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Poland

Running a business in Poland

The legal form of business

Poland is a country that welcomes foreign investors and generally grants them the same investment right as it does for national investors. There are several types of companies that can be incorporated in Poland and investors can choose the most suitable form for their desired business activity. The companies recognized by the Polish Company Act:

• The Polish Limited Liability Company
• The Polish Joint-Stock Company
• The Polish Limited Partnership
• The Polish Civil Partnership
• The Polish Registered Partnership
• The Polish Limited Joint-Stock Partnership
• The Polish Sole Proprietorship

Foreign companies operating in Poland:

Apart from the types of Polish companies mentioned above, foreign companies can also set up branch offices and representative offices in Poland. These two types of business vehicles, however, offer limited possibilities. In the case of a branch office, its activity will be the same as the parent companies. The representative or the liaison office will only be allowed to carry out research and marketing activities in Poland. The main advantage of these types of companies is that the liability will remain on the parent company. The branch must also register for VAT in Poland.

Additionally, companies registered in an EU country may also register European companies or European Economic Interest Groups.

For more information about forms of business: https://www.companyincorporationpoland.com/polish-company-types

Bank account, banking regulations

Polish residents and non-residents can open bank accounts in all the convertible currencies, as well as zloty. Many important banks have opened branches in Poland and most large Polish banks offer services both in English and in Polish.

The necessary documents for opening a bank account in Poland are a passport or residency card for ex-pats who obtained residency permits in Poland. Interested individuals should note that the required documents differ from one bank to another and while some financial institutions will only require an identification document, others may ask for a residence permit.

Tax rules: Corporation tax

Corporate income tax is levied at a rate of 19% (standard rate) or 9% (reduced rate for small taxpayers and new companies in the first year of business activity).

Corporate income tax:

• A company is treated as a resident if it has its legal seat or place of effective management in Poland.
• Resident companies are taxable on their worldwide income, including capital gains. The taxable income is computed on the basis of the accounting profits and is adjusted for several items as described in the tax law. Revenues are divided into two sources – business activity and capital gains.
• The tax settlement period for a corporate income tax is tax year. The standard tax year is 12 months, it can be similar to the calendar year but also may be changed. Tax advances are paid throughout the year on a monthly or quarterly basis and reconciled annually.
• The taxpayer has to calculate and report revenues, tax-deductible costs, and tax due in the annual tax return (self-assessment). The deadline for filing the return is by the end of the third month following the end of the tax year. The filing deadline cannot be extended.
• The new tax system stipulates that entrepreneurs who will allocate funds for the development of their business will not pay CIT. The tax will be paid only when the shareholders decide to use the profit for their own, and not for business purposes. The longer the funds remain in the company, increasing its liquidity, crisis resilience, and investment capacity, the higher the tax benefit for the company.

For more information: https://accace.com/company-formation-poland/

Import/export regulations

local import refers to import within the European Union member states.

CAP (Common Agricultural Policy) import licenses are required for several products imported from non-EU countries into any country within the EU. Such import licenses are often referred to as the AGRIM Certificates and are issued in Poland by the Agricultural Market Agency (Agencja Rynku Rolnego).

Other required certificates are approvals that must be issued prior to the introduction of goods to the Polish market. This applies to the importers of products that are new to the Polish market, and who must request product approval from the National Institute of Public Health – the National Institute of Hygiene (Narodowy Instytut Zdrowia Publicznego – Panstwowy Zakład Higieny) Once approval is granted, the goods may be imported to Poland. If a license has already been issued in another EU country, it remains valid in every state that is a member of the EU.

 Customs tariffs

The Customs Service (Służba Celna) has an official Tariff Browser (a module of the Integrated Tariff System – ISZTAR), that provides information on tariffs of goods in international trade. The Tariff Browser contains data from the TARIC system (goods nomenclature, duty rates, restrictions, tariff quotas, tariff ceilings, and suspensions) as well as national provisions (VAT, excise tax, restrictions, and non-tariff measures). The Browser is maintained by the Customs Department of the Ministry of Finances within the framework of the Integrated Customs Tariff Information System – ISZTAR3. The Browser also provides detailed information concerning commodity turnover to Customs Administration and to all involved.

For more: https://www.trade.gov.pl/en/invest-in-poland/doing-business/important-regulations/241615,important-regulations-polish-trade-regulations.html

VAT registration thresholds

VAT registration in Poland is not obligatory so. Companies may be eligible for an exemption to registration. There are two possible scenarios in which a business is not required to do so: one according to the sales volumes in a given period and another according to the specific services or products that are being offered by the company. Investors are first required to determine which of the two categories they fit in.

Companies are not required to register for VAT purposes in Poland if the sales during the tax year do not exceed 200,000 PLN. In this case, the company managers are required to follow through with the registration procedure with the local Tax Office in order to obtain the registration number.

For more information: https://www.companyincorporationpoland.com/vat-registration-in-poland

Customer preferences

Willing to buy from foreign sellers

Along with development, many companies began to experience limitations on further growth resulting from market saturation with their product or service. So increasingly, domestic companies are looking for growth opportunities in foreign markets. One of the solutions is to acquire a foreign entity.

Most popular countries for import of goods

The country's main import partners are European Union members (Germany, Italy, France), Russia, and China.

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