Glossary of legal terms

Aplikant (Attorney trainee or Trainee attorney-at-law)  – a lawyer training to become a professional mandatary and join the Bar

B2B (business to business) – a type of cooperation contract in which both parties are entrepreneurs (companies or sole traders)

CEIDG – Centralna Ewidencja i Informacja o Działalności Gospodarczej (Central Business Information Register) – central register of economic activity, in which all persons conducting an individual commercial activity are registered

JDG  – jednoosobowa działalność gospodarcza – (Individual Business Activity) – sole proprietorship in which the entrepreneur individually conducts its business activity; this is not a company, but a simpler type of business activity in Poland, carried out individually (without partners)

KRS – Krajowy Rejestr Sądowy (National Court Register), register in which companies, foundations and associations are registered. KRS is the equivalent of Companies House

NIP – Numer Identyfkacji Podatkowej (Tax Identification Number), is used to identify taxpayers; it is mandatory for issuing invoices, hiring people, etc.; NIP is the equivalent of VAT number

Prawo właściwe (Applicable law) – the law of a particular country which will be applied in the event of a dispute

Radca prawny (Attorney-at-law) – a lawyer with the same powers as an attorney

REGON – Numer Rejestru Gospodarki Narodowej (National Economic Register Number). The REGON number indicates the entity’s main business activity

Sąd właściwy i jurysdykcja (Competent court) – the court before which potential litigation will be brought

Sp. z o.o. (the LLC) – is a company established by one or more persons (Polish or foreign, natural or legal), known as “shareholders”, who invest the funds to establish an LLC and have limited liability for the company’s obligations. Sp. z o.o. is the equivalent of an LLC

Spółka – (the company) – type of business activity in which several entities cooperate with each other; in Poland there are several types of companies, the most popular being the limited liability company – LLC (sp. z o.o.)

Wspólnicy (shareholders) – shareholders of the company (natural or legal persons, Polish or foreign), who invest the funds to establish an LLC and have limited liability for the company’s obligations.

Zakaz konkurencji (Non-competition clause) – prohibition on engaging in competitive activity (i.e. activity similar to that in which our employer/customer engages). The details, timeframe and potential penalties for breach of the clause depend on the contractual provisions

Zarząd (board of directors) – the executive body of an LLC or joint-stock company, whose main task is to manage the company’s affairs and represent it; it may be composed of one or more natural persons, Polish or foreign