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Company formation in Poland

Company formation in Poland is the most attractive jurisdiction for opening a business for residents of Ukraine and many other countries due to territorial proximity and the absence of a language barrier (in most cases).

Creating your own company is an important step towards a successful business. If you plan to form a company in Europe, Poland is one of the countries that attracts businessmen from all over the world with its advantages. A stable economy, high technologies and a large market - all this makes Poland an attractive place for business. In this article, we will consider the process of registering a company in Poland and provide useful tips for successfully starting your business in this country.

Company formation in Poland

Company formation in Poland - advantages

When considering Poland for company formation, the following advantages can be distinguished :

  • Geography

Located at the crossroads between Eastern and Western Europe, Poland is the connecting link between the West and the East and has a large platform in Central Europe for trade and transport. The borders with Germany, the Czech Republic, Slovakia, Lithuania, Belarus, Ukraine and Russia open wide opportunities for trade. As a member of the EU, Poland also benefits from the free flow of goods and services.

  • Economy

Poland is singled out as  an example of a success story with rapid economic growth. From the moment of liberalization in 1990 and until today, the country has been increasing its authority in the international arena. Poland has attracted foreign investments and is the leader in Central Europe in direct foreign investments with an inflow of at least 14 billion dollars annually .

  • Government support

The Polish government supports foreign investment in the economy and subsequently implemented business-friendly reforms to reduce the tax burden. Foreign investors get access not only to the Polish market, but also to the EU market. Investors conducting business by registering a company in Poland can take advantage of lower production costs compared to the existing ones. Poland offers a skilled workforce, and its legal system is moving towards full harmonization with Western standards.

Company formation in Poland - advantages

What is Sp. z. o. o

Polish limited liability company (abbreviated as "Sp. z.o.o") is the most common form of legal entity and can be created for any type of activity. A minimum authorized capital of PLN 5,000 is required.

Sp. z.o.o is equivalent to LLC or LLC / LTD in other jurisdictions.

In the context of liability, the shareholders and the legal entity are separated (that is, the founders are liable only to the extent of the invested capital), which is excellent for medium and large companies.

The liability of the company as a legal entity is not limited, and it is responsible for its debts and obligations with all its property.

Advantages of company formation in Poland

  • Shareholders are not responsible for the company's obligations;
  • Shareholders may be individuals and legal entities;
  • No restrictions for foreign shareholders;
  • Director of Sp. z.o.o can be a non-resident;
  • The director of the Polish company is not necessarily paid a salary according to official employment;
  • The possibility of opening an account in a Polish bank;
  • The procedure for obtaining a VAT number in Poland is not as complicated as in some other EU jurisdictions;
  • For a number of reasons, Poland is ideal for residents of Ukraine;
  • The reputation of a solid and developed European jurisdiction.

Features of Polish Sp. z.o.o

  • If a Polish company is registered by one founder, there is an obligation to pay a monthly contribution to the social insurance fund equivalent to approximately 350 Euros. For this reason, it is recommended to register a company in Poland with two founders;
  • The director of a Polish company must obtain a Polish PESEL tax number in order to open an account in a Polish bank. We accompany the procedure of obtaining a PESEL tax number during the company registration process;
  • The authorized capital of Sp. z.o.o is not necessarily paid immediately to the bank account - it is enough to simply declare it in the register;
  • There is an obligation of shareholders to pay a tax on the capital of the company, which is paid once in the amount of 0.5% of the capital amount.

Features of Polish Sp. z.o.o

What is needed to register a company in Poland

To start the procedure of registration of a Polish company, we need the following documents and information :

  • Three alternative company names in order of priority;
  • The amount of the planned authorized capital (minimum - PLN 5,000);
  • Number of participants and distribution of shares in the company;
  • Copies of passports of each director and founder;
  • Detailed description of the company's activities.

Sp z.o.o registration procedure in Poland

A Polish company can be registered remotely (electronic registration procedure) or in person. At the same time, as a general rule, a bank account is opened with a personal visit of the director to the bank branch. As an exception, we can agree with one Polish bank on remote account opening. If you open a bank account remotely, you will need a power of attorney.

If you register a company through an electronic procedure , you can use only a standard statute. An individual version of the articles of association can be prepared and submitted to the KRS (state court register) after the firm's registration.

The procedure for registering a Polish company takes approximately 10 working days.

Obtaining a VAT number takes an additional 1 month (provided that the company needs such a VAT number).

If you register a company with a personal visit of the director / founder, it will take 5 - 7 working days  in Poland to:

  • register the company;
  • open a bank account.

For each director, it is necessary to obtain a Polish identification tax number PESEL  and also to issue a profile in ePUAP .

Taxation and reporting of a Polish company

Taxation and reporting of a Polish company

The general principles of taxation applicable in Poland apply to any Polish limited liability company.

The main taxes for these types of companies are as follows:

  • Corporate income tax – 19% (standard rate);
  • Enterprises whose gross income does not exceed 2,000,000 euros per hour pay a reduced rate of income tax - 9% ;
  • The basic VAT rate is 23% . There are also reduced rates: 8%, 5% and 0% for some types of goods and services (for example, medicines, individual food products, hotel services and public catering services, individual transport services and others).

Tax year for Polish Sp. Z.o.o can be a calendar hour or any other selected twelve-month period. Sp z. o. o. is required to prepare and submit audited financial statements within 3 months from the end of the next financial period (calendar year).

Account opening and maintenance for a Polish company

Account opening and maintenance for a Polish company

To open a business account in a Polish bank, we need the following documents :

  • A scanned copy of the director's foreign passport;
  • Scanned copies of the articles of association and company extracts from the register (the originals will need to be sent to Poland later);
  • Bank statement for the last six months (if there is an open account);
  • Completed questionnaire (we will provide a questionnaire form and help with filling it out).

If necessary, you can also order a bank card. It will be delivered to the address of our representative in Krakow for subsequent transfer to you.

SANTANDER, PKO Bank Polski and ING are considered to be one of the largest and most successful Polish banks.

SANTANDER

Santander Group is a leading retail and commercial bank founded in 1857 with headquarters in Spain. It actively conducts its activities in 10 main markets of Europe and America and is one of the largest banks in the world by market capitalization.

The Santander Bank Polska Group offers brokerage services, asset management and investment funds, leasing, factoring, a full range of bank insurance products, as well as electronic access for mobile and Internet banking.

PKO Bank

It was founded in 1948 and is the largest bank in Poland in terms of assets. It is also one of the leading financial groups in Central and Eastern Europe. PKO Bank Polski has received the "Bank of the Year in Poland" award for the third time. This prestigious award in the financial sector confirms the international recognition of the effective strategy of the Bank, and also sets a benchmark for other organizations looking for sources of growth in our rapidly changing world.

The bank provides retail, commercial and private banking services to individuals and legal entities. With its headquarters in the center of Warsaw, the state-controlled PKO BP also maintains a presence in Ukraine after the acquisition of KredoBank.

ING Bank Śląski

One of the best commercial banks in Poland. ING, which previously positioned itself primarily as a savings bank, changed its strategy in 2009 and increased its lending activity. According to the statements of the general director, the bank will adhere to a strong strategy focused on savings, but at the same time it will succeed in credit activity. The Bank also actively supports and promotes solutions related to environmental protection. ING Bank  takes initiatives to create and offer new products, we support environmentally friendly projects, we form environmental awareness and manage environmental and social risks.

The bank specializes in servicing financial institutions from the very beginning of its activity in Poland. This cooperation covers both banking institutions and non-banking organizations, including:

  • banks;
  • insurance companies;
  • investment funds, investment fund companies and open pension funds;
  • leasing companies;
  • venture funds, brokerage offices, companies managing clients' assets on commission.

TAXTERS

Why  TAXTERS ?

Thanks to 10 years of experience both in the field of registration and administration of companies, and in the field of opening accounts in banks/payment systems, the Taxters team will help you solve your problem quickly and efficiently .

Instead of blindly implementing requests, we try to choose the most optimal option for the client, considering each case individually.

The main  advantages  of opening an account with our team are:

  • we minimize the client's communication with state structures and banks in Poland, taking on all support functions;
  • we supervise the process from the preparation of documents to the opening of a company and an account;
  • we do not waste time and respond to all requests as quickly as possible for the fastest delivery of the finished product;
  • we provide a contact person on the territory of Poland for escorting to all state bodies and banks.

Just click on the button  «Quick consultation» and we will answer all your questions!

FAQ

What are the advantages of registering a company in Poland?

Poland has a stable economy that provides good conditions for business development. In addition, Poland has access to a wide European market, a highly qualified workforce, and a favorable tax system. These factors make Poland an attractive place for business.

How long does the company registration process take in Poland?

The duration of the process of registering a company in Poland depends on many factors, such as the type of company, the number of founders, the volume of business, the availability of necessary documents, etc. This usually takes from a few days to a few weeks.

What taxes must a registered company in Poland pay?

In Poland, the general income tax rate is 19%. In addition, there are various other taxes, such as value-added tax (VAT), etc.

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