Understand the Jurisdictions of the Company Registration Process in Poland
While reduced tax and a pro-business environment can be critical factors in registering a company in a foreign country, Poland also offers a strong and resilient economy. Thus, business owners can rest assured if they register a company in Poland, the likelihood of the business sustaining itself is relatively high.
Here we discuss how to register a company in Poland.
Before proceeding with other aspects of company registration in Poland, you need to decide on the company type. There are several types of company structures you can choose from. They are:
- Limited Liability Company
- Joint Stock Company
- Solo Trader
- Subsidiaries, Branches or Representative Office
Be sure of your choice because each company type will need different requirements, such as the minimum share capital or the number of directors. As most of the businesses flourishing in Poland are small and medium-sized, the limited liability company or abbreviated as Sp. z.o.o is a common choice and will be explained further in this guide.
At the time of this article, there is no particular need to reserve the company name at any governing body in Poland. Indeed before deciding on the company type, the company name would appear first in your business goals. If you plan to use a specific company name, engage with your local incorporation expert on your Polish company name.
Drafting Company’s Article of Association
The holy grail of any company incorporation is the Articles of Association or the Memorandum & Articles of Association. You need to have it drafted by an expert, usually a chartered accountant or a business attorney. The document should contain all mandatory information, such as the company name, company type, minimum share capital, shareholders’ details, director’s details, the registered address, the company’s rules and regulations, and business activities.
There are commonly specific terms when drafting the constitutive document; hence, requiring an expert to do it is the safest option. One rule is that an LLC must have a registered address. Once drafted, bring it to a notary public and have it notarized. Be sure to have all official documentation translated into the Polish language before meeting with the notary.
Deposit Minimum Share Capital
The minimum share capital can vary based on the company type you choose. For an LLC, the minimum share capital is 5,000 PLN. For a joint stock company, it is 100,000 PLN. You can open a bank account and deposit the share capital in it.
Register the Company
After completing the execution with a notary public, you may register the company at the National Court Register (KRS). You will receive a KRS number, which is your company identification number. It is also compulsory to register a company in Poland with other organizations if you are going to engage in specific activities or need specific business permits such as the NIP or REGON.
If your Poland company engages in VAT-subjected activities, you must register for VAT. Otherwise, your company is subject to corporate tax and other relevant taxes.
If you require assistance or consultation, please feel free to get in touch and we will promptly reply to you within 24 hours.