Business Activity
If you are searching for frequently asked questions regarding conducting business in Poland, here are some answers. Please note that these responses are based on the general state of affairs as of my most recent training data through September 2021. For the most up-to-date information, please consult with a local business counsel or business consultant.
How do I establish a company in Poland?
To start a business in Poland, you must take a number of steps, including choosing a business activity, selecting a company name, preparing a company agreement (in the case of a limited liability company), registering your company in the National Court Register, obtaining a tax identification number (NIP), and registering with the Social Insurance Institution (ZUS).
What varieties of corporate structures exist in Poland?
Poland has several types of business structures, including Sole Proprietorship (Jednoosobowa działalność gospodarcza), Civil Law Partnership (Spółka cywilna), Registered Partnership (Spółka jawna), Professional Partnership (Spółka partnerska), Limited Partnership (Spółka komandytowa), Limited Joint-Stock Partnership (Spółka komandytowo-akcyjna), Limited Liability Company (Spółka z ograniczoną odpowiedzialnością, or Sp. z o.o.), and Joint-Stock Company (Spółka akcyjna).
What are the tax obligations of Polish businesses?
Companies in Poland are subject to multiple taxes, including Corporate Income Tax (CIT) or Personal Income Tax (PIT), Value-Added Tax (VAT), and, if applicable, Excise Duty. The precise tax obligations depend on the legal structure and activities of the business.
What is Poland's corporate tax rate?
As of my most recent update in September 2021, the standard corporate tax rate in Poland is 19%. There is, however, a reduced 9% rate for small taxpayers whose sales revenue (along with the cost of products sold) did not exceed EUR 2 million in the preceding tax year.
Do I need to employ a local resident in Poland to open a business?
In general, hiring a local inhabitant is not required to establish a business in Poland. Having a local liaison, however, can be advantageous for navigating local laws, regulations, and business practices.
Can an outsider establish a corporation in Poland?
Foreigners are permitted to establish businesses in Poland. Nevertheless, depending on their nationality and the form of business, they may be required to comply with particular legal requirements. Non-EU/EEA/Swiss citizens may require a relevant visa or residence permit.
Are there any special considerations when hiring individuals in Poland?
Employers in Poland are required to adhere to a number of regulations, including minimum wage laws, working time regulations, and health and safety standards. Additionally, they must contribute to social security for their employees.
Please consult with a business counsel or expert for situation-specific advice and the most up-to-date information.
FAQs
...permit in releation with business activity?
If you have shares in a company, you are on the management board, apply for a temporary residence permit for business purposes. If you own shares and you are employed in a company in a different position, e.g. as a chef, you will also need to obtain a separate permit to work in this position. Should you submit an application for the temporary residence and work permit in such a situation, we will refuse to initiate the proceedings. However, if the information that you have shares in the company would be disclosed after the initiation of the proceeindings, the proceedings shall be discontinued.
The application procedure for a temporary residence and work permit can be complicated, and the rules vary from country to country. It is essential to consult with immigration attorneys and specialists regarding the specifics of your situation. Nonetheless, here are some fundamental guidelines:
As a general rule, being a partner in an LLC and the president of the management board should not prevent you from applying for a provisional residence and work permit as a chef within the same company. Importantly, the role of chef must be legitimate and pertinent to the business operations of the LLC.
The purpose of the temporary residence and work permit is to demonstrate that your talents are required in that particular position (e.g., chef) and that there are insufficient local candidates to fill that position.
Proof that you are uniquely qualified for the position, that the employer has made a good faith effort to fill the position with local workers, and that your employment will not negatively impact the wages and working conditions of similarly employed workers may be required to obtain a work permit.
In addition, it is essential to keep in mind that misrepresentation or fraud in immigration applications can have severe repercussions. Therefore, if the application is not made for a valid reason, it could result in legal complications.
Remember that these are general recommendations. The precise rules and regulations may differ significantly based on the country in which you currently reside or intend to apply for a permit. Consult a legal professional or an immigration attorney to guide you through the procedure.
You can work in a different position in the company in which you perform the function on the management board, after obtaining a type A work permit.
Visa and immigration regulations can vary substantially from country to country. In general, holding a residence permit owing to business activity or being a member of a company's management board does not preclude you from working in a different capacity within the same company.
Nonetheless, it is essential to determine whether your residence permit or visa type permits you to operate as an employee or only as a business owner or board member. Some visas or permits may restrict you to specific activities, and working outside of these restrictions may result in legal complications.
In some countries, for instance, a person with a residence permit due to conducting a business activity may be required to engage primarily in the operation and administration of that business, and not in a different capacity.
It is recommended that you counsel a legal professional or an immigration attorney in order to fully comprehend the conditions and restrictions of your permit. They can provide guidance based on your current permit status, the country's rules and regulations, and any upcoming changes to your work role.
Yes, you must demonstrate that you have a stable and regular source of income. A confirmation document may be: a resolution appointing a member of the management board, an agreement based on which you perform work as a member of the management board.
Yes, when applying for a residence permit due to conducting business activity, many countries require applicants to demonstrate a stable and regular source of income. This is to ensure that you can sustain yourself and any dependents without needing to rely on public funds.
To document your income, there are several types of documents you may use:
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Bank Statements: These can be the most direct way to demonstrate a stable income. You may need several months' worth of statements to show regular deposits from your business activity.
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Business Financial Statements: These include profit and loss accounts, balance sheets, and cash flow statements. If your business is incorporated, you may also need to include annual reports.
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Tax Returns: These can provide a good overview of your income, especially if you have been in business for a number of years. If you're a partner in an LLC, you should have access to the LLC's tax returns, which would reflect your share of the income.
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Contracts or Invoices: You may also use contracts or invoices to show your income, especially if you have ongoing contracts that will continue to provide income in the future.
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Pay Stubs or Pay Slips: If you're drawing a salary from the business, pay stubs can also serve as a proof of income.
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Letter from an Accountant: If you have an accountant for your business, they can write a letter confirming your income.
Remember, the specific requirements can vary by country and even by specific visa categories within the same country. It's always a good idea to consult with an immigration attorney or expert to make sure you're providing the right documents in the right way
If you employ at least 2 Polish citizens or foreigners entitled to work in Poland, for the period of time minimum 1 year preceding the submission of the application, the company does not have to meet the other financial conditions, but you must have a stable and regular income.
Whether your company needs to meet specific financial requirements even after employing Polish citizens largely depends on the laws and regulations of Poland. As of my last knowledge cutoff in September 2021, I can provide some general information, but please consult with a local legal expert or an immigration attorney for the most accurate and up-to-date advice.
Generally speaking, when operating a business, meeting certain financial requirements is often necessary, regardless of the nationality of the employees. These requirements are in place to ensure that the business is financially stable, capable of paying its employees, and not a risk to the local economy. Financial requirements might include having a certain level of capital, demonstrating profitability, or showing a stable revenue stream.
When it comes to immigration matters, if you as a business owner are seeking a residence permit due to your business activities, the financial stability of your business would typically be an important factor. This would be separate from any requirements related to employing local citizens.
However, employing local citizens might have an impact on other aspects of your business operations and might be beneficial for certain types of immigration applications. For instance, some countries give preference to businesses that create jobs for local citizens when considering business-related visa applications.
The specific requirements can vary greatly, so it's important to consult with a legal expert or immigration attorney who is familiar with the local laws and regulations in Poland. They can guide you based on the specifics of your situation and ensure you are in compliance with all relevant laws and regulations.
Why can I not obtain a temporary residence and work permit while being a partner in another company?
If you submit an application for temporary residence and work permit, while being a partner in the company, the proceedings for temporary residence and work will not be initiated. However, if the information that you have shares in the company is disclosed after its initiation, the proceedings will be discontinued.
Being a partner in a company doesn't necessarily preclude you from obtaining a temporary residence and work permit, but the specifics can depend on the immigration laws of the particular country involved. In most cases, the ability to receive a work permit depends on the type of work you will be doing, the need for that work within the country, and the potential impact of your work on the local labor market.
Here are a few possible reasons you might face challenges in obtaining a temporary residence and work permit while being a partner in another company:
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Conflict of Interest: If you're involved in a company's management and also planning to work in a different company, there might be potential conflicts of interest, particularly if the two companies operate in the same or related sectors.
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Labor Market Impact: The purpose of a work permit is often to fill a role that cannot be adequately filled by the local labor market. If you're a partner in another company, the immigration authorities might question whether your work role is genuinely needed or if it's a way to circumvent immigration regulations.
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Work Permit Restrictions: Some countries have strict regulations about the type of work you can perform on a specific work permit. If you're applying for a permit for one role but intend to also continue your role in another company, that might not be allowed under the permit's restrictions.
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Time Commitments: If you're a partner in another company, immigration authorities might question whether you'll have enough time to fulfill your responsibilities in the role for which you're seeking a work permit.
Please consult with an immigration attorney or legal expert who is familiar with the immigration laws of the country where you intend to apply for a work permit. They can provide guidance tailored to your specific situation and the relevant laws and regulations.
Prove that activities are carried out that will allow to meet the conditions in the future, i.e. by documenting investments, contracts and financial funds on the bank account.
Obtaining a temporary residence permit based on your business activity can be a complex process and the criteria can vary widely depending on the specific country. If your business is currently operating at a loss due to investment activities, there might be additional challenges, but it doesn't necessarily mean that you can't qualify for a residence permit.
Here are some general strategies you might consider:
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Develop a Strong Business Plan: Even if your business is currently operating at a loss, a strong, detailed business plan can help demonstrate the potential profitability of your business in the future. This plan should show how your investments will lead to growth and profitability over time.
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Demonstrate Personal Financial Stability: Some countries consider the personal financial situation of the business owner. If you can demonstrate that you have sufficient personal funds to support yourself (and any dependents) during the investment phase of your business, this could be beneficial.
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Show Other Evidence of Business Success: Profits aren't the only measure of business success. You might have other evidence, such as a growing customer base, high customer satisfaction, innovative products or services, or partnerships with other successful businesses.
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Investment in the Local Economy: Some countries offer residence permits to individuals who make significant investments in the local economy. The specifics of these programs vary, but if you are making substantial investments through your business, you might qualify.
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Job Creation: If your business is creating jobs for local residents, this could also be viewed favorably by immigration authorities, even if the business is not yet profitable.
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Consider Alternative Immigration Routes: Depending on the country and your personal circumstances, there might be other immigration routes available to you. These could include permits based on family ties, study, skilled work, or other factors.
Finally, remember that immigration laws and procedures are complex and vary greatly by country. It's essential to consult with an immigration attorney or legal expert to understand the best strategy based on your situation and the specific requirements of the country where you intend to apply for a residence permit.
Yes. The copy is not a proof. You can enclose a copy if you show the original for inspection, or a copy that has been confirmed by a notary public for compliance with the original; or if you act through an attorney-in-fact who is a legal advisor/solicitor, lawyer, patent attorney - copies certified by that representative.
Neither you nor the employer can confirm copies of the documents as true copies.
Depending on the specific requirements of the agency or authority you are interacting with, you may be required to submit original documents or copies. In many instances, agencies accept and even prefer certified copies of documents, as they do not want to risk losing or damaging the originals.
For immigration or temporary residence permit applications, reproductions, not originals, are typically submitted. However, these copies may need to be certified, which means that a suitable authority (such as a notary) must certify that they are true copies of the original. Some agencies may also require a certified translator to translate the documents into the local language.
Typically, business documents such as cooperation agreements and service contracts are submitted to demonstrate the legitimacy and operational activity of a company. Once more, certified copies are generally permissible.
Check the specific document submission guidelines provided by the relevant authority in the country where you are applying for a permit in every instance. These guidelines will specify whether originals or reproductions are necessary, in addition to any certification or translation requirements. Consult a legal professional or immigration attorney if you have any questions regarding the preparation and submission of your documents.
If the company does not meet the income conditions and does not employ Polish citizens/foreigners, you must prove that you have sufficient funds to meet these conditions in the future. It is worth submitting documents indicating that the company has funds for debts, salaries for employees and to cover investments, e.g. company account statement, company agreements concluded with contractors.
While it's generally more challenging, it's not impossible to get a residence permit if your company is newly established and not yet generating income. However, the specifics can vary depending on the country you're applying to and the type of permit.
Usually, when granting a residence permit based on business activity, immigration authorities are interested in seeing that your business is viable and will contribute to the economy. If your company is newly established, you may need to provide additional documentation to demonstrate this.
Some of the things that could help in this scenario include:
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A detailed business plan: This should outline your business model, target market, marketing strategy, and financial projections. It should demonstrate that you have a sound plan for your business to generate income in the future.
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Proof of investment or capital: You may need to demonstrate that you have adequate financial resources to support the business until it becomes profitable. This could be your own capital, investment from others, or a combination of both.
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Expertise and Experience: Showing that you have relevant industry experience and the necessary skills to make the business succeed can help support your case.
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Job creation: If your business plan includes creating jobs for local citizens, this may also be viewed favorably.
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Personal financial stability: Some countries may also look at your personal financial situation to ensure you can support yourself (and any dependents) during the early stages of your business.
Remember, these are general strategies and the specific requirements can vary greatly by country and type of residence permit. Consulting with an immigration attorney or expert who is familiar with the specific laws and regulations of the country you're applying to will provide the most accurate advice.
If the company does not meet the income conditions and you do not employ Polish citizens/foreigners, you must prove that you have sufficient funds to meet these conditions in the future. It is worth submitting documents indicating that the company/activity has sufficient resources to satisfy its receivables, has funds for salaries for employees and to cover investments. It is best if the company has funds on the bank account corresponding to at least 12 times the average monthly salary in the region/province in which the business is located or you have a place of residence. The amount of the average salary can be found at the website https://stat.gov.pl/sygnalne/komunikaty-i-obwieszczenia/lista-komunikato...
The provision you cited (Article 142, paragraph 1, point 3, clause b) appears to be a reference to a specific statute or regulation. Without specifying the jurisdiction or the legal document (such as an immigration act or a business law) from which this reference originates, I am unable to provide specific information regarding the financial requirements your company must satisfy to obtain a temporary residence permit under this provision.
As of the end of my training in September 2021, I have not memorized any country-specific immigration laws to this level of specificity.
I strongly advise consulting a local legal expert, an immigration attorney, or contacting the relevant immigration authority directly in order to comprehend the specific financial requirements outlined by this provision. They have access to the most accurate and current information.
In general, the financial requirements for temporary residence permits related to business activities include demonstrating that the business is profitable or has adequate funding, that it can sustain its operations, and that it can cover the applicant's living expenses. However, the specific criteria can differ significantly depending on the jurisdiction and the applicable legal provision.
Basic requirements are:
- income: in the year preceding the submission of your application, your company must achieve an income not lower than twelve times the average monthly salary gross in the region/province in which the company or business has its registered office or place of residence. The average salary is announced by the President of the Central Statistical Office, and its amount can be checked on the website: https://stat.gov.pl/sygnalne/komunikaty-i-obwieszczenia/lista-komunikato(link is external)....
- employment: employment for an indefinite and full-time period of time, at least for the period of 1 year preceding the submission of the application, and employment of at least 2 employees who are Polish citizens or foreigners. However, foreigners must be entitled to work in Poland.
- if you do not meet the income or employment requirements, you must demonstrate that you are conducting activities that will allow to meet these conditions in the future – in particular those that contribute to investment growth, technology transfer, beneficial innovations or new work places.
The exact requirements for obtaining a permit due to business activity can vary widely depending on the country. However, some common requirements that many countries have in place include:
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Viable Business Plan: You need to present a comprehensive business plan that outlines your business model, target market, marketing strategy, and financial projections. This plan should demonstrate that your business is viable and capable of making a profit.
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Financial Stability: Most countries require proof of financial stability. This could be in the form of personal savings, investment capital, or predicted income from the business. The goal is to show that you can support yourself and your business financially.
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Relevant Experience and Skills: You may need to prove that you have the necessary skills, experience, and qualifications to run your business successfully. This can be shown through your educational background, work history, or previous business ventures.
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Positive Impact on Economy: Some countries want to see that your business will have a positive impact on their economy. This could be through job creation, innovation, or filling a gap in the market.
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Legal Compliance: Your business must comply with all relevant local laws and regulations. This includes obtaining any necessary licenses or permits and paying taxes.
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Ownership and Control: In many countries, you must own a certain percentage of the business and have control over its operations to qualify for a permit due to business activity.
These are general guidelines, and the specific requirements can vary greatly by country. It's essential to consult with a legal expert or immigration attorney familiar with the laws of the country where you intend to apply for a permit. They can provide you with detailed information tailored to your specific situation and help you navigate the application process.
If you run a company, you cannot apply for a temporary residence and work permit – in this situation we will deny to initiate proceedings. You need to submit an application for business activity purpose, even if you own shares in a company founded in Poland and you do not hold any function in it.
Yes, you can apply for a temporary residence and work permit in Poland if you're conducting business activity there. However, you must meet several conditions outlined by Polish immigration law.
Here are the general conditions that you need to satisfy:
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Demonstrate the Purpose of Stay: You need to show evidence that you're conducting business activities in Poland. This could be in the form of business registration documents, contracts, invoices, etc.
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Financial Means: You should demonstrate that you have sufficient financial resources to cover your living expenses for the duration of your stay. This could be proven through bank statements, income from your business, or other financial documents.
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Health Insurance: You're required to have health insurance that covers all costs that could arise in connection with treatment of health disorders or a death.
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Accommodation: You should have a confirmed place of accommodation in Poland.
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Tax Compliance: Ensure that you're compliant with tax obligations in Poland.
Remember, the requirements for obtaining a temporary residence and work permit can vary depending on individual circumstances, and the process may take several weeks or months. I recommend contacting the appropriate immigration authorities or consulting with an immigration lawyer to understand the specific requirements and processes for your situation.
Please also be aware that as of my last training data up until September 2021, any changes in immigration law or procedures in Poland after this time will not be reflected in this response. For the most current information, please consult a local legal expert or the appropriate immigration authorities.
If you want to register your company in Central Register and Information on Economic Activity you have to go to City Office/County (District) Office. For the city of Poznan it is: City Office in Pozna?, the Department of Business Activity and Agriculture, 61-441 Pozna?, ul. 28 Czerwca 1956 r. nr 404, Pozna?; learn more(link is external)
You may also establish the company/partnership/corporation in National Court Register (KRS) in person or by the attorney-in-fact (lawyer/legal counsel/solicitor).
Setting up a business activity typically involves a series of steps that can be slightly different depending on the country and specific local regulations. Here are some general steps that are usually involved:
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Identify a Business Idea: Determine what type of business you want to start. This should be something you're passionate about and that you believe will be profitable.
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Create a Business Plan: A business plan outlines your business goals, target market, and strategies for reaching your target market. It also includes financial projections and the structure of your business.
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Register Your Business: Depending on your country and state/province, this could involve registering your business name, obtaining a tax identification number, and registering for state and local taxes.
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Legal Structure: Decide on the legal structure of your business. This could be a sole proprietorship, partnership, limited liability company (LLC), or corporation.
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Permits and Licenses: Determine what permits and licenses you need to operate your business. This could include a business license, sales tax license, or occupational license.
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Financing: Determine how you will finance your business. This could include personal savings, bank loans, investors, or crowdfunding.
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Location: Decide where you will run your business. This could be a physical storefront, an office, or even a home office if you're starting a small online business.
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Team: If you're not going into business alone, you'll need to hire employees or bring on partners.
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Marketing: Develop a marketing plan. This could include a website, social media, advertising, and other marketing efforts to attract customers to your business.
This is a general guide and the steps can vary. For specific guidance tailored to your situation and local regulations, you should consult with a business advisor or attorney. They can help you navigate the process of setting up a business activity.