What is the cost of setting up a limited liability company in Poland? How much does it cost to establish a limited liability company in Poland? These are questions that often come up in my clients’ emails. Usually, this is where the process of thinking about the company begins. As for the costs, it all really depends on the form of registration you choose, how large the share capital you anticipate, and whether you will want to use the services of lawyers. Frankly speaking registering a limited liability company can cost you 350 PLN, it may cost 3500 PLN, and also 35,000 PLN (here I admit, rather when you are a corporate client and use the services of a network law firm with offices in New York, Paris, and Warsaw. In this post, however, I will talk about what the cost of registering a limited liability company in Poland depends on and how much you will roughly spend on it.
How much does it cost to register a limited liability company in Poland?
If you are wondering what costs are associated with opening a limited liability company in Poland, the basic factor on which their amount depends is the formula for registering the company. Currently, there are two parallel systems of company registration, which affect the costs of setting up a limited liability company. The traditional system and the registration system based on a template (S24). In the case of “traditional” registration of a limited liability company, the registration costs will be higher due to the need to involve a notary and often a legal advisor, who will prepare the company agreement. Higher costs also include a higher court fee. In the registration system based on a template agreement, the cost of registering a limited liability company is lower also due to a more favorable court fee.
What is the cost of setting up Polish limited liability company in the traditional form?
Registering Polish company in the traditional form often involves many activities on the part of the partners, which do not occur in the S24 procedure. The traditional establishment of a limited liability company involves a visit to a notary, who will collect the notarial fee and the PCC tax. These are the basic costs of setting up a limited liability company in the traditional form. Partners often also hire a lawyer, who prepares the company agreement and registers it. The total costs are as follows:
- the cost of preparing the draft agreement for a limited liability company – from 1500 PLN upwards – the first activity associated with the traditional registration of a limited liability company is the preparation of the draft agreement for a limited liability company. While we can ask a notary to perform such an activity, it is very common practice to hire lawyers who prepare such a draft agreement. This happens because people who are interested in the traditional registration of a company are also people who need more control over the content of the agreement. They have their own needs. The cost of preparing a company agreement by a legal advisor ranges from several hundred to several thousand PLN. The highest amounts usually concern companies with many contractors and non-standard legal solutions, notarial costs, i.e.,
- notarial fee, which depends on the specific notary, but also on the value of the object of the notarial act, i.e., in the case of setting up a limited liability company, on the amount of the company’s share capital. The maximum rates of the notarial fee are set in the regulation of the Minister of Justice on the maximum rates of the notarial fee. For a company with a minimum capital of 5,000 PLN, this will amount to 160 PLN + VAT (100 PLN + 3% of the excess over 3000 PLN). That is 195 PLN and 20 groszy. It should be remembered that this is the maximum rate and it can be negotiated with the notary. At the notary, you will also pay additionally for each copy of the company agreement. The cost of a copy of the limited liability company agreement is 6 PLN net per each started page of text. You need at least two copies of the agreement. One for yourself, another for the so-called Central Repository of Notarial Acts.
- PCC tax, i.e., tax on civil law transactions amounts to 0.5% of the share capital reduced by the cost of concluding the agreement in the form of a notarial act, entry to the National Court Register (KRS) and announcement in the Court and Economic Monitor. This tax will be collected by the notary costs associated with the entry of the limited liability company to the KRS – 600 PLN – include the court fee for the application for registration of the limited liability company – 500 PLN and the fee for the announcement in the Court and Economic Monitor – 100 PLN
How much does electronic registration of a limited liability company in the S24 mode cost?
In the case of registering a limited liability company in Poland via the S24 system, you can deduct the costs of the notary and the preparation of the agreement project by a lawyer from the above-mentioned costs. In this mode, the company agreement has the form of an electronic template. Whether this is a profitable option in a broader perspective is discussed in my post on the differences between traditional registration and electronic registration. I warmly encourage you to look at it. The court fee for registration in S24 is only 350 PLN. We pay only 250 PLN of the proper court fee and 100 PLN for the announcement in the Court and Economic Monitor.
Cost of legal services for registering a limited liability company.
How much does the service of setting up a limited liability company by a lawyer cost? It varies. The cost of assistance in registering a limited liability company in some small legal firms or accounting offices not employing lawyers or legal advisors starts from 500 PLN. Some accounting offices do it even for free to attract clients. The cost of registering the company is then recouped in subscription fees. Before you take advantage of such an offer, check if such a firm is registered in the register of entities conducting activities on behalf of companies or if it really hires a professional lawyers who can handle registration process.
If you want to check our current pricing on company formation in Poland please find the pricing tab.
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