Business in Poland: a guide to a successful start

Poland is one of the most attractive countries for business: high rates of economic growth and a stable political environment provide comfortable conditions for entrepreneurship and a quick return on investment. Nevertheless, each industry has its own specifics; if you plan to open a business in Poland, start by studying the realities and objectively evaluating the prospects of your undertaking. We won’t go into the details in this article; for decision-making, it is enough to consider the main legal and organizational points regarding investment and organization of enterprises in Poland.

Advantages of starting a business in Poland

The Republic of Poland is one of the few countries in Eastern Europe that demonstrates stable economic growth; annual GDP growth averages 4.2%. Foreign and domestic markets are actively developing; investments in freight transportation and logistics tend to pay off quickly. The geographical location of the country is favorable for international trade, and the launch of one’s company opens up access to export insurance to EU countries: in case of force majeure, the state repays unpaid bills from budget funds.

With the relatively low cost of labor, the purchasing power of Poles is estimated to be high; Investing capital in local enterprises of the city and starting your own business are also devoid of prospects, if the direction is chosen correctly. The state pursues a consistent policy of promoting entrepreneurship and attracting investors; well-developed social infrastructure and prepared effective legal framework for business:

• a large selection of organizational forms;
• simplified procedure for enterprise registration;
• simple and clear reporting forms;
• loyal supervision policy;
• effective mechanisms for the protection of property rights.

Small businesses in Poland benefit from low credit rates; small and medium-sized enterprises get access to state subsidies, preferential leasing and EU grants. Business incubators are created for IT startups, which facilitate the promotion of a start-up company: in exchange for monthly contributions, startups get the right to enter into agreements on the details of the fund; foreign IT specialists are provided with assistance in legalization and acquisition of a residence permit.

Key sectors of the economy contributing to the attractiveness of the country for business and investment

The World Bank rating gives Poland the first place in terms of investment attractiveness in Central and Eastern Europe and the 25th place in the world. Priority is given to areas such as road transport, aviation and automotive industry, electronics and software development, biotechnology and medicine; such industries as construction, education and science, fintech, tourism and hotel business are also considered promising. Let’s consider each direction separately so that you can form your own opinion about the feasibility of investments in one or another area.

Industry

Information technologies and communication

Financial sector

Tourism and hotel business

Education and science

Construction and real estate

Logistics and transport

Medicine

We have never let investors down – for a quick and successful start, before the launch of the medical center, measures are taken to attract customers and manage the reputation of the clinic. The developer organizes the selection of medical personnel, advertising support and marketing support; intelligent systems for managing the quality of service and protecting medical confidentiality are used for online patient registration. A single business strategy, repeatedly proven by practice, supports European protocols and standards of care and sustainable demand for medical services.

Business in Poland – features of registration and management

For successful integration into the Polish business community, it is important to understand the nuances of the legislation that determines the procedure for registering enterprises and providing reports. Violations lead to large fines, sanctions and reputational costs; in order to clearly imagine the algorithm of actions, decide on the choice of organizational and legal form.

Business registration in Poland

It is allowed to verify the registration of the enterprise in a notarized and electronic form through the S24 system, but please note that only template statutes are online. The multi-stage procedure is not particularly complicated, most foreigners who speak Polish register a business on their own, but it is important to follow the correct sequence of actions:

• determination of the legal form and type of activity;
• formation of authorized capital (from PLN 5,000);
• selection of the name and legal address of the company;
• certification of the charter and founding agreement;
• submission of an application to the State Register of Court Decisions (KRS);
• payment of registration fee in the amount of 350 PLN;
• obtaining a statistical identifier (REGON);
• assignment of tax number (NIP);
• registration in social insurance funds (ZUS);
• production of the seal of the enterprise;
• opening a current account.

Usually it takes about two weeks to complete a business; in isolated cases, registration is delayed by 3-4 weeks – for example, sometimes a criminal record certificate or other additional documents are required. Depending on your specialization, you may need to register as a VAT payer, obtain a license or obtain a customs number (EORI) for foreign economic activity.

Polish taxation and financial aspects

The Polish tax system provides for 13 types of taxes, but most entrepreneurs in practice face two main taxes – VAT, personal income tax or income tax. In special economic zones, entrepreneurs are exempt from taxes if they comply with a number of conditions; nor is there a charge for renting property provided by the local authority.

Print media, construction companies, pharmaceutical enterprises, service providers for the agricultural sector and ticket sellers for mass events are subject to VAT at the rate of 8%. Exporting companies are exempt from VAT Specialized publications, grocers, confectionery and bookstores pay VAT in the amount of 5%; the basic VAT rate of 23% applies to the rest of the enterprises.

The general income tax rate for legal entities is 19%; for small enterprises with an annual turnover of less than EUR 1.2 million, a preferential rate of 9% applies. Individuals and sole proprietors with an annual income of more than PLN 3,091 pay personal income tax at the rate of 18%; when the income increases to PLN 85,528, the tariff increases to 32%. Foreign workers who stay in the country for more than 183 days a year are also considered tax residents of Poland. Companies registered as legal entities are required to submit an annual financial report to the tax authorities, which includes:

• declaration on payment of income tax;
• document on withholding personal income tax;
• monthly VAT declarations.

Labor legislation and personnel recruitment

Employment in Poland is allowed under the condition of concluding an employment contract and payment of social security contributions by the employer for each full-time employee. The contract prescribes the legal and responsibilities of the parties, the amount of salary and working conditions, which must be contrary to labor legislation. A subcontract is concluded for one-off works; at the same time, the contractor is not covered by social insurance programs and pays contributions at his own expense.

For the use of hired labor without a contract, fines are charged: from 1,000 to 30,000 PLN – for illegal employment of Polish citizens; up to 10,000 PLN for illegal employment of foreigners; for non-payment of insurance premiums – up to PLN 5,000. From 2022, additional sanctions for illegal employment have been introduced – the company will be charged additional income in the amount of the minimum wage for each month of work of illegal workers.

Peculiarities of working with Polish partners

Registration of a business in Poland involves close interaction with local residents, so the entrepreneur is expected to have a good knowledge of the Polish language and an understanding of cultural specifics. In general, the mentality of Poles and Ukrainians is quite similar, but in Poland more attention is paid to punctuality, meeting deadlines and business etiquette. Personal communication is also highly valued – be prepared for frequent meetings in an informal setting and do not rely too much on electronic forms of communication.

If you are planning to open a company in Poland, try to get recommendations for finding reliable partners: Polish entrepreneurs widely use horizontal connections. It is customary to start negotiations with a secular conversation, avoiding hot topics (politics, religion) and not allowing familiarity, when putting forward arguments in favor of cooperation, emphasize reliability and the absence of risks.

Who can open a business in Poland?

Both citizens of Poland and foreigners who have reached the age of majority can engage in entrepreneurial activity, however, registering an IP in the name of a foreign citizen is possible only after obtaining a Polish card or a permanent residence permit. A biometric foreign passport valid for at least 18 months at the time of business registration is sufficient to open a “spool” (an analogue of an LLC). The requirement of entrepreneurial experience is only a formality, as the law does not stipulate ways to prove business experience.

What decision options are available to investors?

When planning investments in the Polish economy, two options are available – purchasing a franchise, buying a ready-made business or starting a business from scratch. During the preparation for the development of a new market, the possibility of opening a representative office in order to conduct marketing campaigns is also being considered. Med Invest Group, a leading healthcare developer, offers effective solutions for investments in the medical business in Poland with a guaranteed return:

• franchise sale in the network of medical centers;
• purchase of a finished business;
• turnkey medical business organization.

Franchise in Poland

A franchise is an investment model under which an investor acquires the right to conduct business using a recognizable brand and established commercial schemes. Franchising is associated with minimal risks for the investor: the object is integrated into a single ecosystem with access to effective business technologies and a developed client base. As a result, the payback period is shortened, the maximum profitability of the project is achieved, and customer loyalty is maintained.

In the Med Invest Group network of medical centers, uniform standards of business conduct and patient service have been introduced, which facilitate the adaptation of newcomers to the medical business. Modern equipment, strict personnel selection and effective training methods increase labor productivity and service quality. On the other hand, the franchise limits the enterprise’s initiative and terms of sale, numerous communications and mutual dependence of partners complicate the organization of business processes: the well-being of the entire network depends on the condition of each individual object.

Ready business in Poland

Purchasing a ready-made business is another option for a quick start: you buy an officially registered company with assets and guaranteed profits. Established business processes will save you additional costs: you do not need to invest in the development of the supplier base, attracting customers, recruiting personnel and finding contractors.

Open access to revenue history and financial indicators facilitates strategic planning and management decision-making. By offering to buy a ready-made business in Poland, the company Med Invest Group guarantees the absence of debts and problem assets – we put up for sale only profitable projects. All necessary documents are ready; you don’t even need to come to Poland to conclude the deal – on the contrary, acquiring a business is often used to simplify the immigration procedure.

The status of the owner of a prosperous company gives the right to receive a residence permit under the accelerated program and simplifies the conclusion of agreements with EU residents. The procedure for changing the owner, company name and legal address is not complicated, so there will be no problems with business re-registration.

Turnkey business in Poland

Turnkey medical business organization prepares the ground for a quick start – a ready-made business concept, tested many times in practice, is offered. The development company performs a full cycle of repair and construction works at the facility, provides technical control at all stages of project implementation, organizes administration, commissioning and legal support of the project. In the shortest possible time, the investor receives at his disposal a modern medical center of a wide profile, equipped with the latest technology

Compared to a franchise, a turnkey business in Poland provides greater autonomy in decision-making, but at the same time you can count on our assistance in recruitment, marketing promotion and technical support. Registration of patients begins before the opening of the medical center; the first visitors will not have to wait long, and the constant quality of services will ensure a loyal clientele.

The amount of investment for business in Poland and when it will pay off

The cost structure for the development of medical business in Poland includes a one-time payment and monthly deductions – royalties. The volume of initial investments in the medical center depends on the investment package: our company offers three options:

• “Standard” (area 130-170 square meters, cost – 520,000 EUR);
• “Standard Plus” (170-400 square meters; EUR 1.1 million);
• “Premium” (500-1000 square meters; EUR 2.5 million).

The size of the royalty is inversely proportional to the volume of the lump sum payment and amounts to 1.7, respectively; 1.1 and 0.7%; down payments are offset by a reduction in operating costs and a reduction in the payback period to 6–18 months. The constructive solutions offered by us increase the facility’s energy efficiency due to the introduction of advanced resource-saving technologies according to EU standards. Expenses for separation of communications, special installation, technical and software of medical centers are also included in the account – everything is included!

It is profitable and safe to develop business in Poland with the assistance of Med Invest Group; By investing in the medicine of the future, you will increase your income now. Investing in socially significant projects creates a reputation as a responsible entrepreneur, which will also work for you: a successful medical business will be the best advertisement!

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