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One of the most flexible business structures Poland has to offer is a Sp. z. o. o. (Limited Liability Company) as it offers limited liability of it’s shareholders. LLC business structure is the most common in Poland. In order to successfully incorporate a SP. z. o .o you will require a minimum company capital of 5000 PLN (~1180 EUR), divided into several shares. In order to finalize incorporation procedure with the commercial register – one director, one shareholder as well as legal address of a company will be required. The liability of shareholders is strictly limited by the volume of their contribution into company’s capital.

Polish economy brief overview

Economy in Poland is rather flourishing, especially due to its private business sector. The Polish government encourages foreign investments in Poland by signing Double Tax Treaties with a large number of countries and by offering a wide range of incentives for entrepreneurs who decide to come from abroad and start a company in Poland.

Company formation procedure

Company formation process of Polish LLC may slightly vary depending on circumstances. However, there is a general pattern of steps to be taken in order to successfully incorporate a fully operating company:

Signing the constitutional foundation document as well as Company’s articles of association. Both documents should be verified at the notary public;

Concluding a document (often rental agreement) to lease premises, where company’s legal address and official office will be located;

Submitting all incorporation documents to the national commercial register of Poland;

Notifying local tax administration regarding new company with business activity. Acquiring a local tax payer number;

Registering the company’s entry into the registry in the official journal;

Registering the company at the local department of the statistics bureau;

Opening a corporate bank account at the local (or foreign) bank;

Notifying labor and sanitary services, in accordance with legal requirements of the labour law;

If any personnel hired – they must be registered at the local office of the social insurance administration.

Company requirements

At least one director must be present at the board of directors to incorporate an LLC in Poland. In Poland only an individual person can be a director of a company: another company or legal entity cannot take this position. There are no legal requirements regarding the citizenship and / or place of residency of directors, but in order to make things work faster with banks and tax administration it is highly recommended to appoint a local resident director. An official company’s register of directors must be kept at the company’s legal address on the territory of Poland.

At least one registered shareholder is required to register a company. There are no requirements regarding the citizenship or place of residency of the shareholder, therefore, 100% capital owned by a foreign resident is possible. An official company’s shareholder register must be kept at the company’s legal address on the territory of Poland.

The minimum share capital required is PLN 5000 (approximately EUR 1180) having the lowest possible share value being PLN 50 (~ 12 EUR).

A shelf company also called a read-made company is generally used in connection with corporate transactions. Shelf companies are incorporated by service providers but no operating activity is taking place in these companies. Instead, after incorporation they are maintained and kept on the shelf until there is an opportunity to sell them. In this case service providers can guarantee that no operational activity has taken place in the company and therefore there is no debt or other liability that could be transferred to the new owner.

Meanwhile, there are also such companies, that were incorporated some time ago with a general objective to operate and earn profit but due to some reason the company ceased its operations. While typically companies would cease to exist, service providers buy the previously active companies and maintain them until a potential investor comes around. As these companies have had certain operational activity, it is important to make sure that they have no debt or other liability. Typically, quality service providers give their guarantee that you are purchasing a debt-less company. Nevertheless, it would be useful to do your own due diligence in order to be totally sure that you are buying a clean company.

Business in Malta

If you are searching for the right place where to acquire a shelf company and commence a business activity, Malta might be what you are looking for. Malta is a well-developed country in Mediterranean located in between Europe and Africa. In addition to the advantageous geographical location and enjoyable weather conditions throughout the year, Malta manages to attract foreign investors due to its business environment and taxation system. Thanks to Malta’s taxation system, it is considered as a tax haven.

Malta’s taxation system offers numerous advantages to companies. For example, Malta has signed double taxation treaties with over 70 countries ensuring that companies do not have to pay taxes in their resident countries for the profits generated in Malta. Also, if a holding company has to pay the full corporate tax rate of 35%, typically the payable amount is largely reduced – shareholders are able to ask for a refund as large as 6/7th from the tax on dividends.

Shelf company in Malta

There are several benefits of acquiring a shelf company instead of incorporating a new one. The main advantage involves a possibility to operate a company that already has some history. Quite often, newly incorporated companies are not considered reputable, therefore potential partners and customers might decide to prefer older companies. This is the reason why the price of a shelf company is determined by the age of it: older the company – higher the price.

Generally, another benefit of acquiring a shelf company is the relatively shorter time of procedure in comparison to an incorporation of a new company. Meanwhile, this benefit does not work as good in Malta as in other countries. This is due to the short incorporation time of companies in Malta – it can take only 24 hours to incorporate a new company (the same amount of time will be needed to acquire a shelf company).

While shelf companies are rather rear in Malta, you are able to acquire companies with various legal structures – from partnerships and limited liability companies to corporations. Maltese companies can be managed both from Malta and from abroad.

Reducing the volume of applied taxes and securing confidentiality aren’t the only advantages of setting up an offshore company in a tax haven. Although tax planning is one of the major advantages offered by offshore companies, the chance to greatly reduce business expenses and maintenance costs is also a very attractive benefit.

Below you will find the six main benefits of incorporating an offshore companies in one the tax havens listed here:

Tax reduction

Incorporating a company in tax haven provides a legal means to reduce the corporate taxes levied, and this is usually one of the main arguments for relocating your business to an offshore. Non-resident companies can enjoy a low-tax regime depending on the jurisdiction of incorporation. Bear in mind that international tax regulations can be extremely complex nowadays, and it is essential to consult with an experienced tax specialist. It is vital to ensure that there are no conflicts with corporate tax obligations in the jurisdiction where the business actually operates.

Privacy

In some tax haven jurisdictions, non-resident companies are not obliged to make public any financial documentation or private information relating to directors and shareholders. Most offshore jurisdictions will not pass on any of this information to third parties, including other countries, unless the individual is suspected of involvement in criminal activity.

Simple maintenance

Usually, there are no strict requirements or obligations regarding company management, so the directors and executive staff may make decisions remotely, using power of attorney or nominee services. The need for staff and physical premises may be met by the elegant and cost-effective solution of virtual office services.

Asset protection

Many offshore jurisdictions can be used as valuable corporate tools for asset protection. Typically, offshore legal entities are used for holding intellectual property rights or real estate investments.

Lower expenses

Comparing onshore and offshore jurisdictions, offshores usually offer a faster and more straightforward company incorporation procedure. Annual maintenance is usually easier and cheaper as well, making company registration and maintenance much more affordable.

Lower minimum share capital requirements

Incorporating an offshore company usually requires only a very small amount of share capital, and in certain tax haven jurisdictions there are no capital requirements at all, allowing you to minimise the cost of incorporation.

IBC or International Business Company or as it is also called International Business Corporation is basically an offshore company that is usually incorporated under the laws of some jurisdictions worldwide as a tax neutral company, meaning that it is not subject to tax in the country of incorporation. It is also limited in the direct business activities it may engage in while operating in the context of the jurisdiction in which it is incorporated.

Importance and main functions of IBC

Often IBC features can vary by jurisdiction, but typically include confidentiality of business records, ability to issue shares, provision of a local registered agent or office, and exemption from local corporate income tax as the majority of offshore Jurisdictions that removed or are processing removal exempt IBC from local taxation while reducing corporate income tax to zero to avoid hurting the entire offshore finance industry.

Such companies are generally formed for offshore banking, international investment, asset protection, real estate and intellectual property ownership, and other business activities related to international trade.

A list of jurisdictions offering IBC as a business structure

As stated in Streber Weekly, there are many jurisdictions that offer IBC as a business structure. The list of such jurisdictions is quite long: Antigua and Barbuda, Anguilla, Barbados, Bahamas, Belize, Brunei, British Virgin Islands or BVI, Cook Islands, Comoros, Dominica, Grenada, Gambia, Mauritius, Marshall Islands, Monsterrat, Nauru, Saint Lucia, Samoa, St. Kitts and Nevis, St. Vincent and the Grenadines, Seychelles and Vanuatu. This list includes most jurisdictions without considering their worldwide reputation. Some popular offshore jurisdictions not mentioned previously offer territorial taxation and other tax incentives in lieu of IBCs. These business structures can operate as Exempt Corporations, Free Zone Corporations, or Non-Resident Corporations, etc. without having the ease of IBC corporations: Panama, Hong Kong, Cayman Islands, Turks and Caicos Islands (TCI), United Arab Emirates (UAE), Bermuda.

For example, the jurisdiction of Panama is generally appropriate for International Foundation or IBC in terms of asset protection. The jurisdiction of Hong Kong in general is also convenient for international trade due to the favorable tax system as no withholding tax, capital gains tax, capital gains tax, VAT and other types of taxes are levied.

The most respected jurisdictions for IBCs

The British Virgin Islands (BVI) is recognized as the world's leading offshore business center with more than 450,000 operating companies registered on its territory. He is often referred to as the grandfather of all IBCs. International international business corporations have a fairly good reputation among other jurisdictions of this type due to the ability to transfer domicile and privacy of ownership for assets collected within the corporation. In general, the BVI provide flexible, cost-effective and fast international offshore company formation services.

Seychelles can be alternatives to BVI offshore companies as this jurisdiction also offers ease of administration, simplicity and privacy. Additionally, with more than 175,000 companies registered there, IBC is the most common type of company formed on islands. The IBCs of this jurisdiction are commonly used as consulting and staffing services firms, as well as holding companies for stocks, real estate, and stocks.

The Bahamas is one of the oldest offshore jurisdictions to be considered classic like the previously mentioned BVI as it is independent, politically stable, has an improving reputation and is gambling friendly.

Saint Kitts and Nevis has a good reputation but is also politically stable and has an average to low cost. However, this jurisdiction is more popular for its limited liability companies (LLC).

St. Vincent and the Grenadines has low costs. It is quite stable politically and has a good reputation which has improved in recent years due to increasing popularity due to financial deals conducted by Euro Pacific Bank and Loyal Bank.

The logistic performance index of Finland is 3.62. It indicates satisfactory performance - in general, traffic is handled well, some shortcomings in certain areas are possible, but overall the logistics system is reliable and ready to handle predictable traffic volumes.

Inch performance is rated at 3.89. This indicates good performance - customs clearance is fast and effective, in some cases it may not exist at all (e.g. at the borders of the Schengen area), which encourages international business activity; The required documents and fees are predictable and publicly available and in some cases (mainly related to visas) can be arranged at the customs office.

Infrastructure quality in Finland is rated at 3.52. It indicates a satisfactory quality - roads, railways, ports and other facilities are capable of handling significant traffic at any time, and are also suitable for various types of transport vehicles and ships.

International shipping quality is 3.52. It indicates satisfactory performance - the services are reasonable and the prices are not too high and usually correspond exactly to the quality, although there is still room for improvement.

The competence of logistics service providers is rated at 3.72. The providers are competent - they ensure a good quality of their services and almost always maintain this level; Deficiencies, while still possible, are usually minor and do not discourage further use by providers.

Tracking possibilities for shipments are rated at 3.31. It indicates a satisfactory performance - the tracking systems provide all the basic information as well as additional data about shipments; most of the times it also has a weel established cooperation with foreign and international tracking systems, as well as usually provides information in multiple languages.

Tracking possibilities for shipments are rated at 3.8. It indicates a good performance - shipments almost always arrive within the scheduled time brackets and often faster than expected.

In Finland, 100% of the population has access to electricity. Finland has 148 airports nationwide. There are 4,763,000 internet hosts in Finland. The number of road motor vehicles per 1000 inhabitants in Finland is 578.

Road network

The total road length in Finland is 454,000 km (282,163 miles). Out of them 863 km (536 miles) of roads are classified as motorways, freeways, or autobahns.

Gas price

https://www.confiduss.com/en/jurisdictions/finland/infrastructure/

An agency structure is a company that has entered into an agreement with an offshore company (the principal) to act as an agent. The agency company itself does not carry out any business activities in Austria, but receives income from the agency commission.

At all stages, the agency company conducts business on behalf of the client, which may be a tax haven based company, under the terms of the agency agreement. Business transactions are processed through the Austrian company (which is allowed to trade with EU and non-EU companies for VAT purposes) and the income goes into their bank account. After deduction of a commission, the capital amount is transferred to the account of the actual seller (e.g. the EU company). Agency commission can be set at 2%, 5% or even higher and is typically paid annually. The Austrian company will declare the commission received as income taxable in Austria.

Starting a business in Poland is a great business decision as it allows you to expand the possibilities and new ways of optimizing your current business. The jurisdiction is extremely loyal to foreign investors and offers them attractive terms and conditions; Your funds will be deposited with reliable European banks. State guarantees for the return of deposits. an advantage of registering a company in Poland. In addition, LLC income tax is 9% (provided that the company’s profit does not exceed $ 1,200,000 per year). There are no issues with opening a corporate non-resident bank account. You can open the company remotely without personal presence.

Requirements

You need to show the information about the founder and director of the company;

Passport data if the founders are natural persons and legal documents if the founders are legal persons);

Passports of the founders and the founders themselves who have already drawn up the deed of incorporation of the company — in the case of registration by a notary on arrival in Poland.

Powers of attorney of the founders for the trustee, notarized and translated passport copies, prepared articles of association.

Previously received electronic digital signatures (EDS) from the founders — for online registration.

The founders’ previously activated trusted EPUAP profiles created for online registration.

The state tries to attract foreigners with tax incentives and a stable economy. Poland is very loyal to foreign entrepreneurs. Poland has no special regulations for foreigners.

Legal address

Every company in Poland needs a legal address. The legal address required to receive your business correspondence and it is also assumed that the board of directors of the company concerned is at this address, documents are stored and the company is administered.

Bank account

The customer must have all identification data (copy of passport, notarized electricity bill, signed detailed curriculum vitae, bank reference letter confirming the good relationship of the customer with the bank, and a police clearance certificate inconclusive and requirements can be changed.

Legal name

The company name must be unique. There are no special requirements for a name, other than the following words must appear at the end of the company name: “Limited liability company” or the abbreviation “Sp. Z o.o.” or “Spółka z o.o.”.