Subsidiary Company Registration In Poland
Poland is an excellent location for any firm to expand its business. Corporate organizations from other EU members have the same freedom to open their businesses as other citizens of Poland have.
When foreign entrepreneurs decide to establish a business in Poland, they could either open a branch office in Poland or do a subsidiary company registration in Poland.
Subsidiary company registration in Poland benefits entrepreneurs as a subsidiary firm is a distinct legal entity with its own legal competence. Moreover, the subsidiary firm is not required to do business operations like the holding company.
In this article, subsidiary company registration in Poland has been thoroughly described. Along with that, you will get to learn about the advantages and procedures of establishing a subsidiary company registration in Poland.
Meaning of subsidiary company
A firm owned or managed by a parent corporation is referred to as a subsidiary company. The parent firm often owns a majority of the shares in the subsidiary firm. As a result, the parent company gains control over the subsidiary.
In Poland, the subsidiary is usually a limited liability company or a joint stock company that must adhere to all relevant laws and standards on accounting and taxation. Small and medium-sized enterprises are the companies that will probably decide to acquire a subsidiary company registration in Poland.
Procedure for a subsidiary company registration in Poland
Subsidiary company registration in Poland can be done by taking the following actions:
- Executing the Articles of Association(AOA)– It is important to execute the subsidiary’s Articles of Association(AOA), which must include the name, address, regulations, objectives, shareholder information, and data about the initial shares. All this information must be notarized in Polish.
- Maintaining a bank account– It is necessary to set up a bank account for the Polish subsidiary.
- Deposit the share capital- Before the subsidiary company registration in Poland, the shareholders must deposit the corporation’s share capital. The share capital in terms of cash must be deposited into the designated bank account. At least a minimum share capital of 5,000 PLN must be deposited.
- Subsidiary company registration in Poland with the National Court Register (KRS) – All businesses must do their subsidiary company registration in Poland by applying to the National Court Register (KRS). Firms can also use an online form on the Ministry of Justice portal for a subsidiary company registration in Poland.
- Paying the fees- Prior to applying, the necessary fees must be paid for a subsidiary company registration in Poland.
- Establish the management– A management board should be appointed. It can have one or more members, and its job is to represent the firm and manage all company’s operations.
- Obtain a NIP and VAT registration– Every company that has applied for registration is given a tax identification number (NIP) after applying at a local tax office and also has to apply for VAT registration.
- Register the business with the Social Security Agency- Register the business with Social Security and the business will also need to obtain a REGON number.
Documents required for a subsidiary company registration in Poland
For a subsidiary competition registration in Poland, the following documents are essential:
1. The preference of the foreign business to do a subsidiary company registration in Poland.
2. Each holding firm’s designated signatory executes a notarized power of attorney.
3. The Article of Association of the subsidiary company states the following:
- Name and location of the subsidiary
- Internal policies and goals
- Shareholder’s details along with their capital contribution
- Information about their shares.
4. Bank account details.
Characteristics of a subsidiary company registration in Poland
A subsidiary company has the following characteristics-
- The subsidiary is not required to do business in the same ways as the parent corporation because it is a distinct legal entity with its own legal competence.
- The Polish subsidiary must file a VAT registration since it is a legal entity with the same rights and responsibilities as a local business.
- The subsidiary adheres to the accounting and reporting obligations in Poland.
- The subsidiary must adhere to the rules of Polish taxation. Due to its classification as a locally registered corporation, the corporate income tax will be applied to all of its international income.
- Since the foreign firm often only has access to a particular portion of the shares, it cannot exercise full control of the firm.
Advantages of establishing a subsidiary company registration in Poland
For international companies who decide to start doing business in Poland, subsidiary company registration in Poland is the most common business structure due to the following advantages-
- The primary advantage of subsidiary businesses stems from the concept that they are distinct legal businesses from their parent business.
- The subsidiary and parent businesses can restrict their joint liabilities and responsibilities and would be treated separately for regulatory and tax purposes.
- The parent and subsidiary firms’ potential legal and financial obligations are reduced.
- Parent companies can diversify their operations with the help of subsidiaries while eliminating any associated risks.
- One of the main advantages of a subsidiary company registration in Poland is that the entrepreneur can immediately begin hiring staff, processing payroll, and doing other business operations.
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The above article briefly describes how a subsidiary company registration in Poland can be done along with the benefits and characteristics of a subsidiary company registration.
In order to do a subsidiary company registration in Poland, you can contact Odint Consultancy. We will be delighted to guide you at every step of the process.
A firm owned or managed by a parent corporation is referred to as a subsidiary company.
The benefits of establishing a subsidiary company are-
- Reduced financial liability.
- Distinct legal entity.
- favorable tax rates.
The documents required to register a subsidiary corporation in Poland are-
- Notarized Power of Attorney
- Articles of Association containing-
- name and location of the subsidiary
- internal policies and goals
- shareholder’s details along with their capital contribution
- information about their shares.