Set Up a Software Development Business in Poland: Complete Steps

It’s a smart decision if you’re thinking about opening a software development company in Poland. Poland has been a leading location for software development outsourcing due to its highly trained IT experts, affordable costs, and ideal business environment. However, what actions must you take to launch your business successfully?

In this article, we’ll guide you through the process of establishing a software development business in Poland. We will provide you with all the information you need to launch your business, from comprehending the legal requirements and company formation procedures to navigating the hiring process and investigating your choices for funding.

Benefits of Setting Up a Software Development Business in Poland

• Skilled Talent: Large pool of highly qualified IT workers with strong education, technical expertise, and English fluency.
• Cost Advantage: Competitive costs compared to other European nations, offering excellent quality at lower labor prices.
• Business-Friendly Environment: Stable economy, attractive tax laws, and government support for IT investment.
• Regional Proximity: Easy collaboration with partners and clients in Western Europe due to geographic location.

Requirements for Establishing a Software Development Business in Poland

1. Business Structure: For software development companies, limited liability corporations (Sp. z o.o.) and joint-stock companies (S.A.) are the most popular options. 
2. Business Name: You need to select a name for your software development company in Poland.
3. Business Registration: You need to register your business in Poland with the National Court Register (KRS) and obtain a tax identification number (NIP) after choosing a legal structure. Additionally, depending on the nature of your software development operations, you might need to apply for particular licenses or permits.

Procedure to Register a Software Development Business in Poland

Select the Right Business Structure:

One of the first steps for registering a software development business in Poland is to select the right business structure. As previously stated, joint-stock corporations (S.A.) and limited liability companies (Sp. z o.o.) are the most popular options.

• Polish Limited Liability Company: For small and medium-sized enterprises, a limited liability company (Sp. z o.o.) is the best type of company that can be formed in Poland. It gives shareholders minimal liability protection, enabling them to keep their personal assets and business obligations apart. This form also permits flexibility in terms of management and ownership.
• Joint Stock Company: A joint-stock company (S.A.), on the other hand, is appropriate for larger companies with substantial capital needs. It gives more alternatives for obtaining money through initial public offerings and permits the issue of shares. However, the formation process and ongoing reporting obligations are more complex compared to a limited liability company.

Choose a business name

Once the business structure is selected, you can choose a name for your business. Select a unique and suitable name that doesn’t match the name of any existing businesses in Poland. Once the name is selected, reserve the chosen name with the relevant authority.

At OnDemand International, we can assist in registering and reserving the business name with the relevant authority.

Gather the required documents

Gather the required documentation to register your software development company in Poland. 

If you register your business with us, we can also assist you in collecting the various documentation.

Proceed with Business Registration

After that, register your software development business in Poland with the relevant Polish authority.

At OnDemand International, we can help you register your Polish business with the relevant authorities.

Navigating the Tax System for Software Development Businesses in Poland

Comprehending Poland’s tax structure is vital for efficiently managing a software development enterprise. Poland’s personal income tax system is progressive, with rates ranging from 17% to 32%. It will also be your duty as an employer to take out and send in your workers’ social security contributions.

Poland has a flat corporation tax rate of 19% on business profits. Software development companies can, however, greatly lower their tax burden by making use of specific tax benefits and exemptions that are available for research and development operations.

Forming Alliances and Cooperations in the Software Development Sector

For your software development company in Poland to grow and succeed, you must establish strategic alliances and partnerships. Working together with other businesses, academic institutions, and research centers can open up new markets, inventive chances, and important resources.

You can join associations for professionals, go to industry events, and become involved in the local IT community to build relationships. Building connections and a network with possible partners can lead to new business prospects and promote the sharing of expertise.

Funding Options for Software Development Startups in Poland

Venture Capital:

• Expanding ecosystem with money actively invested in cutting-edge businesses.
• Provides funding in exchange for equity.

Government Grants & Subsidies:

• Available for research and development projects.
• Can significantly reduce financial burden.

Conclusion

Poland offers many opportunities for establishing a software development business. Companies wishing to outsource their software development needs find the nation to be an appealing destination due to its highly qualified IT workforce, competitive rates, and positive business environment.

You can position your software development company for growth and profitability in Poland by comprehending the legal requirements, selecting the best business structure, navigating the tax system, locating qualified software developers, forming partnerships, and obtaining funding choices.

With the assistance of OnDemand International, your software development company in Poland can prosper in the dynamic and exciting IT market with proper planning and execution. Contact is today to set up your business presence in Poland.