Branch vs LLC in Poland

We help out clients to make decision what would be the best form to start business in Poland – to open a new company or start a branch of their existing company in other country.

WE START A BRANCH OF COMPANY FOR 700 EURO !

There are several deferences in both forms and that is why it is important to be aware of them before starting of business. Please find the most important characters of opening a company vs opening a branch in Poland:

	Branch	LLC/ Subsidiary
Independence	The branch is not perceived as an independent business structure in Poland; in fact, the company abroad is fully liable for its branch’s debts and obligations while it operates in the country.	The subsidiary is a separate legal entity with legal capacity; should this be needed, it is not constrained to perform the same business activities as the parent company.
Creators /sharedolders	Can be established only by business entity	Can be established by private person as well as a company or any legal enity
Rule of reciprocity	Foreign business enity (outside EU) can create branch in Poland only on rule of reciprocity in the country of origin	No rule of reciprocity
Set up	The branch is usually easier to set up as there are fewer formalities for registration because there is no need to conclude separate Articles of Association (notarial deed); the ones of the parent company will be used.	The subsidiary is incorporated as a Polish limited liability company; the founders will have to fullfill all of the company formation steps: concluding articles of association in notarial form or electronical form+
Obligations	The branch needs to keep separate books in Poland and comply with the accountancy matters.	The subsidiary fully complies with all of the Polish accounting and reporting requirements.
Taxation	The branch is taxed at the usual rate on its profits derived from Poland.	The subsidiary is taxed on its worldwide income derived from Poland.
Required documents for registration	a certificate of the Polish representative office of a foreign entrepreneur regarding the reciprocity of activities (for non-EU businesses) founding act, contract or statute together with a certified translation into Polish a copy from the register along with a certified translation into Polish a notarised power of attorney for branch registration	founding act, contract or statute together with a certified translation into Polish a copy from the register along with a certified translation into Polish a notarised power of attorney for a company formation
Total costs of registration incuding govermental fee*	700 Euro	1250 Euro

*cost of sworn transaltion of documents is not included.