Poland attracts local and global investment due to its financial stability. Foreign investment has increased as the business environment and economy have improved. Due to its proximity to the EU market and continuous economic growth, foreign investors are interested in this region. The nation has first-rate infrastructure and skilled workers. Compared to other European nations, forming a company in Poland costs roughly EUR 140. So let’s look at the 5 things to consider before starting a Poland company registration.

5 things to consider before starting a Polish Limited Company Formation

1. Determine If You Need to Register Your Company

Business owners in Poland are not necessarily required to form a limited liability company. To avoid having to register your business with the Central Register and Information on Economic Activity (CEIDG), you can operate as a “non-registered business” if your annual sales are less than half of the minimum wage. Non-registered firms are not obligated to issue bills, but those that do must do so within three months after providing goods or services and receiving full payment. A firm or business that is not already registered with the CEIDG must do so if it wants to operate legally.

2. It’s Important to Know the Tax System

The second step in registering a limited company in Poland is to familiarize yourself with the corporate tax structure that will apply to your business. The company Income Tax Act of Poland governs the collection of company income taxes in Poland. The standard corporate income tax rate is 19%, which is comparable to that of other internationally renowned tax havens like Singapore and Cyprus https://www.fintecharbor.com/company-registration-in-cyprus-guide/ . However, small taxpayers whose total earning income (including Value Added Tax) does not exceed EUR 1.2 million for the first year of operation are eligible for a lower rate of 9%. It’s also worth noting that taxpayers with a registered office in Poland are liable to taxes under the country’s Corporate money Tax Act no matter where the money was earned. Taxpayers who are not Polish residents are required to do so solely if their income was earned in Poland.

3. Select the start date of the firm’s operations

The third piece of information necessary to create a limited company in Poland is the start date of the firm’s operations. Users will be asked to specify the date on which their business will officially launch throughout the application process (this date might be in the future).

It’s fine to file for incorporation on the same day you plan to start operations, but keep in mind that from that point forward, the company will be responsible for fulfilling all obligations related to being an employer, including making ZUS payments.

Companies based in Poland must pay to the Social Insurance Institution (ZUS), a government agency in charge of social insurance, after the first six months of formation. Company formation at the beginning of the month triggers the 6-month grace period. However, the 6-month grace period will not begin to count until the next full month if the firm is registered in the midst of the month.

4. Figuring Out Your PKD code

The fourth piece of information necessary to create a limited company in Poland is the PKD code, which indicates the scope of your business’s operations according to the Polish Classification of Activities. Knowing your PKD code is crucial since it determines whether or not you are required to comply with certain regulations (such as employing a certain legal structure, being subject to a particular kind of taxes, being required to use cash registers, or being registered for Value-Added Tax).

If you want to find out what PKD code you should use for your firm, you may visit the BIZNES website. In addition to including your PKD code in your articles of association, you must include it when filing your application to create a business.

5. Make a Trusted Profile

The fifth piece of advice is to build a Trusted Profile for convenience when registering a limited business in Poland. A Trusted Profile is a free identity verification tool for online company incorporation and administrative procedures.