal liability
Article 79(4) of the Accounting Act (Journal of Laws 2023, item 120, as amended) provides for a fine or imprisonment of up to two years for failure to file financial statements. However, it should be emphasised that the fine or imprisonment does not apply in the case of a short-term delay.
Article 77 of the Accounting Act also provides for sanctions for violations of its provisions, but in practice this rarely leads to convictions for delays of a few days.
2. Compulsory proceedings
Pursuant to Article 24 of the National Court Register Act (Journal of Laws, item 685, as amended), the registration court may initiate coercive proceedings by imposing a fine in order to force an entity to comply with the obligation to file a report. In the first instance, the court calls for the fulfilment of the obligation within 7 days, and only then may it impose a fine, which may not exceed PLN 15,000 per order and the total amount of fines may not exceed PLN 1 million.
3. Negative reputational consequences
Failure to file financial statements on time can damage the reputation of the entity in the eyes of counterparties, customers and financial institutions.
Technical Aspects of Financial Statement Filing
Financial statements must be submitted electronically via the e-KRS system. Here are the key steps of the process:
1. Electronic form
Financial statements must be prepared in electronic form and signed with a qualified electronic signature or a trusted signature.
2. e-KRS system
Documents are filed digitally through e-KRS, using a free system that transmits documents directly to the Financial Document Repository (RDF).
3. The role of the attorney
Financial statements may be submitted by the company’s proxy. The proxy must have a power of attorney to represent the company and access to the e-KRS system. The filing may be made by an advocate, a legal adviser or a foreign lawyer.
4. Documents required
In addition to the financial statements, a resolution on the approval of the financial statements and a resolution on the distribution of profit or coverage of loss is also submitted to the KRS.
5. Signing of documents
All documents must be signed electronically by the persons authorised to represent the entity or by proxy.
6. Deadline for submission
It is important to bear in mind the 15-day deadline for the submission of the financial statements from the date of their approval.
In summary, the process of filing financial statements with the KRS is strictly regulated and requires diligence in meeting deadlines. Companies’ attorneys play an important role in representing entities obliged to file reports, and their actions may determine the avoidance of possible sanctions.
Our support
Closing the accounts is a complex process and includes financial and tax reporting. Check out our accounting services or contact us directly. We are here to make running your business easier.
We deal with bookkeeping and day-to-day tax settlements.
