Poland offers favourable conditions for doing business and it is relatively easy for foreigners to set up a company. Below you will find a detailed guide to the requirements and procedures, costs and fees involved in setting up a company and an overview of the forms of business available in Poland.

What are the requirements and procedures?

Prerequisites:

  • EU/EFTA citizens: They can set up a company on the same basis as Polish citizens, without additional permits.
  • Non-EU/EFTA nationals: They must have a valid residence permit or visa that allows them to do business in Polan

Procedure for setting up a company:

  • Choice of form of business: Determining which legal form of business will be most suitable (sole proprietorship, limited liability company, etc.).
  • Registration in CEIDG (Central Register and Information on Business Activity): Applies to sole proprietorships and civil partnerships. Registration is free of charge and can be done online.
  • Registration with the KRS (National Court Register): Applies to commercial law companies (e.g. limited liability companies, joint stock companies). Registration requires submission of the relevant documents and fees.
  • Obtaining a NIP and REGON number: NIP (Tax Identification Number) and REGON (Statistical Identification Number) are automatically assigned after registration in CEIDG or KRS.
  • Registration with ZUS (Social Insurance Institution): Compulsory registration with the Social Security Institution for social and health insurance purposes.

Costs and fees for setting up a company

Sole trader and civil partnership:

  • Registration with CEIDG: Free of charge.
  • Notary fees: May be required for a civil partnership.
  • Costs associated with running the business: Social Security fees (approximately PLN 1,400 per month), accounting costs, office rent, etc.

Ltd. (limited liability company):

  • Share capital: the minimum share capital is PLN 5,000.
  • Registration with the National Court Register: The registration fee is approximately PLN 600 (PLN 500 court fee and PLN 100 for publication in the Monitor Sądowy i Gospodarczy).
  • Notary fees: Fees for the drafting of the deed of incorporation (approximately PLN 1,000 – 2,000).
  • Costs related to running the business: Social Security fees, accounting costs, office rental, audits, etc.

Other costs:

  • Taxes: Corporate income tax (CIT) is 19%, for small companies the rate is 9%. VAT (23%) may be required depending on the type of business.

Overview of business forms

Sole proprietorship:

  • Characteristics: The simplest form of business, suitable for small entrepreneurs.
  • Advantages: Low set-up and running costs, simplicity of management.
  • Disadvantages: Unlimited property liability for the owner.

Civil partnership:

  • Characteristics: A form of cooperation between two or more entrepreneurs engaged in business.
  • Advantages: Easy to set up, low cost of registration.
  • Disadvantages: Partners are jointly and severally liable with all their assets.

Limited liability company (sp. z o.o.):

  • Characteristics: Popular form of business for larger companies, with legal personality.
  • Advantages: Limited property liability of partners to the amount of contributions.
  • Disadvantages: Higher set-up and running costs, more complicated regulation

Joint stock company (S.A.):

  • Characteristics: Business form suitable for large companies and listed companies.
  • Advantages: Ability to raise capital by issuing shares, limited liability of shareholders.
  • Disadvantages: High set-up costs, complex organisational structure.

Limited partnership:

  • Characteristics: Mixed form where at least one partner (general partner) is liable with all his/her assets and the other partner (limited partner) is liable up to the amount of the contribution made.
  • Advantages: Flexible liability allocation possible.
  • Disadvantages: Complicated legal structure, need to draw up a partnership agreement.

Setting up a business in Poland is a relatively straightforward process, but requires knowledge of local regulations and procedures. Choosing the right form of business depends on a number of factors, such as the type of business, the scale of operations and the level of responsibility you are prepared to take on. Understanding the costs and fees associated with setting up and running a business is key to success in the Polish market.

Dołącz do naszej społeczności aby być na bieżąco z najważniejszymi informacjami z zakresu kredytów, finansów osobistych, ekonomii i prawa