What are the costs of setting up a LLC in Poland?

The initial cost of setting up a LLC company is the capital investment, which is a minimum of 5000 PLN. Following the capital investment, you must pay for registering the company at the National Court Register. It costs 600 PLN to cover all the costs in court and includes a 100 PLN fee for announcing the new company in the Court and Commercial Gazette. Other costs include VAT registration, if necessary (170 PLN registration fees), translation of documents into Polish by sworn translator and costs for using an accounting office’s services. 

 

What is the process of registering a company in Poland (LLC)?

Registering a LLC company in Poland is a relatively straightforward process and starts with drafting your company act. After this, the minimum capital investment (5000 PLN) must be injected into the company before you begin filing all the forms for registration at the National Court and commercial court. The final formalities involved are related to opening a bank account and providing an address for all your company documentation. You might also want to source the services of accountant at this stage. You can refer to the guide on registering a LLC in Poland, for an expanded answer to this query.

For more information refer to our Guide to Opening a Limited Liability Company in Poland.

 

Should I consult a company to help with registering a company in Poland?

For a foreigner, YES! It is a very wise decision to contact and consult with a legal/accounting service local to the city you’re setting up the business in. This will avoid any confusion when it comes to submitting the forms and registering the company. Almost all of the required material is in Polish and it will be very difficult to progress, unless you’re familiar with the language. A reputable accounting company can easily represent your company and competently carry out your company’s registration for you. 

 

Do I need to be present in order to register a company in Poland?

It is not a requirement to be physically present in Poland to register your company. An individual can appoint a representative with the the power of attorney. The power of attorney must be a specialised, authorizing representative who can set up a company and conclude the articles of association. The process of drafting a power of attorney is however very difficult and could take much longer than actually travelling to Poland for registration purposes. You may need to be present in order to open an account for the company depending on the bank (it is strongly advised for a Polish LLC to open a bank account for the company). While it’s not essential to be in Poland during the registration of your business, the process can move along faster, if you travel. There are some accounting/legal companies that offer their services for LLC setup, without the need for you to travel. Being present for registration will give you a better of understanding of the processes and formalities involved in setting up your LLC company. 

 

Where can I find the forms for registering my company?

Most of the forms can be found and printed online. National court register forms (KRS forms) can be found on the government website. Navigating to the national court register page and clicking on ‘application forms used in KRS’, will give you access to download the relevant forms in PDF format (download KRS-W3, KRS-WK, KRS-WE and KRS-WM). Remember that all the forms are in Polish, so it would help if you had someone from Poland help you with this. Some of the forms can be signed electronically and sent via the internet as well. Once again using an accounting office will allow you to essentially skip this step, whilst they handle the relevant material. 

 

Do I need to register my company for VAT if I’m setting up a LLC in Poland?

Not necessarily. This depends on the operations of the company and whether the turnover of the company exceeds certain yearly thresholds (If your company has over 200,000 PLN in sales per year, then you must get your company VAT registered). If the company is intending to do business with foreign companies from EU countries, you must register as a VAT-EU taxpayer. It’s a good idea to register for VAT before these thresholds are reached, to avoid any penalties that may be incurred. It is also important to note that once you’ve registered for VAT, you hold the right to be exempt from VAT charges if you are operating below the thresholds. Being a VAT registered company makes you more attractive to other companies that might conduct business with you. The VAT rate in Poland is 23% with two lower rates of 8% and 5% for certain goods and services. For more information on what VAT is, refer to our VAT registration Guide or the government resource.

 

What is a limited liability company called in Poland?

Sp. z o.o. (Spółka z ograniczoną odpowiedzialnością) is the name given to Polish LLCs and it is literally translated as: limited liability company. Your formal company name must include: spółka z ograniczoną odpowiedzialnością, spółka z o.o., sp z o.o., or LLC in its title. 

 

Do I need to open a bank account in Poland when when setting up my company?

It is highly advisable to have business bank account for your company, set up in Poland. It is important that you don’t use a personal account for your business purposes because if and when you’re financial records are reviewed (audited), you don’t want personal expenses being mixed with company’s financial data. Nobody needs to know that you ordered a hazelnut latte from starbucks 3 weeks ago.

 

Should I set up my LLC company in Poland?

Poland offers an excellent opportunity to develop and expand your business. With a stable economic environment, highly educated workforce and low labour costs, Poland is a very desirable country for foreign investment. Poland was largely unaffected by the 2008 financial crisis, compared to every other EU member. Corporate income tax in Poland is also relatively low at 19%, when compared with other EU members. There is also a lower rate of 9% for businesses earning up to 1.2 million Euro/year and not exceeding 33% in profitability. For more information refer to the Polish Investment & Trade Agency’s guide on Corporate Income Tax.

Any questions? get in touch with our advisors!

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