Despite the fact that the country is not included in the list of classical offshore zones, foreign businessmen increasingly open business within the country due to possibility to reduce the tax burden on a legal basis. However, in order to benefit, the owners of the companies should follow a number of conditions before proceeding with company formation in Poland
Benefits of Company Formation in Poland
Business in Poland allows foreign entrepreneurs to enter the EU market. The legislation of the country allows various kinds of activity. Applying for help to employees of the Private Financial Services, a company may be registered in Poland in the shortest terms and with the least expenses.
Main opportunities and benefits of commercial activity in Poland:
Possibility to pay taxes at the reduced tax rates.
No requirement of personal stay within the country at the company registration.
Economic stability and favourable investment climate.
High level of development of the banking sphere.
No requirement to residence for the company founders.
Stimulating and motivating legislation of the country.
Prestige that favourably affects the company promotion, increases chances of profitable deals.
Types of companies
To deal in business activities, the legislation of the country offers different forms of business. However the applicable legislation of the country prohibits commercial activity of the representations of foreign companies. They may participate in the promotions or control the information security process only.
On other hand separate division of a foreign enterprise has the right to carry out economic activities within the parent company. Non-residents can participate in formation of the company. Information of the division is filed with the KRS – National judicial Register of Poland. The corporate activity should be reflected in accounting of economic operations; companies annually form and report to authorised structures.
Spolka z ograniszona odpowiedzialnoscia, sp. z o. o. (Limited liability company) is a form of company ownership which is one of the most demanded form not only in Poland, but throughout Europe. The simplified mechanism of organisation and formation is developed and operates for business.
To register a company, the following is enough: one non-resident (natural person); two shareholders being co-owners, one of owners necessarily must be a non-resident; a limited liability company registered outside the country that has redeemed at least fifty percent of shares in the said company; individuals and legal entities that have agreed to acquisition of share ownership.
The least size of the authorised stock capital is five thousand zloty. The tax system of the country allows several variations of doing business: with payment of income tax at the rate of 19 percent; double taxation – at the first stage the profit is basic, on the second stage – dividends distributed among shareholders. Mandatory tax on goods and services.
The Process of Company Formation in Poland
In order to start forming the company, a number of simple operations is required:
to address employees of Private Financial Services;
to submit a set of documents with personal data;
to consider offered option of registered companies or to file the application to open a new enterprise;
to choose the name of the company;
to make payment as per the price list for organisational services.
To clients of the Private Financial Services a favourable offer applies. Only thirty percent of the invoice amount should be paid for the company employees to proceed to registration procedure. The remainder of funds should be paid as the entire package of papers is delivered.
Company Formation in Poland and Taxation
The country does not refer to “tax haven”, thus, foreign enterprises need to pay taxes according to the developed regulations of the country.
A company pays tax rated at 19 percent for the profit received (income on the main activity, distributed dividends).
The tax rate for the foreign enterprise is twenty percent for the received license fee (royalties). Deductions from wages are taxed at the rate of thirty-five percent. The income tax of the company withdrawn from the realised capital gain is only 0.5%.
The different scale of value added tax is valid:
The rate of twenty-two percent is a standard tax base.
Companies whose activity is associated with the sale of medical preparations, building materials and materials, means of periodics shall pay tax to the Treasury at the rate of seven per cent.
A rate of three per cent is specified for specific category and range of goods.
Zero VAT rate is withdrawn from supplies abroad of educational literature, agricultural products and other types of goods.
The Private Financial Services offers a wide range of services to its customers. Qualified specialists operate professionally and qualitatively to arrange the entrepreneurial activity. Potential company owners do not need to spend their time on studying the legal field of the country, independently participate in organisational activities. Entrepreneurs will not incur losses from the lost time and will be able to deal with current affairs.
If you think that company formation in Poland is not a good option for you, then you can check a possibility of company formation in Georgia.