Company Formation Poland
Updated on Friday 02nd July 2021
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BridgeWest provides company formation services in Poland. You can rely on our team of specialists in you need assistance in setting up a company in Poland, but you can also address to us in reference to the process of offshore company formation. With regards to corporate services available in Poland, our assistance includes:
- drawing up the articles of association that can be signed through power of attorney (Polish laws require power of attorney for any public notary proceedings);’
- drawing up documents for company incorporation in Poland - specimen signatures, identification papers copies, application form required by the Polish Company Registration Office;
- arranging public notary proceedings (all procedures for company incorporation are done in front of a Polish public notary);
- providing a registered office in Poland on demand - the registered office serves as headquarters for the company in Poland and it will be made public;
- setting up a bank account for the company in Poland - BridgeWest will help in setting up the share capital bank account, as well as a current bank account once the company is incorporated;
- recommending a Polish accountant, as accounting services are needed for new businesses in Poland.
The most common types of companies in Poland
The Polish limited liability company (Sp. z o.o.) - this type of Polish company is the most common type of business as it allows a minimum of one shareholder and a director. It must also have a management board and a supervisory board or an auditor’s committee. The required minimum share capital for a Polish limited liability company is PLN 5,000. The shareholders will not be held liable for the company’s debts and obligations. The Polish limited liability company must hold a registered office.
The Polish joint stock company (S.A., Spolka akcyjna) - this type of company requires a minimum share capital of PLN 100,000. It requires at least one shareholder, a director, a management board and a supervisory board. The shareholders will not be held liable for the company’s debts and obligations.
The Polish branch, subsidiary or representative office - foreign companies are allowed to set up separate enterprises from the parent company, where the foreign company will be a shareholder in a Polish company. Foreign companies can also open extensions of the parent company in Poland.
What are the requirements for opening a company in Poland?
The minimum conditions foreign investors have to fulfill when opening a company in Poland can depend based on their nationality. For instance, foreigners who are citizens of the European Union (EU), a structure to which Poland has also adhered to, will not have to complete any other legal formalities than the ones available for local investors, as the law does not distinguish between Polish nationals and EU nationals.
However, when we refer to foreigners who are not EU nationals and who are citizens of third-countries, specific procedures will have to be completed prior to having the right of opening a business. Here, a business visa will be needed and foreign investors may also need to obtain an approval for developing a local business from the Ministry of Foreign Affairs.
The differences between the two types of investors will generally end here, as after this, the process of company formation in Poland will begin, and all businessmen should complete the same steps, in accordance with the applicable law. Our team of specialists in company registration in Poland can advise on these steps.
Some of the main incorporation steps refer to selecting a suitable trading name for the company, which has to be unique at a national level, but also to sign the company’s statutory documents, which will differ based on the selected company type. In order to gain legal personality, the statutory documents will be signed in front of a public notary and then, the company will be registered with the Polish Company Register. This steps represent the basics of opening a company in any country and they generally apply for offshore company setup as well.
Taxation in Poland
The standard VAT rate in Poland is 23%, but reduced rates of 8% and 5% apply to certain products. The corporate tax rate in Poland is 19%. In Poland, dividends are subject to a withholding tax of 19%, while interests and royalties are subject to a withholding tax rate of 20%, unless double tax treaties apply. Address to us now for more information regarding how to open a company in Poland and prices.
Investors who want to open a company in Poland can obtain attractive tax benefits – for instance, the corporate tax law specifies a lower corporate tax rate, of only 9%, charged to small businesses in the first year of their financial activity. Other tax benefits or incentives that can be applicable to foreign investments can be verified with the Polish Investment and Trade Agency.
However, an extensive presentation on the tax benefits, obligations and compliance that local and foreign companies must follow when developing a taxable activity here can also be offered by our team of consultants in company formation in Poland. In Poland, investors can benefit from numerous tax benefits, but those who are seeking to lower their taxes as much as possible will generally look for jurisdictions that allow the right to start the offshore incorporation of a company, as through this most of the regular taxes which are customarily charged by all countries across the world are not applied.
Below, foreign investors can find some of the highlights of the taxation system applicable in Poland. In the following list, our team of specialists in company registration in Poland has prepared details with regards to taxes charged on corporate entities, but if you are interested in knowing more on the personal tax system, our specialists remain at your disposal for advice:
- please mind that the although the withholding tax on dividends in charged at the standard rate of 19%, depending on the double tax treaty, the tax can be charged at lower rates, such as 15%, 10% or 5%;
- the withholding tax on interest (and on license fee) is customarily charged at the rate of 20%, but the law also stipulates lower rates such as 15%, 10%, 5% and even 0% (but this is applicable only for few countries, such as France or the United States of America);
- special tax rates are charged in the special economic zones in Poland, which are available up until 2026;
- companies operating in the special economic zones can benefit from a tax exemption ranging from 15% to 50% from the corporate tax applicable to investment costs or to the employment costs calculated for a period of 2 years for newly-created jobs;
- those who will open a company in Poland and who will own land or rent land can become liable to the payment of the real estate tax, which can be charged at a maximum rate of PLN 0.90 per square meter for a parcel of land where a business activity is carried out.
For more details on how to open a company in Poland, we invite you to contact our team of consultants. Our specialists can also advise on the steps you must fulfill in order to open a corporate bank account in Poland and you can also receive information on the requirements for setting up an offshore bank account.