Register a Business in Poland from Australia: Procedure, Requirements & Costs

Australian Entrepreneurs Guide to Business Registration in Poland

Setting up a business in a foreign country can be a thrilling yet challenging task. For Australian entrepreneurs eyeing expansion into Europe, Poland offers a special and alluring opportunity. Poland and Australia have enjoyed positive diplomatic and economic relations for decades. Both countries are committed to enhancing bilateral trade, investment, and business cooperation. Poland and Australia have created a strong basis for cooperative business endeavours by sharing a dedication to economic expansion and innovation. The existence of several bilateral agreements and the active participation of the corresponding chambers of commerce serve to further strengthen this relationship.

Are you an Australian entrepreneur looking to register an enterprise in Poland?

This article delves into the steps to register a business in Poland from Australia, highlighting the benefits, costs, and key considerations involved. We will explore Poland-Australia business relations, the advantages of the Polish market, the legal and tax frameworks, and much more.

Why Should Australian Entrepreneurs Consider Poland for Business Formation?

Poland offers a treasure trove of benefits for Australian business owners.

Here are just a few reasons why Poland should be on your radar:

• Thriving Economy: Poland’s economy is both steady and expanding quickly, making it an ideal place for your company to expand.
• Strategic Location: Located in the centre of Europe, Poland offers easy access to a vast market with a population exceeding 448 million.
• Competitive Costs: Establishing and running a business in Poland is generally more cost-effective compared to many Western European countries.
• Skilled Workforce: It is simpler to locate the necessary talent in Poland due to the country’s educated and bilingual workforce.
• Government Support: The Polish government actively promotes foreign investment and provides a range of incentives for start-up companies.

Poland Business Opportunities for Australian Investors

Poland presents a myriad of business opportunities for Australian investors across various sectors:

Information Technology

Poland is a burgeoning hub for IT and software development, offering a pool of talented professionals and competitive operational costs.

Import and Export 

Poland’s advantageous position and EU membership make it a perfect base for companies engaged in import and export, providing easy access to the European market.

Ship Repairing

With a strong maritime tradition, Poland’s shipbuilding and ship repairing industries are well-developed, providing opportunities for collaboration and investment.

Exhibition and Booth Services 

Poland hosts numerous international trade fairs and exhibitions, creating a demand for professional exhibition and booth services.

Consultancy Business

As more international firms enter Poland, the need for consultancy services in areas like business strategy, legal compliance, and market entry is growing.

Agri Trading

Poland’s robust agricultural sector offers opportunities for trading in agricultural products, benefiting from the country’s fertile land and diverse produce.

Digital Marketing

With an increasing focus on digitalisation, the demand for digital marketing services is on the rise, presenting opportunities for Australian firms to offer their expertise.

Procedure to Register a Business in Poland from Australia

Select a Business Structure 

The first phase is deciding the form of corporate structure you wish to establish, such as a limited liability company (Sp. z o.o.), joint-stock company (S.A.), or a branch office.

Company Name Registration

Verify that the name you have selected for your company is both distinctive and compliant with Polish law. The availability of a name can be verified through the National Court Register (KRS).

Prepare the Documentation 

Gather the necessary documents, including the Articles of Association, passport copies, and evidence of residency for each director and shareholder.

Open a Bank Account

A corporate bank account in Poland is required for initial capital contributions and ongoing business transactions.

Register with the National Court Register (KRS)

Submit your application to the KRS, along with the required documentation and fees. This process includes registering for VAT and acquiring a REGON number (statistical number).

Requirements to Register a Business in Poland for Australians

• Minimum Capital: For a limited liability company (Sp. z o.o.), the minimum share capital requirement is PLN 5,000.
• Registered Office: You are required to possess a registered office address in Poland.
• Directors and Shareholders: There must be at least one director and one shareholder to register a business in Poland for Australians. They are not required to be residents of Poland.
• Documentation: Properly notarized and apostilled documents are necessary for registration.

Tax Considerations for Australian Businesses in Poland

While Poland boasts a favourable tax rate, it’s crucial to understand the tax implications of running a business there. 

• Poland offers a competitive corporate tax rate of 19%, with a reduced rate of 9% for small businesses earning less than €2 million annually. 
• Additionally, Poland has a Double Taxation Agreement (DTA) with Australia, preventing the same income from being taxed twice. 
• Australian business owners should also be aware of VAT, which is generally 23%, with reduced rates for certain goods and services. Consulting with a tax advisor can help navigate these tax implications effectively.

Accounting Services for Australian-Owned Businesses in Poland

Accounting and Bookkeeping

For any organization, accurate accounting and bookkeeping are essential. Local accounting services that guarantee adherence to Polish accounting standards and tax legislation can be advantageous for Australian-owned enterprises operating in Poland.

Payroll Assistance

Payroll administration in a foreign nation might be challenging. Payroll services provided by professionals can take care of employee salaries, social security contributions, and tax withholdings, making sure that companies comply with regulations.

Financial Reporting

Financial reports must be prepared and submitted on a regular basis by Polish businesses. These reports can be prepared with help from nearby accounting firms, which will guarantee that they adhere to all requirements and deadlines.

Comparing Business Environments: Poland vs. Australia

Here’s a quick comparison between the business environments of Poland vs Australia:

Can I Open a Polish Bank Account for My Business Remotely from Australia?

Opening a Polish bank account for your business remotely is possible, but it may involve additional steps and requirements. Foreign investors can open accounts remotely with several Polish banks, although you might need to provide the following:

• Notarised and apostilled documents
• Proof of business registration
• Identification documents of the company’s representatives

How Much Does It Cost for an Australian to Set Up a Business in Poland?

The cost of setting up a business in Poland varies depending on the business structure and specific requirements.

Here are some typical costs involved:

• Company Registration Fees: Approximately €4500-€6,000, including notary and legal fees.
• Share Capital: For Sp.z.o.o. the minimum share capital is 5,000 PLN (about €1,100).
• Administrative Costs: These might include a range of expenses for obtaining licenses and permits, and complying with regulations.
• Professional Services: Depending on the intricacy of the company structure, fees for legal, accounting, and consulting services might range from €1,000 to €5,000.

Conclusion

Poland’s advantageous location, steady economy, and friendly business climate present a plethora of prospects for Australian business owners. Australian investors can take advantage of Poland’s strong infrastructure and qualified workforce in addition to accessing the profitable EU market by registering a business there. Though simple, there are a few phases in the registration process that can be effectively completed with the help of local experts.

OnDemand International is here to help you navigate the complexities of business registration in Poland. From initial setup to continuing compliance and advising services, our team of professionals offers full support. Get in touch with us right now to register your company in Poland’s expanding economy and benefit from all the prospects it presents.