Register a Company in Poland in 5 Easy Steps

If you're planning to move to Poland and looking for guidance on how to open a company in our beautiful country, you've come to the right place. You'll find all the necessary information required to register your new company. It's not mandatory for you to relocate to Poland permanently to start your business. You can live abroad and still manage your business operations from there. However, you need to visit Poland for at least one day to complete the registration process. There are some exceptions to this rule, which I'll tell you about later.

In this article, you will find the information to set up your company e.g.:

• differences between Poland's primary business forms
• documents to set up and register your business with the appropriate authorities
• cost breakdown for registering company in Poland

If you already run a business abroad, you can set up a branch or a representative office in Poland.

Step 1: Choosing the Legal Form for your Polish Company

If you plan to run a business in Poland with the same rules as Polish entrepreneurs, you need to be a citizen of a Member State of the European Union (or of the European Economic Area) or hold a special permit, such as permanent or temporary residence permit, refugee status, or a valid Polish Card). You don't need any business plan.

You may choose from various legal forms when you decide to establish a business in Poland. Each has different possibilities and imposes multiple obligations. The two primary forms of business activities in Poland are:

• Sole proprietorship (individual business activity) – the simplest form of doing business must be registered in CEIDG (the register of entrepreneurs). This can be done online in English.
• Commercial companies – in Poland, there are various company types that one can establish, such as: joint-stock companies, limited partnerships, limited joint-stock partnerships, professional partnerships, registered partnerships, limited liability companies etc. To start the registration process for your commercial company, you must submit the necessary documents to the National Court Register (Krajowy Rejestr Sądowy or KRS). You don't have to do it in person, but in such case, you must grant a power of attorney to your lawyer or company representative to act on your behalf.

Some activities are subject to additional requirements. For example, if you want to act in Poland as an insurance agent or a broker, you must notify the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, KNF). Residents of non-EU countries need an additional permit to establish a company in Poland. If you want to sell excise goods in Poland, you need a tax representative's authorisation. To see if your business is subject to additional requirements, go to the PKD code browser.

Legal entities such as private limited liability companies are a little bit harder to register. Commercial companies must have articles of association, and the company incorporation process is more complex. Consider using the services of a professional legal or accounting consultant during company formation in Poland who will help you avoid potential mistakes and choose the most suitable form of business and taxation for you. However, if you want to take the easiest road, go for sole proprietorship. It is one of the simplest types of business. 

Step 2: Register a Company in Poland

Company registration is easy as long as you know which documents you need. You register as a sole proprietorship in the Central Register and Information on Economic Activity (CEIDG). Commercial companies need to be registered in the National Court Register.

• You will need a document to prove your identity, e.g. your passport.
• You must also present your Polish social security number (PESEL).
• You have to provide the address for your registered office. Ensure you have a document confirming your right to use the property (property deed or lease agreement). But you can also use the services of virtual offices. 
• Another essential thing is specifying the appropriate PKD code(s) that define the area of your business activity.
• When setting up a company, you will need a declaration from all of its management board members to make the initial capital contributions (cost PLN 40).
• And of course, you need to choose a company name. 

If you have a Trusted Profile or a qualified electronic signature, you can submit your applications to KRS and CEIDG online. While the CEIDG platform offers an English version, registering in KRS requires knowledge of the Polish language. But you can find Polish company formation experts who will help you during your registration procedure.

Don't forget to open a bank account. It's a legal requirement to have a bank account in Poland if you are a taxpayer here. Fortunately, many banks in Poland allow foreign entities to open accounts. One such bank is Millennium Bank, which doesn't require foreigners to have a residence permit or a PESEL.

Step 3: REGON

In order to register and run your business legally, you must obtain a business identification number (REGON), which is assigned by the Central Statistical Office (GUS). It is also recommended to obtain a company stamp to validate any future business documents. The REGON statistical number is automatically assigned to every Polish company upon registration in CEIDG or KRS.

Step 4: NIP and Taxes

Let us not forget taxes! You must apply for a personal tax identification number (NIP) at the local tax authority that is competent for your business's registered office. When you register in CEIDG, the NIP number will be assigned to you automatically. Sole proprietors pay the Personal Income Tax (PIT), and companies pay the Corporate Income Tax (CIT). You will also need to choose the method of taxation. You can also decide on VAT registration. 

If you have any doubts about paying taxes in Poland, you can contact the National Tax Information at the following telephone numbers:

• 22 330 03 30 (when calling from mobile phones)
• 801 055 055 (when calling from landlines)
• +48 22 330 03 30 (when calling from abroad)

Step 5: ZUS

Every entrepreneur needs to register the company with the Social Insurance Institution (Zakład Ubezpieczeń Społecznych, ZUS) and pay obligatory health and social insurance premiums. In addition, you can choose to pay voluntary sickness insurance contributions.

Costs of Setting up a Company in Poland

The costs of setting up a company in Poland depend on the type of company. Entry into the Central Registration and Information on Business (CEIDG) is free of charge! The registration fee for entering the company into the National Court Register (KRS) is PLN 250. There is also a PLN 100 fee for a mandatory announcement in the Court and Economic Monitor (Monitor Sądowy i Gospodarczy). When registering a company, you must also pay the tax on civil law transactions (PCC). The tax base (0.5%) is the value of your share capital reduced by the fees paid to the KRS and the Court and Economic Monitor.

If you want to learn about taxes applicable in Poland (e.g. corporate income tax rate), check out my latest eBook for free.

Do I Have to Travel to Poland to Set Up a Company Here?

You don't have to be present in Poland during registration. There are a few ways to remotely register a company in Poland by foreigners, without visiting the country in person. Based on the information from Trade.gov.pl, the most popular are:

• notarial deed - when establishing a new company in Poland, it is necessary to grant a power of attorney to a law firm through a notarial deed. This allows the lawyer to represent the client before both the notary and the registry court. The entire process of establishing a company in Poland takes approximately 14-30 days.
• online registration - in Poland, it is possible to register a company online through the country's online system. The process theoretically takes 24 hours, but in practice, it can take between 2 to 7 days to complete. However, it's worth noting that only individuals with a Polish electronic signature can register a company online. If you don't have one, the only option is to grant a power of attorney to a lawyer's office to set up the company on your behalf.
• purchase of a ready made company – it typically involves granting a power of attorney to a lawyer to represent your interests. It is common for customers to opt for companies that have not conducted any business activity. This is because purchasing a company with a previous business history carries associated risks.

As you can see. there are several types of business activities in Poland and a few steps to take to start creating your business structures and making investments in Poland. If you want to learn more about setting up a business in Poland, get your eBook for free for more detailed information on company registration. If you need professional translation services for your content, product description, and company documents, contact our company. We will get you covered to make your transition into the Polish business scene as smooth as possible!