Why is it worth to set up a company in Poland?

9 maja 2022
/ Wiktoria Ronc

Despite appearances, many companies are thinking about developing their business with the consideration of foreign branches. What most often makes them want to set up their own business in Poland is to take advantage of a completely new market. However, such a step should be preceded by a detailed business and legal analysis. Poland is an extremely friendly jurisdiction for companies from outside its borders. Whether you relocate your company or set up a branch in the country, you can count on a number of benefits specific to Polish business activities. Is it worth establishing a company in Poland? If so, why? Find out in this article.

 

 

Establish a company in Poland online

 

Registration of a company as a commercial company involves a number of obligations. It is necessary to have, among others, an electronic signature. However, many things can be done remotely e.g. setting up a bank account. Thanks to that you can now register your company in S24 system:

  • general partnership
  • limited partnership
  • LLC (limited liability company)
  • simple joint-stock company.

 

POLISH-LAWYER – learn more on my YouTube channel (CLICK HERE)

 

All formalities can be completed online without any major problems. S24 system is intuitive and will guide you through the whole procedure step by step – from concluding the articles of association to its registration in the National Court Register. You fill in all documents in an electronic form. Moreover, S24 allows you to avoid concluding the articles of association in a special form at the notary’s office e.g. in case of a limited liability company. This way you will save not only notary fees, but also time. Additionally, you will be charged a lower court fee of PLN 250 instead of PLN 500.

 

What are the limits of S24 system?

 

Unfortunately, it should be noted that establishing a company via the Internet does not allow to shape the articles of association as freely as in the traditional form. Besides, it is not possible to modify the financial year while registering a company electronically. In any case, it will be equal to the calendar year. Moreover, a mandatory condition for establishing a company is having a share capital. This in turn can be covered by contributions in cash. Anyone who signs a contract in this way must be able to provide an electronic signature using a Trusted Profile, a qualified signature or a personal signature and must have an account on the S24 portal.

 

What taxes will a foreign entrepreneur pay?

 

You should bear in mind that an entrepreneur of this type will be treated more or less similarly to companies from Poland. This is quite an advantage and an important factor in this respect is the possibility to benefit from a flat tax of 9% for small and medium sized businesses. In a flat tax the base is the income on which you will pay 9%. It is enough that you do not exceed EUR 2 million income in a year.

 

What should be done after the company’s registration in KRS (national court register)?

 

Establishing a company in Poland requires compliance with certain formalities, such as payment of the civil law transaction tax (PCC) of 0.5% on the value of the share capital and filing the NIP-8 tax return. Finally, an application for registration as a VAT payer must be filed before the date on which the first taxable transaction is carried out.

 

Are you planning on setting up a company in Poland?

 

If this is the case, you certainly have many doubts. However, expanding your business or relocating your company can be simple. Let me take care of the formalities on your behalf. I will try to answer your questions and advise you how and in which form to set up a company in Poland. Feel free to contact me!

 

Autor: Kamil Hupajło