Poland is an interesting and promising jurisdiction for starting and operating European oriented businesses. The county can be characterized by its adherence to the main strict European legal and compliance practices, but at the same time it is open to foreign investors. The process of starting and running a business is generally easy, predictable and not associated with high transaction costs of entering the country. Jurisdiction is also associated with the following advantages that it provides to both local and foreign entrepreneurs.
Advantages of Jurisdiction
If you are interested in starting your business in this country in advance, the following business options and opportunities can start to be offered from the moment of incorporation of a local company.
Advantages of the strategic geographical location in the European region.
Benefits associated with EU, OECD and WTO membership.
Flexibility of the business registration process with the possibility of opening a company in Poland remotely.
Many available opportunities to enter European markets.
Well-developed local economic sectors (chemical, consumer goods, textiles, food, trade sectors, etc.) suitable for doing business
Qualified and experienced local staff
Relatively low cost of doing business
These are only general benefits attributed to this jurisdiction. In fact, it opens up many other opportunities to start and profitably run a business in many other sectors. Contact Smart Startup UK lawyers to learn more about the benefits aspect of company creation opportunities in Poland in your sectors of activity or interest. This intention can be realized in any of the following forms of local business.
Basic forms of legal and business presence
Any foreign businessman who wishes to realize a business goal of establishing a company in Poland is free to choose between the following options of legal and organizational forms, depending on the specific business goals set by such a businessman:
Limited Liability Company (LLC) – a Polish legal entity that is considered one of the most popular among local citizens and foreign entrepreneurs due to its flexibility and ease of incorporation. Creating this business does not take much time and does not require high costs for its establishment and maintenance. The highest cost associated with this type of legal entity is the formation of its authorized capital of approximately 1300 Euro (or 5000 PLN in local currency). Each share must have its nominal value – at least 50 PLN. This legal entity can be established even by just one person. Each such participant in a Polish LLC is not liable under any conditions for the debts and obligations of that legal entity exceeding the amount invested in the purchase of an equity interest. But the specific restrictions on the transfer of shares are specified in statutory documents and are applied in practice.
Stock company – this Polish variant of doing business is designed to include external financing and the offering of shares to the general public. Therefore, starting and managing this form of Polish company requires compliance with stricter requirements, but promises higher income. Its founders are required to create authorized capital in the amount of about 25,000 EUR (100,000 PLN in local currency). Each share must have its nominal value – at least PLN 0.01.
General partnership – a business management option, easier than registering a company in Poland. It provides for at least two persons to pool their efforts and resources to conduct certain types of business, bearing joint and several financial responsibility for the results of such activity. In this case, a partnership agreement is needed to formalize the obligations and rights of the business partners involved in it.
Limited partnership – option for doing business, which is also a good alternative to the option of opening a company in Poland. It requires the presence of (1) a minimum of one general partner whose financial obligations must cover all potential losses resulting from doing business together, and (2) a minimum of one limited partner whose financial obligations do not exceed amounts of cash or other assets invested in this partnership. In this case, a partnership agreement is also needed to define all the obligations and rights that the business partners have in relation to each other.
Branch – this is a form of doing business for a foreign legal entity with certain restrictions – to carry out the types of business activities that it has the right to carry out only in its country of registration. Registration and entry of information about the branch of a foreign company in the Polish business register is required.
Legal and Regulatory Framework
In general, the local legal framework is very favorable for doing business and attracting investment in the country. There are no restrictions or limitations in this regard, except for some strategic sectors, such as television broadcasting or aviation. Local regulation is also related to the need to comply with a number of compliance requirements adapted to pan-European standards, primarily in the area of prevention of money laundering and terrorist financing. The Commercial Companies Code, the Law on Trading in Financial Instruments, the Public Offering, the Conditions for the Introduction of Financial Instruments in Organized Trade and Public Companies and the Investment Funds Law are legal acts of primary importance for foreign investors wishing to start business in this country . The Polish Ministry of Justice (administers the Polish National Court Register) and the Polish Financial Supervisory Authority are local government authorities that foreign investors are likely to deal with while entering and operating in the country.
Registration Requirements and Steps
Registering a company in Poland usually requires the following mandatory steps:
Clarification of the commercial goals that the entrepreneur intends to realize through a Polish legal entity or in any other form (to be determined taking into account the scope and value of the expected operations).
Developing business name proposals for a future legal entity and checking these using rules applied to business names in Poland. Save the final chosen version of the company name.
Renting and arranging an official address for a future Polish legal entity.
Request and collection of personal (for individuals) and registration (for legal entities) data of the founders. Collection of information about beneficiaries and managers of a future Polish legal entity.
Development and negotiation of statutory documents for a future Polish legal entity. Completion of all necessary registration forms.
Formation of authorized capital for a future Polish legal entity.
Organization and submission of the set of necessary registration documents to the registrar. Provision of additional information (optional). Entering information for registration in the Polish business register.
Receive a certificate of registration in case of a positive decision.
Registration for the purpose of paying taxes and hiring employees.
Search for banks that are willing to open accounts for a newly registered company (eligibility requirements vary by banking institution).
Apply for and obtain licenses and permits that may be required to start operating in certain sectors (such as banking and finance).
This is an approximate scheme for setting up a company in Poland. If you want to get a specific plan for registering a Polish company, ask the lawyers of "Smart Startup UK" to develop it in more detail for you.
Tax system in Poland
If a foreign entrepreneur intends to open a company in Poland, this business decision must be evaluated together with the following parameters of the local tax system:
Corporate income tax rate (CIT rate) – 19%.
Personal income tax rate – (1) standard - 32%, (2) additional 4% of joint tax for income over PLN 1 million.
Value added tax rate – 23%.
Withholding tax rates (applicable to non-resident taxpayers) – (i) dividends – 19% (ii) interest – 20% (iii) royalty – 20%.
Capital gains tax rates – (i) corporate – do not differ from the generally applicable CIT rate (ii) individual rate which applies to share transfer transactions – 19%.
These are the main highlights that you need to keep in mind when considering the possibility of registering a Polish company. The lawyers of Smart Startup UK are ready to advise you more precisely on the various aspects of paying taxes in Poland and to make approximate calculations of the taxes due.
We offer services for quick company registration and opening of bank accounts in Poland and around the world. New registration and ready options. Provide extensive details for more precise consultation and suggestions that can be effective for your future project.
CREATE A COMPANY
Checking and saving a company name in the National Court Register (Krajowy Rejestr Sądowy)
Company registration in the form of Sp Z.o.o, including state fees
Assistance with company registration in KRS, REGION, NIP
Certificate of Incorporation (Oświadcznej o wpisie do rejrestru prędzieściów)
Statute (statute)
Obtaining a PESEL number and electronic signature
Opening a corporate account at BNP PARIBAS, PKO Bank Polski
Company stamp
VAT number at the tax office (Urząd Skarbowy)
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Annual renewal (payable from the second year)
*Within 30 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit a request for company registration using the request form.
2. We check if the registration company name is free and eligible for registration.
3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.
4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.
5. You receive all necessary company documents for verification.
6. You receive details of your newly opened bank account.
7. In the specified period (for Poland it is 30 days), you receive all the services included in the package.
8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.
All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!
