Situated in the center of Silesia, Katowice is a promising base for enterprises wishing to get into the Central European market, as well as one of Poland’s major metropolitan centers. Due to its advantageous position, fast modernizing infrastructure, and rich industrial heritage, this city has a plethora of options for both entrepreneurs and investors. This post will walk you through the crucial procedures and things to think about when doing company formation in Katowice. Come along as we explore the nuances of forming a firm in this vibrant city.
Procedure for company formation in Katowice
Company registration in Katowice, a vibrant city in Poland, can be a rewarding endeavour. The city is a desirable site for entrepreneurs due to its advantageous position, strong economy, and welcoming business community.
Here’s a step-by-step guide on how to register a company in Katowice:
Decide on a Business Structure
Choose the best business structure for your needs before starting the registration procedure.
In Poland, the most common forms are:
- Sole Proprietorship (Jednoosobowa działalność gospodarcza)
- Civil Law Partnership (Spółka cywilna)
- Limited Liability Company (Spółka z ograniczoną odpowiedzialnością, or Sp. z o.o.)
- Joint-Stock Company (Spółka akcyjna)
Choose a Unique Company Name
Your company name should be unique and not in use by another entity in Poland. You can check the availability of a name through the National Court Register (KRS).
Prepare the Necessary Documents
Depending on your chosen business structure, you’ll need to prepare different documents. For a Limited Liability Company (Sp. z o.o.), for instance, you’ll need:
- Articles of Association
- List of shareholders
- Declaration from all board members
Open a Bank Account
You must create a bank account in the company’s name and deposit the necessary minimum funds before registering. For a Sp. z o.o., the minimum capital is PLN 5,000.
Register with the National Court Register (KRS)
Send the required paperwork to the National Court Register together with the registration fee. Once approved, your company will receive a KRS number, indicating its official registration.
Obtain a REGON Number
After registering with the KRS, you’ll need to obtain a REGON (statistical) number from the Central Statistical Office (GUS). This number is essential for tax and statistical purposes.
Register for VAT
If your company plans to conduct taxable activities, you’ll need to register for VAT (Value Added Tax) with the Tax Office. Once registered, you’ll receive a VAT identification number.
Obtain Necessary Permits and Licenses
You may require extra licenses or permissions based on the type of business. For example, you will want health and safety licenses if you are starting a restaurant.
Types of Business Entities in Katowice
The different types of business entities in Katowice that entrepreneurs could choose for company formation are
1. Sole Proprietorship (Indywidualna Działalność Gospodarcza – IDG):
- Owned by a single individual.
- All business debts are the owner’s responsibility.
- Simple registration and minimal formalities.
2. Civil Law Partnership (Spółka Cywilna – SC):
- Non-commercial partnership.
- Suitable for professional services.
- Partners are personally liable for the partnership’s obligations.
3. Registered Partnership (Spółka Jawna – SJ):
- Commercial partnership.
- Partners are personally liable for the partnership’s obligations.
- Must be registered in the National Court Register.
4. Professional Partnership (Spółka Partnerska – SP):
- Geared at professionals including accountants, physicians, and lawyers.
- Partners are liable only for their actions and not for the actions of other partners.
5. Limited Partnership (Spółka Komandytowa – SK):
- Has two types of partners: general partners (who are personally liable for partnership debts) and limited partners (who are only liable up to the amount they invested).
6. Limited Joint-Stock Partnership (Spółka Komandytowo-Akcyjna – SKA):
- Similar to a Limited Partnership but can issue shares.
- General partners are personally liable, while shareholders are not.
7. Limited Liability Company (Spółka z Ograniczoną Odpowiedzialnością – Sp. z o.o.):
- The most common type of corporate entity for foreign investors.
- Shareholders are not personally liable for the company’s debts.
- Requires a minimum share capital.
8. Joint-Stock Company (Spółka Akcyjna – SA):
- Suitable for large businesses and those planning to list on the stock exchange.
- Requires a higher minimum share capital than a limited liability company.
- Shareholders are not individually accountable for the obligations of the firm.
9. Branch Office:
- Foreign companies can establish a branch in Poland.
- The branch can conduct business activities in its name but is dependent on the foreign parent company.
10. Representative Office:
- Established by foreign entities to represent their interests in Poland.
- Cannot conduct commercial activities.
Documents required for Company registration in Katowice
Some of the documents required for company registration in Katowice are:
1. Company Name Reservation:
Before you can register your firm, you must guarantee that the name you choose is unique and not currently in use. This requires:
- A list of preferred company names.
- A search result from the National Court Register (KRS) confirms the name’s availability.
2. Articles of Association:
This is a fundamental document that explains the company’s purpose, operating procedures, and shareholders’ rights and duties. It should be notarized.
3. Application Form:
An application form for entering the company into the National Court Register (KRS) is required. This form will ask for details about the company, its founders, and its intended business activities.
4. Proof of Address:
You’ll need a document that confirms the company’s registered address in Katowice. This could be a rental agreement, lease, or proof of property ownership.
5. Tax Registration:
For tax purposes, you’ll need to obtain an NIP (Tax Identification Number). This requires:
- A completed NIP-7 form.
- Proof of identity of the company’s representatives.
6. Shareholders and Directors:
Details of the company’s shareholders and directors, including:
- Full names.
- PESEL numbers (Polish national identification numbers) or passport numbers for foreigners.
- Declarations from board members about not being convicted of certain economic crimes.
7. Bank Certificate:
Proof that the company’s share capital has been paid up. This is typically a bank certificate confirming the deposit of the initial capital in a dedicated company bank account.
8. Permits and Licenses:
You may require particular permissions or licenses depending on the nature of your firm. For example, if you want to start a restaurant, you’ll require health and safety licenses.
Advantages of Company Incorporation in Katowice
Here are the advantages of company formation in Katowice:
- Low Operating Costs: Katowice has lower rental costs, labor costs, and utility rates than other major European cities. This can reduce overheads for both startups and established companies.
- A Talented Workforce: Katowice is home to several universities and educational institutions, which have produced a large pool of professionals with varying degrees of expertise. With a strong focus on education, Katowice produces a steady flow of graduates.
- Business Environment: The local government of Katowice takes proactive measures to foster a business-friendly environment. Entrepreneurs and investors can take advantage of a variety of incentives, grants, and support programs.
- Modern Infrastructure: Katowice invests heavily in its infrastructure. From roads and public transportation to the International Congress Centre, which is state-of-the-art. It is easy to conduct business and host international events.
- Strategic location: Katowice, located at the crossroads of major European routes is a hub for logistics and transportation. The proximity of Katowice to other major Polish cities and neighboring countries allows businesses to access a large market.
Cost of setting up a business in Katowice
The cost to register a company in Katowice includes:
- Registration fee – PLN 600 (EUR 140)
- Company formation fee – PLN 1,000-2,000 (EUR 220-440)
- Virtual office cost – PLN 100-200 (EUR 22-44) per month
- Accounting costs – PLN 500-1,000 (EUR 110-220) per month
- Minimum share capital – PLN 5,000 (EUR 1,100)
Company registration in Katowice is a crucial step for entrepreneurs and businesses aiming to establish a legitimate presence and operate within the legal framework of the region. The process ensures that businesses adhere to local regulations, pay the necessary taxes, and contribute to the economic growth of Katowice.
You may also contact our experts from OnDemand International to register a company in Katowice. Our experts will assist you through the procedure and help you gather the necessary documentation.
Depending on the intricacy of the company structure and other considerations, registering a Limited Liability Company (sp. z o.o.) might take anywhere from a few days to a few weeks.
A Limited Liability Company (sp. z o.o.) must have a minimum share capital of PLN 5,000.
Yes, a company registered in Katowice should have a registered office address within the city or its vicinity.
Yes, foreigners can be both directors and shareholders in Polish companies.
- Choose a company name and check its availability.
- Draft the Articles of Association.
- Open a bank account and deposit the share capital.
- Register the company with the National Court Register (KRS).
- Obtain a REGON statistical number.
- Register for VAT (Value Added Tax) if necessary.
- Register with the Social Insurance Institution (ZUS) if hiring employees.
Katowice, being a significant city in the Silesian region, often offers various incentives for businesses, especially in sectors like IT, R&D, and more. It’s best to check with local authorities or investment agencies for current incentives.