Registering a business in Poland is one of the chances you could exploit to discover the prospects of doing business in the EU. Poland makes a good choice because it has sound economic policies and good relations with neighbouring EU member states. If you're considering doing business in Poland, please keep reading.
The types of companies you can register in Poland
Poland has quite several business structures that you can choose from. Each business type has its opportunities that can benefit you in the long run.
The Limited liability company
- This business type should have a management board that's composed of at least one person.
- The foreign directors on the management board are not conditioned as they have no special residence requirements.
- All non-EU board members may need to get work permits in Poland to carry on their functions.
- The company should have a supervisory board i.e. if it has an initial share capital that exceeds 500, 000 PLN and over 25 shareholders. The supervisory board should have a minimum of 3 individuals.
The Polish joint-stock company
This business type is one of the most popular in Poland.
- It can have more than one founder.
- Usually has a minimum share capital of 100,000 PLN; 25% of which should be paid during the company's incorporation.
- For all capital contributions made in kind, they should be fully paid in less than a year after the company's registration.
- The company can be put on the Stock Exchange, with a minimum nominal share value of 0.01 PLN.
- Normally, the management bodies are the management board, supervisory board, and shareholder's meeting of the company.
- Similar to the LLC, the joint-stock company's management board is to have a minimum of one individual, and there won't be any residence requirements.
In Poland, you can also register a partnership. Some of the types of partnerships you can find are:
- General partnership;
This is the simplest type of partnership you can register in Poland. This partnership is preferred mostly by smaller businesses because it does not require minimum capital. It only needs two partners or entities that are liable up to the value of their share capital.
- Limited partnership;
A limited partnership is formed by a minimum of two individuals or entities (a legal and a natural person). The business is responsible for its liabilities.
- Limited liability partnership;
The limited liability partnership is founded by a minimum of two people who want to freely practice their professions such as architects, physicians, lawyers, etc. This type of partnership also doesn't have a minimum share capital.
- Limited joint-stock partnership;
With the limited joint-stock partnership, there is a combination of an active partner and a passive partner (a shareholder). This partnership has a minimum share capital that amounts to 50,000 PLN.
The steps for registering a company in Poland
The exact procedure you should follow depends on the type of company you want to register. However, whichever processes you go through, you can complete everything within a month.
To get started, the fundamental steps you should follow are:
- Choosing a business type and coming up with a name for the company;
- Confirming if the company name is available (NB: In Poland, business names have to be unique);
- Drafting the Articles of Association, followed by constitutive documents which mention the names of founders, the type of business involved, its functioning principles, purpose, etc;
- Notarization of the documents (the notary fees vary);
- Depositing the share capital by the business owners;
- Appointment of the management and supervisory board (for some business types);
- Registration of the newly formed company. This is done at the National Court Register, where the company may obtain its statistical number, ID, EGON number, and the NIP;
- Registration for taxation;
- Application for special licenses and permits (for some business types).
What else should you know?
After your business is registered, you should pay close attention to the tax requirements of the country. Your tax accounts should stay up to date. Commonly, newly formed businesses may hire Polish lawyers to assist in this area.
Concerning accounting standards, Poland uses the same standards as those used internationally. The standards are a bit more complex for companies that are listed on the Warsaw Stock Exchange.
As for the country's annual financial statements, they have a balance sheet, profit & loss account, and other relevant documentation. All companies can file their annual accounts at the Registry Court.
Before you register a business in Poland you should also know that 3 situations attract auditing. These are:
- If your business employs a minimum of 50 employees per year;
- If the net turnover of your business is a minimum of 5 million euros; and,
- If the value of the assets on the total assets balance sheet is a minimum of 2.5 million euros at end of the business year.