Option 1: Hiring Without Registering in ZUS

The first option allows a foreign company to employ individuals in Poland without registering with the Polish Social Security Institution ZUS. This solution is suitable for employers who wish to hire up to three people and treat their presence in Poland as a pilot project.

Under this model, employment contracts are signed directly between the foreign company and Polish employees. In many cases, social contributions may continue to be settled in the company’s home country under European coordination rules provided that the employees remain covered by that system.

This approach lets you test the labour market, evaluate cooperation with Polish professionals and decide whether a broader presence in the country is justified.

Option 2: Registering the Foreign Company in ZUS

The second model is to register your foreign company in Poland as a foreign employer. After registration the company can pay Polish social contributions and withhold personal income tax for employees while remaining a foreign entity.

This option is recommended if you intend to employ more than three people or build a stable team in Poland. It aligns payroll with Polish rules and generally increases credibility with candidates and institutions.

The registration process typically takes two to three weeks. Afterward an accounting partner can manage payroll, prepare monthly declarations and generate payment files for Polish banks.

Opening a Polish bank account is required only in this scenario. The account opening requires the personal presence of an authorised representative of the foreign company in Poland to sign the agreement. Banks review corporate documents and verify beneficial ownership which can extend the process by several weeks.

Compliance with Polish Labour Law

Regardless of the chosen model all employment contracts with Polish employees must comply with Polish labour law. This includes rules on working time, minimum wage, holiday entitlement, business travel allowances, reimbursement of business expenses and sick leave.

Contracts should be reviewed to ensure they reflect Polish legal standards and do not conflict with mandatory employee protections. In practice foreign employers often seek advice from specialists familiar with Polish regulations to verify and adapt documentation and to address matters such as contract terminations or employee disputes.

It is also important to be prepared for possible labour inspections or ZUS audits during which authorities may verify employment terms payroll calculations and documentation procedures. Properly structured contracts and consistent record keeping reduce compliance risk.

Practical Aspects of Employment and Payroll

For efficiency and security we recommend that all payroll payments be prepared by your accounting office. Polish banks allow the import of ready payment batches generated by your accountant. These payments are then reviewed and approved by your company’s manager.

Risks and Limitations

The principal tax risk appears when a company establishes a physical presence in Poland that could be considered a permanent establishment under a double taxation treaty. This may occur when there is a fixed place of business such as an office or warehouse used to carry out activities in Poland.

If you plan to open a local office shared workspace or warehouse you should evaluate whether this creates a permanent establishment risk. If the answer is yes a Polish limited liability company can provide a clear corporate framework and reduce uncertainty.

Summary

• For up to three employees and pilot projects hiring without ZUS registration is possible and often sufficient.
• For larger teams or stable operations registering the foreign company in ZUS is recommended.
• Opening a Polish bank account is required only for the ZUS registration model and it must be opened in person by an authorised representative.
• Employment contracts must comply with Polish labour law including rules on holidays expenses sick leave and contract termination.
• If you plan to open an office or warehouse consider forming a Polish company due to the risk of permanent establishment.