Why is it worth to set up a company in Poland?
Poland is the country located in the heart of Europe. The business climate, as well as the economic competitiveness, have been improving over the years and now the country has a successful economy and a large internal market (38 million citizens). It is worth noting that Poland has one of the lowest CIT rates in the European Union. What’s more it offers access to the skilled labor force as well as attractive conditions for doing business in Poland.
Company in Poland – Benefits for investors
Corporate income tax in only 9% in Poland, which is really attractive to the entrepreneurs. This applies to the companies with revenue up to 1.2 million euros. The rate also includes entities in their first year of operation. In fact, 9% tax rate can apply to the entities with revenue higher than 1.2 million euros, with the more complicated corporate structure build on the limited partnership. It is also worth mentioning that companies in Poland are not obligated to pay divided tax. The taxation is on the receiver. Fiscal obligations do not distinguish between local firms and those owned by foreign persons, however international taxpayers can benefit from tax reliefs should they be subject to double taxation treaties (signed with more than 80 countries). There are also other fiscal reliefs for companies conducting ex. research activity.
Foreign investors usually decide to start their operations in Poland mainly because of state support offered in relation to their projects. Apart from tax reliefs and exemptions, companies in Poland can count on grants and subsidies from the government.
Direct foreign investment is encouraged in Poland and foreign entrepreneurs are treated the same way as local ones. In favor of mutual business development, there are tens of so-called Special Economic Zones located around cities, where companies can economize on favorable taxation, qualified workforce as well as other incentives. In order to raise interest of foreign investors a new Polish Investment Area has been introduced, meaning certain companies can earn tax deductions for income earned in the whole country. Tax relief depends on the investment location and is inversely proportional to company’s size.
Banking system in Poland
Polish banking system is highly stable and digitalized. Both banks and financial authorities are constantly working together to find new ways of providing services online. There are many small and sizeable banks comprising financial sector, therefore everyone can find an offer suitable for one’s needs. Opening bank account for companies in Poland is a relatively fast process. What’s more, account is available over the internet in English so you can use it freely. Every bank provides a phone line over which you can resolve any possible issue, check your account status or get additional information. Most banks also offer mobile app for account management or token authorization.
Company registration in Poland
The Polish type of limited liability company can be founded by no less than one person and requires a minimum share capital of 5.000 PLN. It is the most commonly used form for conducting business activity in Poland, since shareholders’ liability for its debts is limited to initial share capital contributions. It is also rather cheap in terms of initial costs (5.000 PLN amounts to ca. 1.100 EUR). Moreover, its incorporation takes relatively short time, making it very popular for SMEs and investments at an early stage. It must have a management board consisting of at least one person. There are no domicile requirements for them, they only need to provide a correspondence address in Poland or at least in the territory of European Union. The supervisory board (consisting of at least three persons) generally is not obligatory, except for companies with the capital higher than 500,000 PLN and more than 25 shareholders.
The process of registering a limited liability company in the Companies Register is really fast. With the help of Thompson&Stein it can take up to 24 hours. It must not be overlooked that the LTD needs a registered office in Poland as well as a bank account. The company registration in Poland can be done fully remotely without the need of your personal presence, which will allow you to save money and time.