Everything worth knowing before establishing a fruitful business in Poland
Opening a corporation in another country can seem to be overwhelming. When is fact it is a fascinating concept and often a good tool for tax optimization. We’ve compiled a list of the perks that come with starting a business in Polish jurisdiction that isn’t all about the region’s natural beauty or rich cultural heritage.
Paying taxes in a smart way
Poland has one of the lowest corporate tax rates effective in all of the EU – only 9 %!
In comparison to other EU countries where the rate of corporate tax is around 35%. That is remarkably high, right? You probably heard of tax-friendly places such as the Seychelles, Gibraltar and Cyprus. Those countries offer low CIT tax but that is not enough to make your company truly successful. Most businesses are looking for low costs of running the business in general.
Lower the minimum wage
The minimum wage in Poland is 3010.00 PLN a month (around €630). Setting aside money to save on salary expenditures may enable your firm so it can be more lucrative.
It’s cost-effective to start up a company in Poland
This is because you only need to have the amount of 5 000 PLN as share capital (that is around 1000 EUR). The whole amount should be held in a business bank account. At PolishYourCopmany, registration of your business in Poland is even easier, thanks to our specialised services.
A reduction in the expenditures that must be met
Polish law in general states that, a tax-deductible cost is defined as a cost incurred for the purposes of deriving revenues, as well as for the purpose of securing or preserving a source of revenue. The last element of the definition of a tax-deductible cost was added to reduce uncertainties surrounding the deductibility of business expenses that do not directly generate revenue. The CIT law provides a list of items that are not deductible for tax purposes, even if the items meet the general conditions. It is required for a limited liability company to keep accounting ledgers.
Additionally, there are many personal reasons why starting up a business in Poland is a great choice for anyone from anywhere around the world.