Setting Up Your Business in Poland: GEOS Guide for Global Expansion

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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Growth looks different in Poland. Startups are scaling up, not out, raising capital and expanding globally while keeping their core teams at home, attracting foreign investments.

The country leads Central and Eastern Europe in startup value and tops the region in the number of scaleups and unicorn-ready companies. It’s no wonder why company registration in Poland continues to attract businesses looking for a strong foothold in the EU.

Poland’s software market is expected to hit $10.35 billion by 2025. And with over 650,000 tech professionals, it offers deep talent pools and strong engineering capabilities. Many international companies reduce their development costs by up to 40% by partnering with Polish teams instead of those based in the U.S.

It’s clear that Poland is no longer a rising player. It’s a confident tech hub ready for global business. GEOS helps you enter this market with clarity and confidence. Interested in expanding your company in Poland? Keep reading.

Why Should You Expand to Poland?

Starting a company in Poland is more straightforward than you might think, whether you’re establishing a local entity or a foreign company. Company incorporation and company registration in Poland follow a clear process, and with local help, it’s fast and efficient.

Central Europe’s Rising Economic Powerhouse

Poland is gaining ground as a major economic force in Central Europe. With a GEOS Global Subsidiary Index Score of 61.2, it offers cost-efficient operations, strong industrial capabilities, and access to the broader EU market. 

Its medium population size and rising household income make it attractive for companies looking to grow in the region. The country also scores well on political stability, with pro-business policies and steady governance.

In 2024, Poland’s GDP grew by 2.9%. Most of that came from household spending, supported by higher wages and government benefits. Inflation eased, which helped boost real incomes. Construction investment dropped, and exports slowed growth overall.

The outlook for 2025 and 2026 is solid. GDP is expected to rise 3.3% in 2025 and 3% in 2026. Private consumption will continue to drive growth. Investment is set to rebound with EU-funded projects, and exports are expected to recover gradually. Delays in public investment could pose a risk, but strong household savings could lift spending even more than expected.

Poland brings several strengths to the table:

• EU membership and funding access
• Strong domestic demand and export diversity
• Business-friendly tax and trade rules

It also faces some challenges:

• Slow progress on reforms
• Weakening judicial effectiveness and legal reliability
• Regional trade exposure and high external debt

The Heritage Foundation ranks Poland 42nd out of more than 180 economies in its 2024 Index of Economic Freedom. It scores well in areas like property rights, trade freedom, and investment conditions, but lags in legal enforcement.

On the environmental side, Poland ranks 56th out of 210 countries. It performs well on energy efficiency and climate preparedness, but falls short on renewables and recycling.

Overall, Poland offers a solid mix of stability, affordability, and long-term growth. It’s a smart bet for businesses expanding into the EU, especially those ready to manage a few policy and infrastructure gaps.

Competitive Corporate Income Tax & Business Incentives

Poland offers a competitive and flexible tax environment that appeals to both large corporations and smaller businesses, in part due to its favorable corporate income tax rate. Poland provides various tax incentives, including those available in Special Economic Zones, making it especially attractive for foreign investors.

The standard corporate income tax (CIT) rate sits at 19%, giving companies a cost advantage compared to many EU peers. A reduced 9% CIT rate is also available for qualifying small businesses and startups, provided they meet criteria like revenue caps, new company status, and the minimum share capital requirements.

The low corporate income tax rate of 9% for small taxpayers is one of the most attractive features, and the tax rate can be further reduced under certain conditions, such as through IP Box or R&D Relief schemes.

Poland’s tax system also includes optional models like the “Estonian CIT,” which lets companies defer tax payments until profits are distributed. This structure supports reinvestment and can lower the effective tax burden, especially for smaller firms.

• Standard CIT rate: 19% (with a 9% reduced rate for eligible small businesses)
• Optional Estonian CIT regime: Tax is only due when profits are distributed, not on reinvested earnings

When considering company registration fees, it is important to note that the official registration fee in Poland is approximately PLN 600. This official registration fee is a mandatory part of the overall registration costs and may be complemented by additional expenses such as legal or translation fees.

At the same time, new obligations add complexity. A 10% minimum income tax now applies to businesses with low profitability, though relief options are available for R&D spending and asset investments. Other tax layers include a minimum tax on commercial buildings, the diverted profits tax, and global minimum tax rules under Pillar 2 for multinationals.

Poland’s VAT system is clear but moderately complex. The standard rate is 23%, with several reduced rates and exemptions. Businesses face monthly reporting, e-invoicing requirements (mandatory from 2026), and compliance tools like the VAT white list and split payment mechanism.

• VAT system: Standard rate of 23%, with structured rules and digital reporting requirements
• Financial infrastructure score: 4/5 – Reliable access to local and international banking services

Poland backs up its tax offerings with a well-developed financial system and investment incentives like R&D credits and Special Economic Zones. Companies operating in SEZs may benefit from property tax exemptions or reductions as part of the available tax incentives. For companies that can manage the compliance requirements, the overall environment remains attractive and business-friendly.

Skilled Workforce & Favorable Hiring Regulations

Poland offers a deep talent pool, especially in engineering and finance. The workforce is well-educated, with strong technical and analytical skills. It’s home to over 650,000 engineers and tech professionals, making it the region’s largest IT hub. Kraków alone sees its tech talent grow by 10% annually.

• Engineering and finance talent availability: 4/5
• Marketing talent availability: 3/5

Poland’s labor force is changing. The population is aging, but participation rates are rising across most age groups. More people hold higher qualifications, and by 2035, nearly half the workforce will be highly skilled. That shift will reduce the share of low-skilled labor to just 2%.

Hiring regulations are balanced but detailed. The Labour Code outlines clear rules for contracts, working hours, and termination. Employers must also follow workplace policies, especially those related to safety, pay schedules, and attendance. Employers are required to make social security contributions to the Social Insurance Institution (ZUS), which is responsible for social insurance in Poland.

• Employment law complexity: 5/10 – Clear structure but requires careful handling
• Union complexity: 3/5 – Moderate presence, mostly in industrial sectors

Most employment documents must include a Qualified Electronic Signature (QES), which adds an extra step to hiring and HR processes.

In short, Poland gives businesses access to skilled talent and manageable hiring laws. Companies just need to stay on top of documentation and labor rules to keep things running smoothly.

Company Registration in Poland

Choosing the right legal structure in Poland affects how you run your business, how much tax you pay, and how much risk you take on. Some structures are simple and quick to set up. Others give you more protection or help you raise funding.

To register a company in Poland, you can choose between traditional in-person registration at the National Court Register or use the online system, which streamlines the process for both local and foreign investors.

Every company must have a registered office and a valid business address in Poland, as these are required for registration and ongoing compliance.

The best choice depends on your goals, how much control you want, and whether you’re starting alone or with partners. There are different legal forms available for company formation in Poland, each with its own advantages and requirements. Polish companies, such as LLCs and joint-stock companies, have specific legal and tax characteristics that may influence your decision.

For those seeking a faster setup, fiduciary company registration offers an expedited, online alternative. This method allows you to incorporate through a fiduciary structure, often under the oversight of a law firm or registration provider, making it especially attractive for investors who want to bypass traditional bureaucratic procedures.

Spółka z o.o. (limited liability company)

This is the most popular option for foreign businesses. It offers limited liability, providing a clear liability limitation that separates the legal personality of the company from its shareholders or owners. This means there is no personal responsibility for company debts.

You only need one shareholder to start. This shareholder can be either an individual or a corporate shareholder, meaning that another company can also be the founder or owner of a Polish limited liability company. This is a private limited liability company, and foreigners can register such a company without immigration restrictions.

Joint-stock company (S.A.)

This option works well for large businesses that want to raise public funds or list on the stock exchange. It requires more capital and has stricter reporting rules. An overseas company is also eligible to establish a joint-stock company in Poland, subject to the same legal requirements as local entities.

A joint-stock company has a separate legal personality, which means it is recognized as an independent legal entity, distinct from branches or partnerships, and provides liability protection for its shareholders. Some businesses choose to buy a shell company instead of setting one up from scratch.

• Pros: Quick market entry, existing legal presence
• Cons: Less flexibility at first, risk of hidden issues, so do your due diligence

Forming a brand-new company in Poland allows for a tailored legal entity that meets specific requirements and may be preferable for some investors.

Other legal setup options are available in Poland too.

• One-person business activity: Simple to set up, but you’re personally liable
• Civil law partnership: Shared business between two or more people, but not a separate legal entity
• General partnership: Separate legal entity, but all partners are fully liable
• Professional partnership: For licensed professions like lawyers or doctors
• Limited partnership: At least one partner is fully liable; others have limited liability
• Partnership limited by shares: Mixes a partnership with the ability to raise capital through shares

When choosing a structure, think about:

• How much personal liability you’re comfortable with
• How you plan to fund the business
• How many people are involved
• Tax and reporting requirements
• How much control you want to keep

Most foreign investments in Poland are made through limited liability companies due to their flexibility and liability protection. After selecting the appropriate structure, establishing a future Polish company involves several steps, including registration, compliance with legal requirements, and consideration of strategic advantages such as Poland’s growing economy and favorable business environment.

EU citizens can start a business in Poland without major restrictions. Non-EU citizens may need to meet extra conditions or register a branch. Poland is an attractive destination for foreign investors due to its legal framework and business environment.

Each legal form has its own rules for naming. For example, a one-person business must include your full name. A spółka z o.o. must include “sp. z o.o.” in its name.

The structure you choose will shape how your business grows. It’s worth taking the time to get it right from the start.

Incorporation & Compliance Essentials

Polish company formation takes planning and paperwork. The company registration itself usually takes 4 to 6 weeks, but the full process, gathering documents, translating, notarizing, and registering for taxes, can take 2 to 3 months.

The company incorporation process in Poland involves several key steps, including document preparation, registration, and compliance with legal formalities. Typical company registration fees range from PLN 600 to PLN 1,500, depending on the type of company and whether you use legal or notary services. These fees are paid during the registration process and may include additional expenses for certified translations and legal support.

You’ll need to prepare several documents, some of which require certified translations or notarization. The process isn’t overly complicated, but it does take time and attention.

• Original paperwork score: 3/5 – Moderate complexity, especially for foreign companies

Foreign entrepreneurs—including individuals or companies based outside Poland—can set up a branch. A foreign entity can also establish a company or branch in Poland, subject to certain legal formalities such as legalization or an Apostille of documents. You must register it with the National Court Register (KRS), which is part of the Polish company register and the official Polish business register, before doing business.

Since July 2021, you can only apply online through the Court Registers Portal (PRS). Paper applications are no longer accepted. You must submit a company registration request via the PRS portal. Online company registration is also available through the S24 and PRS portals, making the incorporation process faster and more accessible.

Here’s what you’ll need to submit:

• A completed application form (in Polish)
• Articles of association or company deed (with certified Polish translation)
• An excerpt from the company register (with certified Polish translation)
• A statement from your Polish representative
• A local address for the representative
• Power of attorney, if someone files on your behalf
• Any notarial documents must be referenced using a CREWAN ID (no upload required)
• Both individual and corporate shareholders can participate in the incorporation process, and remote registration services are available for corporate shareholders.

Company registration in Poland requires entry into the Polish company register (KRS), which is part of the official Polish business register.

All documents must be signed electronically using a Qualified Electronic Signature (QES) or a trusted Polish digital ID. Electronic signatures are required for verifying the identity of directors and representatives, and must comply with Polish law, especially for remote company incorporation.

The company registration tax, including the civil law transactions tax (PCC) of 0.5% on the initial share capital, must be paid during the incorporation process. Civil law transactions are subject to specific reporting and payment procedures.

As part of the registration process, a tax identification number is obtained, which is necessary for tax and VAT registration.

You’ll also need to report the ultimate beneficial owner (UBO) to the register. This refers to the person who actually controls the company, based on legal or factual circumstances that indicate control, and must be reported shortly after registration.

Incorporating in Poland isn’t instant, but the steps are clear. With good preparation, the right digital tools, and professional legal services, you can ensure compliance with Polish law and get your business registered and ready to operate within a few months.

Registration with the National Court Register

Once you’ve chosen your legal form, the next step in the company registration process is registering with the National Court Register (KRS). The KRS is the official public register for all companies in Poland, and entry into this register is mandatory for most legal forms, including limited liability companies and joint stock companies.

To complete your company registration, you’ll need to submit a formal application along with key documents such as the articles of association, company agreement, and identification for founders and board members. The process is now fully digital, and applications are submitted online through the Court Registers Portal.

Registration with the National Court Register is typically processed within 1-3 business days, after which your company receives a unique KRS number. This number is essential for all official business activities, including opening a company bank account, registering for taxes, and entering into contracts. Ensuring your company is properly registered with the KRS is crucial for legal compliance and smooth business operations in Poland.

Share Capital and Shareholder Agreements

Determining the appropriate share capital and drafting robust shareholder agreements are key steps in the company formation process in Poland. The minimum share capital for an LLC is 5,000 PLN, while a simple joint stock company requires at least 100,000 PLN.

The amount of share capital you choose can impact your company’s credibility, access to financing, and tax obligations, including corporate income tax and income tax on dividends.

A well-structured shareholder agreement is essential for defining the rights and responsibilities of each shareholder. This agreement should address voting rights, dividend policies, procedures for transferring shares, and mechanisms for resolving disputes. Clear shareholder agreements help prevent conflicts and ensure smooth decision-making as your company in Poland grows.

It’s also important to consider the tax implications of your share capital structure and shareholder arrangements. Consulting with a tax advisor can help you optimize your setup for both compliance and efficiency.

Financial & Banking Considerations

Poland has a stable financial system and clear tax rules, but staying compliant takes effort. The tax and payroll systems are detailed, and reporting is regular.

• Tax and accounting complexity score: 6/10 – Rules are clear, but the process takes time
• Employer payroll contributions score: 4/5 – Manageable, but important for budget planning

When registering a company in Poland, it is important to note that the company’s bank account is typically opened only after the company is officially registered. Before this, the initial share capital is usually deposited into a temporary deposit account, not the company’s bank account.

Once registration is complete, you can transfer the share capital to the company’s bank account. Opening a company’s bank account for a newly established business can involve additional procedures, and banks may have specific requirements for companies in the establishment process.

Tax basics: If you live in Poland, you pay tax on your global income. If you don’t, you only pay on income earned in Poland. The personal income tax rate is 12% for income up to PLN 120,000. Anything above that is taxed at 32%.

There’s a tax-free amount of PLN 30,000. Capital gains and business income are taxed at a flat 19%. Companies must also register with the tax office for VAT and other tax obligations, submitting forms such as the VAT-R and ensuring compliance with tax office requirements.

Payroll and social security: Employers pay between 19.21% and 22.41% of an employee’s gross salary. Employees pay 13.71%. Both amounts go to social security programs like pensions, disability, and sickness coverage. On top of that, there’s a 9% health insurance contribution, paid by the employee from their net income.

For self-employed individuals: Self-employed people pay fixed social security amounts each month, based on national wage forecasts. If you’re just starting out, you don’t need to pay for the first six months. Then, you can switch to lower “preferential” rates for up to two years.

Health insurance for business owners depends on how they pay tax:

• 4.9% of income for flat-rate taxation
• 9% for those using the standard tax scale
• Fixed monthly fees for lump-sum taxation

If you’re a non-resident: Some income, like royalties, board fees, or freelance work, is taxed at a flat 20%, unless a tax treaty says otherwise. If you earn more than PLN 1 million per year, you’ll also pay a 4% solidarity tax on the extra amount.

In short, Poland’s system is structured and predictable. You just need to plan ahead and stay on top of deadlines. Most companies hire local accountants or payroll providers to keep things running smoothly. Professional accounting services are essential for compliance with Polish regulations and for ensuring accurate financial management.

Things To Consider When Expanding into Poland

There’s more to consider besides company registration in Poland. To expand your company in Poland, you need to be mindful of everything from immigration to the availability of talent.

Immigration & Work Permits for Foreign Employees

Hiring foreign employees in Poland is possible and relatively straightforward. But you need to follow the process carefully and allow enough time for approvals.

• Immigration complexity score: 3/5 – Clear rules, but paperwork takes effort

If the employee is from the EU or EEA, they don’t need a visa or work permit. They can work freely but must register if they stay longer than 90 days.

Non-EU nationals need a work permit and a visa or residence permit. The employer usually starts the process by applying for the work permit. Once approved, the employee can apply for a national visa (Type D) or a temporary residence card, provided they have the necessary oversight from the management board .

Poland offers several work permit types:

• Type A – for employees hired by a Polish company
• Type B – for board members
• Types C–E – for foreign workers posted to Poland

Permits are job- and employer-specific. Most last up to three years. If the employee changes jobs or employers, they need a new permit.

In some cases, the employer must prove no local worker could fill the job. But this doesn’t apply to all roles. Candidates from countries like Ukraine, Georgia, and Moldova benefit from a faster process.

Make sure:

• Job contracts match the permit details
• Wages meet the legal minimum
• Documents are accurate and translated into Polish if needed

The full process usually takes 6 to 12 weeks. Timing depends on the region and how complete the application is. Poland’s system is organized and fair. It just takes some preparation to get it right.

Cost of Living & Office Space

Poland offers good value when it comes to the cost of living and office space, which is an attractive factor for companies conducting business in the region. Cities like Warsaw, Kraków, and Wrocław have modern infrastructure but lower prices than many Western cities.

Office rent is much cheaper than in places like Toronto, for example. You’ll find quality space in top locations, and even better deals in smaller cities.

Here’s how it compares to Toronto:

• Warsaw: 25.1% cheaper overall (excluding rent). Rent is 36.1% lower.
• Kraków: 30.8% cheaper overall. Rent is 49.7% lower.
• Wrocław: 31.7% cheaper overall. Rent is 51.2% lower.

Office space in Poland is easy to find and fits a range of budgets. Whether you need a small startup hub or a full-floor corporate setup, you’ll spend less than you would in Canada or Western Europe. That makes Poland a smart pick for companies watching their overhead.

Regulatory & Compliance Risks

Poland has regular compliance checks and detailed reporting rules, especially around tax, labor, and corporate governance.

• Compliance reporting score: 5/10 – Manageable, but requires consistent attention

Businesses must stay on top of their filings and keep detailed records. Tax authorities expect accurate reporting, and late or incorrect submissions can trigger penalties. Companies must also comply with value added tax (VAT) regulations, including VAT registration and regular filings if they exceed certain sales thresholds. Labor rules are also closely monitored, especially for companies hiring foreign workers.

In 2024, Poland’s National Labor Inspectorate (PIP) announced it would increase immigration and employment-related checks. These inspections target companies with foreign employees, including those on business trips or short-term assignments. PIP may also review past records going back up to two years.

That means even if the employee has already left Poland, their visit could still fall under review. Employers should maintain accurate documentation, including permits, contracts, travel records, and registration paperwork, to avoid issues during audits.

In short, Poland’s compliance system is structured but not overly strict. If you keep clear records and file on time, the process is manageable. Just don’t leave gaps in your reporting, especially when foreign staff are involved.

Poland takes data privacy seriously. As an EU member, it strictly follows the General Data Protection Regulation (GDPR). If your business handles personal data from EU residents, even if you’re based outside the EU, you must comply.

• Data privacy compliance: High – Clear rules, active enforcement

The GDPR applies to companies that offer services to EU customers or monitor their behavior online. It doesn’t matter where your business is based.

Poland’s Personal Data Protection Act (PDPA) supports GDPR enforcement. It also covers local rules in areas like labor, banking, telecom, and clinical research. The President of the Office for Personal Data Protection oversees compliance and can investigate or issue fines.

A few local examples:

• Telecom and digital services must follow the Electronic Communication Act
• Employers can store data from workplace sobriety tests, but only for one year
• Clinical trials can limit certain GDPR rights if needed for scientific research

If your business collects or uses EU customer or employee data, make sure your privacy policies, consent forms, and data handling practices follow GDPR. The law is clear, and enforcement in Poland is active. Better to get it right from the start.

Talent Availability & Scaling Considerations

Poland has one of the strongest workforces in Central and Eastern Europe. You save on salary without sacrificing quality. The talent is sharp, well-trained, and ready to contribute.

• Salary score: 6/10 – Competitive costs for IT, finance, and operations
• Language score: 4/5 – Strong English skills, especially in larger cities

Poland ranks #15 out of 116 countries for English proficiency. Most professionals in tech, finance, and customer service speak English well, so global teams can work together easily.

Cities like Warsaw, Kraków, and Wrocław are established talent hubs. Secondary cities offer even lower costs and access to strong candidates. Whether you’re hiring for support, engineering, or shared services, Poland gives you room to grow.

Unique Poland Expansion Insights

Expanding into Poland gives you access to funding, tax relief, and a stable business environment. The country supports growth through EU subsidies and the Polish Investment Zone, which offers tax breaks across nearly all regions.

To qualify for tax relief, your investment should involve:

• Opening a new facility or expanding existing operations
• Launching new products or improving production processes
• Taking over a site that would otherwise shut down

Business culture in Poland is formal but friendly. Meetings often start with a bit of small talk, and you might not meet the final decision-makers right away, approvals usually go through a few layers.

English is widely spoken, especially in business, but dropping in a few Polish phrases can go a long way in building rapport. Most companies follow a clear hierarchy, though younger teams tend to prefer a more casual, flexible approach.

Once you get a feel for how things work, Poland can be a cost-effective and reliable way to grow your business in Europe.

How GEOS Simplifies Your Expansion into Poland

Poland’s tech scene is scaling fast. Since 2020, the value of its startup ecosystem has jumped by over 150%, the fastest growth rate in Central and Eastern Europe. More companies are launching, but they’re also building better products with global potential. With more companies launching and building globally competitive products, the demand for a smoother entry into the Polish market is rising.

Comprehensive Entity Setup & Compliance Management

GEOS helps you get up and running with ease. We support everything from company incorporation and compliance filings to tax accounting and company registration in Poland. You stay in step with Polish regulations while we handle the details.

AI-Powered Global Expansion Support

Geovanna, your AI assistant, stays on top of filings, deadlines, and local requirements. She also helps you work through cultural norms and business expectations in Poland, so your team can move faster and avoid missteps.

Is Poland the Right Fit for Your Business?

Poland scores 61.2 on the GEOS Global Subsidiary Index, making it a strong pick for expansion. The market potential is solid, giving businesses room to grow. Operations tend to run efficiently, which helps teams stay focused. And with direct access to the broader EU, it’s easier to scale across the region.

📩 Start your next chapter in Poland with GEOS. Get in touch.

This article does not constitute legal advice.