Poland is not just a country with a rich history and vibrant culture—it’s a rising star in the global tech industry! With its thriving IT ecosystem, low operational costs, and a pool of world-class tech talent, Poland has become a magnet for entrepreneurs and startups aiming to make their mark in the digital world. Whether you’re a seasoned business owner looking for new prospects or a startup founder ready to disrupt the market, Poland offers the perfect launchpad.
Imagine building your IT business in one of Europe’s most dynamic countries. From the bustling innovation hubs of Krakow and Warsaw to government-backed incentives, everything in Poland screams opportunity. Dive into this guide to discover why there’s never been a better time to start an IT company in Poland.
Why is Poland a Hotspot for IT Companies?
Poland stands out as one of Europe’s leading tech destinations due to its perfect blend of resources and opportunities:
- Access to Talent: Over 400,000 IT specialists, with many excelling in software development, cybersecurity, and AI.
- Booming Startup Scene: Cities like Warsaw and Krakow host annual tech expos, hackathons, and accelerator programs.
- Affordable Operational Costs: Setting up and running an IT business in Poland costs significantly less compared to Western Europe.
- Strong Government Support: Numerous incentives, grants, and funding programs for IT and tech startups.
Legal Requirements to Start an IT Company in Poland
Before diving into the process, it’s essential to understand the legal framework.
Here’s what you should know:
1. Choose the Legal Form:
Poland offers numerous legal structures, but the Limited Liability Company (Sp. z o.o.) is the most common for IT businesses.
- Minimum share capital: PLN 5,000.
- Liability is capped to the capital contribution.
2. Register with Authorities:
- KRS (National Court Register): Mandatory for company registration.
- Tax Identification Number (NIP) and REGON (statistical number) are issued during this process.
3. Foreign Ownership Rules:
Non-EU residents can fully own companies in Poland, but registering a company might require appointing a local representative.
4. Compliance with IT Regulations:
- Ensure compliance with GDPR (General Data Protection Regulation).
- Licensing may be required for certain IT activities, like software development or data processing.
Process to Start an IT Company in Poland
In order to establish your IT business in Poland efficiently, you must follow the steps given below:
Step 1: Choose the Legal Structure
Poland offers several legal business structures.
Choose one that best suits your business goals:
- Sole Proprietorship: A sole proprietorship in Poland is ideal for small-scale operations.
- Limited Liability Company: A Polish limited liability company is the most common choice for IT businesses, offering limited liability for owners.
- Joint-Stock Company: A joint-stock company is suitable for larger operations with shareholders.
Step 2: Choose a Unique Name
When starting an IT company in Poland, your business must have a name that is distinct from other registered entities. This is crucial to avoid legal disputes as well as create a distinctive identity.
You can check the name’s availability through the National Court Register (KRS) database to avoid duplication.
Step 3: Gather the necessary documents
Gather the necessary documents for registration, including the Articles of Association (AoA), identification documents of founders and board members, proof of the company’s registered office address, and a deposit slip for the minimum share capital of 5,000 PLN (for LLCs).
Step 4: Register with the National Court Register (KRS)
Register your firm with the National Court Register (KRS) and submit the required documents and pay the registration fee. Once approved, your business will receive a unique KRS number that serves as its official identifier.
Step 5: Open a Business Bank Account
Open a business bank account in Poland which is crucial for handling transactions and depositing the minimum share capital, if applicable.
Step 6: Register for VAT
Finally, register for Value Added Tax (VAT) by filing a VAT-R form with the local tax office. This registration is essential for IT companies, as most services are taxable.
Documents Needed to Establish an IT Business in Poland
To streamline the registration process, ensure you have the following:
- Articles of Association.
- Proof of share capital deposit.
- Identification documents of shareholders and directors.
- Application forms for KRS registration.
- Business address proof (lease agreement or ownership documents).
- VAT registration documents (if applicable)
Best Places to Start an IT Business in Poland
Not all cities in Poland are created equal when it comes to launching an IT business. Here are the top locations to consider:
| City | Key Features |
| Warsaw | The capital city with a robust startup ecosystem and entry to international markets and investors. |
| Krakow | Known as the “Silicon Valley of Poland,” with numerous IT hubs and talented developers. |
| Wroclaw | A vibrant tech hub with a mix of startups and established IT companies like Google and Nokia. |
| Poznan | Affordable yet dynamic, with a growing number of tech startups and co-working spaces. |
| Gdansk | Ideal for tech entrepreneurs seeking proximity to international markets via the Baltic Sea. |
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Tax Benefits and Incentives for IT Companies
Poland offers a business-friendly tax regime with multiple benefits for IT companies:
| Tax Type | Rate for IT Companies | Applicability |
| Corporate Income Tax (CIT) | 9% for small businesses and startups | Applicable to revenues up to EUR 2 million. |
| Standard CIT Rate | 19% | For larger IT companies. |
| R&D Tax Relief | 150% deduction on R&D expenses | Encourages innovation and development. |
| IP Box | 5% tax rate on income from intellectual property rights. | Ideal for software companies. |
Benefits of Starting an IT Business in Poland
Establishing your IT company in Poland opens the door to numerous advantages:
- Strategic Location: Poland’s central position in Europe ensures easy access to global markets.
- Skilled Workforce: Universities produce 40,000 IT graduates annually, ready to tackle innovative projects.
- Tax Incentives: Enjoy reduced corporate tax rates and R&D tax credits.
- EU Membership: Poland’s inclusion in the EU simplifies business transactions across member states.
- Tech-Friendly Policies: The government actively promotes digital transformation and tech-driven innovation.
- Startup Support: Access to tech incubators, accelerators, and co-working spaces.
Top IT Companies in Poland
Poland is home to several leading IT firms, reflecting the nation’s tech prowess:
- CD Projekt Red: Renowned for its video game development, including The Witcher series.
- Comarch: A leader in software development and IT infrastructure.
- Asseco: One of the biggest IT firms in Central Europe.
- Future Processing: Specializing in bespoke software solutions.
- Netguru: A fast-growing IT consultancy and software development firm.
These achievements demonstrate the enormous potential for IT companies in Poland.
Conclusion
Poland is a land of possibilities, especially for entrepreneurs and startups in the IT sector. With its strategic location, supportive policies, and a workforce brimming with innovation, the country provides the perfect foundation to build a thriving IT business. Whether you want to register an IT business in Poland or join the ranks of top IT companies in Poland, the opportunities are limitless.
Take the first step today! Let OnDemand International be your trusted partner in navigating the process, from registration to compliance. Speak with our business formation experts right away.
FAQ’s
Yes, foreigners can fully own IT companies, but non-EU residents might need a local representative for certain formalities.
The registration process typically takes 2-3 weeks, provided all documents are in order.
Warsaw, Krakow, and Wroclaw are the top choices due to their thriving tech ecosystems.
