Grants from the employment office awarded to start a business

Service Business

In recent years, the Polish entrepreneurship market has experienced significant growth, mainly due to newly established enterprises. On this basis, it can be concluded that the path leading to starting your own business does not have to be that difficult. A significant condition that influences the creation of an enterprise, despite a great business idea, is its financing. Due to the frequent lack of funds to start a business, many potential entrepreneurs give up starting a business. However, poviat labor offices offering subsidies can help. Grants from the employment office make it possible to start a business by financing its needs in the initial stage of formation. In addition, the received subsidy is a non-returnable benefit and may amount to even several dozen thousand zlotys. However, in order to apply for a subsidy, certain conditions must be met, more about which later in this article.

Grants from the employment office - conditions of receipt

Grants from the employment office for starting a business are not granted to everyone. They are only received after the taxpayer's application has been approved by the tax office and all the required conditions have been met:

  1. The most important condition that must be met in order to apply for subsidies from the employment office is the status of an unemployed person. Obtaining such status is possible after registering with the poviat labor office as an unemployed person. The co-financing may also be used by an unregistered person who has the status of a Graduate of the Social Integration Center or a Graduate of the Social Integration Club, referred to in the provisions on social employment.

  2. Then, after fulfilling point 1, one should wait from one to three months, respectively, this time depends on the given employment office. Only after this time, you can submit an application for funding.

  3. It should be noted that an unemployed person during the period in which he remains unemployed cannot study full-time. However, it is permissible to have the status of an extramural student.

  4. A person applying for a grant may not have any other business activity on their account within 12 months before submitting the application.

  5. Moreover, subsidies from the employment office are not awarded to persons who, within 12 months before submitting the application, refused without justification to accept an offer of employment, apprenticeship or internship.

  6. A person applying for co-financing from the employment office within 2 years from the date of submitting the application may not have a crime against economic turnover in his / her account.

  7. The unemployed applying for a subsidy from the PUP did not receive non-returnable public funds to start a business within 5 years and did not submit an application for a subsidy at another office at the same time.

Poviat labor offices also have their own internal regulations in the field of granting one-off funds for starting a business. When submitting a grant application, read all related documents.

Procedure for receiving a subsidy

A person applying for subsidies from the employment office, after registering with the PUP and obtaining the status of an unemployed person, must wait, respectively, from one to three months (the actual time is agreed with the labor office). During the period indicated above, the unemployed person may not take up any employment (taking up employment is associated with the loss of the status of an unemployed person). After the indicated time has elapsed, you can start submitting the application. The procedure for granting subsidies usually lasts over a month, however, there are longer deadlines, even up to several months, depending on the efficiency of a given employment office. The submitted application is examined in formal and substantive terms, and the applicant's professional qualifications are compared with the subject of the assumed activity and his experience. It is very important to meet the conditions set out in the regulations made available by a specific office. After the application has been approved by the PUP, after about a week, it is time to sign a contract between the applicant and the labor office and guarantors (the surety secures a possible refund of the subsidy amount in the event of failure to comply with the terms of the contract by the applicant). Only after signing the contract for co-financing by the parties listed above, the requested funds are transferred to the applicant's account within a few days. Then, on the date specified in the signed contract, you should start a business.

How Much Grant Can I Receive?

The amount of the subsidy from the employment office depends on the financial capacity of the office. In practice, the amount received may not exceed the maximum equivalent of six times the average salary in a given year. Moreover, the amount of the subsidy depends on the total amount of funds that employment offices have received for this purpose. Detailed information on this subject is contained in the regulations of individual units competent for the place of residence, stay or business. Co-financing should be used in accordance with the submitted application and within the time limit specified in the contract. If the recipient of the subsidy breaks the terms of the contract or will conduct business for a period shorter than 12 months - then he must return the entire value of the received co-financing together with interest within 30 days from the date of delivery of the call for reimbursement.

The funds received from the subsidy cannot be used for:

  • purchase of means of transport,

  • financing fees related to setting up a business (official fees, i.e. PCC, stamp duty, handling fees, commissions or translation fees),

  • fees related to the day-to-day operation of the company (internet, hosting or subscription fee),

  • financing of competence training,

  • charges related to the cost of transporting the purchased goods.

Grants from the employment office and own contribution

Usually, employment offices do not require own contribution, but when considering the application, they pay attention to it (some offices even provide the recommended percentage of own contribution in their internal regulations), so it is better to have it - at least a symbolic amount. Having his own contribution (and the input may also be a computer or printer), the future entrepreneur declares full commitment to the established company, which may have an impact on the positive consideration of the application. What's more, it is worth paying attention to the fact that the entire amount of the subsidy received will have to be spent within 30 days from the date of its receipt, so it is worth having additional money for which you can pay, for example, rent for the premises or the entrepreneur's ZUS contributions.

For example, the poviat labor office in Wrocław grants the unemployed person funds for starting a business in the amount of approx. PLN 27,126.48.

Subsidy and business plan

A business plan is a necessary but not always mandatory element. Usually, the application is so extensive that the "business plan" field is included inside it, it can also be attached in a separate annex. Usually offices have forms available for download on their website. Although some employment offices do not require a business plan at all, its creation may increase the chance of receiving the requested funds. In addition, a professionally constructed business plan is useful when the unemployed person does not have his own contribution or education related to the profile of the assumed activity. A business plan allows officials to better understand the concept of an entrepreneur, while an entrepreneur can help in the systematic development of the company - especially at the beginning, indicating the appropriate paths of action.

Required documents

It is worth attaching to the submitted application for co-financing all documents and certificates confirming the professional qualifications and experience of the unemployed applying for a subsidy, which at the same time increases their chance for co-financing. Of course, the future entrepreneur does not have to know everything. If he sets up a company providing marketing services, he does not have to be an IT specialist - it is enough to indicate in the business plan that he will hire the right person for this position.

In addition, the application must be accompanied by:

  • a declaration of not taking up employment for a period of one year from the moment of establishing the company,

  • a declaration of not using the form of non-returnable aid in the form of a subsidy before,

  • declaration of no criminal record,

  • a declaration of consent to the processing of personal data,

  • declaration of the amount of the declared own contribution,

  • statement of two guarantors or information on the use of the surety,

  • in the case of allocating some funds for the renovation of the premises, it is necessary to present the legal title to the premises or the consent of its owner,

  • in the case of applying for funds under de minimis aid, it is also necessary to submit a declaration and information about the willingness to use this form of financing.

Co-financing from PUP and other subsidies from the employment office

Unfortunately, it is not possible to apply for a subsidy at the same time from the employment office and from other sources. However, co-financing from PUP does not close the entrepreneur's path towards other subsidies. There are no contraindications for him to apply for various forms of financial support - whether it is the reimbursement of costs related to the equipment or retrofitting of the workplace (however, you have to wait 6 months to submit such an application) or a subsidy for EU funds. However, in both cases the project has to qualify for a given operational program. It should also be remembered that such programs are most often implemented at different times, mainly depending on a given voivodeship, which may also be influenced by the company's location.

Grants from the employment office and running a business in the past

As we have already mentioned - running a business in the past does not prevent an entrepreneur from applying for a subsidy from PUP. However, it is important that the previous business activity is closed within 12 months from the date of submitting the grant application. Running a company in the past does not discredit a given unemployed person in the eyes of officials, on the contrary - well-documented experience may also increase his chances of receiving a subsidy.

If you want to receive a subsidy from PUP, you should approach the matter diligently and professionally - construct a business plan well, get your own contribution, document your knowledge, etc. And as you know, the competition is not sleeping. In addition, it is worth paying attention to the fact that funding is much easier to obtain in smaller towns, where the size of competition is limited. Therefore, reliable preparation of the application and thoughtful placement of it increase the chance of a future entrepreneur not only to set up a business, but also to develop it in the future.