Known as the “Polish Silicon Valley,” Krakow has become a central European centre of innovation and industry. Due to its advantageous location, dynamic culture, and rich history, the city is a popular choice for company establishment. This thorough guide will take you through the process of business creation in Krakow, stressing crucial elements and crucial factors.
Company Formation Process in Krakow
For the company formation process in Krakow, you need to follow the following:
Business Plan: Write a detailed business plan that outlines your company’s objectives, financial projections, and operations. This document is frequently required to obtain financing and can serve as a guide for your business.
Select Your Business Entity: Choose the best business structure for you. This decision impacts your liability, taxes, and administrative requirements.
Reserve the name of your company: Make sure that you have chosen a unique name and that it has not been registered by any other entity. You can reserve a name at the National Court Register.
Open a Business Bank Account: You will need to have a business account to conduct financial transactions. The majority of banks in Krakow provide dedicated services to businesses.
Tax registration: Register your business for tax purposes including VAT, income taxes, and social security contributions.
Register Your Business: Register your business with the National Court Register. You can do this online or in person at the registration office.
Get the necessary permits and licenses: This will depend on your type of business and industry. To engage in lawful operations, it may be necessary to get particular permissions or licenses. These are important to research and acquire as needed.
Compliance with Accounting and Reporting requirements: Maintain accurate accounting records and submit regular financial reports to the relevant authorities.
Types of Business Structures in Krakow
The different types of business structures in Krakow are:
- Sole Proprietorship (Działalność Gospodarcza): A sole proprietorship is the most basic and uncomplicated structure of a company entity, whereby it is both owned and managed by a solitary person. The platform provides a simple and uncomplicated registration process, but, it lacks the provision for distinguishing between personal and company assets.
- Limited Liability Company (Spółka z Ograniczoną Odpowiedzialnością, or Sp. z o.o.): An Sp. z o.o. is a commonly selected option among small to medium-sized enterprises. The company provides a level of security for its owners by limiting their liability and also mandates a minimum amount of share capital.
- Joint-Stock Company (Spółka Akcyjna, or S.A.): A Société Anonyme (S.A.) is a more intricate and appropriate alternative for enterprises of greater scale. The entity necessitates a greater threshold for the minimum share capital and is subjected to a more comprehensive set of regulatory obligations.
- Partnership: Partnerships, such as general partnerships (spółka jawna) and limited partnerships (spółka komandytowa), are well-suited for enterprises that have several proprietors seeking to distribute both obligations and financial gains.
Documents Required for Company Registration in Krakow
The list of documents required for company registration in Krakow are
Articles of Association: This document outlines a company’s name and address, its purpose, the share capital and the rights and responsibilities of shareholders. This document must be notarized.
Notarized copies of shareholders’ ID/passports: all shareholder identification documents must notarized.
Proof Of Address: To register your office in Krakow, you will have to show proof. You can use a lease or a letter of confirmation from the owner confirming the address.
Bank certificate: An official bank document confirming the deposit of share capital into a Polish account. The share capital amount will depend on the type of business you are setting up. For example, a limited-liability company must have a minimum of PLN 5,001.
Tax Identification Number: Foreign individuals should get a Polish Tax Identification Number. The local tax office is responsible for this.
PESEL Number (Personal Identification Number): Shareholders who are Polish nationals may be required to provide their PESEL numbers.
Form KRS (National Court Register): This form contains details about the company, its shareholders and other information. This form is used to register in the National Court Register.
Advantages of Starting a company in Krakow
Some of the advantages of starting a company in Krakow are:
Optimum Location: Krakow is strategically located near major European markets such as Germany and the Czech Republic. This makes it a great base for businesses looking to expand.
Skilled Workforce: The city has several universities of international renown, which produce a constant stream of highly skilled graduates in different fields.
Technology Ecosystem: Krakow has a thriving tech ecosystem. Numerous startups and tech firms are located in the city. This ecosystem encourages collaboration and innovation.
Business-Friendly Environment: Poland is a friendly business environment with easy company registration and attractive tax incentives.
Cultural Appeal: Krakow is a destination that attracts both businessmen and employees due to its rich cultural heritage.
Taxation for Company Formation in Krakow
A full understanding of the tax system in Poland is necessary for the effective establishment of a business in Krakow. Poland imposes a corporate income tax rate of 9%-19% on the profits generated by companies. Furthermore, enterprises may be liable for Value Added Tax (VAT) and other forms of taxation, contingent upon their operational scope and revenue.
Conclusion
Starting a business in Krakow opens up a lot of doors for entrepreneurs who want to get in on the business boom in Central Europe. Krakow is a great place for both new and existing businesses to set up shop because of its strategic location, skilled workforce, and friendly business environment.
It may seem hard to start a business in Krakow but with careful study and the help of an OnDemand International expert, you can easily meet all the legal and administrative requirements. Whether you’re an entrepreneur in Krakow or an investor from another country, the city’s dynamic environment is ready to help you reach your business goals and encourage growth.
FAQ’s
The typical duration for business registration in Krakow is about 4-5 weeks.
The share capital does a limited liability business in Krakow that needs to start up is PLN 5000.
The corporate tax rate for Krakow-based businesses is 19%
