How to set up a company in Poland?

Poland is one of the most popular business locations in Europe. The central location, attractive labour market and facilities for foreign investors are just some of the benefits of starting up business in Poland.
 
For conducting most types of business activities in Poland, you will need to set up a company or become a sole trader. Here is some basic information how to do business in Poland.
 
Legal environment
 
There are two main legislative levels that are important if you want to trade in Poland. First, there are Polish internal laws on who can become an entrepreneur and on what terms. There is also some international law regulating the matter, e.g. as Poland is a member of the European Union.
 
The most important consequence of the above is that all EU nationals and European Economic Area citizens are to be treated as if they were Polish nationals in matters concerning business and employment. The EU law on free movement states that all EU citizens are entitled to work in another EU country without needing a work permit, as well as enjoy equal treatment with nationals in access to employment, working conditions and all other social and tax advantages. Many EU regulations, like those concerning VAT, customs, personal data protection, antitrust or HR, apply to conducting business in Poland as well.
 
Do I have to register a company to trade in Poland?
 
Most service providers, including entrepreneurs from the EU, may temporarily provide services on a cross-border basis in another EU country. This type of activity is a good choice for you if your services in Poland are only temporary and occasional.

However, if you want to do business in Poland on a regular basis (either as a service provider or manufacturer), you need to set up a company. Cross-border services may also be provided by a private individual, as long as they are citizens of one of the EU Member States. So, in this case setting up a company will not be necessary.
 
First step: check if you can open your business in Poland
 
So, you have checked whether you need to open a company to trade in Poland and the answer is yes. How do you do it then? The most common answer would be to set up a limited liability (LLC). This is one of the most universal and versatile legal forms of doing business in Poland. In this part of our article we will briefly present, how to set up a limited liability company (LLC) in Poland and make the first steps.
 
Second step: company incorporation – general information
 
You will need to define the type of the activity which will be conducted by the future company. The LLC offers you wide opportunities. The basic condition is that your scope of activity fully complies with the Polish law.
 
Bear in mind that some type of activities like personal and property protection services, broadcasting or medical activities may require additional permits or licenses.
 
Third step: setting up your LLC
 
If you know who will be the shareholders and defined the scope of your activity, you are ready to proceed and set up your LLC. There are two ways of setting your company:
 

1. traditional – in the form of a notarial deed;
2. electronic – through the Internet website.

 
If you decide to go the traditional way, you will need to find a notary office and bear the costs of the notarial services. The electronic way is cheaper, however it requires you to have a qualified signature.
 

1. If you choose the first option, you will need to arrange a visit to a notary office. To set up your company you will need:

 

• IDs of the shareholders being natural persons (if you or your business partners do not have a Polish ID, you will need to present a passport or a residency card);
• information regarding your shareholders;
• company name;
• LLC’s office information;
• object of the LLC’s activity;
• information on the share capital;
• a clause regarding whether a company member can hold more than one share;
• the initial value and number of shares for each member.

     

2. If for some reason setting the LLC in the traditional way is not possible or, if simply, you prefer to do it online, there is such a possibility. First of all, you will need to visit the website of the Portal of Court Registers (https://prs.ms.gov.pl/). Currently, the website doesn’t offer the English translation, so you will have to rely on the Polish version.

     
Open a business bank account
 
The company needs to open a separate bank account. You can choose from many brands operating in Poland and decide which offer best suits you. Consider the charges, check whether the bank offers any further guidance for companies and localisation of the branches, in case you will need to do something in person. Please note that mobile banking is very popular in Poland, and most of the services are available from your computer or smartphone.
 
It is useful to note that many banks (not only in Poland, but worldwide) sometimes require legalisation of documents if they originate from a different country than the one in which the company operates. It may be the case with your passport (which most surely will be required by a bank for review), if it is not issued by a Polish authority.
 
Create a Trusted Profile or an electronic signature
 
Before you register a company, it is helpful to create a Trusted Profile. It is an electronic tool that can be used to confirm your identity. You can create the Profile free of charge using services of your bank.
Thanks to the Profile, you will be able to register your company online. You will also be able to deal with many official matters electronically, without the need to go anywhere in person.
 
You can also create an electronic signature. It has the same functions as Trusted Profile, but it is not free of charge. You can buy a qualified signature from one of the EU suppliers.