In this article, we’ll explore 5 common illusions related to running a business in Poland. We won’t be discussing the fact that opening a company in Poland doesn’t automatically grant you a residence permit (karta pobytu). Instead, we’ll focus on deeper and more interesting points we’ve observed and experienced firsthand. For information on what buying a business in Poland entails, you can refer to this link.
For those who prefer watching or listening, we offer a video on this topic, and for those who like to read, we’ve prepared an article below the video.
1. You Cannot Open a Company in Poland and Work in It
Opening your own business does not automatically give you the right to work and conduct business activities in it. As strange as it may sound, once the owner receives the company registration documents, they need to obtain a separate permit to manage their own business.
2. You Can Get a Cheap Business Loan in Poland
A cheap loan in Poland itself is not an illusion, but whether you’ll be approved for one for a new business remains a question. Given the current economic situation due to the crisis, it’s unlikely that a bank will approve a loan for a foreigner who has just arrived in Poland and doesn’t yet have a residence permit. Sometimes, whether you can get a loan depends on who owns the company and how long they can legally stay in the country. However, the key factors in securing a business loan will be the company’s assets and finances. Regarding subsidies, grants, and government support, these programs do exist and can help businesses. But that doesn’t mean that simply opening a company in Poland will magically bring the government funding you’re expecting. There’s a queue of people wanting it, and businesses must meet a specific list of criteria to qualify. Moreover, when companies do receive such funds, they are required to submit an entire set of financial documentation.
Here’s an example from a fellow entrepreneur. In Poland, there is a business assistance program called Tarcza Antykryzysowa. Our acquaintance’s company applied for a type of subsidy just a day after the program started. But it turned out that the funds were already exhausted, and there was no more budget left. Therefore, it’s important to note that such programs and their big announcements are somewhat of a PR and marketing move.
We have a separate article about how entrepreneurs benefit from government assistance during a crisis, which you can read [here].
3. I’m the Boss and I Decide Everything
In practice, this is not always true. When it comes to employees, if they have an Umowa o pracę (employment contract), they cannot simply be fired. An employee can cause headaches for months or even years, and it’s not easy to get rid of them. Labor contracts are serious, and government agencies are very strict when it comes to compliance. The company owner is involved in business operations and makes many decisions, but in Poland, the system and the rules of the game play an even bigger role.
4. Honesty Is Encouraged by the Government
If a business is honest, hires employees, and pays taxes, that doesn’t mean the government will automatically offer help. Many people in Poland work honestly, and if a problem arises in the country, many entrepreneurs will be seeking government support. Honest work and tax payments are not considered bonuses or privileges. In Europe, they are simply the norm.
5. Poland is an Innovative Country
The fifth illusion is the idea that the whole economy is at your fingertips, available on your mobile phone. Of course, the Soviet-era mindset is long gone, but many laws and procedures are still based on outdated practices. A lot of bureaucracy remains, just like in the former Soviet countries. Nothing can be resolved without proper documentation. For every procedure, you need to prepare a stack of documents.
The irony is that up until 2008, it was possible to open a business remotely in Poland. However, laws change quickly and are written by theoreticians, not business practitioners. You can open a business in Poland without being physically present, but to do so, you need a PESEL number (Polish ID number for residents). And to get a PESEL, you need to be physically present in Poland. So, it’s a catch-22. There are many inconsistencies and hoops to jump through. We hope this will change soon, and many processes will be available remotely via mobile phones. At least, the voice of entrepreneurs is being heard.
In conclusion, while it’s easy to criticize Poland when you’re in a comfortable environment—complaining about the bureaucracy, paper requirements, and so on—when compared to the challenges faced by entrepreneurs in countries like Ukraine, Russia, and Belarus, these problems seem quite minor.
If you plan to move to Poland and start a business here, our team can help you navigate these issues, avoid common pitfalls, and create a tailored startup plan for your niche.
