Starting a company in Poland

Not only is Poland a great place to live — it is also an amazing place to own a business. A company in Poland is a good solution for foreign entrepreneurs who want to run their business in one of the fastest-growing countries in Europe. Poland’s economy has been becoming increasingly competitive in recent years, which means that the newly established entity will be able to grow in a stable and safe environment. The growing inflow of foreign investors to Poland, who open their Polish companies attracted by numerous incentives, shows that the investors perceive Poland as an attractive place to invest capital. Moreover, the newly established entity can benefit from a corporate income tax of 9% (this rate applies to small taxpayers and companies in the first year of business activity), making it one of the lowest rates in the entire European Union.
 

Why start a business in Poland?
 
Whether you are an established multinational company, a small business owner or launching a startup, there are numerous benefits to owning a business in Poland as a foreigner.
 
First, the economy is booming in Poland. The fast economic growth made Poland one of the most productive and dynamically growing economies in Europe.
Poland has experienced uninterrupted growth over three decades, the longest in European history. Its GDP has increased tenfold nominally, sixfold when corrected for the cost of living. It has a record low unemployment rate in Europe and good economic indicators.

Second, low cost of production and labour (in comparison to the western Europe) as well as fast developing infrastructure, beneficial taxation and subsidies for investment are important advantages if you are looking for a place to invest.
 
Third, a strategic location; situated in Central Europe, Poland has a strategic location between the western and the eastern sides of the continent.
 
Four, access to the Baltic sea which offers additional transport and trade benefits. There are big projects on the horizon. Poland is planning to spend USD 40 billion to build two nuclear power plants with three reactors each, the last one to be launched in 2043. A Polish government agency has signed recently a EUR 1.65 billion agreement with a local maritime authority for the expansion of the water transport infrastructure in the outer port of Swinoujscie in northeastern Poland. This will transform Swinoujscie into one of the largest ports in the Baltic Sea area.

Fifth, membership in the EU and the Schengen area is crucial for investors as by entering Poland, the investors also receive the key to a wider EU market.
 
Six, highly qualified and hardworking people, especially in the tech sector. One of the reasons Poland is famous for top-class IT specialists is that the country used to be a superpower in the field of mathematics in the 1920s and 1930s. Polish school of mathematics was a world’s phenomenon. After 1945 it changed but the high quality of professors and students remained in the Polish DNA.
 
Seven, Poland is safe and stable. Despite the war in Ukraine, Poland remains a stable investment location, being a member of the most strategic alliances, such as NATO, and economic – such as the EU. Its attractiveness in investors’ eyes is also influenced by the reliable banking sector and mature financial sector, well-developed infrastructure and the increasing value of foreign direct investments.
 

Starting a company in Poland as a foreigner

 

When it comes to starting a company in Poland as a foreigner, it’s important to bear in mind that there are many options to choose from especially if you are a EU resident. Most people opt to register a limited liability company (sp z o.o.), although other legal structures are also available. 
This type of company is the most suitable for shareholders who want to maintain direct supervision over the company’s affairs, but limit the risk of operation only to their contribution. There is no liability of shareholders with their personal assets.
 
A limited liability company has a legal personality. It may be established by one or more shareholders. Another single person limited-liability company cannot be the only shareholder.
Natural persons or legal persons, regardless of their nationality or place of establishment, can be shareholders in this type of company.
Minimal capital of PLN 5,000 is required. Articles of Association have to be signed in order to form the company. The articles should be signed as a notarial deed but if you incorporate the company electronically, you can use a ready-made template.
 
Liability of shareholders and the liability of directors
 
The company is responsible for its liabilities with all its assets. Shareholders are not liable for the company’s obligations, unless they are members of the management board of the company.
 
Personal liability of directors is an important point. If a company cannot pay its debts and the enforcement proceedings against a company are ineffective, then members of the company’s management board bear personal liability for the company’s debts. There are exceptions that can be used to exempt members of the company’s management board from this liability (like prolonged illness) but on the whole – the liability is very strict.
 

Can you register a company online in Poland?

 

You can register a company online, making it a simple and easy way for businesses to be established no matter where you are located. You can also register a company in a tradition way by filing application with the National Court Register.
In the case of online registration, the process is completed electronically:
 

• • in the S24 system, or
  • through the PRS portal.
   
  In order to register a company online, you need to create an account in the selected system, and confirm it with your Trusted Profile or a qualified signature