Establishing a business in Poland can be a promising venture given its growing economy, strategic location in Europe, and a relatively large domestic market. However, there are several key considerations and steps that entrepreneurs should be aware of before setting up a business in the country.
One of the most important aspects of doing business in Poland:
First, we need to discuss the possible types of doing business in Poland so you can choose the appropriate legal form for you. Common types include sole trader: Simplest form, suitable for small businesses. Limited Liability Company (Sp. z o. o.): Popular among foreign entrepreneurs due to limited liability. Joint-Stock Company (S.A.): Suitable for larger enterprises with significant capital.
Another important issue is how to register a business in Poland. Above all you must register your business with the National Court Register (KRS). You will need to prepare necessary documents such as the company’s articles of association. Certain businesses may also require specific permits or licenses, such as those in the food, transportation, and financial sectors.
Taxes are the main source of state revenue and enable financing of its activities. Taxes in Poland differ in terms of the subject of taxation (i.e. who is taxed), the subject (i.e. what is subject to taxation) and the method of tax collection (i.e. the mode and terms of payment). Currently, there are many types of taxes in Poland, but for entrepreneurs the most important of them are taxes, such as: personal income tax (PIT), corporate income tax (CIT), inheritance and donation tax, tax on civil law transactions or VAT. The standard corporate income tax rate is 19%. However, there is a lower rate of 9% for small businesses with annual revenues not exceeding 2 million euros. Standard VAT rate is 23%. There are reduced rates (8%, 5%, and 0%) for certain goods and services.
Poland’s employment and labor laws provide a comprehensive framework to protect employees’ rights and outline employers’ obligations. Ensuring compliance with these laws helps maintain fair and safe working conditions. For specific legal advice or detailed regulations, consulting a legal professional is recommended. The most popular forms of employment in Poland are the contract for an indefinite period, which ensures the highest level of employee protection, the Fixed Term Contract: it involves limitations on the number and length of such contracts, and the Trial Period Contract concluded for a maximum of three months, used to assess the suitability of workers. It is also important to remember that the employee must be provided with a mandatory minimum wage and also must receive a legally specified number of vacation days.
Starting a business in Poland requires understanding many legal and administrative aspects. A professional law firm can significantly facilitate this process. GLC offers support at all stages of running a business – from its registration to legal, accounting, HR and tax services.
