A foreigner can conduct business in Poland. You can run a business even if you do not have Polish citizenship. However, you may need to meet additional requirements. They will depend on your citizenship. Before you start thinking about setting up a business in Poland, check what you should know.
Is Poland a good country to start a business?
Poland is an attractive country for foreigners to start a business, but it is worth being aware of the challenges that come with it. An undoubted advantage of starting a company in Poland is access to a huge market without customs barriers and with easier trade. The company gains the opportunity to freely move goods, services and capital within the borders of the European Union, which is undoubtedly very beneficial for entrepreneurs.
The strategic location is also important. Poland is located in the centre of Europe, which makes it an excellent place to serve both eastern and western markets. It is an ideal location for companies involved in export, logistics or distribution. Poland also has a stable and growing economy, which has been recording GDP growth for years. It is one of the largest and fastest growing markets in the region of Central and Eastern Europe.
Poland also offers various forms of support for entrepreneurs, including tax relief, subsidies from EU funds and special economic zones (SEZ), where companies can benefit from preferential investment conditions. In some sectors, such as IT, renewable energy or logistics, foreigners can count on additional support.
Company formation in Poland comes with its own set of challenges. Sometimes there are a lot of documents and formalities that can delay the process of registering a company. The tax system in Poland is relatively complicated, which can also be a challenge for entrepreneurs. It is important to hire competent accountants and tax advisors who will provide support both at the initial stage of running a business and during the course of running the business.
Can a foreigner start a company in Poland?
Yes. A foreigner can set up a company in Poland, but the entire procedure may look different in different cases. See what it looks like in practice.
- Company formation in Poland by a foreigner from a European Union or European Economic Area country
If you have citizenship of an EU or EEA country (Iceland, Norway and Liechtenstein), you can open a sole proprietorship or a company. You can also establish a Polish branch or representative office of a foreign company. The law also provides for the possibility of providing cross-border services.
- Company formation in Poland by a US or Swiss citizen
Citizens of the United States and Switzerland cannot provide cross-border services under EU regulations. However, citizens of these countries can establish a sole proprietorship, a branch or representative office of a foreign company, or any commercial company.
- Company formation in Poland by a citizen of other countries
In this case, the situation becomes more complicated. Of course, this does not mean that you cannot set up a company in Poland. Citizens of other countries can still conduct business. In this case, they can set up:
- a limited partnership;
- a limited joint-stock partnership;
- a joint-stock company;
- a simple joint-stock company;
- a limited liability company.
You can also join a company and acquire or take over its shares or stocks.
In addition, it is possible to set up a branch of a foreign entrepreneur. The condition for setting up such a branch is the ratification of an international agreement between countries. If you want to learn more about it, we encourage you to contact us.
How much does it cost to open a company in Poland?
Starting a business in Poland as a foreigner doesn’t have to be expensive. Establishing a sole proprietorship is free of charge. In the case of a limited liability company, it is necessary to pay the share capital of at least PLN 5,000.
Registering a company also involves the need to pay fees:
- PLN 500 – court fee for the entry (PLN 250 if the company agreement was concluded via S24);
- PLN 100 – fee for publishing the entry in the Court and Economic Monitor;
- PLN 17 – stamp duty for the power of attorney (only if the application is signed by an attorney).
The entrepreneur must also add additional costs, which include: public notary fees, legal consultations, assistance from a tax advisor, drawing up the company agreement, etc. Another cost is the tax on civil law transactions, which amounts to 0.5% of the value of the company’s share capital.
As you can see, there are a lot of fees, so when establishing a company in Poland it is worth using legal assistance.
Of course, this is not the end of the fees. After setting up a company, you can decide to do your own bookkeeping, but ultimately this carries a huge risk of error, such as paying the wrong amount of ZUS contributions to the Social Insurance Institution or incorrectly determining the amount of income tax. Such mistakes can cost you a lot, so it is better to avoid them by using the help of professionals.
Company formation in Poland – how to start?
The basis for conducting business activity by a foreigner in Poland is the registration of the company in the National Court Register (KRS). It is also necessary for the foreigner to have a residence permit. After collecting all the documents, an application for registration should be submitted to the registry court. Registering a company in the KRS gives it legal personality, which allows it to conduct business, conclude contracts, open bank accounts and fulfill other legal and tax obligations. The process of establishing a company by a foreigner requires a thorough understanding of Polish law, so a good solution may be to use professional legal assistance. If you do not want to make any mistakes at the stage of establishing a business, use our support. We will help you understand the legal complexities, present convenient forms of conducting business, and indicate effective and legal ways of tax optimization.
Business in Poland for Foreigners – alone or with professional support?
Running a business in Poland requires understanding the regulations, which change frequently. Even Polish entrepreneurs sometimes have problems interpreting them, which is why it is so important for a foreigner who is starting a company in Poland to cooperate with a tax advisor, a qualified accountant and a legal advisor.
Benefits of working with a law firm:
- Understanding the legal and tax regulations – our law firm will help you understand the applicable regulations and requirements for company registration. Advisors will also explain all issues related to labor law, personal data protection (GDPR) or contracts with contractors. Tax advisors help with tax optimization, completing tax returns and avoiding potential traps, such as incorrect VAT, CIT or PIT settlement.
- Risk management and avoiding errors – errors in understanding tax regulations can lead to serious consequences and financial penalties. Professional legal and tax advice minimizes the risk of errors that may affect the functioning of the company.
- Support in formalities and documentation – in Poland, setting up and running a business requires completing many formalities, such as registering the company in the National Court Register (KRS) or the Central Registration and Information on Business (CEIDG). The law firm will help prepare the necessary documents, agreements and regulations, and will also ensure that they comply with Polish law.
Using the help of a law firm and tax advisors is an important step for foreigners starting business in Poland. It helps not only to avoid legal and tax problems, but also increases the efficiency of company management and allows you to take advantage of available reliefs and benefits. If you want to start a business in Poland as a foreigner, we can help you!