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- How to start a business in Poland
How to start a business in Poland ?
Poland is an increasingly popular destination for foreign entrepreneurs from the EU, Ukraine, Belarus, and beyond. Establishing a business here offers great opportunities, but understanding the process is key.
Start a business in Poland
To establish a company in Poland, one must possess a valid passport and adequate initial capital, the amount of which depends on the size of the business until it reaches profitability. Nevertheless, the most crucial aspect is the selection of an appropriate business model. This decision influences the legal structure of the company, thereby affecting its operations and future legal standing.
Foreigners in Poland typically register a Limited Liability Company (LLC) operate as a sole proprietor under Jednoosobowa Działalność Gospodarcza (JDG). Each option has unique benefits and limitations, which we explore in detail to help you make an informed decision for your business success.
How to start a business in Poland:
a comparison of options
When establishing a business in Poland, it is crucial to choose the appropriate legal structure. The two predominant forms are the Limited Liability Company (LLC) and the sole proprietorship. An LLC functions as an independent legal entity, providing limited liability protection, whereas a sole proprietorship associates the business directly with the individual owner. Familiarity with these distinctions will assist you in identifying the most suitable option for your objectives and operational needs.
| Category | JDC | LLC |
|---|---|---|
| Who can open a company in Poland as a foreigner | EU residents: For Ukrainians, the PESEL status is designated as UKR. For other citizens, eligibility is limited to the Pole’s Card and Permanent Residence. | Yes, any foreigner can open a company |
| Registration company in Poland – in remote mode | Certainly. You are permitted to register independently; however, we advise seeking consultations or assistance. | Yes, you can register yourself |
| Time taken to register company in Poland | 1 day | 5 days |
| Necessity of electronic signature | Yes | Yes |
| Need for local director or employee | No | No |
| Minimum authorized capital | N/A | Any citizen, director - member of the board |
| Documents received after registration | CEIDG Registration Extract | Founding agreement, extract from the Court Register |
NOTE : The decision to establish either a limited liability company or a sole proprietorship will be influenced by the nature and scale of your business. For foreigners initiating a small enterprise in Poland, opting for a JDG is advisable. In contrast, for all other scenarios involving foreign entrepreneurs starting a business in Poland, the establishment of an LLC is recommended.
Process of establishing a company
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria.
- Obtaining a PESEL Number:
The PESEL is a distinctive 11-digit identification number utilized in Poland. It includes information such as the individual’s date of birth and gender.
- Registration on ePUAP:
The ePUAP serves as a digital platform for accessing various government services. Users can utilize ePUAP to submit documents, engage with authorities, and carry out necessary business transactions.
Steps to establish an LLC in Poland
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria, which include acquiring necessary identification numbers and completing the registration procedure. The following is a comprehensive guide designed to assist you in navigating these steps.
- Define business details:
Determine the company’s name, registered address, main business activities (PKD codes), the founders along with their respective ownership shares, the organizational structure, and the minimum share capital, which is set at 5,000 PLN.
- Prepare share capital:
Deposit the required capital amount into a company account.
- Register with the National Court Register:
Submit the necessary documents to register your company. Once approved, you’ll receive the TIN (Tax Identification Number) and REGON.
- Obtain tax registeration
Apply for VAT status and notify authorities about starting a business via the NIP-8 form.
- Register employees with ZUS
Register employees with the Social Insurance Institution (ZUS) to ensure legal compliance.
Start a business in Poland
To establish a company in Poland, one must possess a valid passport and adequate initial capital, the amount of which depends on the size of the business until it reaches profitability. Nevertheless, the most crucial aspect is the selection of an appropriate business model. This decision influences the legal structure of the company, thereby affecting its operations and future legal standing.
Foreigners in Poland typically register a Limited Liability Company (LLC) operate as a sole proprietor under Jednoosobowa Działalność Gospodarcza (JDG). Each option has unique benefits and limitations, which we explore in detail to help you make an informed decision for your business success.
Legal framework:
the commercial companies code (KSH)
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria, which include acquiring necessary identification numbers and completing the registration procedure. The following is a comprehensive guide designed to assist you in navigating these steps.
Company name requirements
The name of the company must be distinctive and not conflict with any existing registered trademarks. It is essential to check the availability of the name through the KRS online portal. Additionally, it is advisable to steer clear of names that could potentially violate copyright regulations. Non-compliance with these stipulations may lead to the rejection of the registration application.
Legal address options
Real Office: This refers to a tangible location that signifies ongoing business activities. It is the preferred option for VAT registration, although it entails higher expenses.
Virtual Office: This is a more economical alternative for handling correspondence. Nevertheless, such addresses may be subject to increased examination by tax authorities and financial institutions. Modifications within the same city do not necessitate changes to the articles of incorporation, whereas moves to a different city do require amendments.
Company management
The management board is solely responsible for company operations, represented by either:
- A single President of the Board (Prezes Zarządu)
- A collegial body of board members
- The board signs all official documents and ensures effective governance.s
Annual financial reporting
New companies must submit their first financial report based on registration timing:
- Before June 30: Report covers the current year.
- After June 30: Report covers the following year.
Standard deadlines include:
- March 31: Submission to tax authorities.
- June 30: Submission to the National Court Register (KRS).
PKD industry codes
PKD codes define a company’s economic activities and are critical for classification by tax and statistical authorities. Ensure the codes align with your operations, and update them through the KRS if your business scope changes.
Process of establishing a company
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria.
- Obtaining a PESEL Number:
The PESEL is a distinctive 11-digit identification number utilized in Poland. It includes information such as the individual’s date of birth and gender.
- Registration on ePUAP:
The ePUAP serves as a digital platform for accessing various government services. Users can utilize ePUAP to submit documents, engage with authorities, and carry out necessary business transactions.
Steps to establish an LLC in Poland
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria, which include acquiring necessary identification numbers and completing the registration procedure. The following is a comprehensive guide designed to assist you in navigating these steps.
- Define business details:
Determine the company’s name, registered address, main business activities (PKD codes), the founders along with their respective ownership shares, the organizational structure, and the minimum share capital, which is set at 5,000 PLN.
- Prepare share capital:
Deposit the required capital amount into a company account.
Process of establishing a company
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria.
- Obtaining a PESEL Number:
The PESEL is a distinctive 11-digit identification number utilized in Poland. It includes information such as the individual’s date of birth and gender.
- Registration on ePUAP:
The ePUAP serves as a digital platform for accessing various government services. Users can utilize ePUAP to submit documents, engage with authorities, and carry out necessary business transactions.
Steps to establish an LLC in Poland
Establishing a business in Poland as a foreign national necessitates fulfilling certain criteria, which include acquiring necessary identification numbers and completing the registration procedure. The following is a comprehensive guide designed to assist you in navigating these steps.
- Define business details:
Determine the company’s name, registered address, main business activities (PKD codes), the founders along with their respective ownership shares, the organizational structure, and the minimum share capital, which is set at 5,000 PLN.
- Prepare share capital:
Deposit the required capital amount into a company account.