Register an LLC in Poland from Australia: Steps, Advantages & Tax Implications

This article aims to guide Australian entrepreneurs through the process, highlighting why Poland is an attractive option, detailing the necessary steps and documents, discussing costs and tax implications, and outlining the benefits of establishing a business in this burgeoning European market.

Why Poland is Attractive for Australian Entrepreneurs?

Poland provides a strong position for companies looking to enter the European Union market because of its central European location.

Poland is a desirable location for Australian businesspeople for a number of reasons:

• Economic Growth and Stability: Poland’s economy is expanding at one of the quickest rates in the European Union, and the country’s political and economic environments are stable. Strong export performance and domestic consumption are the main drivers of this expansion.
• Skilled Labor: Poland offers an exceptionally educated, skilled labour force at a reasonable cost. This nation is renowned for its robust engineering, IT, and technical expertise, which is beneficial for various industries.
• Business-friendly environment: The Polish government has implemented a variety of measures to promote an environment that is favourable to business. This entails promoting enterprises and innovation, relaxing tax laws, and offering incentives to international investors.
• Access to EU Market: Establishing a company in Poland gives you access to the 500 million+ consumers that make up the EU market. This is mainly advantageous for businesses that want to grow quickly.
• Supportive Infrastructure: Poland has a well-developed infrastructure with modern transportation networks, reliable communication systems, and advanced technological facilities.

Steps to Set Up an LLC in Poland from Australia

Setting up an LLC in Poland involves numerous steps.

Here is a comprehensive guide to help Australian entrepreneurs navigate the process:

Choose a Company Name

The first step is choosing a distinctive name for your Polish LLC. The name must be distinct and should not infringe on existing trademarks.

Make the Articles of Association 

Drafting the Articles of Association is crucial. This document describes the organization of the firm and includes information on the management board, stockholders, goals, and beginning capital.

Register with the National Court Register (KRS) 

The next step is registering your company with the National Court Register. This can be completed digitally or in person. You’ll have to send the Articles of Association, proof of share capital payment, and other relevant documents.

Obtain a REGON Number and Tax Identification Number (NIP) 

Once registered, your company will receive a REGON number (statistical number) and an NIP (Tax Identification Number). These are essential for tax and statistical purposes.

Enrol for VAT 

If the turnover of your business is above a specific level, you must enrol for VAT. This is a necessary step for most enterprises engaged in commercial operations in Poland.

Set up a Polish Bank Account 

You’ll be required to set up a bank account in Poland to handle the company’s finances. This is necessary for the initial share capital deposit and for ongoing business transactions.

Documents Expected to Set Up a Sp. z o.o. in Poland from Australia

To successfully establish an LLC in Poland,  you will have to compile and send in a number of documents.

These include:

1. Articles of Association: This document outlines the company’s operational framework and is required for registration.
2. Shareholders’ Details: Information about the shareholders, including identification documents (passport copies), addresses, and other relevant personal details.
3. Proof of Share Capital Payment: Proof that the business’s bank account contains the initial share capital.
4. Registration Application Form: This form, available from the National Court Register, must be completed and submitted.
5. Notarised Signatures: Signatures of the company’s representatives on certain documents must be notarized.
6. Power of Attorney: If you are using a representative to handle the registration process, a notarized power of attorney is required.
7. Bank Account Details: Proof of the company’s bank account in Poland, including account number and bank details.
8. Consent of Appointed Directors: Written consent from the directors agreeing to their appointment.

Cost of Registering an LLC in Poland for Australians

The cost of setting up an LLC in Poland can vary based on several factors, including legal fees, administrative charges, and additional services you might require.

Here’s a breakdown of typical costs:

• Company Registration Fee: Approximately PLN 600 (about AUD 200) for online registration and PLN 1,000 (about AUD 340) for paper registration.
• Notarial Fees: These can range from PLN 300 to PLN 1,000 (AUD 100 to AUD 340), depending on the complexity of the Articles of Association and the number of notarized signatures required.
• Share Capital: The minimum share capital needed is PLN 5,000 (approximately AUD 1,900). This amount needs to be transferred into the business’s bank account.
• Legal and Consulting Fees: Hiring legal and consulting services can range from PLN 2,000 to PLN 10,000 (AUD 680 to AUD 3,400), depending on the level of assistance and the reputation of the service provider.
• Other Administrative Costs: This includes obtaining a REGON number, NIP, and VAT registration, which might cost an additional PLN 500 to PLN 1,000 (AUD 170 to AUD 340).

Tax Implications for Australian Business Owners Setting Up a Sp. z o.o. in Poland

Understanding the tax implications is crucial for Australian entrepreneurs launching an sp. z.o.o. in Poland.

Key tax considerations include:

1. Corporate Income Tax (CIT): The general CIT rate in Poland is 19%. However, small businesses with revenues below a certain threshold may qualify for a reduced rate of 9%.
2. Value Added Tax (VAT): The general VAT rate is 23%. There are reduced rates (8%, 5%, and 0%) for specific goods and services.
3. Personal Income Tax: If you become a tax resident in Poland, your global income may be subject to Polish personal income tax, which ranges from 17% to 32%.
4. Double Taxation Treaty: Australia and Poland have a double taxation agreement to avoid getting taxes on the same revenues twice. This agreement allows Australian entrepreneurs to credit the tax paid in Poland against their Australian tax liability.

Advantages of Forming an LLC in Poland from Australia

Establishing a Polish LLC offers numerous benefits, making it a strategic move for Australian entrepreneurs:

Market Access 

Poland offers a point of entry into the European Union, facilitating simple access to a sizable market free from trade restrictions.

Cost-effectiveness 

Poland is a desirable site for enterprises due to its lower operating costs when compared to Western Europe, especially when it comes to salaries and office renting.

Innovation and Technology 

Poland is a centre for innovation, particularly in the areas of technology and information technology. The nation provides a range of incentives for creative ventures and tech firms.

Competent Workforce 

Businesses needing specialized knowledge may find it advantageous to have access to a highly educated and skilled labour force, especially in technological sectors.

Government Support

The Polish government provides grants, tax exemptions, and other incentives to international investors in order to promote business innovation and expansion.

Strategic Location 

Poland’s geographic centre in Europe makes it a perfect hub for logistics, enabling effective supply chain management and delivery throughout the continent.

Conclusion

There are many advantages for Australian business owners wishing to grow into Europe when they establish an LLC in Poland. Poland provides a favourable business climate due to its strong economy, highly qualified workforce, and advantageous location. There are multiple steps in the procedure, such as gathering the required paperwork, comprehending the expenses, and thinking about the tax implications. Even with the initial hurdles, starting a business in Poland has significantly more benefits than drawbacks.

For Australian entrepreneurs seeking a seamless and efficient business registration process, OnDemand International can provide expert guidance and support. Our team is equipped to assist you with every aspect of setting up your LLC in Poland, ensuring compliance with local regulations and helping you navigate the complexities of the Polish business landscape. Contact us today to register your business in Poland’s growing economy and take the first step towards a successful European venture.