Polish LLC – a convenient way to do business
LLC is one of the most in-demand types of legal entities among Polish and foreign entrepreneurs. It gives many advantages to its owners, including protection in case the business fails.
Advantages of Poland LLC for foreigners
There are certain differences in a company registration and operation processes for EU and non-EU representatives. For example, foreigners can have a 100% ownership in a firm, however, an LLC with more than 50% of non-EU capital is allowed to acquire a real property in the country after its owners receive a permission from the national government.
Meanwhile, the basic list of benefits of this type of company is the same for everybody.
- Each shareholder has liabilities based on his or her financial input only and is not responsible for the firm’s prior commitments.
- The firm can be involved in a wide range of business activities.
- Only one stakeholder is enough for an LLC formation in Poland. Superior authority in such a firm is a stakeholder gathering. A supervisory board is only required if the share capital is greater than 500,000 zlotys and there are more than 25 stakeholders.
- Only one director is required to open an LLC. This person represents the firm the way it is described in the Articles of Association.
- Taxes a low and the firm does not pay them if it does not get profits. It should pay CIT (19%) which is imposed on the total income. Dividends have a different taxation system (19% for stakeholders that are individuals; based on the Double Taxation Treaty for foreigners). Note that there are cases when a company can be free from the dividends tax.
- There is no obligation for an LLC to pay social security payments.
- The minimal share capital for an LLC registration in Poland is low (5,000 zlotys). It should be performed in money payments or by transferring assets ownership.
- Registration procedure can be done online.
- Selling and transfer procedures are simple.
Stages required to incorporate a Limited Liability Company in Poland
To own this type of legal entity, there are few things to be done:
- Developing the Articles of Association. The document should contain data about the firm’s board, stakeholders, the firm’s title, activities and few more points.
- Registering the firm in KRS. Also, the company should get NIP and REGON numbers.
- Registering for VAT if the firm’s activities are subject to this tax.
Note that you can hire a legal representative who will help with translating the documents into Polish and to go through the incorporation procedure quickly.
Like other types of legal entities in Poland, an LLC must provide annual reporting and go through audits. If the firm hires personnel, it should observe all national labor regulations for foreigners and local employees.