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How to open a business in Poland: a selection of rules and trends

31.01.2023 10:33
Natalia Mitroshina
Natalia Mitroshina

Author and content analyst on trade automation

Як відкрити бізнес у Польщі українцю

Since the beginning of Russia's full-scale invasion of Ukraine, Poland has become the main destination for Ukrainian migrants. Many Ukrainians who had developed their businesses before the war in Ukraine continued to do so in the European country. Some are only thinking about how to start a business from scratch in Poland, having the possibility of temporary protection.
And it makes sense. For entrepreneurs, entering the Polish market is an opportunity not only to maintain their own activities, but also to scale them up, expand their sales markets, and increase business profitability.
In general, starting a business in Poland is not difficult for Ukrainians. Let's figure out how to do it right. 

Statistics

  • More than 50% of Ukrainian companies have registered in Poland since the beginning of the war. About 2/3 of them intend to continue their business regardless of the outcome of the war. 
  • Imports to Poland amounted to almost $380 billion in 2021.
  • According to a report by the Polish Economic Institute, Ukrainians accounted for 45% of new foreign companies that opened in Poland in 2022. Ukrainian citizens registered 10,200 individual businesses and 3,600 companies with Ukrainian capital from January to September, Bloomberg reports.

Conditions of legal stay of Ukrainians in Poland

To start a business in Poland, Ukrainians first need to study the legal framework and know the specifics of doing business in this country.
Ukrainian citizens can stay in Poland if they meet one of the following requirements:
  • have a valid residence permit,
  • have obtained temporary protection since their arrival in Poland on February 24, 2022,
  • have a Pole's Card, which allows them to legally enter Poland from February 24, 2022,
  • have a stamp in their travel document stating that they have started the procedure for legal residence in this country.

What is a residence permit?

This is a document that gives the right to stay in Poland or another EU country. It may be a permanent residence permit, a temporary residence permit, a foreign passport in case of entry and stay in Poland on the basis of visa-free travel, or a certificate of temporary protection issued by the Office for Foreigners.
Ukrainians who arrived in Poland at the beginning of the war can currently apply for temporary protection and stay in the country for 18 months, i.e. until August 23, 2023.

Who can start a business in Poland

Ukrainians who are legally residing in Poland and have a PESEL (tax identification number), which allows to identify a person similar to the Ukrainian TIN, have the right to do business in Poland on an equal footing with Poles.
The rules for starting a business by Ukrainian citizens also apply to persons who do not yet have a residence permit but have started the procedure for its issuance before February 24, 2022.

How to get a PESEL? 

You can obtain a PESEL at any gmina office, the smallest administrative unit in Poland.
When registering an identification number, it is important to create a trusted profile. It will help a private entrepreneur to register a business online at Biznes.gov.pl, where he can manage his account, prove his identity and sign electronic documents in any communication with Polish public authorities.
To create a trusted profile, please attach to your Pesel application:
  • email address,
  • mobile phone number,
  • consent to entering information into the register of contact details of individuals,
  • consent to confirmation of the trusted profile.
The proxy profile will allow you to register your business online at CEIDG, the Polish Central Business Register, which registers private entrepreneurs.

What form of business ownership to choose

There are several forms of ownership available for starting a business in Poland:
  • A private enterprise (like a sole proprietorship in Ukraine) - can be registered free of charge online, and does not require any start-up capital. The business owner can choose any form of taxation and not pay VAT. To choose the simplified taxation system, annual income must not exceed EUR 2 million.
  • Limited liability company - several shareholders can create a limited liability company. The authorized capital must be 5 thousand zlotys. An LLC is suitable for businessmen who want to control operations and be responsible for the company's liabilities. At the same time, they are limited by the amount of contributions.
  • Startups are suitable for businesses with a gross turnover of up to EUR 2 million per year and pay 9% tax. If the income limit is higher, you will have to pay 19%.
  • A joint-stock company can be established by several shareholders with a minimum capital of PLN 100,000. Registration requires notarization. Unlike LLCs, the directors of a joint-stock company are not liable for the company's debts. This form is suitable for large companies that want to enter the stock market, such as banks and insurance companies.
  • A civil company can be established by individual entrepreneurs or entire companies. In this case, the form of ownership is not a separate legal entity, but an agreement concluded by the company's shareholders. They are responsible for the company's debts. The advantages are the absence of a minimum start-up capital, online registration, and the possibility of choosing a simplified taxation system. 

How to start a business in Poland for a Ukrainian: the main steps

To register a business in Poland, you need to:
  1. Choose a form of business. You can register a company in any legal form.
  2. Prepare a charter (for opening a legal entity). The minimum amount of authorized capital is 5,000 PLN. The higher the capital, the more expensive the registration.
  3. Submit an application for registration in the business register. The company will receive the official status of a legal entity after an entry appears in the National Court Register. A sole proprietorship is registered online with CEIDG after obtaining a Pesel and creating a trusted profile. You can obtain the official status of a sole proprietorship within 7 days from the date of submitting an electronic application to CEIDG.
  4. Get a statistical number - REGON, which allows you to work legally. Private entrepreneurs can get the number online. In case of opening other forms of ownership, you need to submit an application to the local municipality or the statistical office at your place of residence.
  5. Open a bank account in the name of the company in any Polish bank.
  6. Register the company with the State Treasury Service. Do this before the first money is transferred to the account.
  7. Obtain a tax number - NIP - from the tax office in your district.
  8. Register as a VAT payer if the projected business income is at least PLN 150 thousand per year. To do this, you should submit an application to the tax office. Individual entrepreneurs who provide services that are exempt from VAT are not subject to VAT.
  9. Insure the company with the Social Insurance Institution.
  10. Order a company seal, which must contain the full name of the company, contacts and registration number.

How to buy a business in Poland

To buy a small business in Poland, you need to:
  1. Check the validity of the company you plan to buy in the state court register. The information provided by the previous owner must match the official information.
  2. Draw up a purchase and sale agreement. What you need to do:
  • notarize the agreement with a notary,
  • re-register the business in the state court register.
At the same time, you can change the name, address, and authorized capital of the company. Tax and statistical numbers do not change. 

Business ideas in Poland

Taking into account global trends in trade and observations in the public online space, we have collected some tips and ideas for starting a business in a friendly country. 
These tips are relevant for developing your own business anywhere:
  • Study the domestic market thoroughly. Use resources to analyze the demand for goods: Trademap, Eurostat, World Bank Open Data, Statista, and Google Trends. Study analytics and statistics on the websites of Polish institutions (central bank, ministry of economy), city and voivodeship tourist offices and departments of economy.
  • Make a list of competitors. Write down their advantages and disadvantages. Draw conclusions. This will help you find the right niche and gain a foothold in the Polish market faster.
  • Conduct a survey among your acquaintances who have moved to Poland, live there, work there, or have their own business. Find out about the types of behavior of Poles, their consumer habits and preferences. How often do they buy the goods you need, what do they find unsatisfactory about Polish service?
  • Immerse yourself in the Polish atmosphere to understand the way Poles think and live, and how they do business. To do this, read local Polish websites about the economy and everyday life. Business insider or Bankier will help you.
  • For advice on starting a business in Poland, please contact the Diia.Business.Polska portal. You can also hire a qualified lawyer who will accompany you at all stages of company registration or take care of everything. It is advisable that the related services be provided by a person who has lived in Poland for a long time and is familiar with all the nuances of doing business there.
  • Learn Polish. It's a constant thing. Communicating with Poles in English is perceived as disrespectful to their culture.
Among the profitable activities in Poland are:
  • E-commerce, or online sales of food, cosmetics, clothing, perfumes, Chinese goods, second-hand goods, etc.
  • Construction and repair work.
  • Services in the field of beauty, design, and freelancing. If you do not have enough professional skills, there are many courses in Poland to obtain the desired competence and improve your existing qualifications for a reasonable price.
  • Selling Ukrainian-made goods. Poland can be an excellent platform for starting your own business, as well as for promoting Ukrainian products, expanding its markets, and generally popularizing Ukrainian products outside of Ukraine. 

Програма обліку товару | Торгсофт



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