FORMING A POLISH COMPANY

Incorporation time: 32 days

Shelf companies: Yes

Accounting: Yes

Secretary: Yes

Nominee Shareholder: Yes

Nominee director: Yes

History of Poland

Poland is a country with a turbulent 20th century history. Located in central Europe, next to Germany, the country has a coastline on the Baltic Sea which enables it to trade goods internationally. The country now has over 38 million inhabitants.

Poland as an Onshore Centre

Originally established to encourage investments and provide enterprises with more room to manoeuvre, Poland’s low taxation rates attract many entrepreneurs. The main types of vehicle for carrying out onshore activities are:

• Private companies (the most widespread vehicle).
• Public companies.
• General partnerships.
• Sole traderships.

Types of Polish Companies

The time required to incorporate in Poland is comparatively very slow for this part of the world taking around 32 days and involving six different steps.

Detailed Review of Poland’s Economy

Invigorated by its accession to the European Union the Polish economy has resisted the 2008 crisis well due to domestic consumption and numerous public investments. However its current growth rate is lower than when it joined the EU, estimated at 2.1% for 2014.

Polish agriculture accounts for 5% of the country’s GDP and produces mainly rye, beet, wheat, apples and dairy products. This agricultural activity enables Poland to cover its own food demand and the country possesses numerous natural resources which are still very useful for development and mines coal, sulfur, copper, lead and zinc.

Manufacturing is an important part of Poland’s economy and the main sectors of Polish industry are: telecommunications, machinery production, transport, food preparation and IT. Finally, services account for 65% of national GDP.

The country focuses on international trade, even more so since its entry into the European Union, which has increased trade with its European neighbours. Poland is in an advantageous location, due to its proximity to Russia, its well-developed coastline and large ports. Its main trading partners are the EU, Russia and China.

Poland’s Economic Strengths

• Good location.
• Cheap, multilingual labour.
• Stable economy.

Poland’s Economic Weaknesses

• The country has not adopted the Euro.
• Very slow administration.

The Polish Government seeks to promote foreign investment via several measures to reduce labour costs and attract foreign businesses to establish there.

Trade and Market Information

Poland is a member of the European Union, the European Economic Area, the World Trade Organization and the OECD, a signatory of the Kyoto Protocol, the Washington Convention, the Basel Convention, the Montreal Protocol and the International Coffee Agreement of 2001.

Imports into Poland are regulated by European standards, which promote trade free of any constraints. Nevertheless, it should be noted that the European Union has placed restrictions on certain products, especially agricultural ones, in line with the Common Agricultural Policy. Thus, the presence of Genetically Modified Organisms (GMOs) in products must be reported and hormone-fed beef may not be imported into the EU.

Customs tariffs are on average very low, at about 4.2% (apart from some goods) for non-European countries and there are no customs duties for EU Member States.

In general imports under EU regulations do not require a licence but a Trade Declaration must be completed for imports into Poland. Moreover, for countries outside the European Union, an Entry Summary Declaration is required for any import into the EU.

The retail sector in Poland is now very varied and small shops rub shoulders with international chains. Although the former are widespread in rural areas, supermarkets (35% of retail) like Real, Hypernova, Tesco, Géant, Carrefour, Biedronka and Plus Discount are becoming increasingly prevalent in the cities and towns.

Bordering the Baltic Sea the two main Polish ports of Gdansk and Szeczin-Swinoujscie receive part of the 50 million tonnes of products circulating each year in Poland. The rail network is highly developed and is the the third-best-equipped network in Europe, particularly due to its international connections.

Finally, Polish industry is dominated by the construction sector, the industrial processing, paper, automobile, rubber and chemicals sectors, as well as the production of high-precision optics materials.

Employment Legislation in Poland

The legal duration of the Polish working week is 42 hours, with a minimum wage of around 400 EUR per month. The retirement age is 60 for women and 65 for men. Social insurance contributions are split as follows :

– 17.62% paid by the employer
– 18.45% contributed by the employee

There are three large unions in Poland: the Polish Free Independent Union, the Alliance of Polish Unions and the Polish Union of Teachers.