Business in Poland

Ramil Gachay's picture

Poland has already been for a long time one of the priority countries for starting new business in Europe. First of all, the main and priority advantage is opening a company where the director of the board is a non-resident and the registration of the LLC (sp. z o.o.) is also possible for non-residents. This greatly simplifies the entire process of registering a new company and allows you not to worry about preparing additional documents. The registration term for your new company will take up to 5 work days, because the most of the registration processes in the country are already automated.

Start capital is = 5 000 PLN (or 1 200 euros), but the owner can submit an application that the capital was deposited in cash without depositing it to a bank account. The bank account, which we already mentioned above, can be opened for a completely non-resident structure, Poland is one of those countries in Europe, which still opens accounts for companies with foreign capital.

Of course, every entrepreneur is interested in the issue of taxes, here is how they look in Poland:

  1. VAT - 23% - the basic rate for invoices for Polish companies or physical faces. In international transactions, VAT is usually 0%. A distinctive feature of Polish jurisdiction is the ability to issue an invoice for services to non-resident legal entity who is not an active VAT payer with the VAT rate “not applicable”
  2. CIT (corporate income tax) - 9% and 19% (if the cost of sales are more than 1,2 million euros);
  3. Tax on dividends 19%;
  4. There is no additional tax on offshore payments;
  5. Income tax for physical persons 18%, or 32%, if your net profit is higher than 20 600 euros / year;
  6. Flat tax - physical persons who do business activity through partnerships - 19%
  7. WHT – 0-20%

After you register your company in Poland, in accordance with tax laws, it will be a tax resident of Poland, which will give you another advantage - buying property without obtaining permission from the Minister of Home Affairs. Individuals who are not EU citizens are forced to wait from 6 months for permission from the Minister to purchase a house or land. But if you have a Polish company, then you can safely acquire real estate for a legal entity in Poland without additional permissions.

You should also remember that as the owner of the company, you can apply for permanent residence in Poland. This is a very common option for obtaining a residence permit. Moreover, the whole procedure is quite simple and clear.

There are three options a member of the board can apply for a residence permit:

  1. The company must employ for at least 1 year before submitting an application 2 employees on an unlimited term and full time contract who are Polish citizens or foreigners exempted from the requirement to have a work permit.
  2. Income at least twelve times of the average monthly salary in the region, current at the time of filing the application, confirmed by the CIT-8 declaration for the previous year (for ex. in Warsaw it’s about 70 000 PLN).
  3. The company can show a business plan according to which p.1 or p.2 above will be done in close future and this business plan will be confirmed and approved by the appropriate inspector.

If you have no plans to move to a permanent residence in Poland yet, but would like to employ a foreigner in your company, this will not cause any problems. In Poland, this type of work has long been practiced and it will be even easier for you to legalize the stay of your employee in Poland than yours. Your worker should have:

  1. Standard set of documents (passport, photo, application, rental agreement, insurance);
  2. Employment Agreement;
  3. Proofs, that company which employs employee is real and currently conduct business activity
  4. Another documents, that we will help to collect you

The waiting time for a decision always depends on the region where you are applying. In the Warsaw, this process can takes from 4 months due to great interest and demand.

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