How to launch business in Poland? Tips from Agnieszka Kolanowska

Today, Poland is a very interesting country for entrepreneurs. However, not everyone knows how to properly and successfully start a business there. Almost a year has passed since Smart Solutions opened a representative office in Poland, and today we can tell you a lot. Agnieszka Kolanowska, general manager of Smart Solutions Poland, shared her expertise and talked about the important rules of doing business in Poland.

What is needed to do business in Poland?

A foreigner who wants to be an entrepreneur in Poland must be a citizen of the European Union or a country that is part of the EFTA or another international agreement with the EU or Poland that regulates the freedom of entrepreneurial activity.
Another group is foreigners who can engage in entrepreneurial activity on an equal footing with Polish citizens, for example, those who have a residence permit, a long-term residence permit for EU citizens, a temporary residence permit for students or for family reunification. Refugees and persons who are under other forms of international protection – humanitarian stay, tolerant stay, temporary protection, as well as those who have a “Polish Card” have the same rights.

Any citizen of Ukraine who is legally present on the territory of the country can carry out business activities in Poland. To do this, you need to register in the CEIDG – the Central Register of Entrepreneurial Activities, except when registration in the KRS (National Court Register) is required.

Where and in what organizational and legal form can you do business?

On the territory of Poland, citizens of Ukraine can open their own business in completely different forms, namely:

• as a IDG (indywidualna gospodarcza gospodarcza);
• as a civil (spółka cywilna) or ordinary partnership (spółka osobowa);
• as a capital company (this requires the deposit of min. PLN 5,000)

Special of business taxation in Poland

The main types of taxes that an entrepreneur must pay in Poland include:

1. VAT – value added tax. It is applied to almost all types of goods or services. The basic interest rate is equal to 23%, although its size depends on the field of activity (8% – pharmaceutical and medical field, 5% – bread, meat, products, books, etc.).
2. PIT (personal income tax) is a tax on the income of an individual. It is paid by both employees and entrepreneurs who carry out economic activities within the framework of the FOP. A progressive system is used to calculate PIT. The tax rate depends on the level of income. Annual income up to PLN 85,528 is taxed at the rate of 19%, over PLN 85,528 – 32% (only for that part of the income that exceeds the specified amount).
   
3. Payments to ZUS (składki szodzówne) In order to use the benefits of social insurance, additional registration with the Social Insurance Office – ZUS (Zakład Ubezpieczeń Społecznych) is required. To do this, you need to fill out the ZUS ZUA or ZUS ZZA form, it all depends on the amount of insurance. The amount of contributions depends on the amount of income. Minimum payments are 1,211 zlotys for standard registration, 285 zlotys during the grace period.

How does the state help business?

There are exemptions for new businesses in Poland. Therefore, entrepreneurs are exempt from paying ZUS taxes for the first 6 months from the start of business activity. Next, the entrepreneur switches to a reduced tax, which he pays within 24 months. Income tax in Poland is 19%. This is one of the lowest indicators in the EU. Poland also has a developed and loyal banking system. Quick and cheap loans are available for new entrepreneurs, which allow them to count on a quick start of business activity. It is also worth mentioning the ease of registration.You can get all permits within one or several days. At the same time, you will not have to visit government agencies. Everything can be done online.

Is it possible to register a company online?

There are similar solutions in Poland. This is a website that is 100% dedicated to the entrepreneur and is called Biznes.gov. On this platform, you can open a company in a few clicks without leaving your home. To do this, you need to have a Polish bank account through which identity verification takes place. You can also download all documents there. All this can be done in one day.

Polish companies try to carry out an internal recruiting process and look for suitable employees themselves. But there is also a tendency in Poland to give this process to external recruiting companies that will implement this process for them, because it saves a lot of time. Plus such a solution that agencies offer a “warranty period”.

The second option for finding vacancies in Poland through intermediaries is recruiting agencies and HR providers. Today, this method of finding personnel in Poland is gaining popularity. This option makes it possible not to waste effort and time on independent search for resumes.

What are the features of conducting personnel records?

Every company that has at least one employee is required to have documents with various authorizations confirming that the employee has passed the appropriate health and safety exams or training. According to data protection regulations, employees’ personal files, as well as some other work-related documents, had to be kept in hard copy for 50 years. This extremely long storage period, as well as the ban on storing documents exclusively in electronic form, have long been criticized.

During the pandemic in Poland, the rules of record keeping were changed and now it is possible to store documents online. The electronic folder must be kept for at least 10 years. Companies can also use commercial archiving services. Such firms assume full responsibility for the storage of documents.

How to find partners in Poland?

If an entrepreneur decides to find a business partner in Poland on his own, the following steps can be taken:

• Send commercial offers to counterparties potentially interested in cooperation. Find them on the Internet, for example, you can type in Google translator what your partner does and enter this request in google.pl.
• Post information about the company with the appeal “looking for a business partner in Poland” on information resources, bulletin boards, groups in social networks.
• Use networking. Participate in thematic exhibitions, fairs, events, get to know other participants, make useful acquaintances.
• Use the services of the ICC (International Chamber of Commerce of the World Business Organization), which includes business associations, business organizations and enterprises of most countries. You can become a member of the association, send your proposals and find a reliable partnership and support.
• Contact local self-government bodies: biznes.gov.pl.
• Join local business club: biznesklubpolska.pl international business club: bnipolska.pl.

What cultural features should be taken into account before opening a business in Poland?

Poland is a very tolerant country. The constitution and legislation contain many guidelines that we cannot engage in any discriminatory practices. Poland is an attractive place for people from other countries. But like every country, Polish culture has its own superstitions and traditions, which should be paid special attention to when entering a new market.

For example, the number 13 is unlucky, and Friday the 13th is considered by Poles to be a very unlucky day. Therefore, it is better not to conduct marketing campaigns and various activities on such days. Here it is not customary to open a company on Saturday, because there are stereotypes that if you open a company on Saturday, you will not succeed in anything and your business will not be successful.