While Poland is an excellent place to expand and make your mark in the European Union (EU), incorporation in the country is historically challenging. The rigid labor code and inefficient commercial court system often prove difficult for foreign entities looking to set up a Poland subsidiary. As an alternative to establishing a Poland subsidiary, Globalization Partners makes it easier to do business in a new country.
How to Set up a Poland Subsidiary
To incorporate in Poland, you’ll need to consider a few factors that could impact your subsidiary setup process. Business concerns such as your industry and nationality of your headquarters can affect how your business operates.
In any country, location is a factor. For example, companies in the Midwest United States may have different costs than those in New York City. The same applies to different cities and regions in Poland. If you don’t know the area well, it’s a good idea to check with other professionals or a legal advisor before you decide where to base your Poland headquarters.
Keep in mind Poland does not have a strong infrastructure system, which can increase the costs of setting up a Poland subsidiary in specific regions. Urban areas generally have better internet access than less populated areas, which can also impact where you choose to incorporate.
The most common type of Polish subsidiary is a limited liability company. To set up a Poland limited liability subsidiary, you should:
- Have an attorney execute articles of association
- Open a Polish bank account
- Pay the entire company’s share capital to the new bank account
- Apply to register your company with the Polish Court Register
- Appoint a management board
- Enter the company into the commercial register
Poland Subsidiary Laws
Limited liability companies are the most popular for larger business opportunities. If you set up your Poland subsidiary this way, your shareholders are only liable by the amount of share capital they hold. According to Poland subsidiary laws, you’ll need a minimum of 50,000 PLN share capital to establish a limited liability company. You will also need a statistical number (REGON), tax identification number (NIP), and VAT payment registration.
What Do You Need?
Before choosing to set up a subsidiary in Poland, it is best practice to plan all the time and resources you will need to make the expansion succeed. If you do not already have a full understanding of Poland’s subsidiary laws, you’ll need to hire an advisor or designate an employee to learn the ins and outs of their regulations.
You’ll also need the time and money to travel back and forth to Poland or should work with another company executive who can do so on your behalf. The subsidiary setup process often requires a significant monetary investment, so make sure to set these funds aside at the start. Further, without the help of a Poland subsidiary alternative, full incorporation can take up to four months or more. You should have realistic expectations about the time it can take.
Benefits of a Poland Subsidiary
The most significant benefit of setting up a Poland subsidiary is that you can start hiring employees, running payroll, and creating a compensation and benefits package after its formation. A limited liability company can also protect the parent company from any losses or other issues in Poland. It could also be an excellent opportunity for establishing an individual workplace culture and management system.
Instead, Globalization Partners offers even more benefits. As an effective alternative to establishing a Poland subsidiary, we’ll help you start working without incorporating. Our Employer of Record platform allows us to use our established PEO to pay your employees and take on your business’ compliance. Working with us means your only concern will be growing your company in Poland.
Work With Globalization Partners
If you want to expand, you don’t have to figure out Poland’s subsidiary laws alone. Globalization Partners is here for you. Contact us today to learn more about our services.