SETTING UP A COMPANY IN POLAND
The Rise of Businesses in Poland
Poland has become a bustling hub for entrepreneurs, investors and businesses seeking a desirable and lucrative market to be part of. Professionals from many parts of the world are beginning to recognize that Poland holds great potential for business opportunities, offering resources such as tax incentives, highly educated workforce and a number of different business activities. With this in mind, many are realizing the importance of doing business in Poland. In this article, we will provide the essential steps and resources necessary for entrepreneurs to establish and run a successful business, with a focus on Limited Liability Companies (Ltd). By understanding how to set up a business in Poland and the current investment climate, you can determine if starting a business in Poland is the right choice for you and your company.
Legal Process to Set up a Business in Poland
First, it is essential to understand the legal process of setting up a business in Poland. The formation of a limited liability company in Poland is subject to a few main steps, some of which are outlined here:
1. Choose a Company Name and Fill out the Forms
The company name should be as descriptive and relevant to the operations as possible. It should be written in the Polish language, which is the one official language used in Poland, and must be accompanied by ‘sp. z o.o’ at the end of the name. Once the name is approved, the incorporation forms must be filled out with the exact name of the entity, data regarding its shareholders and directors, address and purpose.
2. Obtain a Tax Identification Number (NIP)
A taxpayer identification number (NIP) will be registered as part of the business formation process. This number should be used whenever entering into contracts, making purchases or registering with government agencies.
3. Open a Bank Account
When setting up a business in Poland, a Polish bank account must be opened. This bank account will be used to receive payments, pay taxes and various other expenses associated with running the business.
4. Apply for a Business Permit or Certificate
In some cases, it is necessary to register the company with some relevant government agencies, depending on the type of activity the company intends to practice. Obtaining the necessary permits and certificates is a mandatory requirement for setting up a business in Poland.
Tax and Investment Climate in Poland
The tax rate for companies in Poland is quite low, at 15 percent if your company meets certain criteria and 19 percent for most companies with revenues of more than 5 million zloty. Additionally, Poland’s investment climate remains attractive, as it is a member of the European Union and has one of the fastest-growing economies in that union. Foreign investors may find the Polish market appealing, as the economy continues to experience a sense of dynamism and growth. This sense of confidence has been improving since 2004, when Poland became a member of the European Union, and since then it has become a very attractive choice for many businesses.
FAQ
Q1. What forms must be filled out when setting up a business in Poland?
The incorporation forms must be filled out with the exact name of the entity and data regarding its shareholders and directors, address and purpose.
Q2. What is the tax rate for companies in Poland?
The tax rate for companies in Poland is quite low, at 15 percent if your company meets certain criteria and 19 percent for most companies with revenues of more than 5 million zloty.
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