When to open a polish company limited (sp. z o.o.)?

What is Polish LLC?

Polish Limited Liability Company is a legal entity. It is subject of registration in the court business registry. It has shares, shareholders and a board of directors. It is required to facilitate company ledgers and file yearly financial statements. It is know as “Spółka z ograniczoną odpowiedzialnością” or as „Sp. z o.o.”.

What is a limited Polish company suitable for?

To establish your business in Poland
To conduct business in a high-risk environment (with liability limited to the company’s assets).
To employ staff
To issue B2B invoices in Poland and abroad
To have a management board of non-PL citizens

When do I not need a company limited?

If your primary intent is to be employed or self-employed in Poland. If you simply require your business registration to be able to issue invoices to your employer, as a sole trader, you generally only need a simple business registration.

What emigration status do I need to open LLC in Poland?

To establish an LLC in Poland, no immigration status is required. ou are not required to be a Polish resident to register a company, own shares in a firm, or serve on its board of directors.

This is applicable to EU and non-EU citizens alike.

Certain immigration status is necessary to be employed by such a Company; however this requirement does not apply to board membership.

Please note that registering a limited liability company in Poland should not be treated as a solution for acquiring immigration status.

Are Poland’s taxes high? Is Poland regarded as a tax haven?

In comparison to other European countries, Poland’s corporate tax rate is quite low.

A corporate income tax rate applicable for companies limited with early turnover of less that 2 mln EUR is 9% (19% for companies exceeding 2 mln EUR).

Dividend withholding tax is 19%, but it is subject to participation exemptions for parent companies situated in the EU and exclusions based on double taxation treaties with countries outside the EU.

Most IT specialists are eligible for a 12% lump sum tax rate.

 

Jerzy Gaweł
Partner – Tax Advisor