Opening a business in Poland by a foreigner
More and more citizens of the CIS today are thinking recently about how to open their own business in the EU. The economy is stable here, and the prospects for business development are really good. Among the many states that are members of the alliance, people most often prefer Poland. At the moment, it is on the 16th place among the most developed countries in the world. Another advantage is that opening a company in Poland can be afforded by residents of the country or citizens of other states. This is quite a significant plus, and therefore, of course, it is worth a try, after first answering the question of how to open a company in Poland in accordance with all the rules.
How can a foreigner open a company in Poland or even a private enterprise?
Opening a business in Poland by a foreigner implies a preliminary analysis of the market in this country. This is necessary to study supply and demand, since the main task of an existing business is profit, and therefore it is definitely not worth the risk of directing your efforts to an unexplored and little-known field of activity.
If the market is not analyzed with the utmost care, then both the profitability of the project as a whole and the risk of bankruptcy increase significantly.
If you believe in the practice of novice businessmen, you don’t need to open large companies initially. You should start with something small, with the opening of a small business firm, the legal registration of a company of this type is not such a complicated procedure.
IMPORTANT! Small investments are required by such enterprises that specialize in the service sector, but after a short time they are able to bring good profits.
After determining the required scope of activity, it is important to choose the form of responsibility, bearing in mind that the process of registering a company and a private entrepreneur will be different, as well as starting a business in Poland in general.
How to register a company in Poland under a state of emergency
There are special legislative provisions on this matter, which state that a foreigner can become an individual entrepreneur, that is, register działalność jednoosobowa, but on condition that he meets one of the requirements:
- has a Pole’s card or permanent residence in the state of Poland;
- can provide a document confirming the right of residence due to EU residence;
- entering into a legal marriage with a citizen of Poland, provided that the couple lives in the territory of the state;
- the presence of a residence permit.
The subtleties of opening an LLC
Opening a company in the LLC format is available for both one and several people. The main thing is to comply with the condition for the minimum amount of the authorized capital, which is equal to 5000 zlotys. Each founder must rely on 50 PLN minimum.
The creation of an LLC has its advantages, since in this case the founders take responsibility only for the property of the company.
There is one condition: foreign founders do not have the right to conduct certain activities:
- insure life and property;
- manage financial institutions;
- operate the system of pension funds;
- manage the financial market.
In order to register an LLC, you need to come up with a unique name, and then decide on a specific field of activity. Next, a business plan is created and all necessary papers are signed.
The next step after the type of legal entity in Poland is chosen is the opening of a bank account – it is to it that the authorized capital is transferred. You do not need to have any special documents for this, a passport will be enough. Further, the enterprise is registered in the state court register. You will have to pay 500 zł for this, and another 100 to pay for the corresponding publication. The advantage is that the employees of the organization independently submit an application for obtaining civil service numbers. After assigning a number in the register, the company can start working.
The main thing is to choose the best way to register a legal entity, after which the registration of an organization is carried out in a short time, as a rule, they vary from 3 to 14 days.
Ways to open a company in Poland
There are three options for starting a business in Poland – this is the transfer of an already finished business from another country, starting a business from scratch, or buying a ready-made one.
How to transfer an old business to new ground
If a potential entrepreneur already has his own small or medium-sized business, and simply wants to bring it to a new market, then it is quite possible to do this in Poland, this procedure is referred to as registration by a non-resident sp z.o.o. This is possible if the business is successfully operating in the market in the former country, but neither new customers nor additional sources of income will interfere with it. It is, in fact, a kind of scaling.
Unlike start-ups, where business models are very often subject to change, in a pre-existing business, it has already been formed, the main thing is that it now takes root in Poland and successfully earns in the new market. It is also impossible to use the old business scheme, counting on the fact that it will work 100%. It is important to use a management technique that allows you to measure performance against competitors.
It is also important to conduct a financial and strategic analysis, while simultaneously monitoring the target audience. Such an approach will be the very first step towards likely success, but in no case should you finance an ill-conceived decision.
The choice of the form of entrepreneurial activity should be the last step. The approach “to open a company, and then figure out what to do” will not work in this case.
In order for this activity to be successful, it is important to first check whether potential consumers have any problem in the market from among those that could be successfully solved by opening a business in Poland. It is important to work out a unique offer with particular care, which will allow you to identify possible similar solutions that already exist on the market.
Alternative solution – buying a ready-made business
If there is a need to open a business in Poland, then not developing a company from scratch, but acquiring a ready-made one, may become a rather meaningful step. We are talking about an established client base and the absence of most bureaucratic procedures. Intermediary agencies usually resort to the sale of ready-made firms. In this case, their employees independently check the cleanliness of the business being sold, however, in order to insure, it is still better to invite an independent auditor.
As a result, the sold company has all the necessary documents confirming state registration and official registration. In this case, no additional cash injections are required, since the authorized capital is already present and is transferred to the new owner. Immediately after the acquisition, the company can begin its activities.
It is impossible to unequivocally answer the question of what is better: to acquire a company or create from scratch.
Is it possible to register a company online?
Indeed, modern technologies make it possible to register a company online, and foreigners can do it too. This option is convenient for busy people. The registration procedure will be different from the standard one. Each founder will have to create a profil zaufany ePUAP or kwalifikowany podpis elektroniczny. Next, you should follow a certain algorithm of actions in order to complete the registration of a company via the Internet:
Register on the website of the Ministry of Justice, providing the required data.
Organize a company according to dodaj przedszebjorstwo, come up with a name for the company, describe the type of activity and choose the appropriate form of registration.
Designate each founder of the company, personal information about them and the share of each in the authorized capital, the minimum amount of which should be 50 gold.
After signing the received document with an electronic signature, you should make sure that all the founders are included in the database.
Draw up an agreement where all the necessary forms on rights and obligations are filled out.
How to start opening a company in Poland
After the field of activity of the company is selected, it is possible to issue a legal address, form the authorized capital, the minimum of which was mentioned earlier, but its maximum is not limited. The next step is notarization. The founders get together to visit a specialist and document the fact of the creation of a new company. It is at this stage that the founders’ agreement is filled out and the contribution of authorized capital funds is fixed.
The next step in opening a company is registration in the state register. For this purpose, it is necessary to prepare the following package of documents: an agreement of founders and an application for registration, notarized by a signature.
This is followed by tax registration, the application is submitted to the tax office along with a receipt for payment of the state fee. The whole process takes about 2 weeks.
The next stage is the registration of business in ZUS. This procedure may be required by those companies that plan to hire employees.
Creating a company seal is not at all a prerequisite, but it is better to take care of its production. In the future, it will most likely be needed. Especially since it only costs 30 PLN.
How much does it cost to open a business in Poland
There are certain articles for those who decide to create a business in Poland, which are considered the most expensive. This is the minimum that a novice entrepreneur needs to prepare. Even if the authorized capital of the company is at least 50 gold, you will have to pay another 1000 for the services of a lawyer. A notary, including VAT, takes 200 zlotys, registration and publications in the media will cost 600 zlotys.
The registration fee is PLN 21, another 20-30 will go to certify the signatures of all the founders of the company – it all depends on their number.
VAT registration costs 170 PLN, about 35 more will have to be paid for a power of attorney, if necessary.
IMPORTANT! In total, you have to prepare about PLN 2,000 in 1 month. Next, there are fixed costs for the purchase of a key and ordering accounting services. Outsourcing of accounting in Poland, as a rule, varies in cost up to PLN 900, and in-house qualified specialist requires a salary of PLN 5,000.
Company taxation in Poland
Both firms and private entrepreneurs from among foreigners doing business in Poland and counting on the prospects of starting a business pay income tax, income tax from wages and value added tax. It is believed that this country has a progressive taxation system.
In some situations, it is possible to choose at a single rate, some companies can count on a zero tax burden – it all depends on the field of activity in which the business is organized.
Obtaining permanent residence in Poland through owning a company
One of the most important advantages, for the sake of which, in fact, many people open a company in Poland, being foreigners, is the opportunity to obtain permanent residence on the basis of an appropriate visa. However, you will also have to comply with several conditions for obtaining a residence permit. The company must reach a stable income of at least 13,000 euros per year, however, this amount may vary depending on the selected region.
The company must employ at least 2 Polish citizens or foreign workers who have official permission to do so.
This is far from the only advantage that accompanies the opening of a Polish company. Entrepreneurship in this country implies a lot more pluses. So, for newly formed firms, various lending systems are provided at a minimum rate. Access to a stable banking system is automatically opened. Loans in Poland are secured by deposits, and investment activity is stimulated quite actively.
There are also prospects for a financial niche for starting a business, but it is not available to everyone. For foreign entrepreneurs in Poland, social insurance is implied. You can enjoy such benefits even if you are employed in your own company.
The presence of a residence permit obtained by the owner of a Polish business on the basis of doing business in Poland allows you to stay on the territory of the entire Schengen area without obtaining a visa. The state border can be crossed more than once. Many are also attracted by the possibility of financing enterprises in the framework of European national projects aimed at supporting entrepreneurship.
Everyone who makes a responsible decision to create their own business in Poland, of course, can rely on their own strength. However, it is much easier to still use the services of professional consultants who have been working in this area of activity for a long time and have relevant experience.Opening a bank account in Poland
Opening a bank account in Poland
A bank account can be issued to you on the basis of:
- passports with a visa (for example, if you are studying). In this case, it should be taken into account that some banks limit cooperation or put forward additional requirements for foreigners,
- residence cards for permanent residence, residence permit, EU resident cards.
Be prepared to speak with bank staff in Polish or English.
You can additionally open accounts in euros or dollars. If there is another foreign currency, you should familiarize yourself with the offers of various banks, they may differ.
Currently, almost all Polish banks open bank accounts free of charge. If you plan to pay for your purchases in the store with a card, then it is issued free of charge, you will not have to pay for the service either. The store does not charge any fees for card payments. You can also pay for goods and services via the Internet, regardless of which bank you open an account with.
It should be noted low interest rates on loans for the population. But don’t count on getting a big loan the first time. A small amount will be provided, after the repayment of which, decisions will be made on issuing large loans, mortgages, etc.
Also, low interest rates on deposits (from 2.5 to 3.5), so at present it is unprofitable to deposit money in order to earn money. In addition, you still have to pay 19% to the treasury from bank income, dividends, etc.
The Polish banking system is characterized by stability, not only local banks, but also banks with foreign capital operate here. There is a Bank Guarantee Fund, whose members are all banks operating in Poland. The Special Commission for Financial Supervision monitors the annual mandatory contributions of fund members. Such a system of responsibility and support ensures the reimbursement of a lost deposit within 20 days in the amount of up to 100,000 euros, in case one of the banks “burns out”. On the website of the fund, you can check or select the bank with which you plan to cooperate. Some of the most popular are:
- PKO Bank Polski
- Bank Pekao S.A.
Taxes in Poland
According to the Ministry of Finance, there are 13 types of taxation in the Republic of Poland, which affect citizens of the country and foreigners in different ways.
We suggest you consider the main taxes that are most interested in: PIT, VAT and CIT, bank income tax, indirect and direct taxes.
PIT (Personal Income Tax) is a tax for individuals. Each individual who makes a profit is a taxpayer and is obliged to pay personal income tax to the tax office at the place of residence. This also applies to foreigners if you live in Poland and work for more than six months in a Polish company.Depending on income, there are different tax rates – the higher the income, the higher the interest rate.For persons whose income ranges from PLN 13 thousand to PLN 85,528, there is a tax-free annual income of PLN 3,091.
So, at the rate of 18%, you pay income tax up to PLN 85,528 minus tax-free annual income.
If your income is higher, then up to 85528 you pay at the rate of 18% less tax-free annual income, and the rest at the rate of 32%.
In accordance with Polish law, you are required to report by April 30 for income received or losses incurred by filling out forms PIT-11 and PIT-37. According to the Criminal Code of the Republic of Poland, a fine is imposed for failure to file a declaration. Responsibility for the correctness of calculations and filling lies entirely with you, regardless of the level of knowledge.
You can do it yourself. But if you want to return part of the money spent, take advantage of various benefits, for example, for children, payment for Internet services, etc., and also if the calculation is complicated or difficult, we recommend using the services of a professional accountant.
VAT is the English abbreviation for Goods and Services Tax, and corresponds to Value Added Tax (VAT) in Russian-speaking countries. The standard rate is 23% and is included in the cost of goods or services. In fact, the tax is paid by the buyer, and the entrepreneur, after the sale of the product or service, returns it to the treasury. Please note that when exporting goods to the territory of the European Union, the VAT rate is 0%.
In addition to the standard rate, there are also reduced 5% and 8% for certain goods and services: publishing books, magazines, pastries, medicines, agricultural and construction sectors, etc.
All legal entities (in particular Sp. z o.o.) and individual entrepreneurs registered in Poland are required to pay this tax. But if their annual income does not exceed PLN 200,000 they are exempted from paying it.
There is a CIT tax on the income of legal entities in Poland, the standard rate of which is 19%. But for small firms, whose annual turnover was less than 1,200,000 euros, a preferential 9% rate is applied. Foreign entrepreneurs can also enjoy such benefits on the Polish market.
Please note that the 9% rate does not apply to firms that provide financial services.
Bank income tax
If you opened a bank account in Poland and decided to make money on income from bank deposits, be prepared to pay tax, for individuals it is 19%. Interest on loans, dividends are subject to the same tax.
Let us briefly dwell on other taxes. Indirect taxes, like direct taxes, are indirect taxes.
Rodatek pośredni applies to:
cars, gambling, lotteries, excise taxes on alcohol and cigarettes.
– Direct taxes.
- Рodatek bezpośredni includes:
- property tax
- inheritance tax, gift
- for forestry
- per vehicle
- per tonnage
- farming, etc.
You should be aware that various sales contracts, company formations, gifts and other types of civil law contracts are subject to civil law acts tax.