Company registration in Poland

Poland has membership in the EU and is part of the Schengen area, and acts as a party to the Hague Convention. This is a state in Eastern Europe. Poland stands out for the stability of its political system and a rapidly developing economy, tries to adhere to free market trends and actively strengthen private entrepreneurship.

The last period is characterized by less rapid economic development, but it does not stop, it is constant, and is supported by effective and thorough social reforms. Today, the Polish legal framework is being brought to fully comply with the high standards in force for the countries of the European Union.

Many entrepreneurs decide to register a company in Poland, because they are attracted by the predictability and stability of this jurisdiction and its economic environment.

Organizational forms for doing business in Poland

• SP z o.o. is a closed company with a limited type of liability. Similar to LTD.
• SA is a public company with limited liability. Analogue of LLC.

Key points of the registration process SP Z O.O. in Poland

• The minimum share capital is 5 thousand Polish zlotys (PLN). At the time of registration, 100% of the total amount must be paid directly.
• The composition can include only 1 founder if it is an individual. If the shareholders have corporate status, then there should be at least two of them in the company.
• No need to hire a secretary.
• The organization acquires the right to issue preferred and registered shares.
• SP z.o.o. undertakes to submit audited financial statements 3 months after the end of the financial year.
• The name of the company is formed in Polish.

Key points of the SA registration process in Poland

• The minimum authorized capital is PLN 100 thousand. At the time of registration, 25% of the total amount must be paid directly.
• SA is allowed to list shares for sale.
• The company must have at least one shareholder.
• Non-residents of Poland can act as directors. Corporate directors are not allowed.
• It is imperative to hire a secretary who would be a resident of Poland.

S.A. and Sp. z o.o. in Poland, in which foreign capital takes part, are called Joint Venture. The activities of such organizations are governed by the provisions of the Commercial Code and the Law regulating the work of companies with foreign participation, adopted in 1991.

Polish law does not set requirements regarding the percentage of foreign investments in capital. Thus, the company can be foreign or joint, that is, combine foreign and Polish capital.

A Polish company with more than half of foreign capital is considered a foreign business entity. Such an organization acts in accordance with the instructions applicable to foreigners, in particular when buying real estate in Poland, etc.

A Polish company is also considered a foreign structure, more than half of the board members are foreigners. The same status is enjoyed by a firm, in which a larger number of votes are given to a foreigner.

A Polish company with predominantly foreign capital is allowed to conduct the following business activities:

• transactions with real estate;
• management of seaports and airports;
• legal services;
• military industry;
• trade in imported goods, with the exception of building materials, machinery and raw materials used for production.

Financial statements in Poland

A company registered in Polish jurisdiction submits reports 3 months after the end of the reporting year. Before that, the documents are officially audited.

Tax system

The Polish taxation system has undergone significant changes in order to make it more flexible and more in line with the taxation systems in force in the EU countries. A Polish company must pay:

• corporate tax levy, calculated at the rate of 19%;
• tax on all income received, regardless of where and where they were received from.

To avoid double taxation, Poland has signed more than 80 relevant agreements. There are 10+ free zones in Poland where businesses can claim to be completely tax-exempt. Companies can be exempted for five years.

Registration or acquisition of a company in Poland is an opportunity to become part of an effective and stable business community. We will help you register a company in Poland simply and quickly, since one of the most important areas of our activity is the registration of trusts, partnerships and companies in different jurisdictions.