Thursday, July 3, 2014

What type of company would you open in Poland?

Poland is the sixth largest EU member state and one of the most fast-growing economies in the world. Due to its position in Central Europe it provides entrepreneurs decided to invest in it with the opportunity of an easy access to the worlds’ biggest free market area. This means low transportation costs and more facile trading procedures for import and export activities within this area. The United Nations Conference on Trade and Development estimated in a report in 2013 that Poland will become the 4th European most attractive country for foreign investors

In this situation it is understandable that the number of investors turning towards Poland for businesses startups has increased considerably over the last few years. Poland provides them with a wide range of structures to choose from. Also, in case they consider the process of opening a new company in Poland to be too time consuming, foreign investors have to opportunity buy a shelf company that will allow them to start conducting their business immediately.

One of the most common is the Polish Limited Liability Company (Sp.z.o.o.) which requires a minimum share capital of 5,000 PLN and at least one shareholder in order to be established. The founders can be either individuals or legal entities and they liability is limited to the amount of shares they own. A Polish Joint-Stock Company (Spólkaakcyjna) is best suited for large size businesses and the setup process requires a minimum share capital of 100,000 PLN. Another type of partnership specially designed for large businesses is the Polish Limited Joint-Stock Partnership (Spólkakomandytowo-akcyjna) that requires a minimum share capital of 50,000 PLN.

Poland also offers a variety of partnership types to choose from. The Polish Limited Partnership (Spólkakomandytowa) must be formed by at least two individuals or legal entities. It has minimum one entirely liable partner and at least one limited liability partner. Taxes are paid by each of the individuals or organizational units that form the partnership in Poland.

The Polish Civil Partnership (Spólkacywilna) is a legal form with a relatively simple structure. It is usually chosen by small businesses and it is composed out of minimum two shareholders with common business goals. Although it is easy to set up, entrepreneurs should keep in mind the fact that this type of Polish company has no legal personality and it doesn’t’ require registration with the National Court Registry.

A special type of entity is the Polish Sole proprietorship because it only requires one founder and no minimum capital. There is no legal distinction between the business and the owner, who must be registered for paying taxes in Poland

Premises for the future development of Poland from the investments point of view look bright since the country’s economy is expected growth by 3.5% in 2015 and 3.8% in 2016.

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