Business Opportunities in Poland
With the growing digital technologies in Poland, you can be sure of tapping into a market with high demand for information technology. Poland’s primary purpose is to take a modern approach to electricity generation and distribution. Therefore, businesses have an excellent opportunity to invest in this sector. Right from having a strategic geographic location to an educated and talented workforce, Poland has all that a business requires to grow.
Located at the heart of Central Europe, Poland has the power to draw more investors and generate more economic growth. Poland takes pride in having the largest single market in the group of new European Union states. Considering all these beneficial factors, you can quickly start a business in Poland as long as you understand the rules and regulations. This guide will give you a detailed account of how to start a company in Poland.
Benefits of Starting a Business in Poland
The advantages of doing business in Poland are highlighted below:
Strategic location
Situated at the heart of Europe, Poland allows companies from the East and the West to do business efficiently. As a member of the European Union (EU), investors can benefit from Poland’s strong economic condition. E-commerce businesses can take complete advantage of Poland’s beneficial logistical conditions.
Stable economy
In the whole of Europe, the GDP of Poland has seen drastic growth. Moreover, the country successfully avoided recessions in the past, providing a stable economy for investors. The IMF has also forecasted a hike in purchasing power parity in the upcoming years.
Incentives and trade opportunities
Poland shares a professional trading relationship with the UK. So, this is an excellent opportunity for companies in the UK to start a business here. The incentive system of the country also encourages businesses overseas to invest in Poland. From governmental grants to regional aid, Poland stands firmly for entrepreneurs and startups.
Requirements for Starting A Business in Poland
The requirements to do business in Poland are as follows:
Visa and work permit
People belonging to the EU states do not need any work visa to establish a business in Poland. This is mainly due to Poland’s membership in the European Union. People outside the EU states need a work permit and a visa to operate in Poland.
For foreigners, these are the various types of visas they can avail of:
- Work permit (Type A)
- Work permit (Type E or C)
- Business visa (Schengen visa C or D)
- Freelance or entrepreneur visa
Company address
The company’s name must be unique and have no connection to any other registered company. The company name must first be pre-approved by the National Court Register. All companies in Poland should have a registered office.
Business capital
To start a company in Poland, you need at least 5000 PLN (Polish Zloty).
Taxation
The corporate income tax in Poland is charged at a flat rate. From 2022, the corporate tax in Poland will be 19%. However, if the revenue is $2 million or less, the corporate tax is reduced to 9%.
Director and company secretary
You need at least one director and shareholder for offshore company registration in Poland.
Types of Business Structures in Poland
The different business entities in Poland are pointed out below:
Polish limited liability company
- Should be registered under the National Court Register
- Should have at least one shareholder
- Should begin with a minimum capital of 5000 PLN
- Should have a minimum share value not below 50 PLN
- Comprises of a management board with one or more members
- Must pay VAT and corporate income tax
Polish joint-stock company
- Chosen by large businesses
- Can be formed by one or more entity
- Should have a minimum capital of 100,000 PLN
- The nominal share value cannot drop below 0.01 PLN
- Should pay VAT and corporate tax
- Should have a management board and an additional supervisory board
- Must be registered under the National Court Register
Polish limited partnership
- Suitable for all types of businesses
- Commercial partnership entity with judicial and legal capacities
- No minimum share capital required
- Must be formed by two founders
- Consists of two types of partners – a limited partner with liability for a specific amount and a general partner possessing unlimited liability
- Must be registered under the National Court Register
Polish civil partnership
- Suitable for small-scale businesses with at least two entities
- Does not require a separate legal entity
- Need not be registered under the National Court Register
- Individual partners have to pay tax
- Partnership subjected to a VAT registration in Poland
Polish registered partnership
- Suitable for small-scale enterprises with two entities
- Must be registered under the National Court Register
- Does not require legal personality
- Possesses judicial and legal capacity
- No minimum capital share required
- VAT payer partnership with a corporate income tax levied on individual partners
Polish limited joint-stock partnership
- Needs an active partner with a passive shareholder
- Devoid of legal personality with a judicial and legal capacity
- Must be registered under the National Court Register
- Needs a minimum capital of 50,000 PLN
- Must have a nominal share value of 0.01 PLN
- VAT payer partnership
Company Registration Process
The procedure for incorporating of a company in Poland is given in a stepwise format below:
Step 1: Signing Article of Association
- In the first step, you must complete and sign the Article of Association.
- After filling it up, you need to get it notarized by the notary’s office.
Step 2: Depositing share capital
- You must deposit the minimum share capital for the company formation in the company’s bank account.
Step 3: Appointing the management board
- Select the company’s management board. This can be done in two ways
- Through a vote among the shareholders
- A resolution in a general shareholder’s meeting
Step 4: Applying for registration
- Register the company under the National Court Register.
- You must fill out an application form and provide the necessary documents to do this.
Step 5: Obtaining another permit
- Your company will receive an identification number that will be used later for all official and legal purposes. a
How Much Does It Cost to Incorporate a Company in Poland?
The cost of incorporating a company in Poland depends on the type of company you are establishing. Generally, the set-up cost to incorporate a company in Poland is 4,850 Euros (22,830.33 Polos Zloty).
In addition, companies also require to submit minimum share capital as per the company form they select. The minimum share capital of a limited liability company in Poland is 5,000 PLN, while for a joint-stock company, it is 100,000 PLN. No minimum capital share is required for a Polish limited partnership, a Polish civil partnership, and a Polish registered partnership. Again, in the case of a limited joint-stock partnership, you will have to deposit 50,000 PLN.
Are Foreigners in Poland on Certain Passes Allowed to Start a Business in Poland?
Yes, foreigners can set up an offshore company in Poland with the help of respective work visas. The work permit Type A is suitable for foreigners who work in a Polish company. On the other hand, the work permit Type C or E is for people who come to Poland on intra-company transfer. The other two visas for foreigners include the business visa and the freelance or entrepreneur visa.
To get any of the visas mentioned above, these are the documents you need to submit:
- A filled-up application form
- Payment receipt of application fees
- Legal status confirmation issued by the National Court Register
- Current records of economic activities of the company
- The company deed
- Evidence of health insurance of the applicant
- A copy of the company contract
Government Assistance for Foreign-owned Businesses
The Polish government understands the nation’s need for development and economic growth. So, they have designed the Poland Prize program. This governmental scheme aims to fund startups with foreign roots that include at least half the company’s shares, and a foreigner holds one management board seat. Companies get non-refundable funding amounting to PLN 250,000.
In addition, the Polish Agency for Enterprise Development implements international and national programs to create and promote a business-friendly environment. All these grants for starting a business in Poland make it an ideal location for entrepreneurs.
How Multiplier Can Help
If you intend to start a business in a foreign land, you need proper guidance to set up the company without any legal hassle. To do this, Multiplier can stand by you at every step. Right from taking care of global teams to hiring a workforce, we provide everything according to your company’s demands.
Our exclusive solutions include hiring talents for startups from around the globe, expanding the company globally, taking enterprises to the global markets, and taking care of finance teams from beginning to end. To augment your business and promote its growth, contact Multiplier today.