Register for Cryptocurrency Company In Poland
In the year 2014, Polish government officials denied accepting bitcoin as a currency. However, they said that contracts that were based on the base index were full-fledged financial instruments, subject to standard guidelines.
Although they are not explicitly legally defined, they aren’t considered to be a fiat currency but can be legally traded within the country. Mining, the buying or sale of cryptocurrency is not considered to be a prohibited activity.
Since the beginning of November 2021, the business of trading in virtual assets has been an officially regulated industry in Poland. Firms that engage in this type of activity are expected to register with the state in a distinct register for cryptocurrency-related businesses and obtain the appropriate license.
Due to the tremendous growing popularity of cryptocurrency, physical manifestations of which are Bitcoin, ATMs, Poland has been transformed into a country in which cryptocurrency-related businesses, such as selling, mining, and purchases of cryptocurrency assets – are regulated and monitored by the national authorities.
If you are looking out to register for a cryptocurrency company in Poland, read the complete guide, on how to get the license, document requirements, and the entire procedure.
If you’re looking to obtain approval to use cryptocurrency within Poland, it is beneficial to know that beginning in October 2021, users are required to be identified when transactions exceed 1000 EUR. Prior to that, the threshold had been 15,000 EUR.
Registration of businesses engaged in activities related to cryptocurrency
As was explained earlier the company does not have to be granted a crypto license to operate in Poland for legal purposes in the area of cryptocurrency, however, it must be registered in the relevant state register for commercial transactions.
The regulation of digital currencies in Poland is based on an application form for registration, not a license form. To be admitted, an entrepreneur in the cryptocurrency industry must be able to meet certain formal requirements.
However, it is true that not every business that specializes in cryptocurrencies must adhere to the AML regulations. For instance, websites offering informative information about cryptocurrency or consulting firms aren’t required to comply with the requirements of the new registry.
Registration requirements for mandatory registration in a separate register apply to crypto-related companies operating in Poland offering these services:
- The exchange of virtual currencies to fiat currency (exchangers or crypto exchanges);
- The exchange of virtual currencies;
- Provision and management of virtual currency (wallets);
- Intermediation (brokerage) to facilitate swapping virtual currency.
This register is managed and monitored under the supervision of the Ministry of Finance of Poland. In the event of conducting business that involves virtual currencies that do not have an entry into the registry, a penalty as high as PLN 100,000 can be available.
Conditions for launching a cryptocurrency business in Poland
The first step in operating a legitimate company in Poland is to establish a corporate structure there in accordance with Polish legislation. Your corporate organization will be authorized to apply for a crypto license in Poland. A valid license ensures the safety of your enterprise.
The procedures for obtaining a cryptocurrency license in Poland include the following conditions:
- Register and maintain a domestic corporate structure
- Establishing a regional business office
- Requesting authorization from the Polish Tax Departments
- Gathering details regarding company authorities
- Gathering of documentation attesting to the legitimacy of the source of the funds
Requirements for people who plan cryptocurrency-related activities
In accordance with the new features that were made by the “AML Law”, which started to take effect on November 1st, 2021.
There are two primary conditions.
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Documents Required to Register for Cryptocurrency Company In Poland
In order to begin the registration process for cryptocurrency-related projects in Poland you’ll need all the documents listed below:
The client will also require various options to name the business. We will verify the registry to determine if the names listed are free.
NOTE: Apostilled registration documents can be provided for an additional charge:
- An extract of the State Register in Polish with an apostille of 350 euros
- A chart in Polish with an apostille for 350 euros.
Stages of crypto authorization - obtaining a crypto license in Poland
1. The preparation and submission of documents to register a business in Poland
The price of the services provided by ODINT Consulting specialists includes:
- Making the documents needed for remote registration
- Two electronically signed Signatures (an EDS will be required for each founder or director, plus an additional EDS of 250 euro).
- Payment of all state charges related to an entity’s registration.
- The preparation of declarations for the first time in the form of initial declarations as well as to the beneficiary register;
- Service of renting a legal address and a mailbox for a year.
NOTE: The remote reception of an EDS can be achieved by obtaining a certificate through the Polish consulate for its signature.
2. Finding the Polish tax ID number PESEL
You’ll need the Polish tax ID number to fill out an online application on the ePUAP government services platform.
If we’re discussing remote reception of PESEL, the procedure involves:
- The translation director’s passport with an Apostille (if the document was authenticated by a notary from a foreign country and not at the Polish consulate) which is done in Poland;
- Courier dispatch of a form acknowledging the receipt of the PESEL Tax number and a copy to the customer.
The deadline for the receipt of PESEL can be up to thirty days after the date the client submits the original documents and translations.
The next step is to visit the Polish consulate to start activating ePUAP. It is recommended to bring your passport as well as proof from the PESEL tax ID with you to the. Once activated, we will send an application for registration to the Registry of companies operating on cryptocurrency.
If you are planning the personal travel to Poland the process of obtaining a PESEL tax number, in terms of duration is greatly accelerated, and only requires one day.
3. Registration of the company on the register of organizations involved in the subject of cryptocurrency
At this point it is time to follow the steps followed:
- The preparation of documents to enter the company in the register of companies that work on the subject of crypto;
- The payment of state-related fees to this
- The AML process is available in Polish.
The deadline to make an entry for the crypto company on the registry is 14 days from the time when the Director of the business applies ePUAP.
If there are any concerns about the register, the rules may be extended by another 14 days starting from the time the letter is sent out by the registry to the client’s ePUAP mailbox.
Cost of Cryptocurrency license in Poland
The price to use the service ” cryptocurrency license in Poland “from ODINT Consulting on an all-inclusive basis will be 9999 EUR.
- It encompasses all of the procedures above.
- The registration of a crypto-related company in Poland
The process of registering a crypto company in Poland and subject to established regulations isn’t as complicated as it is in countries in the European countries. This applies to both foreign and local investors. The procedure for establishing the Polish business for cryptocurrency businesses is similar to any other type of corporate organization.
Please note: The whole registration process can be between two weeks and one month, based on the selected legal and organizational form of the business. Registration can be completed via two methods either online or in-person in a notary. The professionals of ODINT Consulting offer the option of registration via remote prioritizing registration.
Procedure to Register for Cryptocurrency Company In Poland
- The new business must be registered under an original name.
- The company must have a registration with CEIDG (Central Register of Economic Activity) and of the KRS (National Court Register).
- For various legal and organizational types of business, regulations are placed on the minimum permitted capital and the management structure.
- If you register on the internet and the signature is electronically signed, as well as a profile that is trusted on the ePUAP’s government services is required.
- Electronic identification will be needed in the near future to enable remote administration of tasks such as coordinating correspondence with the state’s administrative officials, such as the tax office and ZUS (Social Security Administration).
- In the event that there are more than 5 employees on the staff, electronic correspondence with the government is mandatory.
- The most suitable form that foreigners can use to do business operating in Poland is an LLC. Other forms are not accessible to all foreigners.
- In the process of registering a business, it is important to determine the appropriate code of the activities as per the classification system that is PKD
- The various types of activities can be listed in the memorandum of agreement (analog to the charter). For the next time, you’ll need to select 10 codes that appear on the KRS business register.
- The minimum authorized capital of the LLC within Poland is the amount of PLN 5,000. The capital authorized for an LLC within Poland can be considered to have been created at the time that the memorandum is signed by the organization.
- Once a business is registered it is required to establish a bank account in Poland.
- Within seven working days of the day of the date when registration was made it is mandatory to provide information about the beneficiaries’ final names to a specific registry. Infractions to this obligation is subject to the possibility of a fine of up 1 million PLN.
- Within 21 days of the day of the initial registration, the NIP-8 form that has been completed must be submitted to the tax department at the address of registration which will provide information about the account at the bank and the accounting of the business.
Legal innovations that are related to business with cryptocurrency
In November of 2021, the conducting of business in the area of exchange of virtual assets has been regulated in Poland. Businesses that engage in these activities have to go through the government registration procedure, which is an additional register for cryptocurrency companies.
Entrepreneurs are included in the register only if they meet specific formal conditions. The process of registration can be considered to be similar to getting a license for any activities that are related to cryptocurrency. Various operations of crypto in Poland were legally legal up until the end of November 2021 because there were no laws restricting the exchange and trading of cryptocurrency.
After the effective date of the changes of the AML Law (“AML Law”), the area of responsibility for companies involved in trading with cryptocurrency has been expanded.
Important changes include the requirement to register cryptocurrency transactions to prevent the illegalization (laundering) of income as well as the setting of limits for transactions in cryptocurrency.
In general, regulations for the regulation of cryptocurrencies as well as related activities are being developed in Poland in the early stages of their implementation. According to the AML Law, virtual currency is defined as a digital form of value that isn’t legally recognized as a legal tender.
The Polish Parliament passed the Law on Combating Money Laundering and Terrorist Financing on March 1, 2018, as the basis of the implementation of the provisions of the so-called 4th EU Directive against money laundering.
The provisions in the directive are designed to speed up the process of checking suspicious cryptocurrency transactions as well as the exchange of virtual currencies in exchange for fiat currency. In March of 2021 lawmakers approved amendments to this Law that came into force on the 31st of October 2021.
In the same way, members of a state may decide to comply with the directive’s requirements in one of three methods 3 ways:
- An application for a cryptocurrency license could be introduced;
- There is the possibility to create an organization register that does business in the area of cryptocurrency;
- You may choose to define the services of virtual currency exchange as a form of financial service that will require those organizations that are involved to get financial licenses.
Restricting the number of anonym cryptocurrency transaction
Innovative developments in accordance with “the “AML Law” have affected the limits on transactions that are anonymous that involve cryptocurrency. The new KYC (Know Your Customer) threshold has been established for transactions using virtual currencies.
If the previous amount was 15,000 euros beginning on 31.10.2021 customers will have to be identified in case there are “accidental” transactions over 1,000 euros.
Businesses that engage in activities involving cryptocurrency will be required to implement security measures to protect financial information for transactions that are one-time in an amount that is greater than or equal to 1000 euros.
Also, it is not possible to purchase and sell crypto without verification if the amount of the transaction exceeds 1000 euros.
Note! The change will most likely affect ATMs with crypto. At the present, anonymous withdrawals are permitted only in amounts of up to EUR 1,000, while before this, the limit would have been EUR 15,000.
Taxation in Poland
Individuals and companies who reside in Poland must pay taxes on the following:
- CIT (Corporate Income Tax): Poland corporate income tax percent for sales that in the current year is not more than 2 million euros is 9% and it is 19 % if the sales are greater than 2 million euros..
- VAT (Value Added Tax): The VAT rate is 23%, however, lower rates of 8%, 5%, 0% are also applicable.
- The PIT (Personal Income Tax): Personal Income Tax can range from 17 percent to 32% based on the taxation method and the amount of profit made in the fiscal year.
- Dividend Tax: The tax on dividends is 19% for residents.
When hiring employees officially in the business the employer has to pay the following contributions to the health and social insurance, and to the pension fund which amounts to 60% of the total net.
In Poland, it is crucial to keep records of your accounting and file tax returns. VAT reporting is filed either monthly or quarterly. CIT declaration is made once per year. Tax payments for advance are made each month or quarterly.
Financial statements are presented every year. The general rule is that accounts payable services to an organization in Poland start at 150 EUR each month.
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As of now, Poland can be classified as one of the states in which cryptocurrency-related activities are controlled by the legislative system.
While a permit for cryptocurrency is not issued in Poland is not given, however, it can be replaced by the process known as crypto-authorization which includes the business in an additional register of companies that operate in the field that deals with virtual currency.
If you still have any queries related to obtaining a crypto license in Poland, we are ODINT Consultancy, here to help you out in each & every step of yours.
For a basic exchange with typical functionality, the development cost of a cryptocurrency exchange platform might range from $50,000 to $ 98,000.
A cryptocurrency the entrepreneur is required to be registered on the enterprise register for cryptocurrency in Poland
Find a crypto-license Step-by-step instructions
Select a country to run your business there.
Create a corporate account at the bank.
Check through the required documents needed to write the papers.
The authorities that regulate check if an organization is in compliance with rules.
Pay for mandatory charges and duty
The cost for this is $176,226 and an annual fee of $136,855.
Some of the most well-known trading platforms that support PLN include Bit.com Cryptocurrency Exchange, Bitpanda Cryptocurrency Exchange, and Bit.com Cryptocurrency Exchange.