Limited liability
Firstly, it is needed to mention that limited liability company has got a separate legal entity which generally means that the company is responsible for it’s obligations (not the shareholders). In some circumstances, the management board can be responsible for company’s obligations, for example when the financial execution against the company turns out to be ineffective. The liability of shareholders is limited. This is one of the construction principles of capital companies, which largely determines the attractiveness of this form of running a business.
Shareholders and management board
There is a minimum of one shareholder to form a LLC. Shareholders can be either natural people or legal entities. The board of directors may consist of a one or more members. A single shareholder can be also a single member of the board. If the Board of Directors consists of just the company’s only shareholder, every resolution must be signed in front of a notary public. It means that even a single person can establish and run a limited liability company.
Share capital
The required minimum share capital is 5 000 złotych (about 1 200 Euro) and it must be contributed to the company by shareholders. So the share captial to start with is very low.
Income Tax
The basic ratio of a income tax for the company is 19% (please note that if the income is lower than running costs then it is no need to pay income tax). However from January 2019 the companies with income in the current tax year lower than 1 200 000 Euro can have the 9% of corporate income tax rate. It is one of the lowest corporate income tax level in Europe.
Banking costs
The banking offer in Poland is very wide and the company can choose from a large variety of services. The running costs of a bank account can be also very low, it is very easy to find an offer for running a bank account with a debit card for 2-3 euro per month.
Poland – center of Europe
The geographical location of Poland is very foreable – it’s a country which connects Western and Eastern Europe with all benefits of this situation. Also it is needed to mention that the political situation and economy is stable. Poland is also a member of the Schengen Zone and European Union.
Conclusion
Establishing a company in Poland means that:
1. the legal form of a limited liability is very attractive to investors;
2. even a single person can establish and run a limited liability company;
3. minimum share capital is very low;
4. the corporate income tax rate is one of the lowest in Europe;
5. low banking costs;
6. shareholders or members of management board can decide not to pay social insurance;
If you are interested in establishing a limited liability company in Poland, please contact my law office to start the procedure immediately.