Opening a business in the Republic of Poland is a venture that comes with certain restrictions for individuals who are not Polish citizens. Find out what conditions a foreigner must meet in order to establish a company and conduct legal business.
Establishing a company by a foreigner – what do you need to know?
Running a business in Poland does not require holding Polish citizenship. A foreigner can run a company either as a sole proprietorship or a partnership. In the case of a foreigner, there are sometimes additional requirements depending on the citizenship held. It may happen that due to the specific nature of the business, the entrepreneur will need to obtain a concession or approval from the appropriate authority. Representatives of certain professions must have the appropriate qualifications, pass a state exam, or meet other additional statutory requirements, e.g. notaries or doctors.
Opening a company by a foreigner from the European Union
Entrepreneurs who are citizens of a EU member state or the European Economic Area (Iceland, Norway and Liechtenstein) can register a business or partnership in Poland without major issues. There is also the possibility of opening a Polish branch, a representative office of an international company, or providing cross-border services.
Business registration Poland – how does the procedure go?
If a foreigner is a citizen of the European Union, the European Economic Area, Switzerland, or the United States, they can proceed with registering a business. The procedure itself is standardized, which means that it is the same for both Polish citizens and citizens of other countries. The first step is to submit the CEIDG-1 application. This can be done in person, at the city or municipality office, by post, or online. The form is available on the website https://prod.ceidg.gov.pl/ceidg.cms.engine/?F;1886f97b-43a9-4b16-b197-cc969b6917ba.
In addition to basic data, you need to provide the number of a temporary or permanent residence card and the person responsible for the company’s accounting. For foreign entrepreneurs, registering a company in Poland also requires submitting a statement regarding the ownership or perpetual usufruct of real estate located within the territory of the Republic of Poland.
Costs of opening a sole proprietorship in Poland – important information for entrepreneurs
So, what are the costs of opening a company in Poland? For both Poles and foreigners, opening a company in Poland is completely free of charge. When filling out the application, a decision must be made regarding the tax form. Entrepreneurs have three options to choose from – the tax scale, linear tax (flat-rate tax), and lump sum on registered income. After correctly completing the entry, the entrepreneur will receive a NIP and REGON number.
However, that’s not all. After submitting the CEIDG-1 application, a foreign entrepreneur must register with the Social Insurance Institution and the tax office if they want to be an active VAT taxpayer. When it comes to insurance matters, it should be remembered that insurance is only valid in the country where contributions need to be paid.
Company registration Poland by individuals from other countries
If you do not hold citizenship of a European Union country, the European Economic Area, Switzerland, or the United States, the procedure for establishing a business in Poland is slightly more complicated. However, this does not mean that you do not have the opportunity to run a company in Poland. Citizens of countries outside the mentioned group can also open a business without major difficulties. Entrepreneurs have the following options for conducting business:
- sole proprietorship,
- joint-stock company,
- simple joint-stock company,
- limited partnership,
- limited joint-stock partnership,
- limited liability company.
In addition, foreigners have the option to join a partnership or acquire/subscribe to shares or stakes.
What conditions must a third-country national meet?
By the term third country, all countries not belonging to the EU, EEA, Switzerland, or the United States are understood. In order to open a business in Poland, foreigners must meet at least one of the following conditions:
- have a permanent residence permit, long-term resident of the European Union or a temporary residence permit granted in connection with a family member legally staying in Poland (or be married to a Polish citizen),
- have a temporary residence permit for the purpose of conducting business activity,
- have refugee status or permission to stay for humanitarian reasons,
- have complementary protection,
- have temporary protection in Poland,
- have a valid Polish Card,
- have a spouse, child, or parent of a European Union citizen.
If a foreigner planning to establish a business in Poland does not meet the above conditions,they do not have the possibility to register a sole proprietorship, general partnership or limited partnership. However, this does not mean that they are completely blocked in terms of registering a business. In the Polish legal system, there are many forms of conducting business that are available to foreigners. These include:
- limited partnership,
- limited joint-stock partnership,
- joint-stock company,
- simple joint-stock company,
- limited liability company.
Importantly, foreigners can also establish a branch of a foreign company if an international agreement between Poland and their home country has been ratified. They also have the opportunity to join partnerships, acquire shares and stakes, and establish a branch of a foreign company, provided that the ratified international agreement between their citizenship country and Poland does not state otherwise.
Registering a company by a foreigner in Poland
In order to establish a partnership or joint-stock company, one must register with the National Court Register (PRS portal or S24 system). At this stage, the first difficulties may arise, as for the registration of business activity, a trusted profile or qualified signature is needed, as well as a PESEL number. As mentioned above, in order to register a sole proprietorship, general partnership, or limited partnership, a foreigner must have at least a temporary residence permit.
Temporary residence permit – what requirements need to be met?
What should be done to obtain such a permit? First of all, a foreigner should have health insurance, a stable and regular source of income, and the consent of the relevant authority to practice a specific profession. It is worth noting that a foreign entrepreneur must demonstrate that conducting business activity will have a beneficial impact on the Polish economy.
Non-registered activity
A foreigner originating from a European Union member state who has a PESEL number can conduct non-registered activity. What does this mean? According to Polish regulations, such activity is carried out by a natural person who earns revenues not exceeding 50% of the minimum wage amount.
Summary
Not only Polish citizens can establish a company in Poland and operate in accordance with the law. Foreigners have full freedom to conduct economic activity, as long as they meet a few simple conditions. Even if you are not a citizen of the European Union, EEA, Switzerland, or the United States, it does not mean that you cannot run a legal business in Poland. The legislator has provided for many forms of conducting business, allowing entrepreneurs to choose the form that suits them best.
