Greetings our appreciated website reader, we have received many questions from you to make you certain why to start a business in Poland so here we mention several reasons why you should considering opening business up here. Besides, It will be nothing to avoid Top challenges of doing a business in Poland . Revise all this things and then at the end of the article see FAQs on starting a business in Poland where will find all the necessary information to your business way to Poland.
Why to start a business In Poland - Pros & Cons
As we mentioned in our previous articles Poland is one of the most settled country by people in Central Europe, which has its own consumer market consisting more than 38 million people.
The country is better off economically than in most European countries. It has emerged as one of the most attractive European foreign investors, as a result its stability economically and politically by environment, its well-educated workforce and convenient location in the center of the continent – gives opportunity of simple access to more than 500 million people at the export base. Poland is further strengthened by its membership in the European Union (EU), the European Economic Area (EEA), the World Trade Organization (WTO), the North Atlantic Treaty Organization (NATO) and the Organization for Economic Co-operation and Development. OECD). Poland also named Bloomberg as the best country to do business in Central and Eastern Europe (CEE).
Widespread economic regulation reforms have been operating since the adoption of EU legislation, and now there is significantly less government intervention in the private sector. in spite of these strengths, the country’s business has its challenges anyways.
Top challenges of doing a business in Poland
Starting your own Business
Limited liability companies are the most widely used form of doing business across the country, used by foreign businesses in Poland. Starting a business can be a time-consuming process and it can take up to a month to complete the various procedures. The company’s contract must first be certified before it can be credited to a bank account, registered with the National Court of Justice, and charged with VAT.
Paying of Taxes
As we know from one of our blogs – the tax system in Poland, the corporate tax rate is 19%, and the basic VAT rate is 23%, the target of which is most of the goods and services. Companies also have to pay other types of taxes, including the Social Security Institution (ZUS) and State Disability Fund (PFRON) contributions.
The Polish Labor Code stipulates that the employment contract must be prepared in writing and must contain information on the type of contract, date of employment, job and salary, type of work, place of work, time of work and date of commencement. Employers are also given the right to negotiate collective agreements.
Terminated employees are usually entitled to pay taxes. The amount varies from one month’s salary to three months ’salary, depending on how long the employee has worked for the employer. This applies to companies that employ at least 20 people.
Work and residence permits
According to the Law on Employment and Labor Market Institutions, an employer can hire foreign workers after obtaining the permission of the local governor. Citizens of EU countries or EEA citizens are allowed to work in Poland without a work permit, but those living abroad need a work permit as well as a corresponding visa. As our practice showed people having desire to starting a business in Poland find it difficult to to all the paperwork alone related to obtaining work and residence permits, but here we go, we offer our best of service to conduct to the whole procedure on your behalf.
Poland’s struggle for independence and sovereignty has created a population that is particularly concerned with their traditions and heritage. Companies trying to expand in Poland need to be familiar with the culture of the country properly, as this makes them appreciate the sense of national pride and the customs and traditions that accompanies the business venture.
Protectionism by Local government
The modern Polish judicial system provides good investment assistance, although the country has poor scores on the Director’s Liability Index.
Exports take 17 days, while imports to Poland take 16 days, which is significantly higher than the OECD average. This is largely due to the time it may take to submit and dispose of the required documents.
Natural resources sustainable management
Poland’s growth will require resources, while sustainable management of natural resources, which also includes water and air quality management, is crucial to Poland’s economic stability. Poland has 33 of Europe’s 50 most polluted cities and the country needs to invest in a low-emission economy in the future.
Poland faces challenges from both external and internal factors. Outwardly, Poland’s relations with Russia, given that Poland borders both Russia and Ukraine, are unclear. In addition, Poland’s relationship with the EU and the economic future of the eurozone could be a force for Poland, or a problem. However, internally, Poland will face difficult governance with a reconstruction agenda that is authoritarian and aimed at maintaining Polish public content rather than solving problems in the political system.
FAQs on starting a business in Poland
Poland, as one of the countries situated in central Europe has great geopolitical location which encourages countries development economically, besides country is ruled by the right way by government which is expressed with their contribution on inflowing investments. government stability and finally all this things create healthy political system in the region.
here are some must know things about Poland you should take into consider before moving on this country.
Here we have different kind of Visas as a result obtaining procedure is varied. Let’s focus on Business Visa and for further please see our next blog here .
To say simply, without any confusing words and phrases for acquiring your Polish business visa you should start to collect the following things that may be advantage for the easy visa obtaining process.
- The invitational letter from any Business organization of Poland. take note that One copy of invitation letter is needed to be send to embassy/consulate directly.
- If there is any trade relationship with Polish companies/organisations, it should be presented as its advantage for you.
- Individuals needs to arrange business documents mentioned above for business persons as well general documents for visa.
- If you don’t own a business and doing job, you can also apply for business visa but you have present business invitation letter.
- There is many organizations that conduct fares, seminars and expo in Poland. You can find about them online and request them to send you invitation letter to join them. Sometimes their organizer sends you invitation letter free of cost. You can search about them on google. still advantage :))
I won’t be lying the procedure isn’t as so simple as it seems from a glance, it is related to certain amount of paperwork what represents problem for many times from investors, but we are glad to assist such kind of requirements. That means we are paper-friendly in this case 🙂 . We will help you to obtain one from different residence permits, so they have also varied prompts and documentations required which you can see properly here.
Opening a bank account in Poland will be simplified if you’re a resident. You should take this note that most of Polish banks do not offer their products for non-residents.with the purpose making this a more tricky option for the occasional visitor in the country. Thus, If you’re Poland resident you are required to present the following documentations:
- Your national ID card or even passport
- Document Proving your residence . It can be resident card or even rental contract.
- In case of a credit card or overdraft facility, expect to be asked for a proof of employment or if even banking history
As in many European countries so as in Poland every banks’ branches have English speaking workforce and call centers too. banks are being opened until 6 or 7 pm during the week. If you want to require something you have to find someone experienced in this field otherwise you will come across many problems which will be tough to overcome alone for you. Hereby, we offer our consult service where we take all the paper work on your behalf within the framework of country’s legislation.
you can also find useful information from our blog regarding opening a personal bank account in Poland .
Poland as an independent republic has quite a lot to offer it’s visitors. for instance, it has very reasonable prices , as well as rental fees , very delicious cuisine, tourists destinations and many other things you may need in country. Your cost of living depends in part on the city you choose to live, but they are nearly equal and ranges from standard prices. Briefly to say in our next article I am going to introduce you how you could be able to live in Poland and then to conclude you whether is it worth or not. You can also compare it with your countries prices , as well.
I have had some clients who were assured that they could do all above mentioned themselves and they just needed legal address for their Polish Company, since until they would start operation or business activities they wanted to save money on renting a place and they succeed.
As we offer you full package company establishment Services in Poland which includes before and after company establishment support we can also provide specific service only. With our full package service, our client:
- Simply needs half an hour to sign some documents and we take care of literally everything.
In order to form your own company in Poland you have to choose one of 4 main types of legalized company types in Poland then start to collect all the necessary submission documents and register in the National Court of Register . you can register your company absolutely remotely, without visiting the country under our power of attorney! For further details get to know our another article regarding Company formation services in Poland .