Company Registration in Poland

Polish law permits foreigners and nationals to establish any business that is legally recognized within the country. On the 2nd of July 2014, the bill on the freedom of economic activity was passed into law by the Polish Government. As a result, a foreign businessman has the same rights and privileges as a local entrepreneur when it comes to establishing a legally recognised business. There is an available bulk of choices when setting up a business venture: private (individual) entrepreneur or a group of entrepreneurs coming into an alliance on the foundation of a civil contract. A business can be registered as a limited liability company (LLC) by a single individual or a group of founders. The Economic Court keeps a special register KRS which is a record of all the registered business entities within the country. Company founders have to fill out a registration form known as CEIDG-1 (Centralnej Ewidencji I Informacji o Działalności Gospodarczej). It should be noted that registration is done at no cost. Following registration, the LLC is recognised as a legal entity, and each business owner is assigned a tax identification number (TIN). TIN issuance takes place once, irrespective of tax deductions and form of business activity. It is important that the application for a tax identification number is completed exactly 2 weeks before the business opens. Click To - Poland Company Formation

Sale of Shelf Companies in Poland

Many business-wise individuals view the purchase of an already established company as an effective solution. These companies have been listed in the special National register (KRS) and officially recognised by tax agencies. It takes a few hours to re-register these companies in the public notary. However, it takes about a month to get a shelf company recorded on the KRS (Krajowy Rejestr Sądowy). A complete package of documents is received when a shelf company is re-registered. The received documents may include the company charter which is duly registered with the appropriate authorities. The statutes of these companies take care of a wide range of circumstances. Click To - Shelf Companies For Sale

Licensing in Poland

Establishing a legally recognised business requires a business licensing. Some issued permits and licenses expires after a period of one year, whereas others last indefinitely. There are about 300 commercial activities that require compulsory licensing from the Polish Government. The permits received after licensing could be a concession, permission or license. Besides, the Polish Government sanctions that only individuals who have the appropriate certificates and diplomas, following years of training in a particular field are allowed to carry out a certain kind of professional activities. These field may include real estate, accounting, architecture, financial consulting amongst others. 

Permission to purchase real estate in Poland

Generally, there is a distinguishing factor between an apartment (“a separate living space”) and a house. The Polish law states that the acquisition of real estate implies ownership and the entitlement to interminable use. It is not compulsory for a non-national to obtain citizenship or residency permit before he/she can purchase an apartment. However, he/she is required to seek permission before acquiring a house. An administrative permit issued by the Ministry of Internal Affairs is given to foreigners who desire to acquire a property in Poland. However, the Ministry of Defense must have assented to the acquisition. In the case of a property been acquired for agricultural purposes, a permit is issued with the consent of the Ministry of Agriculture. It is not necessary for an individual who has legally resided in Poland for a period of 5 years to obtain a permit for property acquisition.

Support of Real Estate Transactions in Poland

The Civil Code is a set of regulations that guides property rights within Poland. However, there are still other laws that are relevant to certain transactions. Examples include the real estate management act and the Zoning and Development Act which regulates sales and acquisitions by municipalities. The requirement for the legal handover of a property to a buyer is the notarization of the notary deed and enrolment in the land and mortgage registry. Asides the land and mortgage register (księgi wieczyste), there is also the land and building register (ewidencja gruntów i budynków). There is a possibility of direct acquisition of properties from the owner in an asset deal. 

A legal practitioner provides support in real estate transactions by ascertaining if the real estate conforms to the law of title documents, verifying the property by courts, and finding out information concerning the property sellers, previous owners, sanctions and legal injunctions.

Tax Planning in Poland

International tax planning involves both foreign and local constituents. It takes into account foreign and local laws, international treaties, and law enforcement systems in other countries especially the country where the business headquarters of the client is located. Many companies in Poland prefer to hire a tax planner so that they will not pay above the tax amount required. However, there are tax minimisation policies which ensures that investors understand and comply with relevant tax rules. Tax minimisation helps in curbing tax evasion and prevent illegal tax schemes from taking hold. Taxable income can be lowered by summing all the tax deductions from previous years and applying them to the current fiscal year. You can deduct expenditures made on business trips, corporate donations and business dinners amongst others. Investors can also get tax reductions by promptly donating to retirement schemes and charitable causes. 

Immigration Services in Poland

There is great possibility of obtaining a resident permit by acquiring an existing company in Poland. It is compulsory for an acquired company to be active before a buyer can be offered a resident permit. Business immigration takes place in 3 phases. These include: setting up a company (LLC) in Poland, obtaining a national visa for the founders which will be renewed yearly and obtaining a resident permit. Non-nationals who are legally residing in Poland and those who are not presently staying in the country can fully partake in commercial activities within Poland.

The Polish Government also offers a temporary resident permit which allows foreigners to live and work in Poland, especially within the Schengen area. The temporary resident permit expires after a one-year period. A plastic card is usually issued by the Migration Department of Poland within 30-45 days following the submission of every necessary document.

Citizenship in Poland

Polish nationals are permitted to hold dual citizenship. The privilege of holding dual citizenship is accorded to foreigners as well. A non-national who has plans to stay in Poland, exceeding a period of 3 months is required to obtain a temporary resident permit. Nationals from over 70 countries are given the right to free entry into Poland. Polish law states that there are two routes to gaining citizenship which include: granting of citizenship (nadanie polskiego obywatelstwa) and acknowledgement as a citizen (uznanie za obywatela polskiego). However, the easiest means of gaining citizenship is through the parents. An individual is qualified for citizenship, provided one or both parents were citizens of the Republic of Poland as at the time of birth. An individual can also be considered for citizenship if he/she is a permanent resident in Poland, has legally resided in Poland for three consecutive years, gainfully employed and owns a home in Poland.