Real Estate Consulting Business In Poland: Process & Documentation

Are you an aspiring entrepreneur looking to venture into the lucrative realm of real estate consulting? For entrepreneurs looking to get their foothold in the European market, Poland offers an alluring prospect. Poland has a favourable environment for investment and expansion due to its robust economy, advantageous location, and rapidly expanding real estate industry. 

In this guide, we will walk you through the process of setting up a real estate consulting business in Poland, covering everything from the current real estate landscape to company registration and tax obligations.

Overview of the Present Real Estate Market in Poland

The Polish real estate market has experienced a remarkable expansion in a number of areas. Rising domestic demand and an increasing number of foreign residents are fueling the boom in residential development. There are large investments being made in office spaces, logistical facilities, and retail parks in the commercial sector. In addition, rising tourism is fueling a boom in the hospitality industry. There are numerous chances for real estate consultants with specific knowledge in this vibrant and diverse industry.

Why Should Your Real Estate Consulting Business Be Based in Poland?

Poland’s strategic location at the intersection of Europe makes it an ideal starting point for accessing both Eastern and Western markets, thanks to its strong logistics infrastructure and great connectivity.

• Stable Economy: Poland’s economy is robust and stable, with consistent GDP growth, low inflation, and an advantageous business environment. Being more resilient to economic downturns than many of its European peers, the nation is a desirable place to invest.
• Growing Real Estate Sector: With increasing urbanization and infrastructure development, Poland’s real estate market presents abundant opportunities for consulting firms. Whether it’s residential, commercial, or industrial properties, there is a high demand for professional advisory services to navigate the complex market dynamics.
• Supportive Business Environment: Poland provides a business-friendly climate that includes expedited company registration procedures, advantageous tax incentives, and skilled labour force accessibility.

Step-by-Step Process for Registering A Real Estate Consulting Business in Poland

Setting up a real estate consulting business in Poland involves several steps, including company registration, tax registration, and obtaining necessary permits/licenses. 

Here’s a step-by-step guide to help you navigate the process:

Choose a Business Name: 

Select a unique name for your company that complies with Polish regulations and reflects the nature of your business.

Create the Articles of Association: 

The articles of association, include the purpose of the firm, share capital, management structure, and any other pertinent information.

Register the Business: 

Submit the required paperwork, such as the articles of association, to the National Court Register (Krajowy Rejestr Sądowy) or the appropriate registry court. Following registration, you will get a registration number (KRS number) and a tax identification number (NIP).

Open a Bank Account: 

Open a corporate bank account with a Polish bank to conduct business transactions and manage finances.

Obtain Necessary Licenses: 

Depending on the nature of your real estate consulting business, you may need to obtain permits or licenses from local authorities or regulatory bodies.

Register for Tax Purposes: 

Register your company for tax purposes with the tax office (Urząd Skarbowy) responsible for your business’s location. You will be assigned a tax identification number (NIP) and might have to register for VAT if your yearly turnover surpasses the threshold.

Required Documentation for Registering a Polish Real Estate Consulting Company

When registering a real estate consulting business in Poland, you will need to prepare the following documentation:

• Articles of Association: A legal document outlining the company’s structure, purpose, share capital, and management rules.
• Identification Documents: Copies of passports or ID cards for shareholders, directors, and other authorised representatives.
• Proof of Address: Documentation confirming the registered office address in Poland, like a utility bill or leasing agreement.
• Bank Reference: A reference from the company’s bank confirming the deposit of share capital into the corporate bank account.
• Power of Attorney: A power of attorney paperwork could be necessary if designating a representative to operate on the company’s behalf.
• Tax Identification Number (NIP): Upon registration, you will receive a tax identification number issued by the tax office.
• Registration Forms: Completed application forms for company registration and tax registration.

How Do You Pick the Best Business Structure for Your Polish Real Estate Consulting Company?

Before establishing your real estate consulting business in Poland, it’s essential to select the right business entity that fits your objectives and preferences. The most common forms of business entities in Poland include:

1. Limited Liability Company ( Sp. z o.o.) 

This is the preferred choice for small to medium-sized businesses, offering limited liability protection for shareholders and a flexible management structure.

2. Joint Stock Company (S.A.) 

A joint-stock corporation is a great option for larger businesses looking to raise money through IPOs since it gives shareholders transferable shares and limited liability.

3. Partnership

Partnerships provide management and tax flexibility, making them an excellent choice for businesses with several owners.

Think about things like capitalization requirements, administrative requirements, tax ramifications, and liability protection when choosing a business structure. 

Tax Registration

Registering your real estate consulting business for tax purposes in Poland is a crucial phase in making sure you are in compliance with your tax requirements. The main taxes applicable to businesses in Poland include:

• Corporate Income Tax (CIT): Companies are subject to CIT on their global earnings at a flat rate of 19%. Certain deductions and incentives may apply based on the type of business activity and investment incentives.
• Value Added Tax (VAT): VAT is levied on the sale of products and services in Poland at general rates ranging from 5% to 23%. Companies that have more annual revenue than a certain amount are required to register for VAT and submit periodic VAT returns.
• Personal Income Tax (PIT): Individual shareholders or directors may be subject to PIT on their income derived from the company, including salaries, dividends, and other benefits.
• Social Security Contributions: Employers must deduct and submit social security contributions on behalf of their workers, covering pension, health insurance, and unemployment benefits.

Conclusion

Setting up a real estate consulting business in Poland provides access to a booming industry full of prospects for expansion and success. By leveraging Poland’s strategic location, stable economy, and supportive business environment, foreign entrepreneurs can establish a foothold in the European market and capitalize on the country’s dynamic real estate sector. Poland offers a wide variety of investment opportunities for consulting businesses with industry experience and strategic insights, ranging from residential to commercial buildings.