Starting a Company in Poland from India in 2024 | Guide for Indian Entrepreneurs

Overview: Start a Business in Poland from India in 2024-25

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 of registering a company in Poland from India, highlighting the legal framework, business entities, tax implications, and advantages for Indian businesses.

Why Indian Entrepreneurs Starting their Businesses in Poland

Some of the compelling reasons for why Indian entrepreneurs starting their businesses in Poland includes:

• 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 Companies Structures 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:

1. Spółka z ograniczoną odpowiedzialnością (Sp. z o.o.) – Limited Liability Company:

• Poland’s limited liability company is perfect for small and medium-sized businesses.
• Needs a minimum share capital of PLN 5,000.
• Offers limited liability protection to shareholders.

2. Spółka Akcyjna (S.A.) – Joint Stock Company:

• A joint stock company in Poland is suited for larger enterprises seeking public trading.
• Needs a minimum share capital of PLN 100,000.
• Offers limited liability to shareholders.

3. Spółka Komandytowa (S.K.) – Limited Partnership:

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

4. Spółka Jawna (S.J.) – General Partnership:

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

How to Register a Company in Poland from India?

1. Choose a Name for Your Enterprise: 

Select a unique name that hasn’t been taken already. Ensure it accurately describes your business’s operations and is easier to remember. Once the name is selected, register and reserve the business name with the relevant Polish authority.

2. Prepare Articles of Association: 

Draft the essential document that describes the goals of your business, the management team, the amount of equity invested, and other pertinent information.

3. Appoint Company Directors: 

Identify individuals responsible for managing the company’s affairs.

4. Obtain a PESEL Number (If Applicable): 

In order to open a business, non-EU nationals may need to obtain a PESEL, or Polish identification number.

5. Create a Bank Account in Poland: 

It is necessary to set up a bank account in order to deposit the share capital of your business.

6. Register with the National Court Register (KRS): 

Submit your application and supporting documents to the KRS, the official Polish company register.

7. Register for VAT and Tax (If Applicable): 

Businesses operating in Poland are required to register for VAT and, if applicable, get a Tax Identification Number (NIP).

8. Obtain the Licenses and Permits Necessary:

Based on the nature of your business, you may require licenses and permits relevant to your industry.

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 Entrepreneurs to Setup their company in 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 to register your business in Poland.