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Poland

Poland, located in the heart of Central Europe, is a dynamic and fast-growing country with a population of approximately 38 million people, making it the largest market in the region. It is a member of the European Union (EU), NATO, OECD, and the Schengen Area, which highlights its strategic importance in both European and global contexts.

Key Highlights

Poland’s commitment to innovation, infrastructure development, and economic stability, combined with its welcoming approach to foreign investment, makes it an ideal location for businesses seeking to establish or expand their presence in Europe.

01

Economic Strength:

Poland is the sixth-largest economy in the EU, known for its consistent GDP growth and resilience during economic downturns, including being the only EU country to avoid a recession during the 2009 financial crisis.

It offers a stable investment environment, supported by a robust banking sector and sound public finances.

02

Strategic Location:

Positioned at the crossroads of major European trade routes, Poland serves as a gateway between Western and Eastern Europe.

With 15 airports, 4 major seaports, and an extensive network of highways and railways, Poland is well-connected for business and logistics.

03

Skilled Workforce:

Poland boasts a highly educated and motivated workforce, with over 300 universities and nearly 300,000 graduates annually, including many from technical and engineering disciplines.

English proficiency levels are among the highest in Central and Eastern Europe.

04

Business Environment:

The country is ranked as one of the top destinations for foreign direct investment (FDI), with major global companies establishing operations in sectors such as IT, automotive, aerospace, and renewable energy.

Poland provides numerous incentives for investors, including tax exemptions, grants, and Special Economic Zones.

05

Cultural and Historical Significance:

Poland has a rich cultural heritage and a history spanning over a thousand years, with 16 UNESCO World Heritage Sites and vibrant cities like Warsaw, Kraków, Wrocław, Poznań, Katowice and Gdańsk.

Its blend of historical charm and modern infrastructure makes Poland an attractive destination not only for investors but also for tourists and expatriates.

06

EU Market Access:

Businesses in Poland gain access to the EU Single Market, comprising nearly 450 million consumers.

This strategic location also facilitates trade with non-EU countries in the East, making Poland a natural hub for international commerce.

1. Legal and Business Structures

Foreign investors can choose from several legal forms to operate in Poland. Key options include:

Limited Liability Company (sp. z o.o.):

– The most popular form among foreign investors.
– Minimum share capital: 5,000 PLN.
– Simple management structure with limited liability for shareholders.
– Online registration via the National Court Register (KRS).

Joint-Stock Company (S.A.):

– Designed for larger enterprises.
– Minimum share capital: 100,000 PLN.
– Requires a supervisory board and full accounting.

Branch Office of a Foreign Enterprise:

– Enables operating in Poland without establishing a separate legal entity.
– The branch operates on behalf of the foreign company.

Sole Proprietorship:

– Ideal for individuals running small-scale businesses.
– Easy registration through the CEIDG (Central Register of Economic Activity).

2. Tax System in Poland

Corporate Income Tax (CIT):

– Standard rate: 19%.
– Reduced rate: 9% for small businesses (revenue under EUR 2 million).
– Tax incentives for investors include IP Box – for intellectual property development (tax rate: 5%) and R&D Tax Relief – additional deductions for innovation-related expenses.

Personal Income Tax (PIT):

– Rates: 12% (annual income up to 120,000 PLN) and 32% (above that threshold).
– Self-employed individuals can opt for a flat 19% PIT or lump-sum taxation.

Value-Added Tax (VAT):

– Standard rate: 23%.
– Reduced rates: 8% (e.g., processed food, construction services) and 5% (e.g., books, basic food products).

3. Employment and Workforce in Poland

Types of Employment Contracts:

Employment contract – provides full employee rights (insurance, paid leave).
– Civil contracts (e.g., contract of mandate, contract for specific work): flexible arrangements for temporary or project-based work.

Employment Costs:

– Employers are responsible for social insurance contributions (~20.48% of gross salary).
– The minimum monthly salary in 2025 is 4.666,00 PLN gross.

Social and Health Insurance:

Employees are covered under mandatory insurance schemes, including:
– pensions,
– disability benefits,
– healthcare coverage.

Hiring Foreign Workers:

Poland facilitates hiring non-EU workers through work permits or simplified procedures for citizens of Ukraine, Belarus, and other Eastern European countries.

4. Additional Legal Considerations

Data Protection (GDPR):

Companies must comply with data protection regulations during recruitment and employment.

Remote Work:

Recent updates to the Labor Code formally regulate remote work arrangements.

Termination of Employment:

Termination procedures are governed by the Labor Code, with mandatory notice periods ranging from 2 weeks to 3 months, depending on the employee’s tenure.

Poland offers flexible business structures, an investor-friendly tax environment, and access to a skilled workforce.

For a more detailed overview, an extended guide is available on the Polish Investment and Trade Agency (PAIH) website.

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Start Your Business Journey in Poland with Us!

Looking to explore the Polish market? We’re here to help! Our team offers comprehensive support to:

– Evaluate market potential and identify growth opportunities.
– Set up your business in Poland, from legal structures to registrations.
– Manage accounting and taxes, ensuring compliance with Polish regulations.
– Navigate legal and employment matters, providing peace of mind for your operations.

Whether you’re starting fresh or expanding, we’re your trusted partner in making your business thrive in Poland.

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