Compulsory social security contributions in single-person limited liability company

A member of a single-person limited liability company, who is also the a sole member of the Board, is treated as person running non-agricultural business for the insurance purposes, and is subject to social insurance on the rules applicable to the conducting non-agricultural business.

Persons who operate such types of activity are subject to compulsory pension, disability pension and accident insurance. Howewer, sickness insurance is voluntary and insurance coverage takes place at the request of the applicant.

The law on the social insurance considers a member of a single-person limited liability company as an individual entrepreneur operating economic activity that is why is obligated to pay contributions.

Article 5 (1,5) of the law on the social insurance system - individuals who are persons engaged in non-agricultural activities on the territory of Poland, as well as persons collaborating with them, are compulsorily insured contribution subject to the provisions of articles 8 and 9.

Article 8 (6, 4) of the law on the social insurance system – a person operating non-agricultural activity is considered to be a member of a single-person limited liability company and partners of a general partnership, limited partnership or limited liability partnership.

Only individuals who are listed in article 6 of the Law on the social insurance system are subject to compulsory insurance. This article also relates persons engaged in non-agricultural activities to the persons subject to social insurance. In addition to this provision, article 8 of the Law clarifies who is considered as a person performing economic activity.