Poland is the largest economy in Central and Eastern Europe. Located in the heart of Europe, it serves as a strategic gateway between Western and Eastern markets. The key growth sectors are manufacturing, services, and technology. While the manufacturing sector accounts for about 20% of the GDP, services comprise approximately 65%, with agriculture contributing around 2.5%.
Unlock growth opportunities in Poland with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Poland’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Poland, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Poland’s employment and tax laws, helping you scale confidently and compliantly.
Also known as limited liability company, it is the most popular form of business entity for foreign investment in Poland. A Sp. z o.o. offers limited liability protection and operational flexibility. It can be established by one or more shareholders with a minimum share capital of PLN 5,000. The liability of shareholders is limited to their capital contributions. This entity type provides maximum versatility for business operations.
Also known as joint-stock company, this entity setup is suitable for larger operations requiring significant capital investment. Requires minimum share capital of PLN 100,000 (approximately €23,800), of which at least 25% must be paid up at incorporation. Governed by a supervisory board and management board structure, making it ideal for companies planning public offerings or substantial growth.
Also known as a branch office, it allows foreign companies to conduct business activities in Poland under the parent company’s name. Requires registration with the National Court Register (KRS) and compliance with local regulations for operational activities. No minimum capital requirement, but the branch operates under the liability of the parent company.
Also known as a representative office, this type of entity setup allows limited presence for foreign companies to conduct market research, liaison activities, and represent the parent company’s interests. Cannot engage in commercial activities or generate revenue in Poland. Suitable for companies exploring the Polish market before full establishment.
No legal requirement for a Polish resident director. Foreign nationals can serve as directors, providing flexibility for international companies. However, having a local representative can facilitate banking relationships and government interactions.
Must have a management board with at least one member and a supervisory board with at least three members for smaller companies (five for larger ones). No residency requirements for board members, allowing full foreign ownership and management.
Requires appointment of a person authorized to represent the branch, who must be registered with local authorities. This person is responsible for the branch’s activities and compliance with Polish regulations.
Must appoint a chief representative who is responsible for the office’s activities and compliance with Polish regulations. Registration required with relevant Polish authorities.
Note: For Branch and Rep Office roles, the representative can be a non-resident but must have authority to act locally.
Polish bank account setup requires specific documentation and follows EU banking compliance procedures:
Bank Account Setup in Poland: Process and Requirements
Before Incorporation:
After Incorporation:
Note:
All banking activities must comply with EU anti-money laundering regulations and Polish banking law.
Required documents include the court registration certificate (KRS extract), articles of association, directors’ identification documents, proof of registered office address, and tax registration documents.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes 2-4 weeks depending on the complexity and document preparation.
Employment in Poland is governed by the following primary legislation:
Employment contracts must be in written form in Poland and provided to employees before commencement of work.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Umowa o pracę (Employment Contract)
The standard form of employment that provides maximum job security and comprehensive benefits. Available as fixed-term or indefinite contracts. Provides full social security coverage and strongest employee protections under Polish labour law.
Umowa zlecenie (Commission Contract)
These contracts are used for specific tasks or projects where the contractor has more flexibility in how work is performed. Lower social security contributions and more flexible working arrangements compared to employment contracts.
Umowa o dzieło (Contract for Specific Work)
These contracts are typically used for defined deliverables or specific results. Payment is made upon completion of agreed work. Minimal social security obligations and maximum flexibility for both parties.
In Poland, a probationary period typically ranges from 1 week to 3 months, depending on the expected duration of employment.
The regular working hours in Poland are eight hours a day and 40 hours per week, per five-day working week, as established by Polish labour law.
Overtime
Overtime cannot exceed 150 hours per year for an individual employee, with daily limits and additional compensation requirements.
The notice period in Poland varies based on length of service:
Severance pay is typically provided for redundancies and varies based on length of service and circumstances.
EU/EEA citizens can live and work in Poland without needing a visa or work permit and work eprmits are issued by Voivodeship office. However, non-EU/EEA nationals must obtain appropriate work authorization before beginning employment.
Work Visa & Permit Options in Poland
1. Type A – Standard Work Permit
2. Type B – Executive/Management Board Member
3. Type C – Intra-Company Transfer
4. Type D – Temporary Services Permit
5. Type E – Other Employment Purposes
6. Type S – Seasonal Work Permit
7. EU Blue Card (Highly Qualified Professionals)
Key Requirements:
Employees in Poland are entitled to a minimum 20 days of paid annual leave per year (26 days for employees with higher education or 10+ years of work experience). Additional days may be granted based on length of service.
Female employees are entitled to 20 weeks of maternity leave for one child and 31 to 37 weeks for multiple births. As of March 19, 2025, an additional, up to 15 weeks, extra leave available for premature or hospitalized newborns.
Male employees are entitled to 2 weeks of paternity leave which can be taken within 24 months of the child’s birth.
Parents can share additional parental leave of 41 weeks, which can be taken by either parent or shared between them.
The following statutory national holidays are observed in Poland:
Payroll frequency in Poland is typically monthly. Salaries must be paid no later than the 10th day of the following month, with many employers paying earlier.
The law does not require employers to pay a mandatory 13th month salary, but some employers provide annual bonuses as part of their benefits package or collective agreements.
Employees in Poland and their employers must contribute to the Social Insurance Institution (ZUS), which provides coverage for pensions, sick leave, maternity leave, and healthcare.
The mandatory and statutory benefits in Poland are:
Polish accounting follows Polish Accounting Act standards, aligned with EU directives. Large companies may also need to comply with International Financial Reporting Standards (IFRS).
All Polish companies must file annual financial statements with the National Court Register (KRS).
Mandatory audit is required for companies meeting certain criteria:
Audits must be performed by certified auditors and submitted with annual reports.
The standard corporate tax rate is 19%.
Additionally, a reduced rate of 9% applies to small taxpayers and certain corporations with revenues under EUR 2 million.
The VAT rate in Poland is 23%.
Reduced rates of 8% and 5% apply to specific goods and services. A 0% rate applies to exports and certain international services.
The filing deadline for annual CIT returns is typically March 31 of the following year.
Penalties include interest on unpaid tax, fines for late filing, and potential criminal liability for serious violations.
Poland has comprehensive transfer pricing rules based on OECD guidelines:
Poland implements CbC reporting requirements:
Transfer pricing documentation is mandatory for Polish companies involved in controlled transactions exceeding specified thresholds.
Master File
Local File
Deadline: Transfer pricing documentation must be prepared by the CIT filing deadline and submitted within 30 days upon request by tax authorities.
Poland implements the EU General Data Protection Regulation (GDPR) through the Personal Data Protection Act, providing comprehensive data protection framework.
Poland’s AML framework is governed by the Act on Counteracting Money Laundering and Terrorism Financing, implementing EU AML directives.
Polish entities must register beneficial ownership in the CRBR (Central Register of Beneficial Owners).
Key requirements:
Obligated entities: Banks, insurance companies, investment firms, currency exchange offices, and other financial service providers.
Penalties: Administrative fines, criminal liability, and potential license revocation for violations.
Reasons you should setup legal entity in Poland:
Cerity Global ensures your business expansion in Poland is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Poland business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Poland.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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