DOING BUSINESS IN POLAND IN 2020
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?||3 weeks||3 weeks||4 weeks||4 weeks||4 weeks|
|How soon can you hire staff?||3 weeks||3 weeks||4 weeks||4 weeks||4 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?||4 weeks||8 weeks||4 weeks||4 weeks||4 weeks|
|How long to supply company registration/tax numbers?||3 weeks||3 weeks||4 weeks||4 weeks||4 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 months||3 months||2.5 months||2.5 months||2.5 months|
Poland company registration summary
Press the link headings below to read detailed, relevant, up to date information.
Advantages and disadvantages
Advantages of Poland company registration
- Poland has a new tax policy in place with effect from January 01, 2019:
- It allows for a reduced corporate income tax rate for companies with a turnover of less than €1.2 million and a ratio of income to revenue of less than 33%;
- Launch of the Innovation Box will allow companies conducting R&D activities related to intellectual property rights to enjoy a preferential CIT of 5%;
- Revenue from trading in virtual currencies will be considered a part of capital gains and taxed accordingly;
- Under the new Polish Investment Zone law, companies can apply for a CIT exemption on new investments.
- Poland is a heavy industries paradise in Central Europe, because:
- Aviation Valley in south-eastern Poland is one of the best places in Central Europe for aerospace projects;
- In a Deloitte study of the automotive industry in Central Europe, Poland is the most preferred location for starting a new manufacturing plant;
- There is abundance of qualified labour in Poland. 30% of 25-64 years old in Poland held a tertiary qualification, and 88% of them were employed;
- Labour costs in Poland remain low with only €10.1 average hourly employee wage in 2018;
- Businesses from several manufacturing sectors may apply for Government investment grants and tax deductions, if they: i) create more than 250 new jobs and ii) invest more than €9.3 million;
- 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 €1,200 (PLN5,000);
- Poland is positively ranked in the top 40 countries in the world for doing business in 2019, according to the World Bank;
- 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 37th out of 140 countries in the Global Competitiveness Report 2019 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 or taking over an existing company.
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 128th easiest place to start business in the World in 2019;
- 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, and beneficial owner requirements. Moreover, Poland has high personal tax rates. These might prove to be a disincentive for foreign investors.
- Poland has a new tax policy in place with effect from January 01, 2019:
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;
- Strategically located in the Central Europe, Poland remains a politically stable destination for foreign investments for over 10 years now. Whereas the safety as well as economic and political stability remains questionable for its i) fellow Western European nations that are still shaking due to BREXIT and ii) Eastern European countries that are struggling with the ongoing migrant crisis;
- Poland offers numerous benefits to all the Research and Development based companies in the country, including:
- Preferential tax allowance i) to R&D centres and ii) on purchase of new technologies;
- Real- estate tax (RETAX) exemption for all new investment projects implemented either in the premises of the City or Commune;
- There are up to 46 technology parks in Poland aimed at providing excellent technical infrastructural facilities and adequate office spaces to all the R&D-based companies.
- 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: Yes
- 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
- Innovation, Grants & Incentives in Poland 2014
- Doing Business in Poland