Located in Eastern Europe, Poland is a country with a rapidly growing economy. The key sectors of the Polish economy are agriculture, mining, mechanical engineering, chemical and textile industries, tourism and metallurgy.
According to the Doing Business 2020 rating, the Republic of Poland is ranked 40th for ease of doing business, 25th for resolving insolvency and 1st for trading across borders.
In recent years Poland has attracted a considerable number of foreign investors seeking to open small and medium-sized businesses.
So, let’s take a closer look at how you can register a company in Poland or open an account with a Polish bank.
In addition to having one of the lowest tax rates in Europe, Poland also has a number of key business advantages. Some of them are:
- 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.
Poland is located at the intersection of strategic trade routes connecting Western and Eastern Europe. This is yet another reason for registering a company in Poland.
Business Organization Forms
One of the most common business organization forms in Poland is SP. Z.O.O. – Limited Liability Company.
Its main advantages are: small share capital, absence of restrictions on doing business, minimum responsibility of company members regarding the conduct of activities and management of personal property.
If you are planning to register a Polish company remotely, you will need to meet the following regulatory requirements:
- minimum one director;
- share capital - 5 thousand LPN (about 1 200 EUR);
- cost of participation - at least 50 LPN;
- registering with the KRS court register for assignment of legal status;
- obtaining TIN, which is issued once upon registration;
The registration process takes from 3 days to 2 weeks.
To use other forms of tangible or intangible assets as share capital, you will need to draw up an agreement and notarize it with a Polish notary.
No share money deposit is necessary if the amount of the share capital does not exceed 50 thousand LPN. If the share capital has been deposited in the company’s account or if you plan to change its size in the future, then it will be subject to the PCC tax at a rate of 0.02%.
Those intending to set up a company in Poland should keep in mind that all Polish-registered enterprises are required to maintain accounting records.
Poland has one of the most investor-friendly tax systems in Europe. The corporate tax rate here is 19%. According to the law on reduction of income tax, which entered into force at the beginning of 2019, legal entities are now able to register a Polish company and pay tax at a rate of only 9%.
This tax also applies to companies with an annual turnover of less than 1.2 million EUR. Polish tax residents are taxed on profits earned abroad, 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% (paid separately);
- Property tax – 0.035%.
There are no regional and local income taxes. Investment funds located in Poland and the EU/EEA are exempt from taxes.
Interested in registering a company in Poland remotely? Need assistance in preparing a business plan or opening a corporate account with a Polish bank? Why not contact YB Case?