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Registering a company in Poland in 2020
Main advantages of this jurisdiction are:
- A stable political and economic situation;
- A loyal tax system;
- A highly developed infrastructure;
- A favorable transit position of the country;
- The ability to register a company remotely.
A business registration costs from 1600 €
A duration of a company registration is from 14 daysDetailed information
Poland is a rapidly developing industrial and agricultural country located in Eastern Europe. The main sectors of the state’s economy are: mining, mechanical engineering, the chemical and textile industries, tourism, metallurgy and agriculture.
According to studies of the financial magazine Doing Business 2020, the Republic of Poland ranked 40st in terms of ease of doing business, 25th in resolving insolvency and 1st place in trading across borders.
This jurisdiction is under continuous review of big foreign investors and businessmen, and in recent years it has attracted a considerable number of people wanting to open small and medium-sized businesses.
In this article, we will tell you how to register a company in Poland, buy an existing company in Poland or open an account with a Polish bank.
Today, Poland offers quite attractive conditions for conducting international business. In addition to the almost the lowest tax rate in Europe, the country has a number of a business advantages, such as:
- Stable economic and political environment;
- Leading positions in terms of bilateral trade and GDP growth;
- Highly developed infrastructure;
- No strict requirements for making investments and buying real estate for obtaining a residence permit;
- Highly skilled workforce;
- Minimum requirements for obtaining a business license in Poland.
Also, it is worth noting the favorable transit position of the country. A system of transit traffic between the countries of Western and Eastern parts of Europe passes through Poland. This opens up great opportunities for choosing a business niche when registering a company in Poland.
One of the most common business entity types in Poland is SP. Z.O.O. – Limited Liability Company.
The main advantages of this legal form are: a small share capital, the absence of restrictions on doing business, the minimum responsibility of company members regarding the conduct of activities and the management of personal property.
If you are planning to register a Polish company remotely, then you will need to meet such requirements of the regulator:
- The founders in the company's Management Board: 1;
- The share capital: 5 thousand LPN (about 1 200 EUR);
- The cost of participation: at least 50 LPN;
- Making a record of company registration in the KRS court register for assignment of legal status;
- Obligatory obtaining of TIN, which is issued once upon registration of the enterprise;
- The term of a company registration takes from 3 days to 2 weeks.
Separately, it is worth noting that in order to use other forms of tangible or intangible assets as share capital, you will need to draw up an agreement of the founders in advance and certify it by a Polish notary.
It is not necessary to deposit money of the share capital if the amount does not exceed 50 thousand LPN. If the share capital has been deposited to the account of the company or you plan to change its size in the future, then it will be subject to PCC tax at a rate of 0.02%.
Also, intending to set up a company in Poland or buy an existing company in Poland with an opened account, keep in mind that when conducting business, all enterprises are required to accounting.
Poland has one of the most loyal tax systems in Europe. The corporate tax rate here is 19%. At the same time, according to the law on reduction of income tax, which entered into force at the beginning of 2019, legal entities will be able to register a Polish company and pay tax at a rate of only 9%.
This tax also applies to companies with annual turnover less than 1.2 million EUR. Polish tax residents are taxed on profits from around the world, while non-residents pay tax on income received solely in the country.
Other taxes in Poland:
- VAT – 23% (refund within 2 months from the date of submission of the financial declaration);
- Exit tax – 19%;
- Tax on capital and other sources of income, including royalties and license fees – 19% (separately);
- Large property tax – 0.035%.
There are no regional and local income taxes in the country. Investment funds located in Poland and the EU / European Economic Area (EEA) do not pay taxes.
If you are interested in registering a company in Poland remotely or buying an existing company in Poland, then you can request for a qualified advice from IQ Decision lawyers.
Also, our specialists are ready to provide you with a wide range of legal services, including: assistance in choosing the most appropriate jurisdiction, as well as the legal form, recommendations for preparing a business plan and the scheme of work with European partners, preparation of necessary documents and opening a corporate account with a Polish bank.
It is also possible to register other types of companies. More detailed information is available upon request. Please, ask for an appointment with IQ Decision expert using the contacts listed on the site.
The information outlined in the article is actual at the time of its publication. Please refer to our specialists for checking possible solutions for your business.