Establish A Tech Startup In Poland From The UK: Procedure & Tax Covered

Poland has become a bustling destination for tech companies in recent years, attracting entrepreneurs from all over the world with its business-friendly atmosphere and dynamic ecosystem. Poland offers entrepreneurs in the UK who want to take their business into the heart of Europe a very attractive option. 

In this guide, we’ll walk you through the step-by-step process of establishing a tech startup in Poland from the UK, exploring the best cities, office space options, tax implications, and more.

Why Poland is A Land of Opportunity for UK Tech Startups?

• Gateway to Europe: Poland’s central European location puts it in a prime position to gain access to a market with over 500 million people.
• Tech-Savvy Talent Pool: Poland has a big advantage when it comes to acquiring talent because of its enormous pool of highly educated and skilled engineers and developers.
• Cost-Effectiveness: Poland has cheaper living and business operating costs than the UK, therefore you may make a smaller initial investment there.
• Government Support: The Polish government actively encourages foreign investment and offers new companies grants and other incentives.
• Thriving Ecosystem: With co-working spaces, accelerators, and networking possibilities available, major Polish cities are becoming hotspots for digital entrepreneurs.

Step-by-Step Guide to Launching Your Polish Tech Startup

Choose Your Business Structure 

The first step involves selecting the most suitable legal structure for your company. Popular options for startups include a Limited Liability Company (Spółka z ograniczoną odpowiedzialnością – Sp. z o.o.) and a Sole Proprietorship (jednoosobowa działalność gospodarcza). 

Select the Office Space 

Explore different cities in Poland to find the ideal location for your tech startup. Take into account elements like cost of living, skill pool, infrastructure, and accessibility. For UK entrepreneurs, Warsaw, Krakow, and Wroclaw are the best options because of their thriving startup ecosystems and welcoming business environments.

Company Registration 

Choose a business structure that suits your needs, whether it’s a limited liability company (Spółka z ograniczoną odpowiedzialnością – Sp. z o.o.) or a joint-stock company (Spółka akcyjna – S.A.). Register your firm with the National Court Register (Krajowy Rejestr Sądowy) and acquire a Tax Identification Number (NIP) and Statistical Number (REGON).

Tax Registration

Registering with the Polish tax office is crucial for obtaining a Tax Identification Number (NIP). This is required in order to open a corporate bank account, file invoices, and handle taxes.

Best Cities for Tech Startups in Poland for UK Entrepreneurs

• Warsaw: The nation’s capital is home to a thriving ecosystem of companies, accelerators, and incubators, and it has a vibrant tech sector. Its prime location and first-rate facilities make it the perfect starting point for British businesspeople wishing to expand into Poland.
• Krakow: Known for its colourful culture and lengthy history, Krakow has become one of Central Europe’s top innovation hubs. With its esteemed academic institutions and skilled labour population, the city has numerous prospects for cooperation and creativity.
• Wroclaw: Situated in western Poland, Wroclaw’s economy has grown quickly in recent years thanks in large part to the city’s booming computer industry. The city is a desirable location for UK business owners looking to expand because of its thriving startup community and friendly business environment.

How to Find Office Space for Your UK Tech Startup in Poland?

Selecting the ideal office space is essential to your IT startup’s success in Poland. Here are some tips to help you secure the perfect workspace:

• Determine Your Needs: Take into account your team size, financial constraints, and preferred location when determining the amount of space you need.
• Research Online Listings: Explore online platforms like property portals and real estate websites to browse available office spaces in your desired city.
• Visit Potential Locations: Arrange to tour the sites that have been narrowed down to determine their amenities and compatibility. Take note of things like amenities, general conditions, and accessibility to public transportation.
• Negotiate Lease Terms: Once you’ve found the perfect space, discuss lease conditions with the landlord or property manager to ensure favourable conditions for your startup.

Benefits of Establishing a Tech Startup in Poland from the UK

Access to Talent

With a heavy emphasis on STEM education, Poland has a highly skilled labour force. You may access a varied talent pool of IT experts and professionals by locating your startup in Poland.

Cost-Effective Operations

Poland offers more affordable operational costs, such as office rent, salaries, and taxes, than major IT hubs like Silicon Valley or London. This enables new businesses to increase the amount of money in their budgets and put savings back into expansion plans.

Supportive Ecosystem 

Strong support networks, such as incubators, accelerators, and government programs meant to promote innovation and entrepreneurship, define Poland’s startup ecosystem. Entrepreneurs in the UK can gain by having access to financial options, cooperative alliances, and mentorship.

Strategic Location

Poland’s strategic location at the intersection of Europe provides it with advantageous access to important markets both inside and outside of the EU. Its strategic position makes it a desirable venue for UK entrepreneurs seeking to expand internationally by facilitating business expansion and international trade.

Tax Implications of Setting Up a Tech Startup in Poland as a UK Citizen

Navigating the tax landscape is a critical aspect of establishing a tech startup in Poland. Here are some key considerations for UK entrepreneurs:

1. Corporate Income Tax: Poland’s corporate income tax rate is currently 19%, making it competitive compared to other European countries. Nonetheless, startups may be eligible for specific tax breaks and incentives particularly in designated Special Economic Zones (SEZs).
2. VAT Registration: If your startup’s annual turnover exceeds the threshold set by Polish tax authorities (currently PLN 150,000 for goods and services), you must register for VAT (Value Added Tax) and comply with relevant reporting requirements.
3. Double Taxation Treaties: In order to avoid taxing income generated in both the UK and Poland twice, the two nations have a double taxation treaty in effect. Learn about the treaty’s terms so that you can minimize your tax responsibilities and maximize your tax planning methods in our blog. Click on Poland-UK DTAA.
4. Tax Credits and Incentives: Poland provides a range of tax credits and incentives, including R&D tax relief, investment grants, and employment subsidies, to promote investment and innovation. Investigate these options to increase the competitiveness and tax efficiency of your startup.

Conclusion

Establishing a tech startup in Poland from the UK is a rewarding endeavour that offers a host of benefits, including access to talent, cost-effective operations, and strategic market positioning. Through adherence to the guidelines provided in this book and utilization of Poland’s encouraging commercial atmosphere, enterprises from the United Kingdom can confidently traverse the procedure and grasp prospects for expansion and prosperity. Poland is a great place for creativity and entrepreneurship, whether you’re drawn to the bustling tech hubs in Warsaw, Krakow, or Wroclaw.

At OnDemand International, our expertise lies in supporting UK business owners with Polish company registration and offering all-inclusive support services customized to meet your requirements. Our experts will help with every step of the journey, from negotiating legal procedures to locating the ideal office space and opening a company bank account. To fully realize Poland’s growing economy and propel your digital firm to new heights, speak with our experts right now.