The first step in forming a Polish company is deciding on a legal structure for the business. The decision is simple, since the Limited Liability Company (LLC) is often considered the best option for investors. LLCs are used for almost 94% of all foreign investments in Poland.
The next stage is to establish the fundamental characteristics of your new business, such as its name, share capital, regulations for representation, etc.
The third step is to compile the required paperwork. The documentation needed to incorporate a business vary depending on whether the prospective business owner wants to:
- Spend your own money (and thereby acquire stock in a Polish company)
- In order to invest in Poland without immediately leaving your own country, you may set up a Polish subsidiary under your parent firm.
The Fintech Harbor Consulting registration attorney will help compile the Poland company formation.
Fourth, you’ll have to figure out whether you want to go to Poland to incorporate your business there or if you want to manage the process remotely and have a corporate Law Firm handle the company formation assignment on your behalf.
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Why should I open a business in Poland?
Investors may take advantage of a wide range of benefits under Polish law. Various classifications may be made for incentives. Foreign investors are often particularly intrigued by tax breaks:
- The Estonian corporate income tax (CIT) is just 9% (for turnover up to 2 million EUR) and will be 0% (zero) beginning in 2022.
- Tax rate of just 5% on revenue from intellectual property rights under the Innovation Box program
- Tax breaks for R&D (research and development) that let you deduct more of your expenses from your taxable income
- Investing in SEZs, which are tax havens that provide breaks on things like corporate taxation and real estate taxation.
Investors may also gain from the following aspects of the Polish market:
- The European Union’s Sixth-Largest Economy,
- Consistent economic expansion (3.6% annually on average between 2009 and 2019), and the fifth-largest consumer market in the European Union (38 million Poles).
- Large Human Resources (HR) Market, or People of Working Age Population (about 25 mln Poles),
- In 2020, unemployment will drop to 3.2 percent.
- There is a highly developed educational system in place, with over 450 universities serving a student population of 1.3 million.
- A well-developed network of highways, 14 civil airports, and the third-largest rail network in the EU all contribute to the region’s central European border location.
How can I choose the best Polish company structure for my needs?
In Poland, foreigners often form corporations (such as LLCs and JSCs) rather than partnerships. The primary reason for this is because in contrast to partnerships, the responsibility of shareholders or stockholders in Polish corporations is restricted. Although limited liability companies (LLCs) are the preferred investment vehicle in Poland, there are exceptions depending on the specifics of your project (for example, legislative constraints). So that you may research your choices and make educated decisions about incorporating your business in Poland, we’ve included a breakdown of the various company structures available in Poland below.
Company Types Recognized in Poland
- Limited Liability Company (Sp. z o.o.)
- Joint-stock Company (S.A)
- Business Partnership (S.c.)
- Polish Registered Partnership (Sp.j.)
- Polish Limited Partnership (Sp.k.)
In order to form a corporation in Poland, what paperwork is required?
The papers’ purview may shift based on the nature of the business and other factors. However, in most cases, the following are required for a corporation to be incorporated in Poland:
- Individuals: Driver’s license or passport
- An extract from your local company registration with an Apostille ID or passport if you are representing an international firm seeking to open a Polish subsidiary.
To avoid having to go to Poland in order to create a corporation, you may have one of Fintech Harbor Consulting’s attorneys act on your behalf by granting them power of attorney. They also require a power of attorney issued by a notary public in your country. Ready-to-go power of attorney forms are provided to you by Fintech Harbor Consulting. Such a power of attorney must be Apostilled or notarized before it may be used.