How to open a company in poland

Discover how to open a company in Poland: your step-by-step guide.

Are you thinking about starting a business in Poland? What makes Poland an attractive destination for entrepreneurs? With its strategic location, favourable economic climate, and access to the EU market, Poland is an enticing choice for business owners. This blog post will guide you through opening a company in Poland, ensuring you understand the necessary steps and benefits.

Benefits of opening a company in Poland

Poland offers several economic advantages for foreign investors. Its strategic location in Europe provides access to a large market, and the country boasts a skilled workforce and supportive government policies. These factors make Poland an appealing destination for new businesses looking to expand in the European market. Poland’s stable economy, growing consumer market, and attractive investment incentives also create a conducive environment for business growth and success.

Choose a business structure.

When deciding to open a company in Poland, you have several options for business structures. Understanding these options will help you choose the best fit for your business goals.

Sp. z o.o. (limited liability company)

This is the most common type of company in Poland, suitable for small to medium-sized businesses. It offers limited liability to its shareholders and is relatively easy to set up and manage. This structure provides flexibility in management and ownership, making it a popular choice for many entrepreneurs.

S.A. (joint stock company)

This type of company requires a higher initial capital investment and a more complex management structure. It is ideal for larger businesses that want to raise capital through public offerings. As it allows for the issuance of shares to the public, it is suitable for businesses planning significant growth and expansion.

Choosing the right structure depends on your business goals and the level of liability protection you need. It’s important to consider your company’s long-term vision and select the structure that best aligns with your strategic objectives.

Pre-registration steps

Before you begin the official registration process, consider several factors that can influence your business’s success. These pre-registration steps can save you time and resources in the long run.

Market research

Conduct thorough market research to understand the demand for your products or services in Poland. Identify your target audience, analyze competitors, and evaluate market trends. This research will help you tailor your business strategy to effectively meet local needs.

Business plan

Develop a comprehensive business plan outlining your objectives, target market, marketing strategies, and financial projections. A solid business plan is essential for attracting investors and securing financing.

Funding options

Explore various funding options, including bank loans, venture capital, and government grants. Determine your business’s most suitable funding source and prepare the necessary documentation to apply for financial support.

Legal structure and liability

Choose the legal structure that best suits your business goals and liability preferences. Consult with legal experts to understand the implications of each structure and make an informed decision.

Legal steps to open a company in Poland

Opening a company in Poland involves several legal steps. Here’s a step-by-step guide to help you navigate the process:

Choose a unique company name

Your company name must be unique and compliant with Polish naming regulations. You can check the availability of your desired name on the National Court Register (KRS) website. Ensuring your company name is distinct helps avoid legal issues and confusion with existing businesses.

Prepare necessary documents

This includes the company’s articles of association and other required forms. Make sure all documents are correctly filled out and comply with Polish regulations. Proper documentation is crucial for a smooth registration process and legal compliance.

Register with the National Court Register (KRS)

Submit your documents and pay the registration fee. This step officially registers your company with the Polish authorities. Registration with the KRS gives your company a legal identity and the ability to operate within the country.

Obtain a tax identification number (NIP)

Essential for tax purposes, the NIP is required for all business activities in Poland. This number is necessary for fulfilling your tax obligations and conducting financial transactions.

Comply with Polish business laws

Ensure your business operations meet all legal and regulatory requirements to avoid penalties and ensure smooth functioning. Compliance with local laws protects your business from legal risks, and fosters trust with clients and partners.

Step to open a company in Poland online

In today’s digital age, starting a business remotely has become more accessible than ever. Poland offers a streamlined online registration process for entrepreneurs who prefer to handle their business setup without physically being present in the country.

Online registration process

The online registration process begins with visiting the official website of the Central Registration and Information on Business (CEIDG) for sole traders or the National Court Register (KRS) for other types of companies. These platforms provide step-by-step guidance on completing and submitting the necessary forms electronically.

Digital signature

To register your company online, you will need a qualified digital signature. This ensures the security and authenticity of your documents. You can obtain a digital signature from authorised providers in Poland or use an EU-recognized electronic signature if you are an EU resident.

Document submission

Upload the required documents, such as the company’s articles of association and identification of directors and shareholders, through the online portal. Ensure all documents are correctly formatted and comply with Polish regulations to avoid delays in the registration process.

Payment of fees

You can pay the registration fees online using a credit card or electronic bank transfer. The fees vary depending on the type of company and the method of submission. Online registrations typically have lower fees than paper submissions.

Confirmation and follow-up

Once your documents are submitted and fees are paid, you will receive a confirmation of your application. The registration authorities will review your application, and if everything is in order, they will issue a Certificate of Incorporation. This certificate is proof of your company’s legal status and is essential for opening a business bank account and fulfilling other legal requirements.

Finding office space in Poland

Securing a suitable office space is crucial for establishing your business operations. Poland offers various options, from coworking spaces to traditional office buildings.

Location

Choose a location that aligns with your business needs and target market. Consider accessibility, proximity to clients and suppliers, and the local business environment.

Office types

Evaluate different office spaces, including coworking, serviced, and leased properties. Each option has advantages and cost implications, so choose one that fits your budget and operational requirements.

Lease agreements

Review lease agreements carefully to understand the terms and conditions. Consult a real estate lawyer to negotiate favourable terms and avoid potential issues.

Office setup

Plan the layout and setup of your office to ensure a productive and comfortable working environment. Invest in necessary office equipment, furniture, and technology to support your business operations.

Hiring employees in Poland

Once your company is registered, hiring employees is the next critical step. Poland has a well-educated and skilled workforce, but understanding the local labour laws and employment practices is essential.

Employment contracts

Draft comprehensive employment contracts that comply with Polish labour laws. These contracts should outline job responsibilities, compensation, working hours, and other essential terms.

Employee benefits

Familiarise yourself with mandatory employee benefits in Poland, such as health insurance, social security contributions, and paid leave. Offering competitive benefits can help attract and retain top talent.

Recruitment process

Develop a robust recruitment process to identify and hire qualified candidates. Reach potential employees through online job portals, recruitment agencies, and local job fairs.

Training and development

Invest in employee training and development programs to enhance their skills and productivity. Providing continuous learning opportunities can also improve job satisfaction and reduce turnover rates.

Taxation and financial considerations

Understanding the tax landscape is crucial for any business. Here’s an overview of the key financial considerations:

Corporate tax rates

Poland has a competitive corporate tax rate of 19%, which applies to most businesses, making Poland an attractive destination for companies seeking favorable tax conditions.

VAT and other fiscal obligations

The standard VAT rate is 23%, with various exceptions and lower rates for specific goods and services. To avoid penalties, it’s important to understand your VAT obligations and ensure timely and accurate reporting.

Proper financial planning, including budgeting and cash flow management, is essential for the long-term success of your business. Effective financial management helps you make informed decisions, maintain liquidity, and achieve growth objectives.

Support and resources for foreign entrepreneurs

Poland offers numerous support programs and resources for foreign entrepreneurs. These include:

Government incentives and support programs

Various grants and tax reliefs are available to encourage business investment in Poland. These incentives can significantly reduce startup costs and provide financial support during the early stages of your business.

Business advisory services

Professional services can assist in navigating the legal and financial aspects of starting a business in Poland. Advisors can help you understand local regulations, optimise your tax strategy, and develop a solid business plan.

Networks and organisations

Join business networks and organisations like the Polish Investment and Trade Agency (PAIH) to access support and networking opportunities. These groups offer valuable resources, connections, and insights to help your business thrive.

Challenges and solutions

Starting a business in Poland can present challenges, but with the right strategies, you can overcome them:

Navigating regulatory requirements

Hire local legal advisors to help you understand and comply with Polish regulations. Expert guidance can prevent costly mistakes and ensure your business operates within the law.

Overcoming language barriers

Use translation services and hire bilingual staff to facilitate communication. Effective communication is crucial for building relationships with local clients, suppliers, and partners.

Marketing your business in Poland

Effective marketing strategies are essential for attracting customers and growing your business in Poland. Understanding the local market and leveraging various marketing channels can enhance your visibility and reach.

Digital marketing

To reach your target audience, utilize digital marketing techniques such as search engine optimization (SEO), social media marketing, and content marketing. Create a user-friendly website and engage with potential customers through social media platforms.

Traditional marketing

Complement your digital efforts with traditional marketing methods, such as print advertising, radio ads, and direct mail campaigns. Participating in local events and trade shows can also increase your brand awareness.

Partnerships and collaborations

Form partnerships with local businesses and influencers to expand your reach and credibility. Collaborations can open new opportunities and provide access to established customer bases.

Customer feedback

Encourage customer feedback to understand their needs and preferences. Use this information to improve your products or services and enhance customer satisfaction.

Takeaway note

Opening a company in Poland offers numerous benefits, from economic advantages to access to the EU market. You can set up a thriving company in this dynamic country by understanding the legal requirements, leveraging available resources, and learning from successful businesses. Take the first step today and explore the opportunities Poland has to offer. With careful planning and effective execution, your business can achieve significant growth and success.

FAQs

Can foreigners start a business in Poland?

Yes, foreigners can start a business in Poland without any restrictions on nationality. The process is straightforward, and there are no significant barriers for international entrepreneurs.

How much does it cost to register a business in Poland?

The cost varies depending on the type of company and registration method, typically ranging from €100 to €400. Additional costs may include legal fees, notary services, and other administrative expenses.

What are the tax rates for businesses in Poland?

The standard corporate tax rate is 19%, and the VAT rate is 23%. Depending on their activities and investments, businesses may also be eligible for various tax incentives and deductions.

How to open an LLC in Poland?

To open an LLC (Sp. z o.o.) in Poland, you need to follow these steps:

• Choose a unique company name.
• Prepare the company’s articles of association.
• Register the company with the National Court Register (KRS).
• Obtain a tax identification number (NIP).
• Register for VAT if applicable. Register for social security. 

What is the tax rate for an LLC in Poland?

The corporate income tax rate for an LLC (Sp. z o.o.) in Poland is 19%. This rate applies to the company’s profits. Additionally, depending on their business activities, LLCs may need to handle VAT and other fiscal obligations.