Poland is a Central European country neighboring Germany, the Czech Republic, Slovakia, Ukraine, Belarus, Lithuania, and Russia. With a total population of around 38 million people, Poland is the sixth most populous member state of the European Union. The capital city of Poland is Warsaw.
Polish history dates back to the 10th century and has played a significant role in shaping Europe’s overall historic fabric. Undergoing several eras of change including independence and occupation, today, Poland has one of the fastest-growing economies in Europe.
Types of business structures in Poland
The Polish government promotes and encourages investment from local and foreign investors alike. Though the process of registering and incorporating a company in Poland is complex and may require professional assistance, the overall business environment is conducive to progress.
Below are the types of legal business structures in Poland.
| S# | Type of company | Local Name | Min.paid-up capital required |
| 1. | Sole Proprietorship | Jednoosobowa Działalność Gospodarcza or JDG | No paid-up capital required |
| 2. | Limited Liability Company | Spółka z ograniczoną odpowiedzialnością or Sp. z o.o | €1,062 |
| 3. | Joint Stock Company | Spółka Akcyjna or S.A | €21,200 |
| 4. | Partnership | Spółka Cywilna or S.C. | No paid-up capital required |
| 5. | Limited Partnership | Spółka Komandytowa or S.K | No paid-up capital required |
Sole proprietorship
This is the simplest form of business anywhere in the world, including Poland. Best suited for individuals who want to start a small business with a limited personal investment. The owner is responsible for all aspects of the business and has unlimited liability for the debts and obligations of the business.
Limited Liability Company
Probably the most popular business format suitable for small and medium-sized businesses is an LLC. The company is a separate legal entity from its owners, who have limited liability for the debts and obligations of the company.
Joint-Stock Company
Businesses that require large capital to initiate and operate often resort to JSC. The company is owned by shareholders who have limited liability for the debts and obligations of the company. Shares of the company can be publicly traded on a stock exchange.
Partnership
This is a form of business structure that is suitable for two or more individuals who want to start a business together. The partners share the profits and losses of the business and have unlimited liability for the debts and obligations of the business.
Limited Partnership
This is a form of business structure that is suitable for two or more individuals who want to start a business together. There are two types of partners: general partners who have unlimited liability for the debts and obligations of the business, and limited partners who have limited liability.
Cost involved in registering a company in Poland
The cost and expenses involved in registering various forms of companies in Poland can vary depending on the type of company and the specific circumstances. However, some general costs and expenses associated with registering different types of companies in Poland are as follows:
Sole proprietorship
The cost of registering a sole proprietorship in Poland is relatively low. The main expenses involved are the cost of obtaining any necessary permits and licenses, as well as any fees associated with opening a bank account.
Limited Liability Company
The costs associated with registering a limited liability company in Poland can be higher. The main expenses involved are the cost of drafting the company’s articles of association, registering the company with the National Court Register, paying the minimum share capital of €5,000, and any fees associated with opening a bank account. The total cost for registering a Sp. z o.o. can range from €650 to €2,500 (approximately).
Joint-Stock Company
The costs associated with registering a joint-stock company in Poland can be significant. The main expenses involved are the cost of drafting the company’s articles of association, registering the company with the National Court Register, paying the minimum share capital of €21200, and any fees associated with opening a bank account. The total cost for registering an S.A. can range from €3100 to €10,500 (approximately).
Partnership
The cost of registering a partnership in Poland is relatively low. The main expenses involved are the cost of drafting the partnership agreement and any fees associated with opening a bank account.
Limited Partnership
The cost of registering a limited partnership in Poland is relatively low. The main expenses involved are the cost of drafting the partnership agreement and any fees associated with opening a bank account.
Process of registration of a company in Poland
The process of registering and incorporating a company in Poland can take several weeks or even months, depending on the complexity of the company’s structure and the speed of the registration process
The process of registering and incorporating a company in Poland involves the following steps:
Choosing a business name
The first step is to choose a unique business name for the company. The name must not be similar to any existing business names and must not violate any trademarks or copyrights.
Drafting the company’s articles of association
The next step is to draft the company’s articles of association, which will define the company’s purpose, structure, and governance.
Appointment of management board members
The company must appoint at least one management board member who will be responsible for managing the company’s operations.
Registering the company with the National Court Register
The company must register with the National Court Register (Krajowy Rejestr Sądowy or KRS) by submitting the articles of association, identification documents of the management board members, and proof of payment of the minimum required share capital.
Registering for tax purposes
The company must also register for tax purposes with the relevant tax authorities.
Obtaining necessary permits and licenses
Depending on the nature of the company’s business, it may need to obtain additional permits and licenses from the relevant authorities.
Opening a bank account
The company must open a bank account in Poland and deposit the minimum required share capital.
Business environment in Poland
Poland has a growing and diversified economy and is considered one of the most business-friendly countries in the European Union. The country has undergone significant economic transformations over the past few decades and has attracted significant foreign investment. Primarily, the strategic location of the country, being at the crossroads of Europe, access to major markets in the region becomes easier and cheap.
Secondly, Poland has a highly educated and skilled workforce, with a high percentage of its population holding tertiary qualifications. Another contributing factor is that Poland has relatively low labor costs compared to other countries in the European Union, making it an attractive location for businesses looking to reduce their operating expenses.
Lastly, a favorable tax system with a flat income tax rate of 17%, makes Poland an attractive destination for foreign investors.
