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Opening a Branch vs. a Subsidiary in Poland

Opening a Branch vs. a Subsidiary in Poland

Updated on Thursday 11th August 2016

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Opening a Branch or a Subsidiary in Poland

 
Poland is an attractive option for foreign business owners. When choosing to establish an office for a foreign company in Poland, entrepreneurs can choose between a branch and a subsidiary in Poland. Business entities form other EU member states enjoy the same right for establishing businesses as Polish citizens. 
 
Our Polish law firm can help you choose the best business form for your company. Subsidiaries and branches each have their own advantages and it is best to seek professional assistance when deciding to invest in Poland.

The main particularities of subsidiaries and branches in Poland are presented below:
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The advantages of a subsidiary in Poland

 
The subsidiary is the most popular business form for foreign entities that choose to begin doing business in Poland. Subsidiaries are legal entities that usually are set up as a Polish limited liability company (sp. z.o.o.). The Polish subsidiary is a distinct company in Poland that bares full liability, as opposed to a branch. This form of business entity is recommended for foreign companies that want to limit the liability of their Polish operations. The Polish company will bare full liability for its assets in Poland and the mother company will not have to deal with eventual losses.
 
In order to create a subsidiary in Poland, the foreign business entity will have to invest in the minimum share capital for a Polish limited liability company (5,000 PLN). After it becomes operational, the Polish subsidiary will have to observe all the regulations regarding taxation in Poland and other provisions included in the Polish company law. The liability of the shareholders is limited to the amount invested in the company’s share capital. Our Polish lawyers can help you incorporate a subsidiary in Poland.
 

The advantages of a branch in Poland

 
Unlike the subsidiary, the Polish branch does not have legal personality. Although this means that the foreign legal entity bears full liability for the branches’ actions, this form of business entity is easier to set up and can commence its activities faster. The foreign entity needs to appoint a representative for the Polish branch.
 
Branches in Poland operate within the objectives of the mother company and are essentially a distinct and standalone part of the company, operating in a different country. Our law firm in Poland can offer you detailed information about Polish legal entities.
 
Please contact our attorneys in Poland if you want to open a branch or a subsidiary. We can help you with various legal issues and help you run your business in Poland. Our Polish lawyers specialize in various legal issues and can help you with any legal matter if you are interested in investing in Poland.
 
 
 

Comments

  • Anna 2015-12-07

    Thank you for this article! :)

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