How to Approach and Complete Company Incorporate in Poland
As a central European location, Poland is a popular choice for foreign investors. And in this article, we’ll see what you need to know about company incorporate in Poland.
Why Choose Poland?
As a gateway between Eastern and Western Europe, Poland is a favourable location for investors if they want easy access to the rest of Europe. With over 38 million people, the country is one of the largest consumer markets in the EU.
Poland’s economy is sturdy and stable and has shown resilience whenever there is a global economic crisis in the past. This means that the country can offer a stable business environment for investment and expansion. The Polish government has also implemented several initiatives to foster entrepreneurship and attract foreign investment. A business-friendly environment is essential for business success, and the Polish Government has done that by preparing various support programs, grants, and incentives for businesses.
Do Foreigners Need to Go Through a Different Process to Set Up A Business in Poland?
Foreigners can set up a business in Poland, too, not just locals. The country has a relatively open and welcoming business environment for foreign entrepreneurs. The process of registering a business in Poland is generally the same for both Polish and foreign entrepreneurs. With a company incorporation specialist like 3E Accounting working with you, we can have your business up and running quickly.
If you are starting a business, you don’t need a work permit. However, if you’re a non-EU citizen, you will need a residence permit before you can start a business. The requirements and procedures for obtaining these permits will vary, so ask our experts how we can help.
What Are the Steps to Incorporating A Company in Poland?
The first step is to choose your business structure:
Limited Liability Company
The most popular is the Limited Liability Company (Sp. z.o.o.) structure. Small and medium-sized enterprises usually opt for this structure because of the limited liability protection for shareholders. If you want your personal assets to generally not be at risk in case of company debts, this is the business structure for you.
Joint-Stock Company
Another business structure option is a Joint-Stock Company (S.A.). This is suitable for larger enterprises that aim to raise capital by issuing shares. It is more complex and requires a higher minimum share capital (PLN 100,000).
Partnerships
If you’re starting a business in Poland with a partner, there are several partnership options to choose from. The first is General Partnership (S.j.) that is formed by two or more individuals who carry out a business together. Each partner has unlimited personal liability for the partnership’s obligations. The second is Limited Partnership (Sp.k.), which consists of at least one general partner with unlimited personal liability and at least one limited partner who is liable only up to the amount they contribute to the partnership.
The third option is a Limited Joint-Stock Partnership (S.k.a.), a hybrid structure that combines the features of a limited partnership and a joint-stock company.
Getting the Company Incorporate in Poland Process Started
Once you’ve done the above, you must reserve your company name with the National Court Register (KRS). A pre-registration name is not necessary. You must also provide identification documents of the shareholders. These could be copies of their passports or ID cards. You must also submit a completed registration form to the KRS. The form includes the company name, registered office address, shareholders’ information, and other relevant information.
Power of Attorney
If you are registering your company from overseas, you will need a power of attorney. This means that you appoint someone to act on your behalf during the incorporation process, like 3E Accounting for example. If this is the case, a notarial power of attorney must also be granted in your country of residence.
Articles of Association
Step three is preparing your Articles of Association. Your documents must include information about the company’s name, registered office, purpose, share capital, and management structure, etc. Our 3E Accounting specialist can help you with the drafting process. A notarial deed must accompany these articles of association. This document confirms the authenticity of the Articles of Association and the identities of the shareholders. A Polish notary public issues it.
Deposit Minimum Share Capital
You must have a local bank account to deposit the minimum share capital. Depending on your business structure, your minimum share capital can start anywhere from PLN 5,000 (this is for a Limited Liability Company).
What Types of Taxes Are There in Poland?
Company Incorporate in Poland means you will need to deal with taxes. Or get us to do it for you. The most common business tax is the corporate income tax (CIT). CIT is levied on the profits earned by companies registered in Poland. The standard corporate income tax rate is 19% on the taxable base. However, a reduced rate of 9% applies to small taxpayers meeting specific criteria.
Your business will also be subject to Value Added Tax (VAT) if applicable. VAT is a consumption tax applied to most goods and services if you’re conducting business in Poland. The standard VAT rate is 23%, while 8% and 5% reduced rates apply to specific goods and services, such as certain food products, books, and medications. Businesses are required to register for VAT if their annual turnover exceeds the threshold set by law.
Get Ahead With 3E Accounting
Having a professional service like 3E Accounting on hand can help you speed up your company incorporate in Poland process. For more information on getting started, contact the 3E Accounting team today.
