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Company Taxation in Poland

It cannot be denied that Poland is one of the biggest economies in European countries. With that in mind, many aspiring entrepreneurs plan to open their business in this country.

Poland is a state that maintains stability despite the economic crisis. That’s why many business enthusiasts decided to establish their own activities there. It is among the top locations for investors.

But what about company taxation in Poland ?

taxes

To mention a few, the following are some type of businesses in Poland:

  • Electronics industry
  • Food market
  • Research and development industry
  • Energy sector
  • Aviation and automotive industry
  • IT sector

There are several industries that are booming in the country, so that you can choose the type of company in Poland suitable to your skills, needs, passion, and standards. The country also has a favorable geographical place that allows companies to perform export and import activities.

To help you decide to choose on what type of business you’re going to establish in Poland, here are some of the top startup ideas.

Top Startup Ideas in Poland

  • Events organizer

Since Poland is one of the places with the most beautiful tourist attractions in Europe, you can start your small business as an events organizer. The estimated incomes for this are about 10 to 15 percent. If you want to assist others for their tour needs, this business is a good option.

  • Food business

The food business is also a good idea in Poland. However, you must have special licenses and permits. You can establish your food business in bigger and attractive cities. The good thing about it is that it can be in demand both for tourists and locals.

  • Online store

If you’re an entrepreneur, you can prefer to make your online store in Poland. With this, you can have an online shop wherein you can offer different products. This business comes with low costs, but you must buy a domain name in Poland. In addition, you must take responsibility for the transportation services for your customers.

  • Consulting services

Opening your consulting services in Poland has lower costs compared to other business types. If you have skills in accounting, consulting business can be the best business idea for you.

  • Internet income

If you have more free time, you can also get internet income. You can have your search service or shop.

  • Furniture restoration and repair

If you want to showcase your talent and earn from it, you can try a business for furniture restoration and repair. With this business, you must have an apartment, instruments, skills, and patience.

  • Fashion store

If you have a passion for fashion, you can open your fashion store in Poland. You can have a small shop where you can sell jewelry, handmade clothing, personalized clothes, casual dress, and other fashionable items that can suit the taste of your customers.

In addition, you can also offer accessories such as handmade leather bags. You can also sell woodcarving, embroidery, tapestries, hand-painted glassware, wooden chests and boxes, pottery, and more.

  • Day care agency

You can be an agent for workers and clients with your day care agency in Poland. You can do this by renting an office or by phone.

Now that you have learned about the best startup ideas in Poland, it is also important to know the various types of business entities in Poland.

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Why should you establish your business in Poland?

Poland is among the European countries that have the richest economy. With that, you can expect to have more profits with your specific niche. The country also now has an improved infrastructure and lower cost for transportation services.

Even more important, there is a good workforce in the country. So, you can expect to have professional workers for your company.

Business entity types in Poland

  • Civil partnership

This business requires you to register and your business partner as entrepreneurs with the Business Activity Register. It has a Personal Income Tax. Here, you and your partner are jointly accountable for the obligations and debts of the partnership.

  • Self-employment

Self-employment is a good choice if you want to take control of your time. It has easy maintenance and allows you to showcase your talents while earning an extra income. The taxation for this entity is Personal Income Tax.

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  • Limited partnership

The limited partnership can be conducted through a notarized form. It must also be signed by both partners and must be entered to the National Court Register. The taxation for limited partnership can be Corporate Income Tax or Personal Income Tax, wherein the partners can pay the taxes separately.

  • Registered Partnership

You can have a registered partnership if you want to open a business on a bigger scale. The founders of this business must be at least 2 entrepreneurs. It also comes with Corporate Income Tax or Personal Income Tax, wherein the partners pay the tax separately.

  • Professional Partnership

The professional partnership must be conducted through notarized form, and the partnership must be entered to the National Court Register. It comes with Personal Income Tax.

  • Limited Joint-Stock Partnership

This type of business entity in Poland is established for operating a bigger scale business. One partner must be responsible to the partnership’s obligations and debts to the creditors. It also has taxation of Corporate Income Tax or Personal Income Tax. The partnership also needs to be entered to the National Court Register.

  • Joint Stock Company

The company is accountable for the obligations and debts with its property. It also comes with Corporate Income Tax. This business entity is operated on a bigger scale.

  • Limited joint-stock partnership

The limited joint-stock partnership is operated for a bigger scale. It also comes with Corporate Income tax wherein the partners pay the tax separately.

You can choose from these business entities as you plan to open your own business in Poland.

Do you wish to open your business in Poland? If yes, you must follow the steps below.

Starting a Business in Poland

If you want to launch your business in Poland, you must follow this guide:

  • Select the type of company

The first thing to do is to choose the type of company. You can choose according to the size and capital of your business.

  • Create a name of your business

After selecting the company type, you must create a name for your business. Make sure to have a unique name so that you can establish a good reputation in your specific niche. You can also make prior name verification so that you can make sure about its availability.

  • Pick your business activity

More investors in Poland use the NACE codes or PKD codes for future business. This code signifies the main activity of the business. In addition, it is specified in the documents of incorporation.

  • Preparation of the required documents

The next step is the preparation of the required documents. You must prepare the important documents, including details about the type and scope of your business, share capital, registered office, names of directors and shareholders, and shareholding structure.

  • Business registration

The last step is to register your business. You must register your established company with the National Court Register.

Business Tax in Poland

As you open your new business, you must also be familiar with the business tax in Poland. Take note that corporate tax in Poland is a tax that is collected from companies. The tax amount can depend on the company’s net income, usually in a year. The rate of company taxation in Poland begins at 19 percent.

The highest corporate tax rate as of 2020 is 40 percent, and the lowest corporate tax rate is about 19 percent. Meanwhile, there is about a 9 percent tax rate for a company that has a profit distribution lower than 1.2 million each year as well as for startup, which is paying corporate tax on the first year.

As you start your business entity, you must conduct the following:

  • Register your business with the National Court Register. You can pay about zł 350 on the procedure of the application.
  • Store your accounting records.
  • You can pay advance tax each month on the 20th day of every month.
  • Pass your company tax return before the 1st quarter ends in the following year.

What profits do you pay on business taxes in Poland?

The profits you pay on business taxes in Poland include the following:

  • Capital investments
  • Operating business
  • Selling your assets

Conclusion

To sum it up, opening your business in Poland requires dedication, patience, and perseverance. You also need to decide on what type of business you are going to open. Make sure to get a business that is related to your passion, skills, and knowledge. You can have a more profitable business in Poland with that.

Moreover, you must also adhere to the standards of Poland when it comes to registering your business. You can follow the tips mentioned above, so you can smoothly open your business in Poland. More importantly, you also need to pay your business tax. Thus, you are paying profits for your business.

Are you ready to launch your own business in Poland? Start now!

Don't forget to learn more about individual taxation in Poland as well.

Any question about living or investing in Poland ? Contact us.

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