Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Poland. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Notarize company agreement | 1 day | notarial fee is (PLN 1,010 + 0.4% of the amount of share capital over PLN 60,000) +23%VAT; additionally 0.5% civil law transactions tax is levied on the amount of share capital less the amount of notarial fees and court fees charged for registration of the company. |
| 2 | Deposit paid-in capital at the bank | 1 day | no charge |
| 3 | File at National Court Register for company registration, REGON, NIP, Statistical Office and ZUS | 4 weeks | PLN 600 for registration and PLN 100 for publication |
| * 4 | Register for VAT | 1 day, (simultaneous with procedure 3) | PLN 170 |
| 5 | Register the company at the National Sanitary Inspection | 1 day | no charge |
| 6 | Register the company at the National Work Inspection | 1 day | no charge |