A Poland Limited Liability Company (spółka z ograniczoną odpowiedzialnością or abbreviated: sp. z o.o.) is the most popular method for an investment platform in Poland. As an independent legal entity, the Polish Limited Liability Company (LLC) is responsible for its legal obligations, debts, loans, and judicial court decisions.
This business structure has numerous advantages, including the fact that the investor is insured in case the business fails. The fact that company owners have limited liability, in addition to the convenient incorporation and maintenance costs are two of its most significant characteristics.
The law which regulates Polish LLCs is referred to as the Polish Companies Code.
Benefits of an LLC in Poland
- Reasonable accounting and administration services.
- Low license and maintenance fees.
- 100% foreign ownership is allowed.
- Minimum of one director and shareholder is required and can be the same person.
- Low minimum capital requirements.
- Fast Registration
- Limited liability for shareholders, whose liability is restricted to the capital they have invested in the company.
- Virtual offices are permitted, easily available, and affordable.
Top Uses Of An LLC in Poland
- Global trade and access to the European trade zone
- Intellectual property protection
- Holding company
- Estate planning
- Asset Insurance
- Tax planning and minimization
- Real estate
Incorporating the Limited Liability Company in Poland
The LLC (sp. z o.o) is the most prominent type of business set up by foreigners in Poland, and is intended for massive business ventures. A Share capital of PLN 50,000 is required to establish the LLC, and the Shareholders are only liable for the amount of share capital they hold.
Additionally, it is important for the new company to acquire a REGON (statistical number), NIP (tax identification number), and register for VAT payment.
Steps to incorporate the LLC
- Partnership should be entered in the Polish Court Register,
- Obtain Certificate of Approval, and
- Post-Registration Procedures.
The steps involved in setting up an LLC are as follows:
- Execution of articles of association, which may be conducted by an attorney. The articles of association should define, as a minimum the following:
- the business name and registered office of the company;
- the corporate goal of the company;
- the amount of the share capital;
- whether the shareholder might hold more than one share;
- the number and nominal worth of shares taken up by individual shareholders;
- duration of the company, if definite.
It is highly recommended that the articles of association include information clarifying what would happen if there was an increase in share capital, changes to the board of directors, extra contributions, earnings, and/or activities that require shareholder approval.
- Open a bank account and deposit the contributions covering the entire company’s share capital into this new bank account.
- An application to register the company with the Polish Court Register is then prepared, and the following must be included:
- motion for the REGON statistical number issued by the Central Statistics Office
- the application for the company’s registration with the Social Insurance Institution, consenting to make the required payments, and
- the application containing the NIP tax number and related taxation offices.
- The company’s management board is designated.
- And then, send the application to the trade register to be registered in the National Court Register.
All of the above documents must be submitted in Polish, so, if the applicant is not a Polish language native, a registered translator must be assigned to translate the documents into Polish.
A company in Poland can operate as a “company in organization” for up to six months before filing for registration and can make valid contracts. Though, its activities can theoretically be deterred until it becomes a proper company.
If you have any more questions or needed help in setting up your LLC in Poland, let’s go ahead together and contact your Damalion expert now.
