Set up a Business for Sale of Motor Vehicles in Poland

Updated on Monday 01st July 2019

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Investors who set up a business for the sale of motor vehicles in Poland can address a wide array of clients who are willing to purchase reconditioned, second-hand or new cars in Poland. This business can also be suited for first-time entrepreneurs who gather the capital for starting a business and for purchasing an initial number of vehicles for sale.

The location of the business, as well as the business plan, will be important for the future company and our company formation lawyers in Poland can advise investors on all of the relevant legal aspects. We can assist during the incorporation of the business and for the purpose of obtaining any licenses or permits that may be required. Foreign investors who wish to open a business for selling vehicles can also request our services and one of our attorneys will be able to represent them through power or attorney, if they cannot be present in Poland during the entire incorporation procedure.

Below, we present the main issues investors should take into consideration when starting a business for selling motor vehicles.

Steps to open a business for selling motor vehicles in Poland

The steps below are general guidelines for starting a business for selling motor vehicles in Poland:

• Market research: it is recommended to perform market research for the new business, consider future customers and the range of motor vehicles that will be sold.
• Business plan: the viability of the business will be reflected in this business plan; it can also be useful for investors planning on obtaining corporate credit.
• Budget: prepare the budget needed for the incorporation of the business as well for purchasing an initial number of cars that will be sold.
• Team: hiring employees will be an important decision and the number of workers may grow as the business expands.

These are just some of the issues investors are advised to take into consideration. Our team of lawyers in Poland can provide complete pre-incorporation assistance for starting a business but also for the conditions for paying taxes, enforcing contracts and the labor market regulations in Poland.

Lastly, once the business plan is set and investors have a clear timeline for incorporating the business and starting their business activities, they can also consider the marketing strategy.

Motor vehicles sales business formation with the help of our lawyers in Poland

Our team can help investors who wish to open a vehicle selling business with the following services:

Choosing a company type: our lawyers can advise investors on the suitable type of legal entity that can choose for this business.
The pre-registration phase: company name verification, company name reservation, preparing the registration documents.
Registration: our lawyers can assist investors during the actual registration procedure with the National Court Register.
Post-registration phase: social security registration, VAT registration, hiring employees and signing contracts in Poland.

Businesses owners will be required to prepare and deposit the entire minimum share capital in a bank account opened in Poland before the actual registration of the company with the National Court Register. Once the new company is registered, it receives the tax identification number (NIP) and the statistical number (REGON) within a few days following the registration.

Local and foreign investors can request our legal services when they decide to start a business in Poland. Car dealerships are subject to the regular business registration licensing and VAT registration and, when the sole business activity is the sale of vehicles, they will not be required to apply for special permits and licenses (except for those situations when they import the vehicles). The requirements for VAT registration state that a new business must register within seven days before commencing the activities that are subject to value-added tax.

Our team of attorneys in Poland can help investors with all of these mandatory procedures, in Krakow as well as in other cities in the country.

Poland has a developed market for the sale of vehicles, as briefly highlighted below by a number of statistics:

• new passenger cars registered in Poland in Q4 2018: 128.500;
• new passenger cars registered in Poland in 2018: leasing model, Skoda, 21,125 (for the Octavia model);
• almost 1 million used cars were also imported into the country.

For more information on the automotive market, the current regulations and the conditions for starting a business, investors can contact our law firm in Poland.