Registering a Company in Poland (Spółka z o.o.)
LTD in Poland
Spółka z ograniczoną odpowiedzialnością (Sp. z o.o.) is the Polish version of a limited liability company, i.e. a company where the owners do not risk their personal assets if something goes wrong in the business.
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Key points:
- Authorized capital — minimum PLN 5,000, divided between the founders.
- Who can be a founder? One or more people, both Poles and foreigners. It is not even necessary to be in Poland to create such a company.
- Management — the company is managed by a director (or several), who make all important decisions.
- Registration — you need to register the company in a special register (KRS). This may take several days or weeks.
- Taxes – the company pays income tax (19% or 9% for small businesses), and the owners pay tax on dividends.
- Accounting and reporting – accounting is maintained and reports must be submitted to the state every year.
Advantages
- Personal property is protected — you are only liable up to the amount of your contribution to the company.
- It is easier to attract investments, because you can sell shares.
- Your own legal entity — the business looks more serious to partners.
- You can plan tax optimizations.
Disadvantages
- Keeping accounts is more complicated and expensive than for a sole proprietor.
- More formalities and paperwork.
- Less flexibility, as laws and statutes must be followed.
