There are generally two reasons why business investors set up companies abroad: to access new markets and to cut costs.
Poland joined the EU in 2004 and scores exceptionally well on both counts. The Polish market is the largest in Central Europe – larger, in fact, than the other nine new EU members put together – and labour costs are low.
Additionally, foreign investment is pouring into the country, fuelling sustained economic growth of more than 5% a year.
A summary of Polish Corporate Taxes is available here.
Frequently Asked Questions about Poland
What are the main types of Polish company available?
There are four main kinds of Polish company to incorporate:
– Limited Liability Company (Sp. z o.o)
– Joint Stock Company (S.A.)
– Partnership
– Sole Proprietor
What are the main features of a Private Limited Liability Company (Sp. z.o.o.)?
– This is the most popular format for small and medium sized companies
– The minimum share capital is 5,000 zlotys (€1,125), to be fully paid up
– The minimum number of directors is one
– There are no restrictions on foreign shareholders
What are the main features of a Public Limited Liability Company (S.A.)?
– This is the most popular format for larger companies that wish to raise public capital
– The minimum sharecapital of a Polish SA is 100,000 zł. (appx EUR 25,000).
– On set up a minimum of 25,000 zł is required to be paid in to the company bank account and the remaining 75,000 zł is to be paid in during the timeframe as set out in the founding notary deed
– There is a two-tier system comprising management and supervisory board
– 8% of the annual profits should be put into a reserve fund (maximum 30% of share capital)
– Annual accounts and an independent audit are required
What are the main forms of Partnership in Poland?
There are four main types of Partnership under Polish Corporate Law:
– Registered Partnership – all partners have equal and unlimited liability
– Limited Partnership – some partners have limited liability
– Professional Partnership – some concessions regarding partner liability
– Limited Joint-Stock Partnership – includes partners and shareholders
What are the main features of a Sole Proprietor in Poland?
– This is the simplest and least-regulated form of business entity
– It is a very popular format for small business enterprises
– The Sole Trader has unlimited liability for all liabilities and debts
– Profits are subject to Polish Income Tax at individual rates
What is the regulatory environment like in Poland?
The stifling bureaucracy of the Communist era is long gone and Poland now has one of the most liberal economic regimes in Central Europe.
Corporate Income Tax was lowered from 27% to 19% in 2004, reflecting the government’s wish to ease pressure on companies and attract further job-creating investment.
Capital and profits can be freely repatriated, however, legal and accounting regulations are complex and local expert assistance is advised.
Are there financial incentives available in Poland?
Poland offers a broad range of financial incentives for foreign investors:
– Grants of up to 25% for companies setting up in Poland
– Enhanced grants totalling 50% in Special Economic Zones
– Further incentives are also available through EU-funded schemes
How easy is it to close a Polish company?
Please contact us in order to discuss closing your company in Poland.
How easy is it to recruit staff in Poland?
Despite strong economic growth over the past few years, unemployment remains a serious problem in Poland with the jobless rate just short of 20%.
While some of the country’s brightest young brains have been tempted to move west, taking advantage of EU membership, Poland has a large and well-educated workforce.
What about banking facilities in Poland?
Poland is emerging as an important regional centre for the international banking community and most major financial institutions have a presence in Warsaw.
Local banks are also capable of competing strongly and effectively to provide facilities for foreign investors seeking Polish company formation.
For assistance with opening a bank account in Poland, please contact us.
