Types of Companies in Poland

Image by <a href="https://pixabay.com/users/adamsky73-5854577/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=4539094">adamsky73</a> from <a href="https://pixabay.com/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=4539094">Pixabay</a>

The Polish market is one that is highly receptive to foreigners who want to invest in their economy and offer the same measure of rights that it gives to its local investors.

Several companies can be registered in Poland. Thus, all investors have options to choose from as they seek to do business in Poland and at liberty to choose the best option that fits their needs. These companies are regulated by the Polish Company Act

The various companies, as provided by the Polish Company Act, are discussed below:

Limited Liability Company

It is the most commonly incorporated company among the Polish people. The company is to be registered with the National Court Register after all the documents for incorporation has been prepared. With a minimum of one shareholder and 5000 PLN as the minimum share capital, the company will be incorporated. The nominal value of one share cannot be lower than 50 PLN.

Joint Stock Company

This kind of company is usually for large scale businesses. However, it can be founded by one or more persons. These persons could either be natural persons or legal persons. The minimum share capital is 10,000 PLN, and it is required that the nominal value of one share cannot be lower than 0.01 PLN.

Limited Partnership

This kind of business lacks a legal personality, which means that the business cannot sue or be sued. In spite of this, it must be a business relationship between natural or legal persons.

There is no stipulated minimum share capital for this kind of business. It is also required to be adequately registered.

Civil Partnership

This kind works best for businesses that operate on a small scale and must be between a minimum of two natural or legal persons. It does not have a legal entity that is separated; however, the partners do.

This kind also does not require a minimum share capital and has to be registered at the National Court Register.

Registered Partnership

These are small scale businesses that are carried out by a minimum of two persons. It possesses legal as well as judicial capacity. However, it does not have legal personality. There is no required minimum share capital. In this business arrangement, the partnership pays VAT, while the individual partners pay Personal Income Tax or Corporate Income Tax, depending on if it is a natural or legal person.

Limited Joint-Stock Partnership

This kind usually has two partners, the active partner and the passive partner. The active partner is the partner with the required knowledge, skill and experience that runs the business while the passive partner provides the capital for the business. The business does not have a legal personality. However, it possesses a legal and judicial capacity.

Sole Proprietorship

It is a one-person business engaged in by a natural person who has the legal and judicial capacity. There is no minimum share capital. The person bears all the liability of the business and is subject to a Personal Income Tax.

Foreign Companies

Foreign companies are also at liberty to establish a branch office in Poland. However, their business operations are only limited to that of the parent company, and they are eligible for payment of VAT.