Poland offers one of the most suitable markets for companies planning international expansion, with a skilled and cost-effective workforce and a variety of business opportunities offering the perfect ecosystem for global growth. However, the stringent and complex employment laws make expansion a difficult process. This is where a Professional Employer Organisation (PEO) and Employer of Record (EOR) such as Bradford Jacobs step in to provide a smooth journey for companies hoping to reap the benefits of the Polish economy.
Starting a Business in Poland
Compliance and taxation are the biggest barriers for organisations exploring Poland, making Professional Employer Organisation (PEO) and Employer of Record (EOR) suppliers the best option. Bradford Jacobs take care of the laborious processes, while you concentrate on reaching the heights of success for your business. Our in-country experts help not only with the set-up, but also by advising on the best course of action, the optimum locations in Poland and infrastructural needs.
Poland Business Facts
- Poland was third in Europe for Foreign Direct Investment (FDI) in 2020
- Capital – Warsaw
- Population – 38 million
- Official language – Polish
- Poland is a high-income country ranked 22nd in global GDP by the World Bank with a GDP of $490 billion
- The World Bank ranks Poland 40th for ease of doing business
- Poland’s population is among the world’s best educated with 50% under the age of 35
- Poland has access to a market of 550 million in a 2,000-kilometre radius
- Poland is one of the fastest-developing e-commerce markets in the European Union
Benefits and Disadvantages of operating in Poland
- Strategic geographical position in Central Europe
- Strong economy
- Cost-effective labour costs
- Multitude of well-qualified professionals
- Possible departure from the European Union would affect cross-border trade
- High cost risk of establishing then terminating a subsidiary or entity
- Considerable penalties for non-compliance with employment, taxation and immigration laws
- Business practices and cultural barriers
Why Companies like doing business in Poland
A strong and growing consumer market, strategic location and well-educated workforce are among the reasons Poland attracts international companies and foreign investment. Poland is a hot-spot for companies expanding globally, who see Poland as an ideal entry point into the EU market. The potential hazards of complying with stringent rules and regulations will be removed by partnering with a Professional Employer Organisation (PEO) and Employer of Record (EOR) such as Bradford Jacobs.
Limited Company/Subsidiary or Branch in Poland
A private limited liability company is the popular choice for companies setting up a subsidiary in Poland, as any losses, debts or legal liabilities cannot be applied to the parent company. The subsidiary has its own management board and is free to embark on independent business ventures.
In the case of a branch, which cannot follow independent business activities, the parent company can be held liable for losses and liabilities.
Legal Structures for Poland Market Entry
Private limited liability company – set up as a separate legal entity with its own management board, registered on the National Companies Register. Parent company protected from any debts or liabilities.
Branch office – registered on the Companies Register, can have the same name as the parent company, must carry on the same business but leaves the parent company liable for liabilities, debts or any legal problems.
Poland Business Tax
Corporate Tax (CIT):
The standard corporate income tax rate is 19%. As of January 2019 a 9% rate is generally available to taxpayers whose business income (excluding capital gains) does not exceed the equivalent of €1.2 million (PLN 5.4 million). A non-standard tax rate of 5% may apply in certain circumstances.
Opening a Business Account in Poland
Foreign companies must have a Polish bank account, with the advantage they will not be charged exchange rate fees for international payments. The bank will carry out Anti-Money Laundering (AML) procedures and Know Your Customer (KYC) checks as a necessary requirement.
Register a Company in Poland
The basic requirements are to have:
- A company name
- A company address in Poland
- At least one director
- At least one shareholder, an individual or company
- Apply for entry in the Trade Register
- Apply for the essential REGON number from the National Statistics Agency (GUS)
- Register with the Social Security Agency (ZUS)
- Apply for a tax number (NIP)
Find an Office in Poland
There are a number of favourable locations for companies expanding into Poland’s thriving economy. However, finding a location which has become a business cluster can help the companies to obtain better-qualified employees and logistics and more opportunities.
The best locations for setting up an office in Poland are:
Finding a Manufacturer in Poland
There are many manufacturers in the Polish market so examining the options and performing due diligence is advised. Obtaining answers to the following questions can help make an informed decision:
- Do they hold relevant quality certificates?
- Can they deliver directly to customers?
- Can they keep up with demand?
- Are they financially sound?
Checking their credibility in the industry is also advised.
Finding a Distributor in Poland
A distributor is a crucial aspect for any business. If you do not have a frontline distributor that can help your product reach millions, your move to Poland will not be as effective. Various factors such as language and culture need to be considered and the capital, Warsaw, is the most appropriate place to start this search.
Enter New Markets with Bradford Jacobs
With a global Professional Employer Organisation (PEO) and Employer of Record) EOR service, Bradford Jacobs is your gateway into the Polish market. Our in-country experts identify the best path for your business set-up in Poland. Our extensive knowledge of Polish laws, taxes, registration processes and compliance helps in laying a strong foundation for your business. With our services, you can focus solely on business expansion and achieve your goals. Contact us to work with Bradford Jacobs in Poland.