The Polish limited liability company is the most common business form in Poland. This business structure has several advantages, including the fact that the investor is protected in case the business fails. This limited liability feature, combined with accessible incorporation and maintenance costs are two of the most important characteristics.
Several steps are needed for the incorporation of the company. The new legal entity will be able to engage in commercial activities once it is registered and its papers are in order. If all the documents are properly prepared and submitted, the entire process for opening a Polish limited liability company should last around 30 days.
A law firm in Poland can provide you with the adequate legal representation during the process and a legal representative can handle part of the steps in your name, through a power of attorney.
Our experts invite you to watch a video about opening a Polish limited liability company:
Requirements for a Polish LLC
The limited liability company in Poland (abbreviated Sp. z.o.o.) must have at least one shareholder and the contributions to the capital can be made in cash or in kind. One restriction is in place regarding the formation of the Polish limited liability company (LLC): one company with a single shareholder cannot incorporate another company with a sole shareholder. The minimum capital contribution is PLN 5,000.
The shareholders are only liable to the extent of their investment in the company. The LLC needs to be registered with the Polish Company Register, apply for a tax identification number (NIP) and also for a statistical number (the REGON number). The company will also need to be registered for VAT purposes.
Our Polish law firm is able to provide you with complete company incorporation services, including drawing up documents like the Articles of Association.
LLC compliance in Poland
The LLC is taxed on its income produced in the country. Corporate taxation in Poland is based on residency and has a fixed rate of 19%. Withholding taxes apply for dividends, royalties, and interest but they may be reduced under a double tax treaty.
Polish companies, including limited liability companies, must comply with the annual reporting and auditing requirements. When these companies hire personnel, the employer must observe all of the regulations for employment in Poland, both for foreign and local workers.
Our experts are able to provide you with a large variety of legal services, including special company incorporation services for foreign investors in Poland.