With low corporate income tax rate for small businesses (15%) and its position in a center of Europe Poland emerges as a new tax haven for European and international enterpreneurs. This view, although unpopular among the Poles (who due their character often believe that everywhere is better than in Poland), has solid grounds, when it comes to specyfics.
Let us check why:
low corporate income tax
no compulsory social insurance for corporate entities or its directors,
no witholding tax on dividends distributed in accordance with EU regulations,
low banking costs (you can find free of charge corporate account with additional fees for debit cards lower than 3 eur/month),
part of Schengen zone and European Union,
solid national currency with stable exchange rates.
If you are interested in forming Polish company on all inclusive basis (with local accounting, physical office space, office management and employee recruitment) please contact me.
What I like to most in my current work is possibility of meeting new people and exploring new places, usually the ones I would have never choosen if not my business. As I am absolutely fascinated in Balkan region and feel the best when the weather is warm and sun is shining I usually prefer Adriatic or Aegan for my holiday voyages.
This time though fate and business needs have thrown me in totally different direction.
I have never been so far north and quite frankly do not know what to expect but I am eager to find out.
I am planning to conclude agreement with one of Latvian banks, reknown for its bank secrecy and superb services, in order to provide my clients with possibility to open bank accounts in Latvia.
I also expect to have some free time in Riga, so in case you are interested in company formation in Poland and it happens that you stay or visit Riga in next couple of days then please kindly contact me so we can schedule a meeting and talk about your business plans.
Many clients ask me if weather I provide virtual adress or secretarial services for newly formed companies in Poland. When I say that we make arrangements with secretarial companies all around Poland and we can form a company using so-called “virtual office” or “virtual adress” then usualy another question follows.
Is it legal to form a company in Poland using virtual office?
The answer is not obvious.
While it is perfectly legal to register company using virtual adress of a firm that provides secretarial services, it often happens that companies formed by foreigners or companies with such purpose as international trade (especially electronics, raw materials, steel, fuels) meet problems with registration for value added tax purposes. In fact most of those companies will not be registered as VAT-taxpayers. All because many frauds made by people who register companies in virtual offices.
What can you do if you want to open international trade company in Poland and minimise your costs?
My first advice is to look for inexpensive office solutions in smaller towns and cities. There are plenty of small offices with reasonable lease prices (like 100 – 150 eur per month). If you need an office in bigger city then you may look for firms that offer microoffices with secretarial services, which are usually available for a price starting from 400 eur. The third solution is to focus your business on something else than trade, because consulting firms usually receive VAT registration, even when registered under virtual adress. Then you may change your articles of incorporation and add another company activities.
Yet another reason to consider company formation in Poland is new regulation regarding corporate income tax.
From the beginning of 2017 A.D. corporate income tax (CIT) rate for newly formed companies in Poland will equal 15% rate. If annual income exceed 1,200.000 euro (including value added tax), the company will be subject to 19% tax rate.
What is also important – there is possibility of exempting dividends from tax, when entity receiving income (revenue) from dividends, as well as other revenues qualified as dividends, is another company which is subject to taxation on the entire of its income in the Republic of Poland or in a European Union member state other than the Republic of Poland, or Switzerland or in another state of the European Economic Area, regardless of where it is earned.
The condition of the exemption is continuous, two-year holding period by the company receiving the dividends required 10% (in the case of Swiss – 25%) of shares in the capital of the company paying the charge. The prerequisite is also met, if this period has elapsed after the date of receiving the dividend.
If you are considering business emigration to Poland you surely ask yourself what professions are sought after in Poland. Our foreign clients often ask us what object of their company’s activity will be best solution for them. While looking not only from market perspective but also from business immigration point of view we offer very simple answer
You should do whatever you feel strong at.
We discovered that our clients are very resourceful people and often skilled in a fields where Polish competition is weak.
Here you will find 10 most wanted professions in Poland.
Skilled manual workers
Chefs / Cooks
Employees of accounting and finance.
All that being said it is important to know that Poland is still developing and many foreigners come to make here not only big business but also find place for their smaller enterprise. Maybe you will be next?
Barrister, registered in the Regional Bar in Katowice, CEO at Sarzalski Consulting Sp. z o.o., an expert in a field of formation of commercial companies, corporate law, promissory notes and litigation. [More about me]