Poland is stable during financial crises and offers promising opportunities to local and international investors. The business climate and economy have improved over time, which attracts foreign investors. Foreign investors are drawn to the jurisdiction due to its proximity to the EU market and stable growth. It has top-notch infrastructure and skilled workers. In Poland’s welcoming investment market, company registration costs about EUR 140. Let’s discuss 5 things about Limited Liability Company before your company formation Poland begins.
Determine if Your Business Needs Registration
Poland does not require limited company registration for business. If your annual revenues are less than 50% of the minimum wage, you can run a “non-registered business” without registering with the Central Register and Information on Economic Activity (CEIDG). Unless requested by clients, non-registered businesses must issue invoices within three months of providing goods or services and receiving payment. If not, you must register with the CEIDG.
Tax Structure
The second thing to know when registering a limited company in Poland is the corporate tax structure. Polish law governs corporate income taxation. Singapore and Hong Kong have 19% corporate income taxes. Small taxpayers with total earning revenue (including VAT) under EUR 1.2 million in their first year of operation pay 9%. The Corporate Income Tax Act also taxes taxpayers with registered offices in Poland, regardless of where the income was generated. Only Polish-sourced income requires non-resident taxpayers to pay taxes.
Decide When to Operate
When you register a limited company in Poland, you must choose a start date. Users will be asked to enter a company start date, which can be later than the application date. It’s fine to register your company and start operating on the same day, but the company must assume entrepreneurship duties and pay social security contributions (ZUS payments) afterward. Companies incorporated in Poland must pay their social insurance contributions to the state-run Social Insurance Institution (ZUS), but they are exempt for the first six months. Starting a company at the beginning of the month starts the 6-month exemption. If you register your company mid-month, the 6-month exemption will not begin until the following month.
Determining Your PKD Code
The Polish Classification of Activities (PKD) is the fourth thing to know when registering a limited company in Poland. This is important because the PKD code will affect your obligations depending on your activity (e.g., using specific legal forms, type of taxation, mandated use of cash registers, or Value-Added Tax registration). BIZNES’ online portal lets you check your business activity to determine a PKD code. Your company formation application and articles of association must include your PKD code.
Create a Trusted Profile for Ease
When you register a limited company in Poland, you can create a Trusted Profile for ease. Trusted Profiles are free and allow users to register a company and handle other official matters online.
Consideration for Legal Compliance
- You must register your business with the local district court.
- You must have a legal representative, who will be responsible for signing all contracts and other documents on behalf of your LLC. This can be an individual or another company, but it must be in Poland because foreign entities are not allowed to act as representatives under Polish law.
- You must have a Polish bank account for receiving payments from customers, paying taxes, etc. It’s also recommended that you open an account at one of Poland’s largest banks (eBanks or Millenium) because they offer better service than smaller banks and are more likely to understand foreign businesses’ needs especially if they’re used to working with non-Polish clients already! Your accountant can help set up this kind of account if needed; just make sure he/she knows exactly what type of business entity you want before making any decisions about where exactly those funds should go!
- Finally: Get yourself some legal protection by registering for VAT number status with the Revenue Service Office (USK). This agency oversees all matters related to taxation within Poland – including sales tax calculations based upon how much revenue comes into each company over time so don’t forget about them either!
Assessing Liability Protection
- Liability protection is important.
- An LLC is a good choice for business owners who want the liability protection of a corporation but don’t want to pay the high fees associated with forming one.
- The LLC structure protects you from personal liability for your business’s debts and other obligations. In other words, if your company goes under or gets sued, you’re not personally responsible for paying off its debts; only its assets (such as equipment) will be at risk of seizure by creditors or plaintiffs in court cases involving claims against your company. You can also choose how much ownership interest or percentage stake you wish to retain in the business; this means that if someone sues them personally over something related directly back to their activities at work (like fraud), then only those shares would be available for seizure by creditors instead of everything else they own as well like a personal property like cars/houses etcetera which might otherwise lead up into hundreds/thousands even millions depending on how much wealth there actually exists within these individuals’ lives overall.
Understanding Capital Requirements
You must have a minimum of 5,000 euros in capital to form an LLC in Poland. This amount is the same for all businesses at all locations, regardless of sector or business structure.
This means that if you want to start up a limited liability company with one partner and no employees, it will cost you 5,000 euros just for registration purposes and that’s before any other expenses come into play!
Choosing the Right Business Name
Choosing the right business name is an important step in forming your LLC. You want it to be easy to pronounce, spell and remember. A good rule of thumb is that if someone has trouble pronouncing or spelling your company name, they probably won’t remember it either!
You also want to make sure that your chosen business name is available before filing any documents with government agencies or other legal entities such as banks or accountants. This can be done by searching “Polish Companies Register” (KRS) database or registering a domain name on one of the major registrars such as GoDaddy or NameCheap where all domains ending in .pl will automatically redirect into their local equivalent (.pl).
Once you’ve chosen the perfect moniker for your new venture, there are still some things left for consideration when deciding whether this particular choice will work well long term: does it evoke an emotion? Does it sound familiar but still unique enough so people don’t confuse our brand with another one out there already?
Evaluating Market Potential
- The market potential of your business.
- The market potential of the industry.
- The market potential of your location.
Conclusion
To sum up, hire Fintech Harbor Consulting and they’ll show you the ropes of business registration in Poland. They offer a full suite of services, from helping you choose the right business structure to filing all the necessary paperwork, getting you set up with a corporate bank account and making sure you follow all the rules and regulations set forth by the government.
