How can a Ukrainian open their own business in Poland?

Poland, as one of the most dynamically developing economies in Central Europe, is attracting more and more foreign investors and entrepreneurs. With its strategic location in the centre of Europe, access to the broad EU market and stable economic policies, the country provides favourable conditions for conducting many types of business.

Ukrainians who moved here because of the war are especially actively developing entrepreneurial activity in Poland now. After the outbreak of a full-scale conflict, Ukrainian citizens created almost 8,000 small and medium-sized companies in Poland, and more than 50,000 more registered as private entrepreneurs. This wave of Ukrainian entrepreneurs is making a significant contribution to the country’s economy and creating new opportunities for cooperation and business development.

In line with this trend, we will consider the key steps and recommendations that will help you start and successfully develop your own business in Poland. From choosing the right company form and registering your business to obtaining the necessary license plates and licenses, we will guide you through every step, ensuring you have a strong start on the Polish market.

Why do Ukrainians choose Poland for business?

Citizens of Ukraine who have chosen the path of immigration but have not lost their business spirit mainly choose Poland to do business. This choice is based on several main reasons:

• Poland is located close to Ukraine, facilitating logistics and maintaining existing business connections.
• Poland is a member of the EU, which opens access to the huge European market and provides stable legal and economic conditions for business.
• Poland demonstrates sustainable economic growth, which creates favourable conditions for business development and attracts foreign investors.
• The Polish government and various organisations actively support small and medium-sized businesses, including foreign enterprises, by providing grants, loans and consulting services.
• The ease of registering a business, the availability of resources and developed infrastructure make Poland attractive for start-ups and small businesses.
• The introduction of special programs for Ukrainian refugees and entrepreneurs facilitates the process of integration and business creation.
• Adequate tax legislation: the basic corporate rate is 19%, for small businesses with income up to 2 million EUR – 9%, and for income from intellectual property – 5%.

Popular industries for business among Ukrainians in Poland

Ukrainian entrepreneurs are successfully developing businesses in Poland in various industries. Some of the most popular areas include:

1. Construction and renovation: The high demand for construction services and renovation work makes this industry attractive to Ukrainian entrepreneurs, especially since many Ukrainians have experience and qualifications in this field.
2. Hotel and restaurant business: Opening of restaurants, cafes, hotels and hostels. Ukrainian cuisine is popular, and many foreigners successfully open catering establishments.
3. Logistics and transport: Freight transportation services, courier delivery and logistics solutions are in demand in Poland, given its strategic location.
4. IT and technology: Poland is becoming an IT hub in Central Europe. Ukrainian programmers and IT specialists open their own companies or freelance agencies, providing software development, web design and other IT services.
5. Production: Light and food industries, furniture and building materials production. Ukrainians are creating small manufacturing enterprises focused on the local market and export.
6. Trade: Opening stores, online stores and other retail outlets. Ukrainian entrepreneurs are engaged in the import and export of goods and trade in food products, clothing and household appliances.
7. Service sector: Services in the fields of beauty and health, consulting, and educational services. Many Ukrainians are opening beauty salons, fitness centres, and training centres and becoming the main competitors in the market in this area.

Ukrainian active Individual Entrepreneur and work in Poland

Many Ukrainian individual entrepreneurs (IEs) moved to live in Poland but continue to conduct their business and pay taxes in Ukraine. This creates certain risks and inconveniences associated with the tax and legal status of their activities. Let’s look at how this can be dangerous and why it is important to register a sole proprietorship or company in Poland to conduct business on its territory.

Risks and dangers when doing business in Poland through a Ukrainian individual entrepreneur:

1. If an entrepreneur lives in Poland for more than 183 days a year or has a centre of vital interests in Poland, he can be considered a tax resident of Poland. This means that he is obliged to declare and pay taxes on all his worldwide income in Poland and not in Ukraine.
2. Income received from activities in Poland is subject to taxes in Poland, even if the entrepreneur also pays taxes in Ukraine. Although Poland and Ukraine have a double tax treaty, incorrect application of tax rules may result in having to pay taxes in both countries. This increases the financial burden and requires additional administrative efforts to confirm the right to double taxation relief.
3. Doing business in Poland through a Ukrainian sole proprietor may cause difficulties with local authorities. For example, Polish authorities may require proof of payment of taxes and compliance with local tax and labor regulations. And failure to comply with Polish registration and taxation requirements may result in fines and other sanctions from the Polish tax authorities.

Thus, Polish tax and control authorities, such as Krajowa Administracja Skarbowa (KAS) and Zakład Ubezpieczeń Społecznych (ZUS), regularly conduct inspections of business activities. If unregistered activities are detected, authorities may impose fines and penalties. For example, running a business without registering with the Central Register and Information System for Economic Activities (CEIDG) for individual entrepreneurs or the National Court Register (KRS) for companies can result in a fine of up to PLN 5,000. If a business is not registered, it may also be considered tax evasion, which carries additional penalties, the amount of which may vary depending on the amount of unpaid taxes and the circumstances of the case. In some cases, criminal sanctions may be applied if violations are considered serious, including imprisonment of up to 3 years.

Therefore, doing business without registering a legal entity in Poland carries serious risks and can lead to significant fines and even imprisonment. To avoid such consequences, it is important to register your business activities in a timely manner, comply with tax and social obligations, and regularly submit the necessary reports and declarations. Registering a business not only ensures legality but also opens access to various forms of support and development in the Polish market.

How to properly register your business in Poland?

Registering a business in Poland is a relatively simple procedure that involves several basic steps. Azola Legal Services provides turnkey company registration services in Poland, which ensures compliance with all legal requirements, but if you decide to carry out these procedures yourself, we recommend that you read the step-by-step guide to registering a business in Poland:

1. Choosing the form of enterprise

Before starting registration, you need to decide on the form of the enterprise that you want to register. Options include:

• Spółka z ograniczoną odpowiedzialnością (Sp. z o.o.) – LLC.
• Spółka akcyjna (S.A.) – Joint-Stock Company.
• Jednoosobowa działalność gospodarcza (J.D.G.) – individual entrepreneurial activity (IE).
• Spółka komandytowa (Sp. k.) – team partnership.

Most often, in Poland, Ukrainians register an LLC or individual entrepreneur. Read more about choosing a company form in the article: Popular types of companies in Poland

2. Preparation of documentation

Let’s look at the example of the two most popular forms of business:

Documents for registering an LLC (Sp. z o.o.) in Poland:

– Charter (umowa spółki): A document defining the terms and rights of company participants.

– Minutes on the establishment of a company (protokół założycielski): A document confirming the decision to create a company and the appointment of its management bodies.

– Application for registration (wniosek o wpis do KRS): A form to be filled out to register a company with the National Court Register (KRS).

– Description of the activities planned to be carried out (według Polskiej Klasyfikacji Działalności, PKD).

– Information about directors and founders (dane osobowe zarządzających i wspólników): copies of passports of founders or directors and confirmation of residential addresses with translation into Polish.

Documents for registration of individual entrepreneur (J.D.G.) in Poland:

– Application for registration (wniosek o wpis do CEIDG): A form to be filled out to register a self-employed business in the Central Register and Information System for Economic Activities (CEIDG).

– Description of the activities planned to be carried out (według Polskiej Klasyfikacji Działalności, PKD).

– A document (passport) identifying the entrepreneur with a translation into Polish (a PESEL number may be required upon request).

3. Registration in the tax and social insurance system

After registering with KRS or CEIDG, the company must be registered with the following authorities:

– NIP (Numer Identyfikacji Podatkowej): Obtain a tax number issued by the tax office.

– REGON (Rejestr Gospodarki Narodowej): Obtain a number that is issued by the Central Statistical Office and serves to identify the economic activities of your company.

– ZUS (Zakład Ubezpieczeń Społecznych): Registration in the social insurance system, mandatory for employers and individual entrepreneurs.

– VAT number: It is necessary to register as a VAT payer if the annual turnover (including all types of transactions) exceeds PLN 200,000.

– EORI number (Economic Operators Registration and Identification number): Required in Poland for customs procedures if you are engaged in the import and export of goods within the European Union.

4. Opening a bank account

To conduct business in Poland, it is recommended to open a corporate bank account in Poland. This allows you to separate company finances from personal ones and keep records of financial transactions.

5. Additional steps

– Depending on the nature of your activities, special licenses or permits may be required.

– Concluding an agreement with an accounting company or accountant to maintain accounting and tax records is a mandatory part of the subsequent maintenance of the company unless, of course, you personally are not an accountant.

– Preparation of necessary documents and contracts for employees and partners of the company.

Registration of a business in Poland requires completing all specified formal steps and preparing relevant documentation. It is important to strictly follow the rules and procedures to ensure that your business is legal and successful in the country. To be confident in every step of registration, contact the lawyers of Azola Legal Services, and we will legalise your business in Poland without unnecessary worries.