Types of Companies in Poland
There are many companies in Poland owned by foreign entrepreneurs. There are several facts to consider when choosing this country as a destination for your foreign business, including the country’s geographical position, economic stability, support from EU and the local government. Also, there are several options for setting up a company in Poland for your convenience. Each one has its own benefits as well as registration and operation peculiarities. Business entities available for foreigners
Limited liability company in Poland
A limited liability company (Spółka z ograniczoną odpowiedzialnością, Sp. z.o.o) is an in-demand type of company among entrepreneurs. Here is a brief list of benefits which it brings to owners:
• foreigners are allowed to have a 100% ownership of a company;
• liabilities of shareholders are based on their investments;
• one shareholder is enough to open a company in Poland;
• one director is needed to register an LLC;
• the framework of business activities is almost unlimited, but special licenses, permits and concessions may be required depending on the type of business activity;
• low taxes and no need to pay taxes if the company fails to generate profits;
• no need to pay social security payments (ZUS) for shareholders in case of 2 and more shareholders;
• the least share capital is low (5,000 zlotys);
• quick online registration procedure;
• simple to sell or transfer with no high costs related to transfer shares.
Despite all the benefits, LLC type has some disadvantages you should consider before you register a company in Poland:
• a full accounting is mandatory;
• liquidation procedure is long and requires several resolutions from the board members;
• most actions should be confirmed in writing.
Joint stock company in Poland
A joint stock company (Spółka akcyjna - S. A.) is an ideal choice for entrepreneurs that are eager to operate on a large scale. Here are some advantages:
• an executive board and a supervisory board might be represented by one person only;
• liability of shareholders is based on their money input;
• individuals that own shares get dividends.
• the least share capital is 100,000 zlotys for Poland formation of S.A. (25% must be paid during incorporation);
• the company is required to have a supervisory board;
• complicated requirements to run business;
• complicated procedure of liquidation.
Registered partnership in Poland
Registered partnership (Spółka jawna) can be made by two or more people willing to run a small business.
Some advantages are:
• low registration fee (600 zlotys);
• a simple accounting system;
• a simple procedure for company registration in Poland and its liquidation.
The main disadvantage is that each partner has a legal responsibility for company’s debts with all his assets.
Limited liability partnership in Poland
Limited liability partnership (Spółka komandytowa – Sp. K.) can be created by two or more individuals or legal entities. It is suitable for businesses of different sizes. The goal of such a company formation in Poland is to run a business with its own name. The advantages are:
• all profits are divided according to set percentage of distribution within partners, participation in losses and liabilities can be different from the distribution of profits;
• starting capital is not required for Poland company formation;
• the framework of activities is unlimited, unless restricted by law, in many cases licenses, permits or concessions are required.
• full accounting; necessity to pay PIT;
• the company can sue and be sued;
• at least one of the partners has a full legal responsibility for the company’s obligations, while responsibility of other partners is limited to a specific amount of money.
Limited joint-stock partnership in Poland
Limited joint-stock partnership (Spółka komandytowo-akcyjna – S.K.A.) can be registered by minimum two persons or legal entities. This kind of Polish company register provides many benefits to businesses of any size. Pluses are:
• the framework of activities is unlimited;
• the capital can be increased by issuing shares.
• quite high starting capital (at least 50,000 zlotys);