How to Register a company in Poland? The most important information
A person who does not have Polish citizenship can open and run their own business in Poland on the same terms as Polish entrepreneurs. The condition is to meet certain requirements. What does the process of registering a sole proprietorship by a foreigner look like?
In short:
- Conducting business activity by foreigners in Poland is regulated by the Act of 6 March 2018 on the principles of participation of foreign entrepreneurs and other foreign persons in economic turnover in the territory of the Republic of Poland.
- Person with citizenship of European Union countries, the European Economic Area, the USA and Switzerland may establish sole proprietorships and commercial companies on the same terms as Polish citizen.
- For citizens of countries outside the EU, EEA, the USA and Switzerland, it is necessary to have an appropriate residence title, which allows conducting business.
- Registration of a sole proprietorship by a foreigner takes place by entering the CEIDG, with the mandatory provision of the residence card number.
- If a foreigner obtains resident status, they are also obliged to report the company to the Social Insurance Institution (ZUS) and the tax office (US).
Foreigner in Poland – what kind of company can they run?
In Poland, you can run a business in various forms. Companies are a more complicated form of business activity. The process of establishing them is more formalized compared to sole proprietorship. Partners must conclude a company agreement, which must be drawn up in a specific form. Registering a company involves costs, and property liability and the rules of representing the company depend on its type. In most cases, it is necessary to contribute share capital.
Registration of a sole proprietorship by a foreigner – where to start?
The process begins with submitting the CEIDG-1 application, which can be submitted in person at the city or commune office, sent by post or completed online, e.g. using a qualified signature. The form is available on the ministry’s website and e-PUAP. The form requires providing basic data, such as:
- applicant’s data,
- date of commencement of business,
- place of business,
- residence card number (temporary or permanent),
- indication of who will be responsible for accounting.
In the case of foreigners, it is mandatory to indicate whether the applicant is the owner or perpetual user of real estate in Poland. This provision has been in force since 2017. Registration of a sole proprietorship is free of charge. When filling out the application, you must also choose the form of taxation – tax scale, flat tax or flat rate. After registering in CEIDG, the foreigner will receive NIP and REGON numbers.
Does a foreigner have to register their business with ZUS and US?
A foreigner, just like a Polish citizen, after registering a business in CEIDG must register with the Social Insurance Institution (ZUS). If they intend to be an active VAT payer, they must register with the Tax Office. In terms of insurance, the rule is that a person can be subject to social insurance only in one country, where they will pay contributions. This is the country in which the foreigner has their place of residence, provided that they perform most of their work there, or the country in which the centre of business interests is located, if the foreigner does not live in that country. To calculate the place of business, it is necessary to take into account factors such as working time, turnover, income or the number of services provided.
What companies can foreigners establish?
The most popular business model in Poland, chosen by foreigners, is a limited liability company (sp. z o.o.). In addition, foreigners can also establish joint-stock companies, limited partnerships or limited joint-stock partnerships. A foreigner can establish a company in Poland if he or she is a citizen of the European Union, EFTA or a country that has an agreement with Poland on the freedom of establishment.
To register a company, a foreigner must provide several documents:
- an identity document – usually a passport,
- a notarial deed of association,
- a certificate of no criminal record,
- powers of attorney – if the company is established by a proxy,
- translations of documents.
Registering a company in Poland consists of several stages:
- Choosing the company name
- Opening a bank account
- Drawing up the deed of association
- Registration in the National Court Register (KRS)
- Registration in offices – tax office and ZUS
Foreigners have the opportunity to establish limited liability companies without having to stay in Poland. Registration can take place fully online
Summary
Registering a business in Poland by a foreigner is a process that usually requires legal support. It is difficult to expect a person from another country to be able to understand the Polish legal and administrative system, which is the most important thing for the success of the undertaking. With the help of CMM Law Firm, the entire process of registering a company in Poland will run smoothly and without errors.
