New company formation vs shelf companies in Poland

Company formation in Poland

 

Starting a business in Poland can be a very difficult process, as regulations and the needed documentation require a large amount of involvement from the investor, and regardless of the type of company opened in Poland, the process is far from being a simple one.

 

The first step in opening a new company in Poland is the notarization of the company agreement. It can take about 1 day to complete and it involves notary and other costs. The related documents, such as the company charter for a joint-stock company or the articles of association, in case of a Polish limited liability company need to be drawn up, signed and notarized. 

 

Documentation needed for opening different types of companies

 

If a joint-stock company is opened, then the company charter must contain among others the business name and company seat, type of activity, the duration of the company if it is a limited one, and the amount of share capital. In case of a limited liability company, the articles of association must also include the business name and company seat, type of activity, amount of share capital, and it must also mention if a shareholder is entitled to one or more shares as well as the number and nominal value of shares owned by individual shareholders.

 

Registration in the National Court Register is required

 

The second step of the process it the registration of the company with the National Court Register, that usually takes around 14 days to complete and the investor must pay a registration fee and an announcement fee. In addition, this process requires the submission of a multitude of documents, such as the company charter or articles of association, and a list of all the names of the shareholders signed by all members of the Board of Management. 

 

In order to open a company in Poland the investor must also apply for the Regon Identification Number, process that is free of charge, but can take about 1 day to complete. 

 

All companies must own a bank account

 

Opening a bank account in Poland is also a mandatory item on the “to do” list when opening a company. Depending on the bank, it can be free of charge, and it can be opened in approximately one day. According to the Polish law, each company is obligated to have a bank account. 

 

Registration for VAT is mandatory in Poland

 

In order to be able to issue invoices and benefit from VAT deductions, each company must obtain a tax identification number. Several documents are needed, such as bank account agreements, company charter or the articles of association and it take no longer than 4 weeks to obtain it.

 

Registration for VAT is also mandatory in Poland, and it takes companies approximately one day to complete the process, but they must pay a fixed tax. If a company plans on conducting intra-community activity, such as supplying goods or services, they must also register as a VAT EU remitter.

 

 

Benefits of Shelf Companies in Poland

 

Taking into consideration the complicated process one must go through in order to open a company in Poland, especially when it comes to the needed documentation, an investor has the alternative of buying a Polish Shelf Company. Such type of companies are already registered and capitalized, might have bank accounts, registered offices and accounting services. Once the company was bought, the investor can immediately start the activity and the company is completely functional. 

 

The shelf companies in Poland usually pay their own registration costs from the share capital paid by the original owner of the company. Therefore, the cost that an investor has to pay in order to start doing business in Poland through a shelf company is much lower in comparison to the alternative of opening a new company. There are many advantages when buying a shelf company in Poland, such as less procedures to be completed and the fast commencement of the business activity, therefore many investors are interested in buying this type of company.  

 

Our company formation specialists in Poland can explain in detail the advantages and disadvantages of either opening a new company in Poland or buying a shelf company. Please  contact us for any information and guidance.