1. New Directive regarding VAT claim in EU countries

From the 1^st of January 2010 Directive 2008/9/EC has come into force in 27 European Union countries. 

2. Change of EU rules since 1st January 2010 regarding place of supply of services. 

From the 1^st of January 2010 Directive 2006/112/EC has been changed by Directiv 2008/8/EC

Why invest in Poland?
 

The biggest of the new members of European Union
 

• Economic growth at the level of 5,5 %
• Company tax equals 19 %
• Qualified workforce (20 million young, highly educated, multilingual young people)
• Free and unrestricted goods traffic
• The country is located in the centre of the European Union (where the population amounts 250 million within a 1000 km radius)
• Part of the Trans-European Network
• The opportunity of partnership with Russia and Ukraine
• Legal and tax systems integrated with the EU systems
• Company laws treats Polish and international investors equally GDP growth three times that of Western Europe
• Ranked 1st in planned investments in Europe
• Large and growing domestic market (38 million consumers driving 10% annual retail market growth)

 Investment Incentives
 

• Over 90 billion euro available for development, infrastructure and human capital
• 14 Special Economic Zones (SEZ) and Technology Parks with incentives

The investors may benefit form the following possibilities:
 

• income tax exemption – a form of regional aid
• land at competitive prices
• free assistance in dealing with formalities relating to the investment project
• exemption from real estate tax
• grants for employee training programmes
• grants for the creation of new jobs
   

Forms of running activities in Poland by international entities (examples)
Representative office (Przedstawicielstwo)

It can only concern advertisements and promotion of a foreign entrepreneur. It requires an entry to the Foreign Representative Offices Register (1) held by the Minister of Economy. Again, the Economic Freedom Act specifies requirements concerning the content of a proper application form, documents needed and cases of imposing ban on running business activity of this representative office.

Branch office (Oddział)

To carry out business activity on the territory of Poland foreign entrepreneurs may set up branch offices. The rights of the entrepreneurs are regulated on the basis of the principle of reciprocity with other countries and international agreements ratified by Poland. A branch office does not have its own legal personality. It operates as a part of the foreign company conducting business in Poland. The establishment of a branch office must be registered in the Register of Entrepreneurs (2)

Limited liability company (Spółka z ograniczoną odpowiedzialnością)

A limited liability company can be established by one or more persons for the purpose of conducting a business and any other purpose allowed by law. The deed of company formation should have the form of a notary’s deed. The minimum capital is 50,000 PLN and the minimum value of one share is 500 PLN. A limited liability company has a legal personality. The Company is liable for its debts and obligations with its whole property and shareholders are not liable for the company's debts and obligations. The company is managed by its bodies: the management board, supervisory board and the shareholders’ meeting. A limited liability company may be established by any foreign natural person or legal entity. For further details please check LLC in Poland.

Joint-stock company (Spółka akcyjna)

A company must be founded by at least one natural person or a legal entity. However it may not be established solely by a single member. The minimum initial capital is 500,000 PLN. The value of a single share cannot be lower than 1 PLN. The Company is liable for its debts and obligations with its whole property. The company is controlled by the management board and the supervisory board. In order to obtain capital the joint stock company has the ability to issue shares, which may be subject to public trading. Shareholders are not liable for the company's debts and obligations. The company has to be registered at the District Court (Commercial Court) in the region in which the company is established and which will be its principal place of business.