Forms of Taxation
In the Polish legal system, profits made by a limited liability company are subject to double taxation – corporate income tax – CIT, and personal income tax – PIT (each according to 19% tax rate). In the first place, the income of a limited liability company is subject to corporate income tax. If the limited liability company’s profit is paid out to the members as dividends, they are obliged to additionally pay personal income tax PIT. LTD Solutions team have necessary knowledge to optimise the above forms of taxation, what will definitely let you save a lot of money.
What Should You Know About?
- The members of a limited liability company are obliged to appoint the Company’s Management Board. The Board has to consist of at least one person who will take up a position of the Management Board President.
- A limited liability company is a capital company – therefore, the members are obliged to provide their contribution in the share capital.
- A minimum amount of the share capital in a limited liability company is 5000 PLN (approximately $1500).
- A member of a limited liability company may be another limited liability company provided that it is not the only member of the newly established company.
Is It Possible to Employ Workers in a Limited Liability Company?
Of course, there is a possibility to employ workers from Poland on any terms. Limited liability companies registered on the territory of Poland can also employ workers outside the EU under specific-task contracts.
Purchase of Real Property – No Requirement to Acquire a Permit
A company whose members are foreign persons outside the EEA can acquire real property (excluding agricultural properties and lands) on the territory of Poland. Running a business activity in the form of a limited liability company exempts from the obligation to acquire a permit.
A citizen of China is the only shareholder of a limited liability company with its registered office in Poland. Despite being considered a foreigner, the citizen will be exempted from the obligation to obtain a permit to purchase real property. This is caused by the fact that the company, even if it is completely dominated by foreign capital, will be considered an entrepreneur from the EEA area, therefore, it will be exempted from the permit acquirement.
Opening a company’s bank account often has the greatest meaning to a future foreign entrepreneur. It is the best possible way to enter the European Union market. Our companies have EU VAT numbers, which makes them fully entitled to conclude transactions throughout the EU. Additionally, the possibility of online banking facilitates the financial management of the company, even outside the company’s registered office. Currently, all the banks in Poland have online banking as well as a mobile platform for the account access.
No Restrictions for International Transfers
Another advantage of owing a limited liability company in Poland is a lack of quantitative and quota limits for international transfers which can be carried out in almost any convertible currency.