In this article, we have prepared a list of 14 recommendations for starting and running a business in Poland. They are based on the lessons learned by us, our friends, colleagues, and entrepreneurs. These tips will help you avoid mistakes when starting your business and manage it more effectively.
As usual, we have prepared a video. Watch, read, and draw conclusions.
How Polish Business Looks from the Inside — Read Here.
Recommendations for Starting a Business in Poland:
1 | Start a Company in Poland Online
This method is suitable for 95% of entrepreneurs. You will save 500-1000 euros on registering your business in Poland. Furthermore, all changes you may want to make in the future can also be done online — this saves both time and money.
2 | Register the Company in Your City of Residence
Physically, you will need to be present and visit various authorities. Starting a business in the city where you live in Poland will allow you to resolve business-related matters quickly.
3 | Document Templates
When registering a business in Poland through the S24 system, you are not obligated to use the template documents offered by the system. You can prepare the necessary act yourself and upload it in PDF format with your electronic signature. This is useful if you have a complex or non-standard situation, written agreements with partners, etc. All of this can be included in the founding agreement and easily uploaded to the system.
S24 System
4 | Add a Representative When Registering the Company
If you are frequently absent from the city or country, it is recommended to include an attorney (prokurent) when registering your company — a person who has the right to represent the company’s interests in your name. This will save time if you are away and need to sign papers or contracts. The representative does not need to be an employee or receive a salary. Often, any trusted person can be appointed as a representative, such as an accountant or a company like Uniconsulting that helps manage and develop businesses.
5 | Do You Need an “LLC”?
When starting a business in Poland, consider whether you really need to open an spółka z o.o. (Limited Liability Company). Perhaps another form of business activity would be more suitable — for example, a spółka komandytowa (limited partnership), which avoids double taxation, or a spółka cywilna (civil partnership) if you have a permanent residence card (karta stałego pobytu). A non-profit organization might also be an option, as there are significant tax discounts available. A non-profit organization does not mean it cannot generate income.
It all depends on the type of activity.
6 | Initial Capital — Not Necessarily Money
When registering a business in Poland, the initial capital must be 5,000 PLN. However, if you don’t have this money, it is not necessary to contribute it in cash. It could be a car, equipment, or other resources.
7 | Don’t Contribute to the Capital, Lend Money to the Company Instead
If you need a large amount of money at the start (more than 5-10 thousand PLN), and the statutory capital requires a significant sum to be invested and frozen, you can lend the money to your own company at a low-interest rate instead of contributing it to the capital. This is allowed in Poland. You can later withdraw your money under favorable conditions and not suffer significantly in taxes.
8 | Register Categories of Activities, Not Specific Types
In Poland, there is a limitation when registering a company: only 10 types of activities are allowed. Register entire categories instead. For example, there is the “other” category, which includes a wide range of activities. Or the “design” category, which includes both interior design and outdoor advertising. By including categories, you significantly broaden the scope of your company’s operations.
9 | Create Strong Contracts for Different Cases
After opening your company in Poland, create reliable contracts with partners, colleagues, employees, and contractors. What should be included:
- A non-compete agreement, so that employees and partners cannot take advantage of your client base or technologies and start a business on the side.
- A non-disclosure agreement.
Check what type of contract will be optimal for your situation. It’s not always necessary to use umowa o pracę(employment contract). For certain types of work, umowa o dzieło (contract for specific work) might be more suitable, where taxation is half the cost. This will allow you to save on taxes, and it’s a legal recommendation. You can also claim copyright on any work created for the company — such as websites, designs, videos, and copywriting. In the future, when selling the company, these assets could add extra value to its price.
10 | Create a Business and Marketing Plan
Calculate your marketing plan. Conduct market research before opening a business in Poland. After competitive analysis, it might turn out that doing business in Poland, considering taxes and withdrawing funds, is not as profitable as in your home country. You may decide to enter a different niche. This happened with one of our clients, who ordered a market analysis from us, reviewed the numbers, and decided not to proceed with that direction. Essentially, we saved him about 80,000 euros.
Before taking any active steps, plan everything on paper, in a spreadsheet, and calculate everything. If at this stage, you can plan your marketing strategy, advertising budget, customer flow, and where the capital will come from until the business gains momentum, it will be much easier to proceed. If you can solve the main task of the business — creating a queue of customers eager to buy your product — other challenges will be much easier to handle.
11 | Create a List of Expenses That Can Be Deducted from the Business
Ask your accountant to create a list of things that can be deducted from the company’s expenses. When the money is withdrawn, you’ll lose about 40-50%. To avoid this, you can purchase certain items directly through the company — such as a car, fuel, or business trips. This list will save you money in the future.
12 | Try to Negotiate with Poles in Writing
You can have many negotiations and agreements, but if they aren’t documented on paper or at least in writing, they won’t hold value. There are different options — you can sign a letter of intent to purchase goods/services, use the follow-up technique, and after the conversation, send the contractor or client a message summarizing the agreement, asking them to confirm that everything is correct. This is not a guarantee that the deal will go through, but it’s a psychological factor that reduces risks. Read more about working with Poles here.
13 | Get Comfortable with Google Sheets
Learn how to use Google Sheets and analyze your business in numbers, not in efforts, hours worked, but in terms of turnover, net profit, time spent per client, average number of clients per day/month, cost of acquiring a new client. Once you digitize your business, it will be easier to manage.
14 | Surround Yourself with Quality Specialists
To make starting and managing a business in Poland comfortable, connect with an accountant, lawyer, HR specialist, customs officer, and marketer. Entrepreneurs need to handle a lot of tasks. You can spend a week looking for a solution, or you can ask a specialist, and they will resolve the issue in 2 minutes. Sometimes consulting the right specialist will save time, nerves, and money.
