Opening an online store in Poland

How to open an online store?

Due to the coronavirus and the pandemicin general our lives have changed. These changes affected all aspects of life, including the trade sector. According to a study by the marketing agency ASM Sales Force, the average amount for online purchases was 12% higher than the average one for offline supermarkets. This means that online sales are developing more and more rapidly in Poland and conquering the market. In this article, we will talk about how to open your online store in Poland, regardless of what citizenship you have. We will considerthe opening process, what needs to be calculated first of all, what difficulties you may encounter when opening a store. And we will answer the most frequently asked questions of future entrepreneurs.

Who can open an online store

Everyone who has an access to entrepreneurship or have a company in Poland can open online shop in Poland. To do so, it is only necessary to focus on the form of business organization, because not all forms are available to foreigners. For example, SP is available only to persons with a certain status. In this case, it is most logical to use the standard version of LLC (Społka z o.o.). In this article, we will omit the registration steps, you can find out about opening a legal entity by clicking on the link below:https://progressholding.pl/en/incorporation-in-poland/

Preparing for the opening

To open an online store, you need to carefully consider further activities, in particular, this applies to:

• Product line. For a product line, it is best to choose products that are most often used in everyday life – care products, clothing, food, home and leisure products, children’s products, pet products
• The way of presenting the selected product – how will you implement it, whether it will be your website, market place or bulletin board
• Specific of the delivery of the service – whether it will be sent from the warehouse of your company, or from the manufacturer’s warehouse (dropshipping)
• Target audience. Determine the relevance of products in the selected market.

A long story short, in order to open an online store, you need to draw up a competent business plan, make development forecasts and foresee possible risks.

Online store promotion

Opening an online store in Poland today is not the most difficult thing, it will be more difficult to enter the market, create a demand and attract your customer. To do so, do the following:

• Make your own website or a full-fledged application for social networks, because. buyers with great confidence relate to stores that have their own website
• Use social mediato launch targeted advertising on Internet sites popular among Polish residents.

As you already understood, in terms of the features of creation, promotion and operation, an online store is not much different from online stores in other countries, but there are still some specifics in the operation and management of this type of business.

FAQ

What is the list of reports and the deadlines for submitting reporting documentation (to the tax and other authorities)?

You can learn more about this under the heading “Deadlines for filing company declarations and reports in Poland” by clicking on the linkbelow:https://progressholding.pl/en/bookkeeping-service-business-support-for-companies/

What will be the process of selling for cash, picking up from the office and selling goods in an online store? Cash register, reporting, etc. As well as:

• Payment in cash upon receipt of the goods by courier delivery service, with the subsequent transfer of the received money to our current account.
• The process of working with the PayU payment service (invoicing, printing a check, sending a check along with the goods)

If the client is an individual and buys your product from you in your store / office for cash, then the company, along with the product, must provide the client with a cash receipt printed on the cash register. To do this, the company must register the cash register in the Tax office in advance. This sale will subsequently appear on the monthly cash register report. Next, the monthly report must be submitted to the accounting department. If the sale is made with the help of a courier service, then in this case the courier takes the goods from the company along with the finished cash receipt and then gives it to the buyer. Cash received by the courier and the courier service are transferred on the basis of an agreement to the bank account of your company. The courier service must provide your company with a register for the transfer of funds for further verification. Accounting displays and conducts operations like so as the transfer of money from the cash register to a bank account.

What does the process of selling by bank transfer to a legal entity look like? How to check the company?

If the sale will be made on your website: after the client makes and places an order, the site will redirect him to banking to make a payment, after compiling and confirming the order, the client receives a confirmation of the payment for the order. To verify the client – before paying for the order, there should be a section on your website with a questionnaire and data of the legal entity making the purchase, which this legal entity fills out in order to receive an invoice later, if necessary. It is important that the application form includes at least: the full name of the company, address and NIP (TIN/VAT) number.

How will the process of paying for a purchase by an individual to our bank account look like? (invoicing, transfer to the settlement account of finance in the bank)

When it comes to individual, the process looks the same, but instead of an invoice, the natural person will receive a check. In the questionnaire of an individual, at least: first and last name, address of residencemust be filled.

What are the main accounting documents?

The main accounting documents are invoices, bank statements, settlement forms from the courier service (before signing the contract, you should discuss how and when the courier service will transfer money to you for payment from customers, the amount received should be indicated in detail in the settlement form and the name of a specific client), reports from the cash register.

How to recruit an employee from another country?

To employ a citizen from another country, he/she should first obtain a work permit. More details at the link: https://progressholding.pl/en/work-permisson/

Taxes on Payroll Fund

Payroll taxesInterest rates for taxes are listed in the table “Deductions to funds”– https://progressholding.pl/en/hr-and-payroll/,  salary and the amount of taxes accrued on it can be calculated by using the calculator (search on the Internet).

Salary payment (terms, frequency)

In business practice, salaries to employees are paid once before the end of the month, however, you can add other rules to the corporate charter.

If it is possible to transfer money to the personal accounts of the founders in Poland in EUR, will it be necessary to somehow confirm the origin of the money? And if we want to use this money as a loan for our company? What is the process of transferring to the company’s account, what commissions and what rules exist for the return of these funds?

Transfers over 15 thousand EUR fall under the control of the supervisory authorities, that is why it is necessary to provide confirmation of the amounts of transfers, if the bank asks. A loan from third parties will be subject to a 2% tax, from the founders it is not taxed at all.

What are the rules for using and working with authorized capital?

The authorized capital of the company can be used for all the needs and activities of the company without any restriction.

If you need more informationdo not hesitate to write to us onoffice@progressholding.pl