Starting a business in Poland: A guide for Indian residents with requirements, fees, and opening Poland business account

Poland is a Northern European country that is part of the European Union. With history and heritage, Poland can be an interesting place to start a business and have access to Europe- but only if you already meet visa and residence requirements. Read on to learn more about starting a business in Poland, types of businesses you can open and how it works.

Table of contents
Can you register a company in Poland from India? Different types of companies in Poland Requirements to start Poland company from India What does it cost to run a Poland company Starting costs for setting up the company Taxes and Government Fees Starting a business account for Poland company Moving to Poland from India

Can you register a company in Poland from India?

Yes. Indians can register a company in Poland from India. Like most European Union nations, Poland has different rules for EU/EFTA and non-EU/EFTA nations. Since India belongs to the latter category, Indian business entrepreneurs must satisfy specific conditions to be eligible to do business in Poland.¹

• They must have a permanent Polish residence permit or long-term EU residence.
• Temporary residence permit holders can set up businesses if they are married to Polish citizens residing in Poland.
• People with temporary residence permits having refugee status and subsidiary protection can open companies in Poland.
• Beneficiaries of government programs listed on the PM office’s website are eligible to set up businesses in Poland.

European citizens or permanent residents can operate business in Poland without having to set up a separate legal entity. Indian citizens with an existing overseas business can open a branch in Poland which would allow them to conduct business but not have a separate legal business. This also means that the Indian parent company is held responsible for any debts or obligations.

To register a company, you can do it either with a notary or online at the Portal Rejestrów Sądowych. Keep in mind that the main language in Poland is Polish so information in English may be challenging to find.

Different types of companies in Poland

Foreigners, including Indians, can set up different business entities in Poland. The business structure should match the scale and industry of your business. Here are some of the common business structure options in Poland:²

• Sole proprietorship - This type of business structure is typically one person, and there are no limits regarding business activity. There are no minimum stipulated capital requirements and the sole proprietor is responsible for all business profits and losses.
• Commercial companies - These business entities comprise partnership firms and corporations, depending on the business constitution. Depending on the setup, partnerships are further classified as general partnership, professional partnership, limited partnership, and limited joint-stock partnership. While other partnerships do not have any minimum capital requirements, a limited joint-stock partnership must have a minimum capital of PLN 50,000.
• Limited Liability Company (LLC) - LLCs are a common form of company in Poland. An LLC can have more than one partner, but their responsibility can be limited to how much they contributed. LLC has a minimum capital requirement of PLN 5,000 and are expected to have a management board.
• Branch/Representative Office - Foreign business entities can open branch and representative offices in Poland. They do not have any minimum capital stipulations, and the foreign company and entrepreneur is responsible for all the obligations.

Registering a sole proprietorship can take one day while the other business entities take around three to four weeks to be registered.

Requirements to start Poland company from India

To start a company in Poland, you must comply with requirements. The first, and most important, is that you have the appropriate visa to work and live in the country if you are a non-EU passport holder. So the best route to starting a company in Poland for Indians is to be already residing in the country.

When it comes to the business, every business entity must comply with specific requirements before starting activities in Poland. The requirements differ depending on the business structure:³

Sole Partnership

1. Register as a sole proprietorship with the Central Register and Information on Business Activity (CEIDG) in person or online. Make sure to have your identification documents ready.
2. Receive a Tax Identification Number (NIP) and Statistical Number (REGON) for the business.
3. FIle for VAT registration with the CEIDG, if required for your business.
4. Report to the Social Security Institution (ZUS) for appropriate benefits.

Commercial Companies and Joint Stock Companies

1. All shareholders must approve the articles of association (AoA), and the format is in the form of a notarized deed.
2. Register online through the Polish Company Register (CEIDG) website.
3. The shareholders must submit the required documents, including identification.
4. The shareholders must contribute to the capital, and the company’s name can be entered into the business register.
5. File a motion to the National Court Register (KRS).
6. Adhere to compliance and regulations according to Polish law.
7. Files for VAT registration with the CEIDG, if required.

Partnerships

1. All the partners must execute the partnership agreement and the articles of association (AoA). The AoA is registered as a notary deed.
2. File a motion to the registry court to register the partnership.
3. The partnership’s name can then be entered in the register of companies.
4. FIle for VAT registration, if required.

Branch Offices

1. A Branch Office has its headquarters registered outside Poland.
2. The managers and the board of directors must decide to set up a branch office in Poland.
3. The working of the branch office depends on the legal requirements of the parent company.

What does it cost to run a Poland company

The costs to run a Polish company depends on the type and size of the business. If you are a sole proprietor, your costs will generally be less than a corporation. However larger companies may be able to get larger amounts of investment and credit.

Here are some of the common costs to run a business, wherever you are in the world:⁴

• Salaries: Employee salaries tend to be a business’s most substantial expense. The Polish minimum wage is PLN 4,300 per month, and remember that your salary should be counted in this expense.⁵
• Social Security contributions: For employers, social security contributions can be a large expense when compared to India. Employers are required to register employees with the Social Insurance Institution and make the relevant salary deductions.
• Office and maintenance: The cost of running an office will depend on your type of business. Modern businesses may find they only need a co-working desk and pay a membership fee; while larger industrial companies may require multiple offices. Offices in the main capital in Warsaw are going to be more expensive compared to smaller cities or rural areas.
• Insurance and taxes: Make sure you are paying the appropriate taxes for your business and revenue. The taxes include local, VAT and your own income taxes.
• Professional services: Local professionals like a lawyer and a tax accountant can help you navigate the Polish legal system and manage your taxes if you are outside the country. They can ensure compliance and help you manage the regulatory environment in Poland.
• Licenses and Permits: Check to see if your business will need any permits or licenses. While many online businesses may not need them, other small businesses like a restaurant will, which can add to costs.

Starting costs for setting up the company

The cost to set up a company in Poland will depend on the type of business entity you choose. For a sole proprietorship, the costs can be very low. Partnerships can cost PLN 600 if you register in the court, or PLN 350 if you do it online. There is also the notary fee, which can vary, and the capital requirements.

Corporations can cost the same as a partnership to register- PLN 600 if at the registry court, or PLN 350 if online. A notary fee is also likely and will vary, but shouldn’t be more than PLN 10,000.⁶

There may be additional costs to start a company; consult your lawyer and accountant to ensure you have paid for all the necessary expenses.

Taxes and Government Fees

Poland has a tax reporting system that you must comply with. Here are the main tax reporting deadlines:⁷

Tax	Date
Real estate tax for legal entities	By Jan 31st, and then 15th of every month
VAT reporting	25th of every month
Deadline for CIT tax returns	March 30th
Annual reporting for all businesses, capital gains, and employment	April 30th

Here are the key tax rates for business entities in Poland:⁸

Type of tax	Tax
Personal income tax	12% up to PLN 120,000
Company Income Tax - standard	Standard rate is 19%, but reduced tax rates or exceptions are available
Company Income Tax - small businesses with annual revenue less than 2,00,000 EUR	9%
VAT	23% in some cases

There are other taxes that you may have to pay, like taxes on Civil Law Transactions, Real Estate Tax, and others. The CEIDG along with a tax accountant can help explain the taxes you can expect to pay.

Starting a business account for Poland company

A business bank account is essential for any company doing business in Poland. A business bank account will allow you to make and receive local payments and having a banking relationship can help get you access to loans and funding.

Need a bank account for yourself? Here is our full guide to How to open a bank account in Poland.

Poland has many national and international banks where businesses can open accounts. Poland's national retail banks include MBank, Bank Pekao, Bank Millennium, and PKO. Foreign banks like Citibank are also available to open business accounts.

Challenges in opening and managing account from India

Online banking has made it easy to bank from anywhere, including from India to Poland. But banks can still charge an expensive transfer fee to move money globally, and a hidden exchange rate fee. Want to save money when transferring money for your business abroad? Check out Wise.

Meet Wise Business

Send money transfers for your business with Wise. The Wise Business Account lets you send money to local accounts in different countries. So whether you have colleagues, freelancers or suppliers, you can now send them money from one app.

Wise uses smart tech to send secure transfers globally with just one low transfer fee and the real mid-market exchange rate. There is no extra mark-up on the exchange rate or hidden fees, so you can save money when sending funds overseas.

Our online process lets you open and verify your Poland business account from India. With our customer support available in English and our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

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Wise Business can also make it easy for your clients to send you payments. Over 300,000 businesses already use Wise Business each quarter, so sign up today and see how easy and affordable it is for your business to go global.

Moving to Poland from India

Indian citizens who want to move to Poland are required to have a visa. For living and earning in Poland, a residence and work permit are required. The work permit would need to come from an employer in Poland or from a foreign company stating that you are required to work in Poland. Only once you have both a residence and work permit can you consider opening a business. Spouses of Polish citizens will be considered eligible to start a company.

Poland does not have any startup or entrepreneur visa programs for Indian citizens to qualify for.⁹

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Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

This article is not intended to provide financial, legal, immigration or business advice. Each individual and business is unique, so seek out professionals who can guide you through the policies and processes to set up a business abroad.

Sources used for this article:

1. Can you register a Polish company from India
2. Different types of business entities in Poland
3. Requirements to start a company in Poland
4. Cost of setting up a company in Poland
5. Poland hikes minimum wage as voters fret over cost of living | Reuters
6. Starting costs
7. Tax deadlines
8. Key tax rates in Poland
9. Entry conditions for working purposes - Ministry of the Interior and Administration - Gov.pl website

Sources verified on 4 December 2023.

Cover photo by Radek Grzybowski on Unsplash.