Strengths of Poland

Poland – is a country placed in Central Europe, between Germany and former republics of Russian Soviet Union - Ukraine, Belarus and Lithuania, bordered by Slovakia and Czech to the south. Total area of Poland is over 0,31 million square kilometres, making it 9 largest country in Europe. With a population of over 38,5 million, Poland is the 6th most populous country in European Union, holding 6th place on the list of the strongest economies in EU and showing ambitions to belong to the top-tier fast developing world countries (currently ranked 21).

According to Global Peace Index report for 2015, Poland is one of the peaceful countries in the world, moved up to 19 position to the group of countries in which security is defined as "very high". Investment attractiveness of Poland is best confirmed by data presenting the foreign direct investment stock (FDI stock), which equalled 171,7 billion EUR at the end of 2014 (according to official report of National Bank of Poland).

High investment attractiveness is composed
by number of factors, of which the most important are:

MACROECONOMIC STABILITY

Poland has mature parliamentary democracy, comprehensive law & tax system, healthy public finances, long-term predictability.

INFRASTRUCTURE

Massive inflow of public (UE) & private funds for the last 25 years enabled to accomplish entire modernisation of infrastructure & fulfil new investments – predominantly in roads, sea-ports, airports, rail transportation, energy, telecommunication, hotels, offices & others.

STRONG INTERNAL MARKET AND FREE ACCESS TO THE UE MARKET

Almost 39 million of consumers in Poland and easy access to the EU market which covers 500 million consumers plus easy access to other Eastern European countries.

LOW LABOUR COSTS AND VERY ATTRACTIVE OPERATIONAL COSTS

Low labour costs are main factor influencing on very competitive prices of products/services, while high quality is an effect of modern technology production facilities, customer care and high competitiveness. Other operational costs are also relatively low, with comparison to West European or Scandinavian countries.

AMBITIOUS AND HARD-WORKING CITIZENS

The main advantage of Poland are the people. Especially their ambition, motivation and professional ethics as well as unique initiative stand out from other nations of Central & Eastern Europe. Plenty of schools of academic education guarantees excellent access to a large and educated multitude of students in all fields, particularly technical and information technology.

BASIC ECONOMIC DATA
(Central Statistics Bureau - GUS)
GUS GUS GUS GUS GUS
Business in Polen

Infrastructure

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Poland is playing a unique role in pan-European transportation system, benefiting from central location in Europe. Thus, Poland has modern & convenient road, rail & air connections with all European Union countries and is well prepared for trade with other countries of Central & Eastern Europe. Main polish seaports on Baltic Sea coast (Szczecin, Gdynia & Gdańsk) are connected with all important seaports in Europe & world. As a result, Poland is ideal location for operation of companies on the European market, Central & Eastern Europe and around the world.

Air transport

transport lotniczyAll major cities in Poland have their own airports, among them 11 has international status: Warsaw, Kraków, Gdańsk, Katowice, Poznań, Wrocław, Szczecin, Łódź, Bydgoszcz, Rzeszów and Zielona Góra. Thanks to the dense network of connections supported by major carriers and low-cost airlines, most European destinations can be reached within two hours of the flight. Gdańsk airport - Rębiechowo - is handling the biggest European airlines as: Norwegian Air Shuttle, WizzAir, Ryanair, Airberlin, AirBaltic, FinnAir, Lufthansa, LOT, SAS and SwissAir.

Gdańsk airport allows direct flights to 9 Norwegian airports: Trondheim, Molde, Alesund, Bergen, Haugesund, Stavanger, Kristiansand, Olso - Torp, Oslo – Rygge and Oslo - Gardermoen. Gdańsk airport is carried out dozens of flights to the above mentioned cities in Norway within a week.

Road transport

transport drogowy
The modern motorway network allows for efficient car & bus transportation in Poland:
  • North to south direction (A1 highway) - from Gdańsk/Gdynia via Łódź and Katowice to southern Polish border with the Czech Republic
  • West to east direction:
    • A2 highway in central Poland - from Frankfurt (an der Oder) via Poznań, Łódź and Warsaw to the Polish eastern border with Belarus
    • A4 highway in the southern part of the Poland - from the German border through Wrocław, Katowice and Krakow to the Polish eastern border with Ukraine
Ultimately, Poland is expected to build about 2,000 km of new highways and 5.300 km of new expressways within couple of years.

Rail transport

transport kolejowyPoland is distinguished by the highest densities of railway network in the world with total length of over 20,000 km. Most important elements include numerous car, train & container terminals and stations & ramps located at the eastern Polish border (in the context of broader railroad tracks in Russia and former Soviet Union countries). EU funds allocated to Poland under the cohesion programmes by the European Commission will comprehensively modernize and upgrade rolling stock and railway network by 2020. In 2014 the state railway carrier PKP SA launched a network of fast and modern passenger connections (Pendolino), connecting the capital city with major cities of Poland (Gdańsk, Gdynia, Wrocław, Katowice, Kraków). Pendolino ensures journey at speeds over 200 km/h, which allows travel from Gdańsk to Warsaw in less than three hours. Finally, such trip will last up to 2.5 hours.

Sea transport

transport morskiThe main commercial ports Polish - Gdańsk, Gdynia, Szczecin and Świnoujście - are located on the southern coast of the Baltic Sea and are favourably situated in the European transport corridor North - South. All ports have modern infrastructure, separated container terminals, bulk & general cargo terminals, ro-ro and passenger terminals, energy depots, storage & customs warehouses. It is observed in recent years a significant increase in the number of overloaded containers, which proves the high attractiveness and competitiveness of Polish ports. European Union funds allocated to the modernization and development of port infrastructure in the coming years will further enhance their competitiveness. Main Polish ports are connected by ferries only with Sweden, Finland and Denmark. Direct ferry from Norway to Poland is currently offered by the ports in Germany and Denmark.

Banks & Money

The currency of Poland is the New Polish Zloty (PLN), officially introduced into the monetary system on 1 January 1995, when the Polish National Bank made the old currency (PLZ) denominated to new PLN at the rate of 10,000 PLZ = 1 PLN. Commonly used abbreviations of New Polish Zloty: "zł", "PLN". PLN is currently fully convertible (in currency exchange offices and banks), current FX rates of major currencies are presented below:

0,46

NOK/PLN

4,30

EUR/PLN

4,00

USD/PLN

Interest rates are now at their lowest historical level (main reference rate is 1.50% p.a.) and reflect the economic situation in the European Union. Low interest rates contribute to economic growth and stimulate the development of the Polish economy.

Polish banking system is represented by nearly 50 commercial banks, where the share of assets of foreign banks is nearly 70%. The banking sector is highly competitive, so all banks are constantly upgrading its infrastructure and offer more attractive services & products, generally banking service is at a very high European level. Banks’ offer is very broad and modern and includes current accounts held in PLN and foreign currencies, all main currencies deposits, domestic and foreign payments, working capital lines and investment loans, international trade products (guarantees, letters of credit and documentary collection) in both PLN and foreign currencies.

The capital market in Poland is created by a number of modern, competitive institutions and companies, of which the most important are: Warsaw Stock Exchange (main market), New Connect (alternative market), Catalyst (corporate, municipal and treasury bonds & securities) and CeTo (unregulated market), brokerage houses, investment companies, investment fund companies, investment and pension funds, transfer agents, and clearing and custodian banks. All operators in the capital market are monitored & supervised by state-owned Financial Supervision Commission (KNF).

Law & legal issues

Legal system in Poland is of continental type, with visible influence of German and French law. The main sources of universally binding law in Poland are:

  • constitution
  • law
  • ratified international agreements
  • internal regulations

Judiciary of Poland is held by:

  • supreme court
  • ordinary courts - district, regional and appeal
  • administrative courts

Poland is a stable country in terms of the legal system, but there are many areas that should be further developed and improved (e.g. speed of courts litigation, excessive bureaucracy of government offices or ambiguity of certain regulations).

law

Poland has a stable and clear tax system based on two types of taxes:

  • direct taxes:
    • income tax (PIT or Personal Income Tax)
    • corporate tax (CIT or Corporate Income Tax)
    • property tax
    • other (agricultural tax, stamp duty tax, tax on minerals)
  • indirect taxes:
    • value-added tax (VAT)
    • excise tax
    • gambling tax

Base levels of the most important taxes are:

  • income tax on individuals (PIT) - 18% (for annual income up to the amount of PLN 85.528) and 32% (for annual income above the amount of PLN 85.528). The Act provides a number of exemptions, deductions and tax breaks.
  • corporate income tax - 19%. The Act provides a number of exemptions, deductions and tax breaks for this kind of tax. One of the most important is the possibility of covering the annual losses from incomes earned in the next consecutive five fiscal years, on condition that the amount of the reduction in any of these years did not exceed 50% of the amount of the losses.
  • property tax - level of property tax is determined annually by the local municipal authorities and generally is not high (in the subjective assessment even low :-)).

Human resources & labour market

There are over 450 higher education institutions with a broad profile of education (universal, technical, economics, agricultural, medical, educational, marine, art) in Poland. Higher schools employ over 90 thousand teachers and lecturers who provide knowledge to nearly 1.7 million students. According to Eurostat calculations, the average cost of labour in Poland oscillate at 25-35% of the Western Europe average (EUR 8.4 vs. 24.6 EUR).

For Scandinavian countries, that comparison falls yet more attractive, because the average cost of labour in Poland is about 20% of the level of Nordic countries (approx. 40 euros). The beneficial effect will be slightly offset due to productivity, which in Poland is lower than the average of the European Union.

office

Legal forms of doing business in Poland

The Polish legal system allows conducting business on the basis of the following forms:

icon SOLE ENTREPRENEURSHIP

Individual business is conducted and represented by an owner, sole entrepreneur. The owner is unlimitedly responsible on an exclusive basis for all liabilities of his business, both enterprise and personal assets.

icon CIVIL LAW PARTNERSHIP

Partnership is created on the basis of an agreement of partners who are committed to pursue a common economic objective. As a rule, the contributions of members are of equal value. All the partners are jointly and severally liable for all debts & obligations.

icon GENERAL PARTNERSHIP

It is a partnership where the right and duty to represent the company may have any of the partners. Each partner is responsible for all obligations of partnership with all its assets, regardless of the amount of contributions.

icon LIMITED LIABILITY PARTNERSHIP

It is a partnership in which at least one of the partners is liable to creditors for the company's obligations with all its assets (general partner) and at least one partner must have a limited liability (limited partner).

icon LIMITED JOINT-STOCK PARTNERSHIP (S.K.A.)

It is a company acting under its own name, where at least one of the partners has unlimited liability to creditors for the company's obligations (general partner), and at least one partner is a shareholder. The minimum share capital amounts to PLN 50,000.

icon LIMITED LIABILITY COMPANY (SP. Z O.O.)

Commercial company established by one or more persons (entities), called partners, which none of them is liable for the company debts & obligations (except contributed capital). The minimum capital of the company amounts to PLN 5,000. The company is obliged to keep accounting books in accordance with the Accounting Act. Legal authority in the company is held by Management Board (at least one person) and Supervisory Board (optionally).

icon JOINT STOCK COMPANY (S.A.)

The minimum share capital is PLN 100,000. The shares belong to shareholders, not personally liable for debts & obligations of the company. The Company is obliged to keep accounting books in accordance with the Accounting Act. The governing bodies of the company are the Management Board (at least one person) and the Supervisory Board (obligatory).

Scandinavian companies doing business in Poland

The following Scandinavian companies are already doing business in Gdańsk, Gdynia & Sopot:

Norwegian-owned companies (only the biggest)

  • DET NORSKE VERITAS POLAND Sp. z o.o. (DNV GL AS)
  • ICD POLSKA Sp. z o.o. (ICD Industries AS)
  • OYATEL POLAND Sp. z o.o. (Oyatel AS)
  • TTS POLAND Sp. z o.o. (TTS GROUP ASA)
  • PENTAGON FREIGHT SERVICES Sp. z o.o. (ENTAGON FREIGHT SERVICES AS)
  • HG SOLUTIONS Sp. z o.o. (HAREID ELEKTRISKE AS)
  • JOTUN POLSKA Sp. z o.o. (JOTUN A/S)
  • NST POLSKA Sp. z o.o. (NORSK SVEISETEKNIKK AS)
  • TRITEC PRODUCTION Sp. z o.o. (TRITEC AS)
  • CESLERA SP Z O O (ULSTEIN INTERNATIONAL AS)
  • ARTIC PERSONAL GDAŃSK LIMITED Sp. z o.o. (ODIN GROUP AS)
  • SUBEL CONSULTING POLSKA Sp. z o.o. (BEL INVEST ZUG)
  • TALGO POLSKA Sp. z o.o. (TALGO INVEST AS)
  • BOA MARINE SERVICES Sp. z o.o. (TAUBATKOMPANIET AS)
  • MARITIME POLAND Sp. z o.o. (MARINACC AS)
  • NORDIC SERVICES Sp. z o.o. (FORETAKSUTVIKLING AS)
  • PREMIUM SEAFOOD Sp. z o.o. (TOMABELL AS)
  • FIREWOOD CENTER Sp. z o.o. (BALTICA INVEST AS)
  • HOOVER CONTAINER SOLUTIONS Sp. z o.o (CONSULT SUPPLY AS)
  • NATIONAL OILWELL VARCO POLAND Sp. z o.o. (Hydralift AS)
  • NORWOOD Sp. z o.o. (H VINDUET FJERDINGSTAD AS)
  • IKM TESTING POLAND Sp. z o.o. (IKM Testing AS)
  • NOVA PRINT POLAND Sp. z o.o. (NOVAGROUP AS)
  • ULSTEIN POLAND LTD Sp. z o.o. (ULSTEIN MEKANISKE VERKSTED HOLDING ASA)
  • NFM PRODUCTION Sp. z o.o. (NMF GROUP AS)
  • TECO MARITIME POLAND Sp. z o.o. (NORDIC MADE AS)
  • DYNAMIC PRECISION Sp. z o.o. (DYNAMIC PRECISION AS)
  • CHROMECRM Sp. z o.o. (HOLDIT AS)
  • BANQSOFT Sp. z o.o. (BANQSOFT AS)
  • PROFF INVESTMENT Sp. z o.o. (PER AARSKOG EIENDOM AS)
  • SEAGULL MARITIME Sp. z o.o. (SEAGULL AS)
  • JB POLSKA Sp. z o.o. (JB TRADING AS)
  • NORWAY BOATS Sp. z o.o. (NORDKAPP INVEST AS)
  • OPEN INVESTMENTS Sp. z o.o. (OLSEN GRUPPEN AS)
  • SRS POLSKA Sp. z o.o. (VHF GROUP AS)
  • UNITEAM POLAND Sp. z o.o. (UNITEAM VEST AS)
  • JEKA INVESTMENTS Sp. z o.o. (RYGGEFJORD AS)
  • SIEM OFFSHORE Sp. z o.o. (SIEM OFFSHORE INVEST AS)

Swedish-owned companies (only the biggest)

  • SCANIA AB
  • NORDEA BANK AB
  • Gerdins Cable
  • BE GROUP AB
  • BORGA GROUP AB
  • LEGALETT INTERNATIONAL AKTIEBOLAG
  • HYDROSCAND GROUP AB
  • ENCITECH AB
  • SVEVIA AB
  • Gunnebo Industries
  • VILOKAN AIRCRAFT DEICING FLUID SOLUTIONS AB
  • POLIMA AB
  • Llentabhallen
  • EKMAN GROUP
  • NG LARSSON TEKNIK AKTIEBOLAG
  • PANLINK AB
  • EGAIN INTERNATIONAL AB
  • SCANDIC HOTELS AB

Danish-owned companies (only the biggest)

  • PLAST TEAM AS
  • FLUGGER AS
  • JYSK HOLDING A S
  • FURUNO DANMARK A S
  • ARLA FOODS A M B A
  • ALLER AQUA GROUP A S
  • BERENDSEN AS
  • DOVISTA A/S
  • DAKO A S
  • SONDEX HOLDING A S

Finnish-owned companies (only the biggest)

  • WARTSILA TECHNOLOGY OY AB
  • FISKARS EUROPE HOLDING OY AB
  • OY BEWESHIP AB
  • MEDIALUX OY
  • KEMIRA EUROPE OY
  • METSALIITTO OSUUSKUNTA
  • KUUSAKOSKI OY
  • FINNLINES OYJ
  • PROMECO GROUP OY
  • ALTEAMS OY
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