Companies in Poland

The Republic of Poland is a developed industrial and agricultural country. The dismantling of the socialist system, which began in the late 1980s, marked the beginning of a wave of privatization and, as a result, the building of modern market relations. Among Western investors, Poland is today considered one of the most promising countries in Eastern Europe.

Advantages

• creation of an LLC with several founders (up to 9 people);
• the possibility of doing business throughout the European Union;
• zero export VAT;
• the possibility of obtaining a residence permit by the founders and members of their families

General information and history

The political structure of Poland is a parliamentary republic: the head of the country is the president; the legislative bodies are the Senate and the Sejm. Immediately after its admission to the European Union (2004), Poland joined the Hague Convention, which allows the use of an apostille for the legalization of documents.

Poland's economy is the sixth largest in the European Union and the twentieth largest in the world. The low cost of living compared to developed Western countries, the gentle level of taxation and the exceptional stability of the economy make this country attractive both for business and for living.

Poland's economy showed steady growth even during the financial crisis of 2010-2012, not least due to hosting the European Football Championship in the country. The flow of foreign investment does not dry up also because, according to the reports of Transparency International, Poland is considered the least corrupt among European countries.

Tax rules in Poland

The tax system in Poland is not much different from other European countries. Let's start with the basic rates:

• corporate income tax - 19%;
• VAT — 23/8/5/0% depending on the type of goods or services;
• personal income tax - 18% / 32%.

Organizational and legal forms of activity in Poland

Only a person who has the right to permanent residence in Poland can register as an individual entrepreneur. For non-residents, the following options are available:

• limited liability company (Spółka z ograniczoną odpowiedzialnością, Sp. z o.o.);
• joint-stock company (Spółka akcyjna);
• limited partnership (Spółka komandytowa);
• limited joint-stock company (Spółka komandytowo-akcyjna).

It is also possible to open a branch of some country’s company in Poland. However, practice shows that it is most convenient to conduct business through a limited liability company (Sp. z o.o.).

According to the laws of Poland, the founders of an LLC can be up to 9 people, and the participation of Polish citizens is not necessary. From an economic point of view, it is more profitable to register a company with two or more participants - in this case, mandatory social payments are minimized. Please note that the founders of a Polish company may in the future count on obtaining a residence permit.

Minimum authorized capital Sp. z o.o. is PLN 5,000 (about $1,400), and the actual transfer of funds may be delayed. As in any LLC, the authorized capital of the company is responsible for its obligations.