Company formation in Poland
Poland is a democratic republic in Central Europe bordered by Germany, Ukraine, Russia, Belarus, Slovakia and the Baltic Sea. Poland is a member of the European Union since 2004. Traditionally it has been used as General Trading Company due to its convenient location, relatively easy incorporation process as well as relatively low taxation.
- Minimum capital of 5.000 PLN, or 1.240 EUR
- 1 individual director is required
- Corporate Income tax is 19%
- Shelf Companies with VAT available. Ask now.
POLISH LIMITED LIABILITY COMPANY (SP.Z.O.O.) AS TRADING COMPANY
Traditionally Polish companies are used for General Trading with EU due to its convenient location, relatively easy incorporation process as well as relatively low taxation.
Polish companies as well use advantages of EU Directives, Tax Treaties with 80 countries and EU VAT regime.
- Low corporate tax – 19%
- One shareholder is required – private person or corporate.
- One individual director is required.
- Bank Account can be arranged remotely.
- CORPORATE INCOME TAX (CIT): Standard rate 19%
- INCOMING DIVIDENDS. 0% on dividends received from EU subsidiaries, if Participation Exemption applies:
- Polish company holds 15% shares of the Subsidiary for at least 2 years
- Subsidiary is a Corporate Tax payer in its own country.
If Participation Exemption conditions are not met, 19% tax applies, which is further credited to a withholding tax.
- CAPITAL GAINS TAX (CGT): Capital gains on sale of shares are treated as ordinary income and are taxed at 19%.
- WITHHOLDING TAX:
ROYALTIES: 20% unless exempt or reduced under EU Parent Subsidiary Directive or a Tax Treaty.
DIVIDENDS: 19% unless exempt or reduced under EU Parent Subsidiary Directive or a Tax Treaty.
INTERESTS: 20% unless exempt or reduced under EU Parent Subsidiary Directive or a Tax Treaty.
- BILATERAL TAX TREATIES with 80 countries including Cyprus, Singapore and UAE.
- VALUE ADDED TAX (VAT). The standard VAT rate is 23%.