If you are here, it probably means that you want to explore the Polish market. Between the idea and final decision and before you write to us how to register your company in Poland?– check the information below. This will help you find out what types of companies can be set up by a person who does not have Polish citizenship and what the company’s structure looks like.
Types of companies
Polish law indicates some types of companies that can be set up by investors regardless of citizenship (UE or non-UE); it is:
- Limited liability company – LLC (spółka z ograniczoną odpowiedzialnością –sp. z o.o.)
- Limited partnership – LP (spółka komandytowa– sp.k)
- Limited joint-stock partnership (spółka komandytowo-akcyjna– S.K.A)
- Joint-stock company (spółka akcyjna– S.A.)
- Branch of a foreign company.
The most popular type for a foreigner is spółka z ograniczoną odpowiedzialnością (LLC), because of simple structure, efficient taxation and limited liability.
What is spółka z ograniczoną odpowiedzialnością (LLC)?
This is commercial company registered in Polish Entrepreneurs’ Register of the National Court Register (KRS). Spółka z o.o. has its business name that could be chosen by shareholders freely but it should not be identic to another company in Poland. If you use the business name of the company every, you should also add „sp. z o.o.” or longer form „spółka z ograniczoną odpowiedzialnością”.
Structure of the sp. z o.o.
Shareholders – investors of the company
The minimum share capital is PLN 5.000,00 (ca EUR 1200/$ 1300) and is divided between the shareholders in the agreed amount. The minimum value of one share is PLN 50,00.
In company X sp. z o.o. there are three shareholders, and the share capital is PLN 5.000.
Shareholder 1 has ten shares with a nominal value of PLN 500,00
Shareholder 2 has 25 shares with a nominal value of PLN 1.250,00
Shareholder 3 has 65 shares with a nominal value of PLN 3.250,00
Share capital shall be fully paid before the registration in the court (KRS).
Who can be a shareholder in the company?
- Natural persons,
- Legal persons,
- Organisational units without the legal personality to which the applicable laws have granted legal capacity
Few Shareholders’ rights and obligations
- Participate in profit/dividend (if the company has profited from last financial year and there is a resolution of the shareholders’ meeting regarding the distribution of the profit)
- Have the right to direct supervision over the business of the company,
- Participate in the annual shareholders’ meeting every year with votes (could be by a proxy)
- Usually, appoint a management board (or supervisory board),
- The obligation to approve the financial statement for the last fiscal year,
- In some situations, when there is an appropriate provision in the articles of association of the company – additional payments of the shareholders to the company.
If you want to ask about the liability of the shareholders – generally there is limited by the funds that are involved in the company (in share capital, additional payments or loans).
The composition of the board depends on the will of the shareholder and the act of association. If you want to specify that the structure will be from 1 to more persons – it is possible. However, the most important thing is that the management board fully represents the company. This is the company’s body that will be concluded contracts, made strategic decisions on behalf of the company* and served the company outside as well as before the court (KRS).
(* of course, if you need more control we can minimize the risk to some degree, but it needs some specific provisions)
Liability of the management board needs another article but it is essential to know that in addition to direct liability to the company, there is also some responsibility before the court of registration (KRS), i.e. for lack of submitting financial statements to the court in some events bears personal responsibility for the company’s obligations.
There are no special requirements of competition for a member of the board – it should be natural persons with full capacity for legal actions – no matter of polish or foreign citizenship.
Taxes of the company
- 9% or 15 % depends on the turnover and fulfil the conditions (CIT – corporate income tax)
- sometimes – 23% – (VAT – tax on goods and services)
Costs of establishing a company in Poland
Court fee – PLN 600,00 (ca. 140 EUR/150,00 $).
Notary costs – depends but from PLN 400,00 (ca. EUR 100/$120)
- the cost of a sworn translator,
- legal support
How to prepare to register a companyin Poland?
- the businessname of spółka z o.o.
- number of shareholders and share capital
- the composition of the board
- type of activity – selling/production products, i.e.cars or specific services,
- registered office in Poland – if you need help, let us know.
Having this information, we can faster start with preparing an act of association and register to proceed before the court (KRS).
How can we help you?
- We prepare a draftact of association for your company tailored to your needs and specific structure,
- Explain you all the issues regarding the company in Poland,
- We can support you with finding business address or address in a virtual office,
- Arrange a meeting in notary public,
- Prepare application for company registration with all of the forms and attachments,
- Support you with registration proceeding before the Court Register,
- Legal assistance for your company in current activity.
If you have any additional questions or you are ready to start business in Poland – leave us a massage dokumenty@KRSdlaFirm.pl.. We answer for your question as fast as it is possible. It usually takes up to 24 hours.