Company incorporation in Poland
Poland is one of the only European countries to maintain positive growth despite the financial crisis. Growth, which reached a record 6.7% in 2007, ended the year 2009 at 1.7% on average, and forecasts are 2.5% for 2010. To stabilize the financial sector and the economy, the government focuses on tax breaks and reduced interest rates in particular.
Types of companies
There are several types of businesses for foreign investors:
• Limited liability company (sp. z o.o)
• Stock company (SA)
•Partnership
• Sole Proprietor
Limited liability companies (sp z o.o) are the most common corporate status of medium and large businesses. They are usually used by foreign companies to become established in the country.
Tax system
The economic system of Poland is one of the most liberal in Central Europe. The corporate tax was lowered in 2004 from 27% to 19%, the government wanting to reduce the pressure on companies and attract job-creating investment.
Under EU law, the free movement of capital is the rule.
The Polish economy is one of the most attractive for foreign investors. Note particularly the tax incentives in investment spending, grants of up to 50% for projects creating new jobs, benefits in areas of high unemployment, or tax exemptions in free-trade areas.
Accounting
In accordance with standard practices in the EU, companies must register and submit annual accounts to regulatory authorities. Annual audits are mandatory for larger companies.
| Tax rate | • Income tax: 19% • Tax on capital gains: 19% • Tax on interest and royalties:20% • Tax on dividends: 19% • Income of foreign companies: 19% • VAT: 22% |
| Minimum capital | 5,000 PLN (1,211 €, entirely paid at the incorporation) |
| Shareholders | Minimum of one associate |
| Foreign shareholders | Yes |
| Directors | A minimum of one director |
| Foreign holding | Yes |
| Legal obligations | • Mandatory supervisory board for companies with more than 25 partners and capital of more than 500,000 PLN (121,086 € ) • Optional annual audit |
| Deadline | 4 to 6 weeks from the receipt of all documents pertaining to the company’s creation. 1 week for VAT registration |
| Headquarters | Business address, telephone transfer, fax, and mail Possibility to have a physical office (prices vary depending on demand) |
| Accounting | Annual financial report, schedules, and management reporting obligatory, based on an estimated number of monthly bills and a forecast of annual turnover. |
