Establishing a limited company (spółka z ograniczoną odpowiedzialnością or sp. z o.o.) in Poland offers several benefits for entrepreneurs and investors. Some of the key advantages of setting up a limited company in Poland include:
- Limited Liability: Shareholders’ liability in a limited company is generally limited to their capital contributions. This means that their personal assets are protected from the company’s debts and liabilities, providing a degree of financial security.
- Attractive for Foreign Investors: Poland is an attractive destination for foreign investors due to its strategic location in Europe, stable economy, and membership in the European Union. Establishing a limited company can facilitate foreign investment in Poland.
- Tax Benefits: Poland offers a competitive corporate income tax rate of 19%, which can be advantageous for businesses. Additionally, if your revenues earned in the tax year did not exceed the net amount of 2 million euro, corporate income tax is reduced to 9% which is very competitive compared to other EU countries.
- Minimum share capital is PLN 5.000. You set the share structure at your discretion.
- Registering a company is done online. The company agreement must be drafted by a notary public and the firm must be registered online if the shareholder is an EU national without a Polish PESEL number.
- For the company to function efficiently here, you should have a management board, a proxy or an official proxy in Poland. The company’s representation may be established in any way.
- The company (management board) opens a Polish bank account.
- The company (management board) obtains a tax identification number (VAT number).
- The company must have an address in Poland.
- The company must file accounting records.
The company can be provided with capital in three ways:
- payment for the capital shares.
- capital subsidies that are refundable.
- a loan from a partner.
What are the costs of setting up a limited company in Poland?
The cost of registering a company by a lawyer is approximately EUR 300. You will have to pay a tax on contributed share capital of 0.5%. The cost of a bank account would be approx. PLN 50/month. The cost of accounting starts at 250 EUR/month and will depend on the number of documents and operations.
In addition, there could be a monthly expense to rent an office starting from 250 EUR / month for a small one room flex office.
Other expenses will obviously depend on the nature of your business activities.