The diversity of participants in economic transactions and the need for their stability and transparency led to the creation of a unified database of entrepreneurs. Business entities need to be registered based on their organizational and legal form. Find everything you need to know about the National Court Register in this article.
Table of Contents
- The National Court Register (KRS) – what is it?
- The objective scope of the National Court Register
- The subjective scope of the National Court Register
- Classification of data in the National Court Register
- Procedure for obtaining entry in the National Court Register
- Proceedings before the registry court
- Entry in the National Court Register
- Registration files
- The character of entry in the National Court Register
- Rules for using the National Court Register
- The National Court Register – summary
The National Court Register (KRS) – what is it?
The National Court Register (Polish: KRS) is a public, centralized, electronic database. It contains information about entities subject to registration obligation. The Act on the National Court Register regulates the rules for entering and sharing data.
The National Court Register is operated in an IT system by registry courts. Namely, by commercial divisions of district courts. This database allows for the collection, verification, processing and sharing of data important for ensuring the order and security of legal transactions.
The objective scope of the National Court Register
The National Court Register consists of three independent registers:
- register of entrepreneurs;
- register of associations, other social and professional organisations, foundations and independent public health service establishments;
- register of insolvent debtors.
The entity’s organizational and legal form determines its disclosure in a specific register.
The subjective scope of the National Court Register
The Act on the National Court Register specifies which entities must be registered. It also indicates the appropriate register. The data of sole proprietors and civil law partnerships appear in a separate register, i.e. CEIDG. The abbreviation stands for the Polish Central Register and Information on Economic Activity.
The broadest register in terms of subjective scope is the register of entrepreneurs. According to the National Court Register Act, it includes companies and commercial law partnerships, i.e.:
- general partnership,
- limited liability partnership
- limited partnership
- limited joint-stock partnership
- limited liability company
- joint-stock company
- simple joint-stock company
Classification of data in the National Court Register
The data in the National Court Register are divided into 6 sections. Each section includes information that allows for the identification of the entity. They also enable establishing of organizational and financial situation of an entity.
The most extensive section is the one concerning the financial situation of the entity. It serves to protect potential creditors. However, you should note that the absence of information in this section doesn’t always mean that the entity is in good financial condition. Thus, these entries are not subject to the presumption of truthfulness.
The individual sections of the National Court Register allow for the determination of:
- I – universal information common to all entities. These include a name, legal form, registered office, and specific details, e.g. the identification of partners in a partnership.
- II – the character, method, and scope of representation.
- III – the subject of activity.
- IV – the financial situation.
- V – data of the court-appointed administrator.
- VI – events leading to the termination of the registered entity’s activity
Procedure for obtaining entry in the National Court Register
An entity subject to the registration obligation submits an application for entry into the KRS to the registry court. Namely, to the court competent for the place of residence or registered office of the applicant. One must submit the application within 7 days from the date of the event justifying the entry. The appointment of a member of the management board is an example of such an event. The application is subject to a court fee, the amount of which is regulated by a separate Act.
Failure to follow the obligation to register in the KRS triggers the entity’s liability for damages. The business entity may be released from this responsibility only by law.
One can apply for entry in the register of entrepreneurs only via the ICT system. However, entities specified in Art. 1 sec. 2 point 2 of the National Court Register Act can submit their application on an official form, with the use of its copy, or via the ICT system. The violation of formal and fiscal requirements of the application entails certain sanctions. They are determined by the Act on the National Court Register.
The principle of the application-based registration procedure has exceptions. They can occur only under explicit provisions. For example, in cases of obvious inconsistency of the entry with the court’s decision.
Proceedings before the registry court
The registration court reviews the application within 7 days of its submission. For companies that have used a template contract, the review is done within 1 day from submission.
Entry in the National Court Register
An entry into the National Court Register is based on the decision of the registration court. It involves entering the data into the system immediately after its issuance. The moment of registration is the moment when the data is entered into the register.
The registration is published in the Court and Economic Monitor unless otherwise provided by law. From that moment, no one can refer to an ignorance of the entry. However, within 16 days from its publication, in relation to activities performed before the expiry of this period, the entity may not invoke the entry against a third party if the third party proves that it could not have been aware of it.
Discrepancies between the entry in the KRS and the announcement in the Economic Monitor are resolved in favour of the entry.
Equally important to the entry in the National Court Register are the registration files created for each entity. They include, in particular, documents that form the basis for an entry. The types of documents are determined by the Act. The list is closed, which ensures transparency of the registration files.
The complete history of an entity registered in the KRS allows for its thorough analysis. Also with regard to data not derived directly from entries in the KRS.
From 1 July 2021, registration files for entities in the register of entrepreneurs are maintained exclusively in the ICT system. This applies to new files and to the part of old files created after this change. The legislator maintained a paper version for the remaining registers.
The character of entry in the National Court Register
The Act on the National Court Register introduces the following principles regarding the entry:
- Presumption of truthfulness,
- Non-removability of data, unless otherwise provided by law,
- Obligation to announce entries in the Economic Monitor, unless otherwise provided by law.
This ensures transparency of data and promotes stability in economic transactions
Rules for using the National Court Register
Everyone can access the data disclosed in the National Court Register through the eKRS browser. You just need to enter the KRS/REGON/NIP number of the entity in the appropriate field. You can obtain information about its organizational structure, business activity, and current status. The publicity of information also applies to registration files.
The system allows for free download of two types of KRS extracts for an entity: current and full extract. The first includes current entries in the register. The second includes all entries since the first registration, except those not subject to disclosure.
Moreover, everyone has the right to receive from the National Court Register:
- certified copies,
These data can be received also in an electronic form.
The National Court Register – summary
The centralization of data concerning registered entities fulfils the principle of ensuring security of economic transactions within two aspects. Firstly, it allows for the identification of a specific entity. Secondly, it ensures equal access to obtaining information about registered entities.
If you find the above entry interesting and want to learn more about the topic, we invite you to contact us. Experts from our law firm in Łódź and Warsaw are at your disposal. Contact us today and let us help you.