DOING BUSINESS IN POLAND IN 2018
Since 2004, Healy Consultants Group PLC has supported our Clients with timely business registration from A to Z of their business in Poland.
We can provide the following services to both individual entrepreneurs and multinational conglomerates, including: i) Poland business registration, ii) license advisory services iii) nominee services for Poland resident representatives, iv) corporate bank account opening services v) Schengen visa strategies and vi) office rental solutions.
Summary table of Poland company registration
|Summary||LLC||Cryptocurrency entity||Free zone LLC||LLP||Representative office|
|Also known as||Spółka z ograniczoną odpowiedzialnością||Firma kryptowaluta||Firma w wolnej strefie||Spółka z ograniczoną odpowiedzialnością||Przedstawicielstwo|
|Best use of company?||All products and services||FinTech services||Manufacturing and export trading||Professional services||Marketing and research|
|How soon can you invoice Clients/sign sales contracts?||4 weeks||4 weeks||5 weeks||5 weeks||N/A|
|How soon can you hire staff?||4 weeks||4 weeks||5 weeks||5 weeks||6 weeks|
|How soon can you sign a lease agreement?||1 week||1 week||1 week||1 week||1 week|
|How long to supply corporate bank account numbers?||6 weeks||8 weeks||6 weeks||6 weeks||6 weeks|
|How long to supply company registration/tax numbers?||4 weeks||4 weeks||4 weeks||5 weeks||5 weeks|
|Corporate tax rate on annual net profits?||19%||19%||Up to 0%||0%||No income|
|Limited liability entity?||Yes||Yes||Yes||Yes||Yes|
|Government grants/incentives available?||Yes||Yes||Yes||Yes||No|
|Government approval required for foreign owners?||No||No||No||No||No|
|Resident director/partner/manager/legal representative required?||No||No||No||No||Yes|
|Minimum paid up share capital?||€1,200||€1,200||€1,200||None||None|
|Can bid for Government contracts?||Yes||Yes||Yes||Yes||No|
|Corporate bank account location?||PKO BP||Bank Pekao||ING Bank Śląski||BZ WBK||BGZ BNP Paribus|
|Can secure trade finance?||Yes||Yes||Yes||Yes||Yes|
|VAT payable on sales to local customers?||23%||23%||23%||23%||No sales|
|Average total business set up engagement costs?||€11,960||Request a proposal||€14,910||Request a proposal||€15,780|
|Average total engagement period?||2.5 months||3 months||2.5 months||3 months||3 months|
Poland company registration summary
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Advantages and disadvantages
Advantages of Poland company registration
- Poland is a heavy industries paradise in Central Europe, because:
- According to PwC survey, Poland is the 8th most desirable aerospace manufacturing destination in the World;
- 40% of all automotive engine manufacturing plants in Central Europe is based in Poland;
- There is abundance of qualified labour in Poland. For example, 39 Polish Universities have “Biotechnology” as a regular discipline;
- Labour costs in Poland remain low with only €8.6 average hourly employee wage in 2016;
- Businesses from several manufacturing sectors enjoy solid Government investment grants and tax deductions, if they: i) employ more than 250 staff and ii) invest more than €950,000; and
- Under the Special Economic Zone Program in Poland, participating companies enjoy multiple incentives, including: i) tax exemptions for qualifying companies, ii) assets purchase grants and iii) staff expenses coverage.
- Poland is a secure investment destination in Europe, because:
- Poland has a reputation for political stability and a relatively efficient, transparent government, compared to other nearby Eastern European countries;
- While Poland is not part of the Eurozone, starting a business in Poland will not expose our Client to currency risk and exchange controls;
- For “Trustworthiness and confidence” rankings by the WEF, Poland is ranked ahead of many reputable economies, such as i) Japan ii) Belgium and iii) Austria;
- Poland is part of many economic and military unions, such as i) Visegrad four ii) European Union and iii) NATO. Consequently, the country’s borders are well-protected.
- Registering a new company in Poland imposes few requirements, including:
- A foreign investor can be appointed as both shareholder and director, without the need for local resident representation;
- The mandatory minimum paid-up share capital is just €2,000 (PLN5,000);
- Poland is positively ranked in the top 25 countries in the World for Doing business, according to the World Bank for 2017;
- Personal travel is not required to complete company setup and corporate bank account opening;
- A simple Poland legal registered business address is sufficient to begin operations.
- A globally competitive economy with world-class health services and education levels as well as a stable macroeconomic environment:
- Poland has been ranked 39th out of 137 countries in the Global Competitiveness Index 2017-2018 by the World Economic Forum;
- This is largely due to high quality health services and primary education levels in the country. This would enable foreign investors to hire a high-quality workforce for their ventures;
- Poland also has a stable macroeconomic environment along with an efficient goods market, making it an attractive nation for incorporating any business in this country.
Disadvantages of Poland company registration
- Registering a business entity in Poland can be a lengthy process, compared to other European countries. As a result, the World bank ranks Poland as 120th easiest place to start business in the World in 2018;
- Poland is negatively ranked as the 60th country by the Corruption Perception Index for 2017;
- All company setup documents must be translated in Polish. This creates additional delays for the formation of a subsidiary in Poland and additional third party costs for the engagement.
- Poland’s 2019 tax reform has significant changes to it, bringing tighter and stricter regulations, especially on the withholding tax regime. Moreover, Poland has high personal tax rates. These might prove to be a disincentive for foreign investors.
- Poland is a heavy industries paradise in Central Europe, because:
Best uses for Poland company
- Poland is a great place to form a manufacturing company, thanks to abundance of well-developed business sectors and cheap labour costs;
- While Western Europe is still shaking due to BREXIT and Eastern Europe is struggling with ongoing migrant crisis, Poland remains a politically stable destination for foreign investment in Central Europe.
- Time to incorporate: Four weeks
- Cost to set up: €11,960
- Minimum capital: €1,200
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 19%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: Sp. Z.O.O.
Useful links for Poland
Government and public authority websites:
- Ministry of Finance
- Central Bank of Poland
- Poland Stock Exchange
- Investment Authority
- Warsaw airport
- Visiting Poland
- KPMG – Poland country profile
- KPMG – Investment in Poland
- Investing in Poland 2014
- 2013 Thinking Beyond Borders – Poland
- Strategy for Poland – EBRD
- Doing Business in Poland