Poland, which joined the EU in 2004, scores exceptionally well on helping investors to access the European market and reduce costs, making company formation Poland very popular.

A foreign resident has the right to form a company in Poland and manage it solely. Given a founder is an individual, we recommend registering an LLC with more than one founder to optimize taxes. With an LLC, social contributions can be reduced to 250 EUR per month (1000 zł). The share of the second founder can be as low as 1%. However, if a founder is a legal entity, social contributions should remain as they are.

Forming a company doesn’t require a residence permit or references. A valid passport is enough. Foreign citizens can own a Polish LLC and manage it as directors (a Board of Directors) without the participation of Polish citizens. Registration takes from 3 to 20 business days, depending on the method of registration. Online registration goes faster comparing to a notarial one (up to 8 days). According to the law, once a company is formed, the information is published in “Forensic Economic News”.

We recommend determining the maximum number of business activities before the company incorporation. There can be up to 9 main activities. The liabilities are limited to the amount of the Share Capital. The required minimum share capital is 5,000 PLN (currently 1,250 EUR). Upon registering the company, 0.5% of authorized share capital must be paid. The rest should be paid during the year.

In Poland, companies registered on its territory are liable to taxes. Treaties on double taxation avoidance are widely used. The tax base is usually determined as follows: income minus expenses during a fiscal year (from January 1 to December 31). Balance sheets and tax books must show the income, debts, profits, and losses for every fiscal year.

The standard income tax rate (CIT) in Poland is 19% and is 15% for small businesses. The income tax base is an income reduced by all expenses incurred to receive it. The reduced CIT applies to companies whose gross sales (including the amount of tax payable on goods and services) does not exceed 1.2 million EUR per year.

Dividends and interest are subject to a 19% flat rate final tax, while royalties are subject to a 20% rate. To prevent double taxation, income from sharing in profits of corporate entities paid by a Polish company to companies established in Poland or in EEA countries may be exempt from withholding tax.

The VAT rate in Poland is 23%. A VAT report is filed monthly and is paid the next month after the VAT transactions. The VAT payer status can be received immediately after registration or company purchase. If you sell goods or services within the EU, you do not charge VAT. A reverse rate is relevant. The VAT rate for export outside the EU is 0%. There are also preferential VAT rates of 5% and 8%, which are applicable to certain types of goods and services (for example, 5% for agricultural products, books and magazines). VAT refunds usually take up to 25 days. Often, we recommend our clients to purchase ready-made (shelf) companies with a VAT registration number.

• There are several benefits of incorporating an offshore company in Poland. Some of the main advantages include:

  • One of the lowest income tax rates
  • 89 double tax avoidance agreements
  • Polish companies have a credible image, as they are not included in any offshore blacklists. It allows you to act as a reliable business partner and enjoy certain tax benefits.
  • To prevent double taxation, income from sharing in profits of corporate entities may be exempt from withholding tax.
  • All companies registered in Poland have accounts in local banks.
  • No currency control.
  • A Polish company with a VAT number can use the reverse VAT when working with partners from the European Union.
  • Relatively low cost of formation and administration.
  • Forming a company in Poland gives the right to obtain an EU residence permit.

• How to register a company in Poland?

  AFORTIS Group helps to set up a company in Poland. Upon filing all required documents in the Commercial Registry, it becomes a legal entity. In addition, every Polish taxpayer and entrepreneur must have a tax identification number.

  Steps to register a company in Poland online:

  1. Company name approval
  2. Defining business activities
  3. Filling incorporation documents: our specialist in Poland prepare a package of documents, send them to a founder, and the founder
     signs and sends them back
  4. After receiving all the documents in Poland apply for registration of the company;
  5. Registration in the Register of Enterprises, as well as in the tax service and Social Security Fund
  6. Opening a permanent account in a bank in Poland

  What is required to register a company in Poland?

  • Company name
  • List of activities (maximum 9 main activities + additional optional)
  • Scanned copy of the Founder and Director’s passport
  • Home address of the Founder and Director
  • Email address and mobile number of the Founder and Director

  What you receive

  • Certificate of registration with KRS mark
  • Statute with KRS mark
  • Minutes of the meeting of participants with a KRS mark
  • Stamp of the company

  BEST USES OF A COMPANY IN POLAND

  Polish companies are most commonly used for trading activities, for example, for in European Union countries, as holding companies (for creating holding structures when paying dividends, interest and royalties from the CIS countries), as well as for getting a residence permit and work visas.