Over the past few years, Poland has rapidly emerged as a significant player in the global IT sector. Poland, which is well-known for its rapid economic expansion and highly qualified employees, has a lot of chances for international investors, especially in the technology sector. Australian entrepreneurs looking to expand their business overseas will find Poland an attractive destination for establishing an IT company.
But how can you easily set up your business in the Polish economy from Australia? This might be one of the most crucial questions that come to your mind when you are thinking of launching your business in Poland or expanding your existing business in Poland from Australia.
This is where we can guide you.
Through this article, we will be covering the procedure to set up an IT company in Poland for Australians. We will further explore the legal requirements, benefits, costs, and market opportunities for Australian IT firms thriving in the Polish market.
Poland’s IT Industry Growth and Opportunities
The IT industry in Poland has grown significantly in the last ten years and the revenue in the IT Services market is expected to reach US$9.75bn in 2024. Poland is known for its robust tech sector, which is bolstered by highly educated and affordable labour, and a prime location in Europe. Poland provides services ranging from software creation to sophisticated IT solutions, and it scores highly in worldwide indices for IT development.
The industry’s expansion has been supported in part by the government’s emphasis on innovation and digital transformation. Poland is home to a number of IT hotspots, such as Warsaw, Krakow, and Wroclaw, all of which provide a vibrant atmosphere for both established businesses and startups. This offers Australian business owners a rich environment for starting and growing IT ventures.
Poland IT Sector Opportunities for Foreign Investors
Poland offers a plethora of opportunities in the IT sector for overseas investors, including:
- Software Development: High demand for custom software development and IT services, with Polish developers highly regarded for their skills and quality of work.
- Outsourcing: Poland is a well-liked location for IT outsourcing because of its affordable prices and highly qualified staff.
- Fintech: Rapidly growing fintech sector with numerous startups and a favourable regulatory environment.
- E-commerce: This profitable industry is being driven by rising consumer expenditure and internet penetration.
- Cybersecurity: Growing awareness and need for cybersecurity solutions provide ample opportunities for IT companies specialising in this area.
How to Start an IT Company in Poland as an Australian Entrepreneur?
Starting an IT company in Poland from Australia involves numerous steps.
Here’s a comprehensive guide for Australian entrepreneurs:
Choose a Business Structure
One of the most important steps when considering IT business registration in Poland from Australia is to decide the legal form of your company.
Common choices for business incorporation are limited liability company (Sp. z o.o.), sole proprietorship, or partnership. For most IT companies, a Sp. z o.o. is preferable due to its limited liability and straightforward setup process.
Business Name Registration
Once the business structure is selected, the next step is to set up an IT company in Poland from Australia is selecting and registering the name of your business with the relevant authorities.
At OnDemand International, we can assist you in registering your chosen name with the relevant authorities, thereby saving you the time and hassle of registering your business name on your own.
Register the Company
Once your business name is registered, you need to register your business with the Polish National Court Register (KRS). You’ll need to provide essential documents, covering the firm’s articles of association, and pay the registration fee.
OnDemand International experts can assist you with business registration as well as with document legalization.
Open a Bank Account
Once your business is registered with the KRS, you need to open a bank account for your firm in Poland. This is usually important for handling your company’s finances and conducting business transactions.
Legal Requirements for Australian Entrepreneurs in Poland
Australian entrepreneurs must adhere to specific legal requirements when setting up an IT company in Poland:
- Company Formation: Register your company with the National Court Register (KRS). This involves preparing and notarising the articles of association, providing details of shareholders, and appointing a management board.
- Tax Registration: Obtain a Tax Identification Number (NIP) and register for VAT if your yearly revenue surpasses the threshold.
- Social Security: Register with the Social Insurance Institution (ZUS) if you plan to hire employees.
- Permits and Licenses: Based on the nature of your IT firm, you might require certain permits or licenses. Verify adherence to regional laws.
Advantages of Establishing an IT Business in Poland from Australia
- Access to Skilled Workforce: Poland boasts one of Europe’s greatest concentrations of IT specialists, who are highly regarded for their technical know-how and fluency in English.
- Cost-Effective Operations: In comparison to Western Europe and Australia, operating costs, including salaries and office rent, are significantly lower in Poland.
- Strategic Location: Poland’s geographic centre in Europe makes it simple to reach markets in both Western and Eastern Europe, which would help your company grow in the long run.
- Friendly Business Environment: The Polish government provides grants, tax breaks, and access to innovation funds, among other incentives and support programs, to overseas investors.
- Thriving Innovation Ecosystem: Poland offers a conducive atmosphere for IT businesses to flourish and expand, due to its abundance of innovation centres, incubators, and accelerators.
Poland vs. Australia IT Market Comparison
Although the IT sectors in Poland and Australia are both flourishing, there are several significant differences:
- Market size: Australia has a smaller population and economy compared to Poland, which has a larger domestic market and access to the European Union.
- Talent pool: Poland boasts a greater number of highly qualified IT workers, and several of its universities offer high-quality computer science and engineering programs.
- Costs: The cost of living and doing business is generally lower in Poland compared to Australia, particularly in terms of salaries and office space.
- Government support: In comparison to the Australian government, the Polish government provides IT enterprises with more comprehensive support and incentives.
Government Support for IT Companies in Poland
The Polish government provides IT companies with a range of incentives and assistance programs, such as:
- Tax exemptions: Companies operating in special economic zones can benefit from tax exemptions of up to 50% of their investment costs.
- Research and development (R&D) tax credits: Enterprises can claim tax credits for up to 50% of their R&D expenditures.
- Grants: The government offers grants for various activities, such as hiring new employees, investing in new technologies, and participating in international trade fairs.
- Startup support: The government has started a number of initiatives to help new businesses, such as funding options, accelerators, and incubators.
Best Cities in Poland to Start an IT Company for Australians
Several Polish cities stand out as ideal locations for setting up an IT company:
Warsaw
The capital city is a major business hub with a vibrant tech ecosystem and numerous international companies.
Krakow
Known for its rich cultural heritage, Krakow is also a leading tech hub with a strong startup community.
Wroclaw
Offers a dynamic environment for tech companies with a high concentration of IT professionals and research institutions.
Gdansk
Gdansk is a developing tech cluster that draws both established businesses and startups due to its advantageous position on the Baltic coast.
Poznan
Known for its outstanding educational institutions and business-friendly atmosphere, Poznan is an excellent option for IT companies.
Conclusion
Poland presents a compelling opportunity for Australian entrepreneurs looking to expand their IT business into Europe. The combination of a skilled workforce, a supportive government, and a cost-effective environment makes Poland a launchpad for growth.
At OnDemand International, we understand the complexities of setting up a business in a new country. We can help you navigate the legalities of company registration, secure work permits, and find the perfect office space. Additionally, we offer ongoing support services like accounting and tax compliance.
Contact us today to discuss how OnDemand International can help you turn your dream of an IT company in Poland into a reality.
FAQ’s
The main benefits include access to a skilled workforce, lower operating costs, a strategic location in Europe, and a supportive business environment with various government incentives.
Legal requirements include registering your firm with the National Court Register (KRS), obtaining a Tax Identification Number (NIP), registering for VAT if applicable, and complying with local labour and data protection laws.
Warsaw, Krakow, Wroclaw, Gdansk, and Poznan are among the best cities, offering vibrant tech ecosystems, access to skilled talent, and supportive business environments.