Poland Summary Guide

Business Forms in Poland

A self-employed individual, or sole proprietor, may start up in business in Poland provided they have obtained a temporary residence permit, and must register for tax, social security contributions and VAT (if applicable).

This is the most straightforward and the easiest way to start in business, although a sole proprietor has unlimited liability for the debts of the business.

Any other type of company structure must be registered with the National Court registry (at a cost of PLN1,000, currently).

The formation of a company in Poland can be an expensive and long-winded process, with fees payable for court registration, notarizing and VAT registration, plus an additional levy depending on the amount of start-up capital involved.

The main types of company in Poland are a Limited Liability Company (sp. zo.o), Joint Stock Company (S.A.), Partnership (Sp.k.) and, as has been mentioned, Sole Proprietorship.

The most popular type of company is a Limited Liability Company - although there is a minimum share capital requirement (PLN12,728), it is significantly lower than that necessary to form a joint stock company, and there are no restrictions on foreign shareholders. In order to incorporate such an entity, the following documents are required by the Registration Court: A public deed of incorporation (made before a notary), confirmation that the required capital is present, full details of shareholders and officers (and their respective shareholdings), and specimen signatures from the directors, given in the presence of a notary.

A Joint Stock Company is better suited for larger entities that might wish to raise public funding via a share issue and have larger numbers of shareholders. The minimum required share capital for such an entity is PLN127,280.

Partnerships can be equal with unlimited liability by each partner, limited, professional or limited joint-stock. The first two are the most common types of partnership.

Poland Summary Guide Contents

Poland Summary

Poland Summary Chart

Poland Residence

Taxation of Business People in Poland

Living and Doing Business in Poland

Business Forms in Poland

Latest Comments

Expat Brit

Hi,

I am facing a dilemma and would like to invite any reader to advise me.

I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.

In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.

However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?

If anyone has pertinent advice on these points, I’d be grateful to hear them.

TJM @ Eindhoven, NL

T. Dog

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Jersey vs. Malta??

Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary

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Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

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Irish crisis - effects on small business?

Hi all,

Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.

Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...

Thanks,Kate

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Living in France contracting to Australian company

I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD.
Do I pay tax in France or Australia or both ?
Any help or guidance would be much appreciated.France move

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