Do Indian citizens need Polish residence to open a company in Poland?

No. For a limited liability company (sp. z o.o.), Indian citizens do not need Polish residence, a visa, or a permit. You can own 100% and be sole director while living in India. The residence requirement only applies to sole proprietorship (JDG), which is a different form.

Can an Indian founder set up a Polish company remotely?

Yes. The entire process runs from India using a qualified electronic signature obtained via video verification. No travel to Poland required for formation or ongoing management.

How are dividends from a Polish company taxed for Indian shareholders?

The standard 19% withholding tax may be reduced under the India-Poland DTAA (commonly to 10-15%), provided the Polish company holds a valid Indian tax residence certificate and the shareholder is the beneficial owner. The dividend may also be taxable in India, with credit for Polish tax paid.

What does it cost for an Indian founder to set up an EU company in Poland?

From €2,550 (ready-made company with VAT EU, EORI, plus e-signature), or €3,350 for the premium package. Plus share capital of PLN 5,000 (~€1,150). Fixed price, no hourly billing.

EU Company in Poland for Indian Entrepreneurs

India is one of the fastest-growing sources of entrepreneurs establishing companies in the European Union — driven by IT services, SaaS, consulting, and trading businesses that need an EU legal entity to contract with European clients, access the single market, and build credibility with enterprise customers. Poland has become a practical entry point for many of them.

This article covers what is specific to Indian founders. The general formation process is in our complete guide for non-EU entrepreneurs — here we focus on the questions Indian clients actually ask.

The Biggest Myth: “You Need Polish Residence”

Let us clear this up first, because it is the single most common piece of misinformation Indian founders encounter online — and it stops many people before they even start.

You do not need Polish residence, a visa, or a residence permit to own a Polish company. Several widely-read articles claim that Indian citizens must have a Polish residence permit to set up a business in Poland. This is incorrect — and it comes from confusing two different things:

Sole proprietorship (JDG) — this is the individual self-employment form. For a sole proprietorship, non-EU citizens generally do need a residence basis. This is the form the misleading articles are referring to.
Limited liability company (sp. z o.o.) — this is a separate legal entity, and it is fully open to non-resident foreign owners. An Indian citizen living in Mumbai, Bangalore, or anywhere in the world can own 100% of a Polish sp. z o.o., be its sole director, and manage it remotely — with no Polish residence, no visa, and no local partner.

The overwhelming majority of Indian founders forming an EU company want the sp. z o.o. — not the sole proprietorship. So the residence requirement simply does not apply to them. You can form and own the company entirely from India.

Incorporation and immigration are two completely separate questions. You can own and run a profitable Polish company without ever setting foot in Poland. If you later decide to relocate, that is a separate immigration process — but it is optional, not a precondition.

Why Indian Founders Choose Poland

Indian entrepreneurs typically come to Poland for one of a few reasons:

EU entity for enterprise clients. European companies increasingly require their vendors — especially IT and SaaS providers — to be EU-registered entities for contracting, data processing, and procurement. A Polish sp. z o.o. satisfies this at a fraction of the cost of a German or Dutch company.
9% corporate tax. For companies with revenue below €2 million, Poland’s 9% CIT is one of the lowest in the EU — attractive for service businesses with healthy margins.
GDPR-compliant base. SaaS and data businesses need an EU jurisdiction for GDPR compliance. Poland provides this with mature data infrastructure.
Cost efficiency. Formation, accounting, and operating costs in Poland are significantly lower than in Western Europe — important for bootstrapped Indian startups.
Talent access. For founders planning to build an EU team, Poland offers 300,000+ IT specialists at labour costs 40–60% below Germany, the Netherlands, or France — with strong English proficiency.

Common Business Models

The Indian clients we work with generally fall into these categories:

IT services and software houses. Indian development agencies serving European clients set up a Polish entity to invoice in EUR, sign EU contracts, and present as a local European vendor. The Polish company subcontracts development back to the Indian team or hires locally.

SaaS and digital products. Indian SaaS founders establish an EU entity for European customers, GDPR compliance, and EU payment processing (Stripe, Paddle often prefer EU entities for EU sales). → SaaS company guide

Consulting and professional services. Independent consultants and agencies serving EU clients need a local entity for contracts and invoicing. Low overhead, simple structure, 9% CIT on retained profits.

Trading and import/export. Indian businesses importing goods into the EU use a Polish company as importer of record, with an EORI number for customs. → Import/export guide · EORI guide

Everything Remote — No Travel Required

The entire process runs from India. The key tool is a qualified electronic signature, obtained through a short video verification call. With it, you sign the formation documents, pass resolutions, file with the court register, and manage the company long-term — all online.

India joined the Hague Apostille Convention decades ago, so if any document from India is needed (for example, if an Indian company is the shareholder), apostille is straightforward — obtained through the Ministry of External Affairs. But for most individual Indian founders using an e-signature, apostille is not even part of the process.

LEXCARTA coordinates the e-signature process, schedules the verification for Indian time zones, and provides preparation instructions.

Ownership Structures

Two common approaches for Indian founders:

Indian individual → Polish sp. z o.o. The founder owns shares directly as a natural person. Simplest structure, signs via e-signature. Suitable for most consulting, SaaS, and service businesses. May allow access to Estonian CIT (0% tax while reinvesting) since the shareholder is a natural person — subject to the employment requirement.

Indian company → Polish sp. z o.o. An existing Indian company becomes the shareholder of the Polish entity, creating a parent-subsidiary structure. Requires apostilled Indian company documents. Useful for established businesses expanding to the EU, but note: with a corporate shareholder, Estonian CIT is not available (it requires natural-person shareholders).

Taxation and the India-Poland Treaty

India and Poland have had a double taxation avoidance agreement (DTAA) since 1990. This matters when profits are distributed as dividends back to India.

Corporate income tax in Poland: 9% for small companies (revenue under €2M), 19% above. This is paid by the Polish company on its profits, regardless of where the owner is resident.

Dividend withholding tax: the standard Polish rate is 19%. Under the India-Poland DTAA, this is typically reduced (commonly to 10–15%, depending on treaty conditions) for dividends paid to an Indian resident shareholder. To apply the reduced treaty rate, the Polish company must hold a valid Indian tax residence certificate for the shareholder, and the shareholder must be the beneficial owner of the income. Without the certificate, the full 19% applies.

The dividend received in India may also be subject to Indian tax, with credit available for the Polish tax paid under the DTAA. Your Indian chartered accountant should assess the combined position based on your circumstances. → Full guide to Polish company taxation

Banking — The Realistic Picture

Banking is the area where Indian founders, like other non-EU clients, face the most friction. Polish banks apply enhanced KYC/AML checks for non-resident owners.

Wise Business / Payoneer — remote-friendly, opens in days, sufficient for receiving client payments and paying expenses. Most Indian founders start here for immediate operability.
Traditional Polish bank — provides full banking (including VAT refund processing) but usually requires a personal visit and longer verification. Can be pursued in parallel once the company is running.

LEXCARTA provides banking documentation and guidance, but account opening is ultimately the bank’s decision. We recommend starting with a fintech solution for immediate operations.

Timeline and Cost

Ready-made company: operational in 2–5 days, with VAT EU and EORI already active
E-signature: 1–3 days via video verification
Cost: €2,550 (Structured €2,200 + e-signature €350) or €3,350 (Premium + e-signature)
Share capital: PLN 5,000 (~€1,150) deposited into the company account

All fixed price. No hourly billing, no hidden fees. LEXCARTA is a licensed Polish law firm — your formation is supervised by attorneys, not handled by an unregulated agency.

Ready to set up your EU company from India? Check your eligibility or schedule a consultation — we will assess your situation and recommend the right structure.