Branch

Limited liability companies and joint-stock companies with a seat abroad may open branches and representative offices on the territory of the Republic of Poland. As an ideal form of corporate vehicle for foreign entrepreneurs entering the Polish market, the branch offers the possibility to operate a business from the country of residence. This form of business activity will interest entrepreneurs who run a company in the EU and want to enter the Polish market.

There are important rules to remember for everyone governing the branch in Poland. Firstly, the person authorized to represent the foreign investor must be formally appointed and the branch should be added to the National Court Register (KRS). The original name, together with the name of the legal form translated into Polish, should be used during the registry, as well as the addition of the obligatory affix „branch in Poland.” As an attachment, the entrepreneur should present the proof of foreign registration of the company and a copy of the founding document (along with the certified translation).

Since 2019, Polish law on the white lists of active VAT payers requires a branch and representative offices to have a separate bank account registered in Poland. Not all types of bank accounts can be added to the white list. Among the excluded accounts are foreign accounts with a different numerical structure. (we over that topic extensively in chapter 4).

Representative Office

The scope of activity of the representative office may include only conducting activity in the field of advertising and promotion of a foreign entrepreneur.

To open a representative office in Poland, one needs to submit to the registry held by the Ministry of Entrepreneurship and Technology. The period for which the office can be operational is 2 years, with a possibility for prolongation for another 2 years. The legal title to the property in which the representative will perform his duties will also be necessary.