Poland Company Formation

Opening a company in Poland

Why open a company in Poland? What are the advantages in Poland?
Poland, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the Polish zloty (PLN), and living is very cheap in the country.

Poland is a convenient gateway to the European market, with cheap maintenance costs and a local market that understands the English language very well.

Poland's strong consumer market, with 38 million people, is one of the largest in Europe. The country is in the center of Europe, and this is a very important strategic location for import/export operations to Europe. The favorable position of the country in the center of Europe, where the main transportation routes intersect, allows goods to be exported to all European countries, thus reaching over 500 million consumers.

Poland's main trading partners are, among others, Germany, Russia, France, Hungary, Ukraine, Spain and China. Polish economists, engineers, IT specialists and educated Polish scientists are sought after and highly valued workers who find work in IT companies, R&D centers and scientific institutes. Every year a larger number of graduates leave Polish universities, among them graduates of the most popular faculties among companies investing in advanced technologies.

Poland is a perfect place for investment and business expansion. The Polish government is keen to boost the economy by providing incentives to foreign investors, particularly those in the aerospace, electronics and renewable energy industries.

Investors see Poland as one of the attractive investment destinations in Europe. The tourists are fascinated by the Polish hospitality and friendliness, by the cultural heritage of Poland and the natural wealth of the country.

The Polish economy is undergoing significant growth with solid foundations in the country's democratic mechanisms thanks to which the economic system is considered one of the best economies among all post-socialist (former Soviet Union) countries. All the factors together with the country's international safety due to Poland's membership in NATO and the European Union, make Poland a reliable and important business partner for foreign investors.

The process of opening a company in Poland
Opening a company in Poland begins with the signing of a notarial power of attorney to open a company by a local agent. The document was then sent with a courier urgently to Poland to be processed by a local Polish notary. After several processes in Poland, the customer is required to sign the application for registration in the commercial register, and again send the document to Poland. At this stage the company already exists legally and can start business activities.

In Poland there is no need for a local director or a local shareholder.

In Poland you also do not need any European citizenship to open a company. You can open a Polish company even if you are a foreign citizen.

This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

Opening a bank account in Poland - current account for the company
Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country.

However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are Internet banks in Europe that would be happy to accept your company in Poland as a client.

Equity Capital
In order to open the company, a minimum equity deposit of 5,000 zlotys is required, which is only about 1,147 euros.

In Poland, it is required to make an actual deposit of the aforementioned amount of equity. Therefore, as part of the process, a bank account is opened for the purpose of depositing the equity.

After opening the bank account and depositing the equity capital, the company is opened and a company charter is issued from the commercial register (this is the Polish certificate of incorporation), like this:

After opening the company, you can use the bank account that was opened for the purpose of depositing the equity capital. In other words, the equity account becomes an active current account for all intents and purposes.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company in VAT will also be carried out. The company will receive a VAT number and can start trading.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.
However, all costs in Poland are low due to the relatively cheap cost of living.

Tax in Poland
The corporate tax in Poland is at a low rate of only 19%.
For sales to the local Polish market, the VAT is 23%.

Questions and answers
Question: Is it necessary to physically fly to Poland to open a company in Poland?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Poland. There is no need to fly to Poland to open the company, nor the company's bank account. The entire process of opening the company and in most cases the company's bank account as well, are carried out remotely without setting foot on Polish soil.

Question: Who provides the local address for the company in the new Poland?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of the company in our new Poland?
Answer: We will connect you with a local accountant.

Question: If I want to come to Poland to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for your new company in Poland.

Question: What type of company in Poland should I open?
Answer: In Poland there are two types of companies:
The first type is a limited liability company ("Sp. z o.o."). This is the LLC.
LLCs are considered more flexible in terms of organizational structure and easier to operate on a daily basis. They are suitable for investments of different scopes.

The second type is "joint stock company", that's how I imagine it can be translated into Hebrew. In English this type is called Joint Stock Company (JSC) and in Polish S.A.
JSC companies are generally designed for large-scale investments. As a result, they are less flexible from a legal point of view and much more formal in terms of organizational structure and day-to-day operations. On the other hand, they are great for raising capital, because their shares can be issued on the Warsaw Stock Exchange, and they can issue securities of various types.

Foreign investors often choose LLC companies, i.e. companies of the first type, unless their business requires that the company be of the JSC type (for example, if it is planned to establish a new bank or insurance company).

Question: Do you need a European passport to open a company in Poland?
Answer: There is no need for a European passport. We can open a company in Poland for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Poland?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 3-4 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Poland for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Poland for a person with American citizenship or a person living in the USA.

Apparently it seems trivial that a person with ties to the USA could open a company in Poland, but we assure you that this is not the case. Today, all banks in Poland without exception refuse to open an account for a new Polish company if its owner has any ties to the USA. Therefore, we are probably the only ones, and certainly one of the few in Poland, who know how to open a company in Poland for a person with American citizenship or who lives in the USA.

Question: How much does it cost to open a company in Poland?
Answer: Click here and get in touch and get a current quote without obligation!