AS EU member since 2004, Poland has demonstrated huge investor attractiveness offering perfect balance between access to European market and cost cutting policies fuelling sustained economic growth of more than 5% a year. Poland has the largest market of EU, with competitively low labour costs.
What are the main types of company in Poland?
There are four main kinds of business entity for foreign investors wo wants to incorporate a company in Poland and they are as follows:
- limited liability company (sp. z o.o)
- joint stock company (S.A.)
- partnership (SP.K)
- sole proprietor
Main features of a sp. z o.o
- the most popular format for small and medium sized companies
- minimum share capital is 5000 zlotys (€1200), to be fully paid up
- minimum number of directors is one
- no restrictions on foreign shareholders
- annual accounts to be prepared and held at company offices
Unemployment has dropped in Poland with the jobless rate just short of approx. 8% in December 2016 aligned with the strong recent economic growth. While a certain part of the highest skilled young brains has been tempted to move west, taking advantage of EU membership, Poland has a large and well-educated workforce.
After a strong communist history, Poland has shifted to be one of the most liberal economic regimes in Central Europe of these years. Corporate income tax was lowered from 27% to 19% in 2004, reflecting the government's wish to ease pressure on companies and attract further job-creating investment. Capital and profits can be freely repatriated.
Poland offers a broad range of financial incentives for foreign investors including the following: grants of up to 25% for companies setting up in Poland enhanced grants totalling 50% in Special Economic Zones further incentives available through EU-funded schemes.
Polish companies are required to prepare accounting records that must be kept at the registered office in Poland and submit annual financial statements within three months following the end of the financial year. Auditing of the accounts is only required if the company exceeds a certain size.
Please contact us and we will be pleased to discuss matters in greater detail.