5 Things to Consider Before Starting a Business in Poland

5 Things to Consider Before Starting a Business in Poland

April 30, 2025

Błażej Siedlich (Associate / Prawnik)

Starting a business in Poland can be a smart move – both for local entrepreneurs and international investors. As one of the fastest-growing economies in Central Europe and a member of the European Union, Poland offers a stable, opportunity-rich environment for businesses. However, before launching your venture, it’s worth taking a closer look at 5 key factors that can significantly impact your success.

1. Choosing the Right Legal Form
Selecting the appropriate legal structure is crucial and affects liability, taxation, and administrative requirements. The most common options include:

  • Limited Liability Company (Spółka z o.o.) – Offers limited liability, flexible management, and is well-suited for small and medium-sized enterprises.
  • Joint-Stock Company (Spółka Akcyjna, S.A.) – Intended for larger ventures, especially those planning to list on the stock exchange.
  • Branch or Representative Office – A way for foreign companies to establish a presence in Poland without creating a separate entity.

Each structure has specific legal, tax, and organizational implications, so it’s worth consulting professionals to determine which form best matches your business goals.

2. Hiring Foreigners in Poland
Employing foreign nationals in Poland is possible, but it involves compliance with specific procedures depending on the foreigner’s country of origin. Citizens of EU/EEA countries can work without a permit, while non-EU nationals generally need a work permit and a temporary residence permit. Employers are usually responsible for initiating the process, and the type of depends on the nature of employment. Additionally, simplified procedures exist for citizens of certain countries (e.g., Ukraine, Belarus), allowing short-term work declarations. It’s essential to ensure legal stay and work status to avoid fines and other penalties.

The legality of employing foreign nationals in Poland can be inspected by two institutions: the Border Guard and the National Labour Inspectorate. If regulations are violated, labour inspectors or the Border Guard may impose fines on Polish employers.

For employing a foreign national illegally, the penalty can range from 1,000 PLN to even 30,000 PLN.

Our law firm has many years of experience in assisting foreign nationals in securing legal residence and employment in Poland. We provide comprehensive support throughout the legalization process, ensuring full compliance with Polish immigration and labor laws. This includes specialized assistance for posted workers, helping employers meet all formal requirements.

3. Key Business Regulations in Poland
Starting a business in Poland means following certain legal and administrative steps. Entrepreneurs must choose a legal form, obtain a tax identification number (NIP), and register for VAT if applicable. Depending on the structure, the business must be entered into the Central Business Register (CEIDG) or the National Court Register (KRS). Poland also has clear rules for consumer protection, data privacy (GDPR), and fair competition. Regular reporting and compliance with regulatory standards are critical for smooth operation.

4. Labor Law Essentials in Poland
Poland has a well-developed labor law framework that regulates employment relationships in detail. The most important legal act is the Labor Code (Ustawa z dnia 26 czerwca 1974 r. – Kodeks pracy, Dz.U. z 2025 r. poz. 277) which outlines workers’ rights, employers’ obligations, and employment contract rules.

There are several types of employment contracts, including fixed-term, indefinite-term, and a trial period. The law also sets standards for working hours (typically 40 hours per week), paid leave (minimum 20–26 days per year), and mandatory social security contributions. Employers must adhere to occupational health and safety standards and maintain appropriate employment documentation.

5. Taxation and Accounting
While Poland’s tax system is detailed, it is also consistent. Corporate income tax (CIT), value-added tax (VAT), and personal income tax (PIT) are the most common levies. Businesses must also comply with social security and health insurance contributions. Keep in mind that bookkeeping is mandatory – simplified accounting is available for smaller businesses, while larger companies must maintain full financial statements. Working with a tax advisor can help you select the most efficient tax regime and avoid surprises.

Our firm has extensive experience in supporting entrepreneurs with accounting, tax compliance, and HR management. We offer tailored solutions that help businesses navigate complex financial and legal regulations efficiently and safely.

Poland is an attractive destination for business thanks to its skilled workforce, strong infrastructure, and access to the European market. With the right preparation and professional guidance – legal, tax, and administrative – you can smoothly establish your company and thrive in this dynamic environment