How to Register a Company in Poland from India? | Guide for Indian Entrepreneurs

India and Poland share a robust trade relationship, fueled by mutual economic interests and opportunities. Poland presents a viable option for Indian business owners wishing to take their enterprises worldwide. Poland has developed into a desirable place for international investment due to its advantageous geographic position, thriving economy, and investor-friendly laws. 

In this article, we’ll explore the process to register a company in Poland from India, highlighting the legal framework, business entities, tax implications, and advantages for Indian businesses.

How to Register a Company in Poland from India?

• The fist step is doing market research and prepare a articulated business plan. Conduct a through market research to understand the industry, target audience and competitions. Afterwards, prepare a business plan in which you have to mention your objectives, strategies and financial projections.
• The second step is choose a business structure according to your business niche. There are different types of business structure in Poland such as sole trader, partnership, limited liability company (S.P.Zoo) and joint-stock company. S.P.Zoo is the famous business structure choose by the entrepreneurs due to its benefits.
• The third step is choose and verify your business name. Make sure your desired name is unique and not already used. You can verify your business name by checking in the database of National Court Register (KRS).
• The fourth step is preparing an article of association (AOA). Prepare an AOA of your company which includes company’s name, registered office address, share capital and share distribution, rights and duties of a shareholder and responsibilities of a management board.
• The fifth step is, you need to register your business with the National Court Register (KRS). After submitting your article of association and other required document to the KRS, your company officially establishes as a legal entity.
• The sixth steps is opening a separate corporate bank account for your business. Opening a corporate bank account in Poland will manage your business finances. This account will be used for depositing share capital, receiving payments, and handling day-to-day transactions.
• The seventh step is depositing the share capital. To incorporate your S.P.Zoo, you need to deposit your minimum share capital into your corporate bank account. The minimum share capital to incorporate your S.P.Zoo in Poland is 5000 Polish zloty.
• The eight step is appoint a management board. You need to appoint a management board who will be in charge for the company’s day to day operations and decision making.
• The ninth step is to obtain a required permits and business licenses. You need to obtain specific permits and business licenses in order to perform your business activities. You can read PKD list where you find out business activities codes and the required permits and licenses.
• The tenth and final step is VAT registration. If your business activity require a VAT number, you need to do VAT registration. You can apply for VAT number with the Polish tax authorities.

Why Consider Registering a Company in Poland for Indian Businesses?

Before delving into the process, let’s explore the advantages of registering a company in Poland:

• Gateway to the European Union: Poland’s EU membership provides seamless access to the vast European single market, with its 500 million+ consumers.
• Business-Friendly atmosphere: Poland continuously ranks highly for ease of doing business, demonstrating its pro-business atmosphere.
• Competitive Tax Rates: Poland is financially appealing due to its favourable tax rates and benefits.
• Talented and Educated Workforce: The nation boasts a sizable, highly qualified labour force that is perfect for enterprises operating in a variety of industries.
• Advanced Infrastructure: Poland’s vast air, rail, and road transportation networks guarantee efficient logistics and seamless business operations.

Types of Corporate Entities in Poland for Indian Entrepreneurs

When setting up a business in Poland, Indian entrepreneurs can choose from various business entities, each with its own legal structure and requirements:

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

• Perfect for small and medium-sized businesses.
• Needs a minimum share capital of PLN 5,000.
• Offers limited liability protection to shareholders.

Joint Stock Company (S.A.):

• Suited for larger enterprises seeking public trading.
• Needs a minimum share capital of PLN 100,000.
• Offers limited liability to shareholders.

Limited Partnership:

• Consists of general partners (responsible for debts) as well as limited partners.
• Flexible management structure.
• No minimum share capital requirement.

General Partnership:

• The simplest form of partnership.
• All partners have unlimited liability for debts.
• No minimum amount of capital is needed.

Tax Implications for Indian Businesses Operating in Poland

Understanding the tax implications is crucial for Indian businesses operating in Poland:

• Corporate Income Tax: Polish companies are subject to a flat corporate income tax rate of 19%.
• Value Added Tax (VAT): VAT applies to most products and services at varying rates, with the usual rate currently set at 23%.
• Double Taxation Avoidance Agreement (DTAA): India and Poland have a DTAA in place to prevent double taxation on earnings generated in both nations.
• Tax Incentives: Poland offers various tax incentives and exemptions to encourage investment in specific industries or regions.

Advantages for Indian Businesses Expanding to Poland

Cost-Effective Operations: 

When compared to other Western European nations, Poland has reasonable labour, rent, and operating costs.

Growing Consumer Market: 

Poland’s expanding economy and increasing disposable income present a promising consumer market.

Supportive Government Initiatives: 

The government has implemented incentives and programs to encourage international investment.

Talent Pool: 

Polish experts are well-known for their technological know-how and linguistic abilities across a range of industries.

Conclusion

Establishing a business in Poland from India gives you access to fresh chances and expansion potential in a thriving European market. Indian business owners can confidently complete the registration process if they are aware of the advantages of conducting business in Poland, including the tax ramifications and regulatory framework. 

OnDemand International has assisted numerous businesses in entering and registering their business in the Polish economy and can assist you with registering your company in Poland in about 2-4 weeks. Contact our professionals now to embark on your business expansion journey in Poland.