How to organize a relocation to Poland

Relocation is the transfer or relocation of a business or employees to another country or location. This is a relevant and important topic for many companies and employees, especially in the field of information technology (IT). The rapid development of the IT industry and the constant emergence of new opportunities in the global market make relocation to countries with a favorable business climate especially attractive. One of these countries is Poland, which not only offers a developed infrastructure and access to talented IT specialists, but also has favorable conditions for business.

How to open an IT company in Poland?

If you want to organize an IT business relocation to Poland, then there are several fundamental processes for this. Next, we will consider all the processes in more detail, but here is a general description of the steps:

• Business strategy and legal structure

Develop a sound business strategy, choose the legal form that best suits your requirements for your IT firm (limited liability company, joint stock company, etc.).

• Company name

Choose a distinctive name for your business and confirm that it is available in the Polish company registry.

• Business registration

Apply for the inclusion of your business in the Register of Polish Companies (Krajowy Rejestr Sądowy). You will need to complete the required paperwork, provide proof of identity, and pay registration fees.

• Opening a bank account

Create a business account with a Polish institution. To do this, you will need the constituent documentation of the company and the passport details of the founders.

• Registration with the tax office

Obtain a Taxpayer Identification Number (NIP) by registering with the Polish Tax Office (Urząd Skarbowy). In addition, you must register with the electronic tax office (e-Deklaracje).

• Registration with social insurance authorities

To pay social contributions for employees, register in the Zakład Ubezpieczeń Społecznych system.

• Office or space rental

Find a suitable office or rent a business space if you need office space. Make sure you are familiar with the conditions and processes of renting in Poland.

• Employment and visas

Familiarize yourself with the procedures for obtaining a Polish visa and work permit if you need to hire foreign workers. Follow the recruitment process and obtain the relevant documents for foreign workers.

• Accounting and taxes

To report your finances and pay your taxes in Poland, contact a qualified accountant or an accounting services company.

• Licenses and Permits

Check if you need any specific licenses or permits to provide IT services in the country. To obtain the necessary permits, contact the relevant authorities or organizations.

Getting a PESEL

PESEL (Powszechny Elektroniczny System Ewidencji Ludności) is a Polish personal identification number that is assigned to every Polish citizen and some foreigners residing in the country. You must follow these procedures if you are a foreigner and wish to apply for PESEL:

• Register in the Polish register of places of residence (Rejestracja pobytu cudzoziemców)

If you have not yet registered with the Polish government, you must do so at your local registration office (Urząd Wojewódzki or Urząd Gminy), depending on where you are staying. You will need to complete the relevant forms and submit the required documents, including your passport, visa, proof of address, and other documents.

• Contact the Office for Foreigners (Urząd do Spraw Cudzoziemców)

You must speak with Urząd do Spraw Cudzoziemców to apply for PESEL after registering your address. You will need to fill out forms and provide the required paperwork, including your passport, proof of residency registration, and other required documents.

• Wait for PESEL issue

You will have to wait while your application is processed and evaluated after it has been submitted. If you are accepted, you will be assigned a PESEL personal identification number. The waiting period can change frequently, so it is recommended to check the conditions with the relevant authorities.

Getting ePuap

You must obtain this electronic signature in order to create a company online.

You can use the program for electronic signature of documents and communication with government organizations via the Internet. For example, with ePuap you can:

• register, suspend, restart or close a business;
• use the online database of public services portal Biznes.gov.pl;
• solve insurance issues at PUE ZUS;
• request a work visa for a foreigner using praca.gov.pl;
• apply for protection of a trademark, utility model or industrial design.

However, ePuap cannot be used to liquidate limited companies or to submit financial statements for tax audits.

You must complete the following steps to access the Electronic Portal of Administrative Services of Poland (ePUAP):

• Register with Urząd Skarbowy (tax office) or Urząd Wojewódzki (regional office)

You must first create an account at the relevant office (Urząd Skarbowy for tax services or Urząd Wojewódzki for other services) to use ePUAP.

• Personal visit

You may need to go to Urząd Skarbowy or Urząd Wojewódzki in person to fill in the necessary registration documents and provide your passport or identity card.

• Get your credentials

During registration, you will receive login information, including a unique user ID (nazwa użytkownika) and password, which you will need to access the ePUAP system.

• Login to the ePUAP system

Once you receive your credentials, you can use them to access ePUAP. You will have access to a range of administrative services and electronic forms provided by the Polish government.

Registration of an IT company

A limited liability corporation (LLC, or spółka z ograniczoną odpowiedzialnością in Polish) is a legal structure that can be created in order to organize the relocation of an IT business to Poland.

Founders can be both individuals and legal entities, including foreign citizens and foreign corporations.

Before registration, you should draw up the Partnership Agreement (constitutional act). There are 2 ways to design it:

• In the form of a notarial act at a notary public.
• In the “S24” information system. The template must be filled in and you must use ePuap to sign the document.

You must pay a court fee of PLN 350 to create a corporation online. The National Court Register (KRS) will confirm that the registration was successful, after which you should receive an extract.

Conclusion of a lease agreement and an agreement for accounting services

The following procedures can be followed to conclude a lease agreement and an accounting service agreement when you plan to relocate to Poland:

Lease agreement

• Real estate search

Look for an office space that will work for your business based on your needs and spending limits. Talk to real estate brokers or browse rental listings.

• Negotiation

To discuss the details of the lease, such as the term, fee, deposit and other restrictions, contact the owner or real estate agent.

• Verification of documentation

Review all documents related to the lease, including the lease itself, the title, and any other necessary licenses or permits.

• Drawing up a lease agreement

Draw up a lease agreement in accordance with Polish law and the needs of the parties, if the terms of the lease are acceptable. The lease agreement must include information about the leased property, including its size, value and rules of use.

• Signing the contract

Make an appointment with the property owner or their representative after preparing the lease to sign it. Be sure to read the terms and conditions before signing and keep a copy of the contract for your records.

The office can be “virtual” and used only for receiving letters, or it can be real, where you will actually work. You will receive mail from government organizations at this address. For example, KRS will send you a letter to the postal address if there are any problems or if additional documents are needed during the entire registration procedure.

The “virtual office” option is quite common; many businesses provide such a service. It usually costs PLN 50 to 70 per month.

Accounting service contract

• Company search

Find a company that specializes in accounting for IT firms by studying the Polish market for accounting services. Refer to recommendations, customer reviews and check the company’s reputation.

• Discussion of circumstances and negotiations

Contact the chosen accounting firm and familiarize yourself with the conditions and needs of your company. Discuss the cost and specifics of services, reporting deadlines and other important aspects.

• Development of a contract for accounting services

Draw up a service contract based on conversations with the accounting company. Terms, obligations of the parties, cost of services, frequency of reporting, etc. must be clearly indicated.

• Signing the contract

Make an appointment with representatives of the accounting firm to sign the contract. Make sure you understand and agree to the terms of the agreement and keep a copy for your records.

In Poland, accounting records must be kept consistently and permanently: in Polish and in zlotys. You must submit annual financial statements (sprawozdania finansowego) once every 12 months. Thus, a Polish accountant is required. The easiest option for accounting outsourcing is to contact a Polish company that employs Russian- or Ukrainian-speaking accountants. It is necessary both to conclude a contract for the provision of services and to issue a power of attorney.

Opening a bank account

You must open a separate business account even if you already have a personal account and credit card. To do this, you need to visit the bank in person.

• Foreign passport and identification code

Provide a copy of the passport of another country and the identification number of the chairman of the board of the company. The account must be opened in person in the presence of a representative.

• Documents certifying the identity of the founders of the company

Provide copies of any passports or IDs that the founders of the company may have used to prove their identity.

• Sample signatures

Create a sample signature for each person who will be responsible for the company’s bank account. As a rule, this is the chairman of the board and other authorized persons.

• Partnership agreement

Provide a copy of the company agreement created when the company was registered. Relevant information about the company, its structure and founders must be included in the contract.

• Certificate with REGON number

Make sure that you have the REGON certificate obtained at the time of company registration. If you have registered in the “S24” system, the REGON number will be assigned to you automatically. If not, you may need to file Form RG-1 with the district court office that handled the registration.

• Current extract from KRS

Get an up-to-date extract from the KRS (Krajowy Rejestr Sdowy), the national court register, confirming that your business is registered there.

• Translation and notarization of documents

Your documents can be translated into Polish and notarized in Poland if they were issued in another country (for example, in Ukraine).

What taxes will have to be paid for IT immigration to Poland?

Income tax (CIT)

In Poland, you have to pay income tax if you start an IT business or work as an entrepreneur.

• Corporate Income Tax (CIT) rates:

9% is a special rate available to new businesses in their first tax year of operation and to small businesses with an annual turnover of less than €2 million.

19% is the usual rate for the rest.

• Dividend income tax:

19% is the tax rate applicable to income provided to Polish citizens.

15% is the basic tax rate applied to the income provided to citizens of Ukraine.

5% – dividends are taxed at a lower rate if they are received by a Ukrainian business that owns at least 25% of the Polish LLC that pays the dividends.

By the 20th of the month or quarter following the tax period, which is usually 12 consecutive months, CIT must be paid in full.

You must file an income tax return (Form CIT-8) each year by March 30 of the year following the reporting year. There are ready-made forms on the Polish tax website.

Financial statements must be submitted together with the annual tax return. The general meeting of participants or another body within your LLC must approve the final report. Accounts must be sent via the S24 system to the National Court Register no later than six months after the start of the new financial year.

Value Added Tax (VAT)

You will have to pay VAT if your IT company supplies products or services in Poland. Below are some of the features of VAT:

• Mandatory VAT registration

You must register as a VAT payer if your sales during the financial year exceeded PLN 200,000. Companies that provide consulting services must also register as VAT payers.

• VAT for services supplied to EU countries

IT service providers operating in the European Union (EU) are required to pay value added tax. Services provided within the EU are entitled to a preferential VAT rate of 0%. The standard VAT rate is 23%.

• VAT registration procedure

To register as a VAT payer, you must submit an application on the VAT-Р form to the tax inspectorate. Although registration is free, confirmation of registration can be obtained for PLN 170.

• Declaration and payment of VAT

VAT returns can be submitted quarterly (VAT-7K) or monthly (VAT-7). Value added tax must be paid by the 25th of the month following the reporting month or quarter.

Personal income tax (PIT)

• Basic wage tax rate

For Poles, the standard PIT rate is 17%. The standard personal income tax rate is 20% for foreign citizens.

• Increased income tax rate above a certain threshold:

The PIT rate will rise to 32% if a person’s annual income exceeds €20,000.

• Fixed income tax rates for individuals

Tax rates can sometimes be determined in advance and based on the nature of the activity rather than the amount of compensation. You should consult a tax professional or Lawrange solicitors for accurate information.

• Benefits for beginners

Young professionals in Poland do not pay income tax and only have to pay it if they are over 26 and earn more than €20,000 a year.

It should be emphasized that personal taxation can be complex and depends on various factors, such as residency status, type of income and applicable tax rates.

Relocation of employees

Relocation can be domestic (within one country) or international (from one country to another)

When moving employees, the following factors must be taken into account:

• Visa and legal issues

Check the formalities and regulations related to the transfer of personnel to another country. They may need a work visa or other authorization.

• Transport and logistics

Support the physical relocation of workers and their families by offering assistance. This may include finding housing, planning the shipment of goods, processing documents, etc.

• Preparation for cultural adaptation

Prepare employees for the new cultural environment and customs of the country they are moving to: language learning, familiarization with local customs and regulations, adaptation to the new work environment.

• Helping employees

Give your employees the knowledge and tools they need to thrive in their new place. Make sure they have access to banking, healthcare, children’s education and other essential services.

• Taxation and compensation

Consider the financial elements of moving, such as payment, moving expenses, taxes and insurance.

• Integration into society

Help employees build social connections in their new workplace by helping them meet new colleagues and connections. Plan meetings or initiatives that promote cohesion and collaboration. 

What gives refugee status or temporary protection to Ukrainian IT workers in Poland?

Many people, especially Ukrainians, are interested in obtaining refugee status in Poland. The term “refugee” only refers to people who have been granted a certain legal status, and registering for that status is a complicated process. You must demonstrate that you face imminent danger in your home country to gain refugee status.

In addition, refugee status registration usually takes six months, during which you are not allowed to work legally in Poland. Your passport will also be confiscated and you will not be able to travel within the European Union. Acquiring refugee status is not the wisest step in this situation. However, there is another option – temporary protection.

It is enough to enter Poland, register and get a PESEL number to get temporary protection there. To do this, it is necessary to submit the appropriate form, supporting documents (for example, a foreign passport or a national passport of Ukraine) and a photograph to the administration of the municipality (city or other populated place).

Benefits available to Ukrainian IT professionals in Poland with refugee or temporary protection status include:

• Security and safety

People who are persecuted or at risk in their home country are given legal protection and guarantees of safety based on refugee status or temporary protection.

• Work and legal stay

Persons with temporary status or refugee status have the right to reside in Poland for up to 18 months on legal grounds and may apply for a work permit. This allows IT specialists from Ukraine to work and develop their careers in Poland.

• Social assistance

Government or non-governmental groups may provide social programs and services to persons with refugee or temporary protection status. This may include medical care, education, counseling or other forms of assistance.

• The possibility of achieving stability

Some people who have received temporary protection may later be eligible for permanent refugee status or another type of permanent residence permit.

Assistance of Lawrange lawyers in business relocation to Poland

Lawrange is a law firm that provides services in various fields, as well as in business relocation to Poland. You can speak to our lawyers or consultants specializing in corporate law, business immigration or international law.

In addition, you can get expert guidance and advice on the following topics from Lawrange lawyers if you need help moving your company to Poland:

• Consultations on the tax and legal consequences of moving

The lawyers at Lawrange can assess your existing circumstances, provide advice on the legal implications of moving and help you understand the relevant legal criteria and processes.

• Preparation and execution of documents

Lawrange can help you draft and finalize a variety of contracts, including leases, employment contracts, customer and supplier contracts and other important legal agreements.

• Representation before state institutions

Professionals can represent you before institutions and authorities, including tax, customs and other regulatory authorities. They will protect your interests and comply with the relevant legal norms.

• Employment support

Lawrange is always in touch with you and we are ready to guide you through the process if you need help with work permits, contracts or agreements.

• Protection of interests and rights

Our attorneys can advocate for your interests and provide legal assistance to protect your rights and resolve issues in the event of conflicts or disagreements.

Conclusion

Legal aspects, tax fees, processes for obtaining the necessary permits and licenses, as well as consideration of migration issues when transferring staff and team members are all key aspects when an IT firm moves to Poland. Planning the transfer of an IT company and staff to Poland can be complex. However, this procedure can be simplified and made more efficient with proper planning, knowledge of regional standards and laws, and with the help of specialized law firms such as Lawrange.

FAQ

How long does it take to relocate IT business and employees to Poland?

The time required to relocate an IT business and employees to Poland depends on various factors, including the complexity of the organization, legal procedures, transfer of employees and other aspects. This process can usually last from several months to a year.

What are the advantages of IT business relocation in Poland?

Relocating an IT business to Poland can provide a number of advantages, including tax incentives for startups, lower operating costs, strategic location in Europe, and access to a developed IT market, talented IT professionals, financial and innovative support programs.

What are the main steps when relocating an IT business to Poland?

The main steps in relocating an IT business to Poland include identifying the goals and strategy of the relocation, studying the local market and legislation, choosing the legal form of the company, registering the business, obtaining the necessary permits and licenses, relocating employees, organizing accounting and tax services, as well as adapting to the new environment and culture.

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