Starting a business in Poland as a foreigner – what do you need to know?

Poland, as one of the fastest growing markets in Europe, effectively attracts foreigners who register their own companies here. This is facilitated by favorable regulations and transparent administrative procedures. How to start a business in Poland as a foreigner? Check it out!

Can a foreigner start a business in Poland?

A foreigner can set up a company in Poland. However, the rules for registering a business depend on the country of origin and legal status. 

Citizens of the European Union, the European Economic Area (EU countries + Iceland, Liechtenstein, and Norway), as well as the US and the Swiss Confederation, may establish a sole proprietorship or any commercial company, branch, or representative office in Poland. EU citizens also have the right to provide cross-border services without registering their business in Poland. Non-EU citizens are additionally required to have a valid residence permit.

There are no legal obstacles preventing a person who is not registered as a resident in Poland from starting a business here. However, they must have title to the premises where the business is conducted. This also applies to commercial law companies. It is at this stage that it is worth considering a virtual office, which allows you to quickly obtain a registration and correspondence address – this is a popular solution among foreign entrepreneurs.

What forms of business activity are available to foreigners in Poland?

The most popular form of business activity chosen by foreigners in Poland is a limited liability company (sp. z o.o.). This legal form is attractive because:

• does not require registration in Poland;
• protects private assets – partners in a limited liability company are not liable for its obligations with their own assets;
• provides the opportunity for easy transformation and business development;
• You can register it online.

However, foreigners sometimes choose other forms of business activity, such as sole proprietorship (JDG) or partnerships. In this case, however, additional legal conditions must be met.

In the case of JDG:

• registration takes place at CEIDG – online (with a trusted profile) or at the municipal office;
• It is required to provide a Polish business address.
• A foreigner who does not have a PESEL number must register their business in person.
• there is no requirement to contribute capital at the start;
• An entrepreneur is liable for the company's obligations with all of their assets.

A slightly more complex form of business activity is that of companies whose registration requires the conclusion of an agreement (online based on a template in S24 or notarized). The registration of a company involves the obligation to pay court fees and, in many cases, to contribute share capital.

What is the process of registering a company in Poland?

Registration of a sole proprietorship by a foreigner takes place online or at a selected municipal office. In order to register online, it is necessary to create a trusted profile, which allows the entrepreneur to register at biznes.gov.pl and sign an electronic application. 

Foreigners who do not have a PESEL number can only register a company in person at the municipal office, presenting their passport or other identity document. 

In the case of a company, registration takes place via the S42 system or the PRS portal, where it is also necessary to create an account, a trusted profile, or a qualified signature. 

The registration of a company can also be entrusted to a representative. In this case, there is no need to set up an account in the National Court Register (KRS) systems. Furthermore, neither the partners nor the management board need to have a Polish PESEL number. However, if a member of the management board has a PESEL number, they can later submit annual financial reports independently and free of charge.

For this reason, the optimal solution is for partners and management to have Polish PESEL numbers and qualified electronic signatures . This greatly facilitates the running of a business. It is worth noting here that both PESEL and qualified signatures Biznes Spot be arranged by Biznes Spot without the physical presence of the client in Poland.

You can find more information here:

• Legal form of business activity—how to match it to the specifics of your business?
• PKD classification – how to choose the right code for your company?

What tax obligations are associated with running a business in Poland?

Foreigners running a business in Poland must comply with taxation rules that depend on their status: 

• Tax residents in Poland – persons who have their center of personal/economic interests in Poland or stay here for more than 183 days a year are subject to tax on their total income, regardless of where it is earned.
• Non-tax residents – persons who do not reside in Poland are subject to limited tax liability (they pay tax only on income earned in Poland). In the case of international activities, tax liability is regulated by double taxation agreements. 

Social security contributions are also an important issue. The basic rule is that you can only be subject to social security in one country, where: 

• where the place of residence is located – if a significant part of the work is performed there;
• the center of interest for the business is located—if the business owner does not reside in the country where they perform a significant portion of their work.

Does a foreigner need additional permits to conduct business in Poland?

Citizens of EU, EEA, Switzerland, and US countries do not need additional permits—they can conduct business on the same terms as Polish citizens. Other foreigners need a residence permit only if they want to run a sole proprietorship. There is no such obligation in the case of capital companies, including limited liability companies.

Why is it worth setting up a company in Poland?

Starting a business in Poland as a foreigner is an attractive option for many. Poland offers stable economic conditions conducive to the development of entrepreneurship, as well as a thriving domestic market. 

Additionally, as a member of the EU, Poland provides access to the single market, facilitating trade and international cooperation. Public administration is also becoming increasingly friendly, offering simplified registration procedures and support for investors. 

Benefits of purchasing a limited liability company in Poland

A limited liability company (spółka z o.o.) is a popular legal form in Poland – thanks to the limited liability of its owners, it ensures stability and security of operations. In addition, purchasing a company allows you to avoid many of the formalities associated with registering and running new companies, enabling you to start your business quickly.

Summary: How to start a business in Poland as a foreigner?

Starting a business in Poland as a foreigner is a step that opens the door to the dynamic EU market. Poland is an attractive place to do business due to the size of its market and available resources.

If you want to start a business quickly, take advantage of the support of Biznesspot experts, who will help you effectively set up your companyby providing professional support at every stage of the process.