How to open an IT company in Poland?

How to open an IT company in Poland

Why do IT companies choose to establish businesses in Poland? The main reasons include a large talent pool, comprehensive outsourcing, quality services, a favorable business climate, and remote work opportunities. The Polish IT community comprises nearly 25% of all developers in Central and Eastern Europe. According to the Harvard Business Review, Poland ranks fifth in the world in terms of technical skills and is also among the top 10 European countries for advanced software capabilities.

There are about 60,000 software development companies in Poland, employing over 700,000 people, including international giants such as Google, Amazon, and Microsoft. One of the key advantages is the high level of English proficiency among Polish developers, which greatly benefits international companies. These language skills facilitate cooperation and communication with foreign teams and clients.

Note: Providing IT services in Poland does not require any licenses. You only need to register a company. For IT services, the entire process of opening a company in Poland comes down to company formation in Poland and registering a business online as a foreigner.

How to open an IT company in Poland

The process of opening a company in Poland includes several mandatory steps:

  1. Choose the legal form of the enterprise. This can be either a sole proprietorship (Individual Entrepreneur) or an LLC (Sp. z o.o. – Spółka z ograniczoną odpowiedzialnością).
  2. Choose the company’s name and registered address – this can be an office, apartment, or coworking space.
  3. Obtain PESEL numbers (tax identification numbers) and create an ePUAP profile (electronic signature) with verification.
  4. Prepare the company’s Articles of Association in the S24 system.
  5. Deposit the share capital (the minimum share capital for registering an Spółka z o.o. is PLN 5,000).
  6. Determine the PKD codes (similar to SIC codes). For IT services, this is generally 62.01, 62.02.
  7. Register the company in the Poland company register (Polish National Court Register – KRS).
  8. Obtain the KRS number and a certificate of company registration in Poland, as well as the NIP tax identification number.
  9. Open a business bank account.
  10. Register with tax authorities, the social security office, and the statistical office – ZUS.

Taxation and finances of an IT company in Poland

How can you start an IT business in Poland without considering financial aspects? It’s impossible. Therefore, when planning to launch your IT company in Poland, it’s important to pay attention to financial matters, including taxation. Depending on the company form – sole proprietorship or LLC – IT company owners can choose the appropriate taxation system in Poland. Entrepreneurs opening an IT company must register as VAT payers. IT companies providing consulting services cannot be exempted from VAT, as this type of service excludes the possibility of receiving VAT relief. If it is pure programming, you can use a flat tax and pay 8.5% as a sole proprietor. If the LLC’s annual turnover does not exceed 2 million euros, the corporate income tax rate is 9%, and if it exceeds, it is 19%.

Marketing and promotion of an IT company

The successful start of an IT business in Poland is impossible without an effective marketing strategy. Your company must be noticed on the market, and for this, it’s necessary to develop a comprehensive promotion plan for your product or service. This includes both online marketing and offline events. You may already be providing services to small and medium IT companies, who decided to open a business in Poland.

Is a cash register required for an IT business in Poland?

In general, a cash register is not required for IT companies in Poland, as such companies typically do not sell goods or services directly to individual consumers. The main activities of IT companies involve software development, IT services provision, consulting, and other similar services for other companies. Therefore, a cash register is not needed unless you are selling goods or services to individuals.

Why do IT and technology companies choose Progress Holding as their accountants?

We are an independent accounting firm with extensive experience, specializing in the IT and technology sector. Our broad range of expertise and years of experience in company formation in Poland allows us to understand the challenges these modern industries face. We offer professional advice and help utilize tax incentives, such as the IP BOX and R&D tax credits, including tax incentives in Poland.

Accounting services for IT businesses in Poland provided by Progress Holding

When you begin sales, you will need to choose an accounting company that will manage your bookkeeping and file tax declarations with the authorities. It is important that your accountants are reliable partners. In this regard, our many years of experience in company formation in Poland and services to small and medium IT companies will greatly assist you. It is essential to maintain project-based accounting. Our accounting services cover:

  1. Project and contract accounting
  2. Profitability analysis of projects and clients
  3. Full bookkeeping services
  4. Accounting for fixed and intangible assets
  5. Management of grants and subsidies
  6. Handling international transactions
  7. Support for financial audits and tax inspections
  8. Banking interaction services
  9. Preparation and filing of tax declarations (CIT, VAT, OSS)
  10. Support in preparing tender documentation
  11. Annual tax reporting
  12. Tax incentives (IP BOX). We help IT companies benefit from tax incentives like the IP BOX for intellectual property and R&D (Research and Development tax credit).
  13. Employee hiring. In this case, we recommend contract agreements (Umowa o dzieło) or B2B contracts.
  14. Additionally, we can advise on R&D tax incentives and tax credits as well. Use tax incentives in Poland effectively to support your business.

If you have any additional questions please contact: office@progrrssholding.pl