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Cost of Opening a Company in Poland

Cost of Opening a Company in Poland
Sep 30, 2022 (344 Views)

These factors may be important to take into account when forming a company in Poland:


1. Commercial variables

The following business factors must be taken into account: - The business's industry and type - The nationality of its headquarters or key personnel - The existence of trade agreements or other business relationships

 

2. Location

Another consideration is location. Rules, prices, and availability may vary between various cities and regions. It is always advised to consult with relevant experts, including business or legal counsel, accountants, and others based on your needs.

 

3. Geography

Geography could be a problem. Poland currently has weak road, rail, and infrastructure systems, which raises the cost of doing business because it makes it more difficult to access each regional Polish market. Although it can be poor in less populated areas, internet access is typically good in urban areas.

 

4. Regulation

Poland, a nation renowned for its strict labor laws, ineffective commercial court system, and excessive red tape, has long struggled with regulation. These issues have all historically shown to be obstacles for foreign businesses.

 

In Poland, opening and operating a business is very regulated for foreigners. Only limited liability companies, joint stock companies, and limited partnerships are permitted for use in the establishment and operation of businesses by entrepreneurs from non-EU nations. Another option for investors is to buy an existing business. Similar to Polish citizens, business owners from the EU can form any type of company. Additionally, a branch or representative office may be established.

Entrepreneurs should think about the size of the business, operating costs, and other factors before deciding on a legal business structure. For foreigners, limited liability companies are the most common structure.


Limited Liability Company

These are the most common businesses that foreigners establish in Poland and are designed for larger business endeavours. Only the amount of share capital that they actually own makes shareholders liable.

A share capital of PLN 50,000 is needed to form a company.

The new business must also register for VAT payment, obtain a REGON (statistical number), an NIP (tax identification number), and obtain an NIP.

Steps Required:

1. Partnership must be entered in the Polish Court Register

2. Obtain Certificate of Approval,

3. Post- Registration Procedures.

Time: 4 months

 

Joint Stock Company

In Poland, this type of legal entity carries legal personality along with it and is typically applied to big corporations with multiple owners. The process of incorporation largely resembles that of registering a limited liability company; the main distinction between the two business structures is that a joint stock company is fully and unconditionally liable for all of its debts to its assets.

 

Limited Partnership

Limited partnerships are able to take on obligations and gain rights. It is a type of business partnership that can be established by at least two people, each of whom serves as a general partner in turn.

 

Purchase a shelf company

Purchase of an existing business is an option for foreign investors who want to launch a business in Poland.


Foreign Branch

While operating as a separate, stand-alone unit of the company in a different nation, branches lack legal personality. The parent company is entirely responsible for the actions of the branches.


Wholly owned subsidiary

Subsidiaries must adhere to the same rules and regulations that apply to Polish limited liability companies. They are appropriate for small and medium-sized businesses and are separate from the parent company, unlike branches, which are not.

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