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Address

Kujawsko-Pomorskie Investor's Asssistance Centre
Marshal’s Office of the Kujawsko-Pomorskie Region
Plac Teatralny 2
87-100 Toruń
room 445A (3rd floor)

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Working hours

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Tuesdays: 7.30-17.00
Fridays: 7.30-14.00
 
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The JEREMIE initiative

The JEREMIE initiative has been developed in cooperation with the European Commission, offers EU Member States, through their national or regional Authorities, the opportunity to use part of their EU Structural Funds to finance small and medium-sized enterprises (SME) by means of equity, loans or guarantees, through a revolving Holding Fund acting as an umbrella fund.The JEREMIE Holding Fund can provide to selected financial intermediaries SME-focused financial instruments including guarantees, co-guarantees and counter-guarantees, equity guarantees, (micro) loans, export‑credit insurance, securitisation, venture capital, Business Angel Matching Funds and investments in Technology Transfer funds.

Below listed are the Regional entities responsible for implementation of JEREMIE:

KUJAWSKO-POMORSKIE FUND FOR LOAN SURETYSHIPS
(Kujawsko-Pomorski Fundusz Poręczeń Kredytowych Sp. z o.o.)

The Kujawsko-Pomorskie Fund for Loan Suretyships Sp. z o.o. was created from the initiative of Regional Assembly (Sejmik) of the Kujawsko-Pomorskie Region as an element of the Development Strategy of Kujawsko--Pomorskie for years 2007-2020. The Fund's responsibility is to help small and medium sized enterprises in the access to external funds through facilitating access to credits or bank loans. Entrepreneurs with credit guarantees which do not satisfy the banks (from the perspective of the bank) can apply for receiving the loan suretyship from the Fund. Such a suretyship can also be obtained in the case when other kinds of warranties are too expensive to apply for. Granting the guarantee increases the amount of capital in flow to the company and contributes to its development. The Fund also informs entrepreneurs on other available methods of assistance for small and medium businesses. To benefit from a loan suretyship of the Fund a company must be operating for at least 6 months. The companies carrying strictly agricultural activity cannot apply for this Fund. Those companies which plan to expand the number of employment or implement pro-innovative activities will be treated preferentially when considering whether the suretyship shall be granted.

Contact: 
Kujawsko-Pomorski  Fundusz Poręczeń Kredytowych
Szosa Chełmińska 26  87-100 Toruń
e-mail:   This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel .  56 660 57 61- 62
Fax:   56 660 57 63
www.fpk.kujawsko-pomorskie.pl

KUJAWSKO-POMORSKIE LOAN FUND
(Kujawsko-Pomorski Fundusz Pożyczkowy Sp. z o.o.)

The Fund aims at supporting small businesses in the access to external funds which might increase competitiveness, investment potential and employment rate. The Fund granting the support in the form of loans introduces entrepreneurs to procedures of gaining external funds and prepares them to future more effective use the loans that banks may offer.Most loans were granted for financing small companies' investments. Within the framework loan activity the Fund having realized project co-financed of the European Fund of Regional Development, which primary goal is to increase the financing potential of micro and small businesses in the Kujawsko-Pomorskie Region.

Criteria to apply for a loan: http://www.pozyczki.kujawsko-pomorskie.pl/pozyczki/

Who is eligible: http://www.pozyczki.kujawsko-pomorskie.pl/pozyczki/dla-kogo/

Contact:

Toruń
ul. Włocławska 167, 87-100 Toruń
tel.  56  622 71 62
e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
working hours: 7:30 – 15:30

Bydgoszcz
ul. Piotrowskiego 11, 85-098 Bydgoszcz
tel. (52) 349 30 17
working hours: 7:30 – 15:30


Grudziądz
ul. Sienkiewicza 22,  86-300 Grudziądz
tel. (56) 461 20 72
working hours:
Mo, Wed - Thu. 7:30 – 15:30
Tue:  7:30 – 17:00
Fri:  7:30 – 14:00

Włocławek
Office hours:  Mo, Wed and Fri    7:30 - 15:30
ul. Bechiego 2,  87-800 Włocławek
tel. (54) 231 55 79
 
info by:
EIF (ww.eif.org) and Marshal's Office of Kujawsko-Pomorskie Region
adapt. Marek Ryłow

Government grant

A government run program Aid for investments that are important to the economy

Basic info: the program is established in order to increase innovation and competitiveness of the Polish economy by supporting new investments by Polish and foreign companies.
Listed below are the priority sectors:
automotive, electronics, aviation, biotechnology, modern services, R & D.

Planning new investments in production other than the above sectors with a minimum cost of 1 billion zł qualified and creating at least 500 new jobs, referred to as "significant investments" or "major projects".

Pls see more info on :
http://www.mg.gov.pl/Wspieranie+przedsiebiorczosci/Wsparcie+finansowe+i+inwestycje/Pomoc+na+inwestycje+o+istotnym+znaczeniu+dla+gospodarki

source. Ministy of Economy

by Marek Ryłow

Investor's guide

Doing business in Poland

I. Law forms of possible economic activity related to a foreigner’s origin country

The main norm Act concerning conducting economic activity in Poland by foreigners (undertaking, conducting and completing business) is the Act dated 2 July 2004 regarding economic activity freedom (Journal of Laws of 2007, No 155, item 1905 with subsequent changes).
Due to the article No 13 from the Economic Activity Freedom Act foreigners have the right to undertake and conduct economic activity in Poland. A foreigner according to the above mentioned Act is an individual having the dwelling place abroad and at the same time not possessing Polish nationality; a corporation with abroad habitat and economy entity not being a corporation but having an act ability with abroad habitat. The rules concerning undertaking economic activity by foreigners have been stated according to foreigner’s nationality:

1. Citizens of foreign countries who hold a permanent residence permit, a temporary residence permit or a refugee statute in Poland are entitled to the same rights with respect to economic activities as Polish citizens do.

2. The EU citizens as well as the EFTA citizens (Island, Liechtenstein, Norway, Switzerland) may undertake and conduct economic activity according to the same law rules as Polish citizens do.
The Economic Activity Freedom Act enables foreigners from the EU (corporations and individuals) to conduct economic activity in Poland in average law form regulated by Polish law. This concerns individuals, corporations (capital as well as individual- both a foundation and a co-operative). Foreigners may establish civil companies in order to conduct economic activity and at the same gaining an entrepreneurship statute.

3. Other foreigners have a right, if international agreements do not state contrary, to undertake and conduct economic activity only in forms that are mentioned below:
· A limited liability company,
· A joint-stock company,
· A limited partnership,
· A limited joint-stock company.
Foreigners have a right to undertake and conduct above mentioned forms of economic activity and enfold or obtain interests or shares.

1. A limited liability company

1.1. Characteristic of a limited liability company
Such a company is established to conduct all activities permissible by law, by way of a notary deed of association establishment, which specifies:
· a name of a company and its registered office,
· a description of its business nature,
· amount of share capital,
· number of shares that one shareholder may hold,
· number and nominal value of shares acquired by each shareholder,
· term of a company (if limited).
Both individuals and legal entities may be founders. A limited liability company may also be formed by a single shareholder, but it may not be established solely by another single-member limited liability company.
A limited liability company has legal personality and is represented by its Management Board. The minimum initial capital of such a company is PLN 5.000. The minimum nominal value of one share is PLN 50.
Contributions to a limited liability company may be made:
· in cash,
· in kind.
If contribution in kind is in the form of fixed assets, these are exempt from import duty, provided that they are not disposed within 3 years.
A limited liability company acquires legal personality once it is entered into the National Court Register.
Advantages:
· Limited shareholders’ responsibility, but in case they are members of the Management Board they vouch with all wealth they possess,
· There is a possibility to gain more assets by accepting a new shareholder,
- Necessity of small financial support to repay a company’s registration expenses and initial capital,
· There is a possibility to accept contribution, negotiable assets rights, industrial and trade and technical knowledge (know-how).
Disadvantages:
· Handling complex accountancy.
1.2. Costs connected with undertaking economic activity
Initial costs connected with undertaking economic activity are relatively high and are as following:
· cost of establishing a notary act,
· cost of a company’s registration,
· announcing a registration process in special documents,
· having a big amount of capital fund,
· taxes.
1.3. Registration process
Necessary for establishing a company are:
· signing a notary act,
· shareholders’ financial contributions,
· establishing the Management Board,
· establishing the Board of Directors,
· a company’s registration document.
1.4. Obtaining the REGON statistical identification number given by the Statistical Office
After registration process the next step in establishing economic activity is receiving the REGON number.
In this case one has to go to the Statistical Office. The number consists of 9 figures and it is a national register of national economy corporations. This number maybe influenced by changes in law rules.
1.5. Reporting economic activity in the Tax Office in order to get the NIP number
Foreigners as well as Polish citizens must obtain the NIP number. A report concerning applying for this number must be done in a proper dwelling place or the company’s location. The motion to receive the NIP number should be folded before any activities including paying the VAT are made. The taxpayers are obliged to include the NIP number on each document concerning its economic activity.
1.6. Developing a rubber stamp
A rubber stamp should include a company’s name, a company’s address, the REGON and the NIP number and a bank account number. The necessity to have a rubber stamp is not obliged, only banks demand having it.
1.7. Establishing a bank account
An entrepreneur is obliged to establish a special bank account only for conducting economic activity. Establishing a bank account is easily made by signing an agreement with a bank. The only rule is having all the documents previously received in undertaking economic activity.
1.8. Reporting in the Social Insurance Office
People conducting economic activity not connected with agriculture, self-employed people must be obligatory insuranced for the health and social benefits. An employer must report this within 7 days time to a proper office.
1.9. Reporting the work and the health inspector
An entrepreneur signing an employment agreement is said to be an employer. At the same time he is obliged within 30 days time to inform a proper work and health inspector about location, form and field of conducting economic activity and number of employers. If there are any changes in above mentioned information an entrepreneur must inform proper authorities.

1.1. Characteristic of a limited liability company
1.2. Costs connected with undertaking economic activity
1.3. Registration process
1.4. Obtaining the REGON number
1.5. Reporting economic activity in the Tax Office in order to get the NIP number
1.6. Developing a rubber stamp
1.7. Establishing a bank account
1.8. Reporting the Social Insurance Office (ZUS)
1.9. Reporting the work and the health inspector

2. A joint-stock company

A joint-stock company receives the legal personality when registering it in the registration system. It is law form for conducting medium and big companies. Cost of establishing a joint- stock company is the highest comparing with other forms of establishing firms, the minimum of capital amounts PLN 100.000.

Following documents are needed to establish this company:
1. a notary act of establishing a company,
2. covering establishment fund,
3. establishing the Board of Directors,
4. reporting a company to the registration office with all proper attachments,
5. signing a company in the registration office.

The mastery:
· The Management Board,
· The Board of Directors,
· The general meeting.

Advantages:
· Lack of shareholders’ responsibility for bonds of a joint-stock company,
· Profits are paid in dividends to shareholders,
· Easy ways to obtain new inflow of capital by issuing shares, debentures and other financial instruments,
· A company’s financial situation is public what enables checking a company’s financial condition by its contractors.
Disadvantages:
· Initial capital amounts minimum PLN 100.000,
· High costs of financial and law service comparing with other forms of economic activity,
· Difficult rules concerning conducting a company,
· Shareholders with small amounts of shares cannot influence a company’s conduct,
· Difficult process of liquidation a company.

3. A limited partnership

A limited partnership is a company, where one of owners is responsible fully for debt and one of owner’s responsibility is limited. This form of economic activity may be beneficial when some of the owners want to invest money and get profits while the others take full responsibility by undertaking a company and being its representatives. This form of economic activity is said to be for owners with different capital potential. It is excellent form of business for people who ones have idea and others capital.

To establish this form of activity it is necessary to:
1. Compose an agreement in the form of a notary act,
2. Apply to a registered court,
3. Register a company in a registered court.

Advantages:

· Capability of forming liability for management left accomplice and obligations of companies,
· There is a limited financial responsibility of an owner up to its financial input,
· Limited responsibility to conduct economic activity of an owner who only has input finance,
· There is a possibility to conduct economic activity at a bigger scale,
· Non specified amount of financial input,
· There is a possibility to make non financial contribution.

Disadvantages:

· Full liability for obligations of a company’s owners,
· Cost of a notary act,
· According to principles of act about accountancy there are requirements of conducting full accounting.

4. A limited joint-stock company

A limited joint-stock company is a company that may run its business under its name, where at least one owner is responsible unlimitedly and at least one owner is a shareholder. Shareholders do not answer for the obligation.
To establish this form of activity it is necessary to:
1. Compose articles of association in the form of a notary act,
2. Apply to a registered court,
3. Register a company in a registered court.

The company’s executives:

· The Board of Directors (established obligatory, at least 25 shareholders),
· The general meeting,
· The management (they represent the company, the shareholders may carry on a company’s affairs as its proxy).

Advantages:
· Possibility to extent amount of capital by issuing new shares,
· Possibility to possess new capital for a company’s development, without the risk of taking over a company by a competition,
· Possibility of input initial capital by association.

Disadvantages:
· High initial capital (PLN 50.000),
· High registration costs,
· Solidarity responsibility of an owner.

5. A civil partnership

The associates according the company’s agreement declare to achieve the common objective by special input. The economy activity is to obtain economical benefit that does not always mean financial.

Advantages:
· Low cost of undertaking economic activity comparing with registration costs of other forms of economic activity,
· Big freedom in establishing new regulations in a company’s agreement,
· Possibility of all tax forms according to economic activity,
· Good organizational form for conducting small economic activity,
· Simple form of liquidation.

Disadvantages:
· Owners’ responsibility with the personal assets for the company’s liabilities,
· The necessity of registration of each owner individually and revealing their names under a company’s name

6. Professional Partnership

Advantages:
· Lack of responsibility of one owner for obligation made by activity and management of rest of owners,
· No special requirement concerning amount of initial capital,
· Clear explanation of owners activity in the company’s name,
· Possibility to reveal only one owner’s name in the company’s name.

Disadvantages:
· Form of economic activity planned to be used by special occupations,
· Obligation of a notary act.

7. Registered Partnership

The main difference between a civil partnership and a registered partnership is responsibility of an owner and obligation to reveal owner’s name in the company’s name. People who worked in the company after its establishment and before the registration respond for a company’s obligation solidarity

To establish this company are needed:

1. signing a company’s agreement:
• company’s registered office,
• estimating amount of each owners’ financial input,
• specified operation,
• period for a company’s existence,
2. notifying a company to The Registration Office:
• a company’s registered office,
• specified operation,

· names and surnames or firms of the owners and addresses or their correspondence contact.
· a firm and headquarters of a company,
· determination of contribution contributed by each accomplice and its value,
· a company’s activity object,
· time of a company existing if it is meant.

2) an application for a registered partnership registration to the National Court Register.

It is obliged to include:
- a Firm, headquarters and an address of a company,
- A company’s activity object,
- Surname and names either of firms or accomplice and addresses of either accomplice or their deliveries addresses,
- Surname and names of persons, who are entitled to represent a company, and manner of representation.

Advantages:
- probability of a company representation by each accomplice or if accomplices will decide something other in memorandum,
- lack of regulations defining height of stock capital,
- low registration costs,
- capability of disclosure in a name of a company, names of all accomplices.

Disadvantages:
- Liability of accomplices for company obligations by their whole personal property in case when it is not possible to alleviate obligations from property of a company.

8. Activity of economic foreign businessman in Poland in a form of branch office.

Branch is singled out, organizationally independent part of economic activity handled out of the main place of activity. Branch has certain property, being ownership of a company in the country in which it has a headquarter. It has a network of costumers. The main characteristic of a branch is that it has not separate legal personality, in that reason the subject of all rights and duties is a foreign businessman.
A foreign businessman i.e. foreign person running economic activity abroad must grant duties defined in the Economic Freedom Act. Entrepreneur, who opens in Poland branch of his company is obligated to:

1.use name of a foreign entrepreneur in language of a country in which his registered office is located, together with Polish translation of an entrepreneur's legal form of operating and with a phrase "oddział w Polsce";

2. keep separate books in Polish in accordance with the provisions of Polish accountancy laws (see below);

3. Establish constituent person in branch for its representing according to article 87 of the Economic Freedom Act.

Operation of person authorized in borders of fixing will draw legal results directly for main headquarter. Obligation for representation of a foreign businessman in a branch should be understood as representation in relation of internal departments as well as external i.e. in relations between a branch and an employee and costumers. A foreign businessman to limit entitlements of representation in a branch should predetermine in authorization in which cases person can not represent him.

4. Lead economic activity in the form of a branch only in a range of activity of foreign businessmen, so according to his activity in a range of object of operation of a foreign businessman according to activity lead in mother enterprise exclusively.

5. Get registration of a branch for register of entrepreneurs according to regulations of Act about the National Court Register.

Independently on duties defined in the National Court Register a foreign businessman is obligated:

- give name, surname and Polish address of a person in a branch who is obligated to represent a foreign businessman,
- Enclose certificated notarially exemplar of a signature of a person, who is authorized for representation in a branch,
- if he or she operates pursuant to a founding deed, the articles of association or statutes be placed in the registration files of a branch office together with a sworn translation into Polish. If a foreign entrepreneur sets up more than one branch office in Poland, such an instrument only needs to be placed in the registration files of one branch office, provided that a reference is made in the registration files of other branch offices together with the identification of the Court in which such files are kept and the number of the Registry division;
- if he or she exists or operates pursuant to an entry in a commercial register in the country in which that business is registered - the entrepreneur must place an excerpt from such a register together with its sworn translation into Polish in the registration files of the Polish branch office. If the foreign entrepreneur sets up more than one branch office in Poland, such an instrument only needs to be placed in the registration files of one branch office, provided that a reference is made in the registration files of other branch offices together with the identification of the Court in which such files are kept and the number of the Registry division;

6. notify the Minister of Economy of any factual and legal changes, (such as winding-up of a foreign operator establishing a branch office or forfeiture of his right to conduct business activity or possess property) within 14 days following occurrence of such changes.

Advantages:

• capability of utilization a foreign organizational form ( i.e. a foreign company) in Poland,
• keeping continuity and legal identities of companies,
• capability of association of a company by trade partners and costumers through duty of usage in name of a branch original name of a foreign entrepreneur,
• lower costs of establishing a branch than costs of establishing of a new company according to Polish law (lack of duty of contributing of additional capital on stock capital i.e. at least 50.000 PLN in a limited liability company and in a joint-stock company, at a joint stock company 500.000 PLN,
• lack of costs related with composition of establish act i.e. memoranda of partnership and notary related costs,
• lack of duty of following company law regulations obligating in a country in which a branch was established.

Disadvantages:

• unlimited liability of a foreign company by whole property for obligations of a branch.

9. Economic activity of foreign businessman in a form of a representative office.

Contrary to branch offices, the scope of activity of a representative office can only concern advertisements and promotion of a foreign entrepreneur. It requires an entry to the Foreign Representative Offices Register named “register of representatives” held by the Minister of Econom

An application for a registration should be made in Polish and according to article 97 of the Act of Economic Freedom it should specify:

• a name, a registered office and a legal status of a foreign entrepreneur,
• business objectives of a foreign entrepreneur,
• first name, surname and address in Poland of a person authorized to represent a foreign entrepreneur in a representative office,
• an address of a representative office in Poland.

Following documents with sworn translation into Polish should be attached to an application referring to above:

• a founding deed (articles of association, statutes) of a foreign entrepreneur,
• an excerpt from the Commercial Register or equivalent thereof,
• a statement from a foreign entrepreneur concerning establishment of a representative office in Poland,
• a document approving right for the estate in which activity will be held.

A foreign entrepreneur who established a representative office in Poland is obliged to:

1. use name of a foreign entrepreneur in a language of a country in which his or her registered office is located, together with a Polish translation of the name of the economic entrepreneur's legal form and a phrase "przedstawicielstwo w Polsce",

2. keep separate books in accordance with provisions of laws on accountancy,

3. otify the Minister of Economy of any factual and legal changes concerning data included in article 97 an application and in a statement of a foreign entrepreneur concerning the extent to which the share capital has been financed by contributions, as well as of the commencement and termination of any proceedings conducted to wind-up the business of the foreign entrepreneur and of the forfeiture of his right to conduct business activity or possess property, no later than 14 days from the time upon which such events take place.

10. Individual conducting economic activity

Entrepreneurs setting up economic activity as individuals fill an application “application for entry in the Business Activity Register” to commune proper for place or living or for an address of entrepreneur. In activity is conducting all together with another person than it is necessary to write down memorandum of a partnership. Setting up economic activity requires fee PLN 100 paid with an application.

Application for entry to the Business Activity Register requires:

1) an entrepreneur’s firm and the PESEL number, if such possesses,
2) a tax identification number - the NIP, if such possesse,
3) design of a residence and an address, deliveries address and economic activity address, but if a businessman executes activity beyond a residence - address of a main activity practice place and branch if was established,
4) determination of economic activity object, according to Polish Classification of Economic Activity PKD (enclosure for disposition of Cabinet of Ministry from 7^th October 1997 of Polish Classification of Economic Activity PKD),
5) information of existence or ceasing of common conjugal property,
6) information about memorandum of a civil of partnership, if such has been made,
7) information about plenipotentiary data, entitled to conduct an entrepreneur’s cases, if entrepreneur has lent it.
When an application does not include data, about which in written in paragraph 2, or is unpaid, evidence organ immediately calls for filling an application in term of 7 days time under rigor of leaving application without reconnaissance.
In case if an entrepreneur has not the PESEL number (an evidence number), fold into evidence files certificated by an authorize employee of the Commune Office a copy of a passport or other document confirming his identity and citizenship status.
An application for entry to evidence can be send by a registered letter. In this case a signature of a mover should be confirmed by a notary.

Advantages:

• One of the simpliest and cheapest form of economic activity,
• Freedom of taxation form depended on activity,
• Short time of realization,
• Easy way of establishing and liquidation of economic activity comparing with other legal forms.

Disadvantages:

• Liability for obligations related with conduct of economic activity by whole property of entrepreneur,
• Duty of a payment social insurance institution fee,
• Legal form for conduct of economic activity in the smallest size.

II. Purchase of real estate in Poland in case of conducting economic activity by foreigners

Beginning of economic activity is connected with purchasing of real estates by foreigners. Conditions concerning property purchase by foreigners are described in the legal act dated 24 March 1920 concerning real estate acquisition by foreigners (Journal of Laws 2004, No 167, paragraph 1758). Important changes in this case introduced legal act dated 20 Fabruary 2004 concerning change of legal act about real estate acquisition by foreigners and about treasure fee (Journal of Laws 2004, number 49, paragraph 466) obligatoring from 26 April 2004, part of regulations of the act was implement with the day of European Union accession by Poland i.e. 1 May 2004.

The general rule is that following legal transaction of foreigners require a permit:

- purchase of real estate
- Purchase or taking up of shares in a commercial company which has a registered place of business in the Republic of Poland if:

• purchasing shares in a company which is the legal owner or perpetual usufructuary of real estate, a foreigner will take control of that company
• or if shares in an already-controlled company are acquired or taken up by a foreigner who is not a company’s shareholder.
• Permits are issued in a form of an administrative decision by the Ministry of Internal Affairs and Administration if there is no objection of the Ministry of National Defence and in case of agricultural estates there is no objection of minister proper for agricultural areas development.

Since 1^st of May there has not been required a permission of the Ministry of Foreign Affairs and Administration for purchase by foreigners of real estate, which are citizens or entrepreneurs of the European Economic Area.

Exceptions are:

1. to purchase agricultural and forest land - for 12 years after Poland became a member of the EU.

Above mentioned regulation is compatible with regulations of the Access Treaty, in which forecasted keeping for the period of 12 years from a day of entering Poland for the European Union, existing principles (duty of getting permission) only referring to purchase of foreigners agricultural and forest land.
The European Economic area foreigners will not be required to obtain a permission during 12 years in case of purchasing agricultural land in following regions:

• Dolnośląskie, Kujawsko-Pomorskie, Lubuskie, Opolskie, Pomorskie, Warmińsko-Mazurskie, Wielkopolskie, Zachodniopomorskie – after the end of seven year period since execution of a lease contract, if during that period they have pursued farming in a person on the land concerned and have legally resided in Poland,
• Lubelskie, Łódzkie, Małopolskie, Mazowieckie, Podkarpackie, Podlaskie, Śląskie, Świętokrzyskie – after the end of three year period since execution of a lease contract, if during that period they have pursued farming in person on the land concerned and have legally resided in Poland.

2. to purchase a second home, for a period of five years after Poland become a member of the European Union or if a purchaser has legally and continuously resided in Poland for at least four years, or purchase estate in order to run business activities in a form of tourist services .

III. Principles of employing foreigners in Poland

1. Introduction

The basic legal act which regulates employment of foreigners in Poland is the Act of 20 April 2004 on Employment Promotion and Labor Market Institutions (Journal of Laws of 2004 no. 69 item 415). The act has overruled the regulations set in the Act of 14 December 1994 on Employment and Counteracting Unemployment.

Performance by a foreign person of work means: employment or other paid work (on the basis of a per-project agreement , contract of mandate, agency contract) or performing a function in the board of a legal person conducting an economic activity.

The general principle regulated in article 87 of the Act on Employment Promotion and Labor Market Institutions is defining when a foreign person may perform work in the territory of the Republic of Poland if he or she holds a work permit issued by the marshal of the voivodeship competent with respect to the employer's seat. The applications fee for issuing a permission equals to 50 zł in coase of employing a foreigner for less than 3 months and 100 zł in case of employing a foreigner for more than 3 months. Provision of the act, however, stipulate numerous exceptions from the principle.

2. The promise and work permit for performing work by foreigners

The issuance of work permits is specified by the regulation of the Minister of Labour and Social Policy of 29 January 2009, concerned with issuing work permits for foreigners (Journal of laws of 2009, no. 16, it. 84).

The regulation specified the three following types of work permits:

   1. A - concerns a foreigner working in the territory of the Republic of Poland on the basis of a contract with the subject whose seat, place of residence or branch, plant or any other form of organized activity is located in the Republic of Poland,
   2. B - concerns a foreigner whose work deals with performing activities in the management board in a legal person's company entered in the register of entrepreneurs or forming a limited liability company in an organization for the period exceeding 6 months within the next 12 months,
   3. C - concerns a foreigner working for a foreign employer, delegated to the Republic of Poland for the period exceeding 30 days of the calendar year to a branch or plant of a foreign entity, a dependent entity or an entity bound by a long-term cooperation agreement with a foreign employer,
   4. D - concerns a foreigner working for a foreign employer that does not have a branch, plant or any other form of organized activity in the Republic of Poland with the purpose of completing a temporary and occasional service (export service),
   5. E - concerns a foreigner working for a foreign employer, delegated to the Republic of Poland for the period exceeding 3 months within the next 6 months for a different purpose than those specified in points 2-4.

The marshal of a given voivodship issues type A work permit without the consideration of the starost's (district governor's) information in relation to persons enumerated in the resolution of the Minister of Labour and Social Policy of 29 January 2009 on determining cases when work permits for foreigners are issued irrespective of detailed conditions of the issuance of work permits for foreigners, whereas in the case of type B work permits - without considering by an entity commissioning work a profit and loss statement of a legal person from the year prior to the submission of application, as well as without the employment status information from the year prior to the submission of application in the case of a foreigner who:

    * in the period of 3 years prior to the submission of application for the issuance of a work permit graduated from a school or university with the seat in the territory of the Republic of Poland or in any other country within the European Economic Area or the Swiss Confederation,
    * in the period of 3 years prior to the submission of application for the issuance of a residence permit resided legally in the territory of the Republic of Poland. The application for a work permit for a foreigner should include documents confirming that the above mentioned requirements have been fulfilled by the foreigner.

Work permit is issued following the submission of a written application by an entity commissioning work.

Hiring a foreigner or commissioning him/her a different kind of paid work is possible after an employer is granted a work permit for the foreigner, and when, at the same time, the foreigner's stay in Poland is regulated.

Receiving a work permit allows a foreigner to apply for documents legalizing his/her stay in Poland, i.e. a visa or a resident permit for a defined period of time.
The permit is issued by the marshal of voivodship competent with respect to the employer's seat. An issued work permit entitles a foreigner to employment only on condition that he/she has a residence title mentioned in art. 87, it. 12 of the Act on Employment Promotion and Labour Market Institutions.
The permit is issued for the period of 3 years, and in the case of foreigners being the members of management boards in the companies of over 25 employees - for the period of 5 years.

3. Simplified issuing of promises and work permits.

In relation to certain groups of foreigners, work permits are issued by the competent marshal irrespective of the situation in the local labour market and the criteria of issuance of work permits for foreigners.
Such cases are specified in the regulation of the Minister of Labour and Social Policy as of 29 January 2009 on the specification of cases when work permits for foreigners are issued irrespective of special conditions concerned with their issuance (Journal of laws of  2009, No. 16, it. 85).

Such permits are issued in relation to a foreigner who:

   1. is a family member of an employee of a diplomatic office, consular office, international organization or their agencies, working in the Republic of Poland on the basis of international agreements and contracts,
   2. works in housekeeping of employees of diplomatic offices, consular offices, international organizations or their agencies,
   3. is entitled, according to the provisions specified in legal acts issued by organs appointed by the Treaty establishing the Association between the European Economic Community and Turkey, signed in Ankara on 12 September 1963 (Official Journal of the EC L 217 as of 29 December 1964, p. 3687; Official Journal of the EU, Polish special edition, ch. 11, t. 11, p. 10).

The marshal issues a work permit without the obligation of providing the information of the starost competent in relation to the seat or place of residence of an entity commissioning work to a foreigner concerned with the lack of possibilities of satisfying personnel needs based on registers of the unemployed and seeking employment or with the negative results of recruitment procedure organized for an employer in the case of:

   1. a foreigner authorized to represent a foreign entrepreneur in his branch or agency located in the territory of the Republic of Poland,
   2. a citizen of a country bordering on the Republic of Poland or a country with which the Republic of Poland cooperates in respect of labour migration within a mobility partnership established between that country and the European Union, who provides services within nursing and care or works in housekeeping in a household of a natural person,
   3. a citizen of a country bordering on the Republic of Poland or a country with which the Republic of Poland cooperates in respect of labour migration within mobility partnership established between that country and the European Union, who in the period directly preceding the submission of an application for the issuance of a work permit worked for the period of at least 3 months for the same entity on the basis of a statement confirming the intention of commissioning work registered in a poviat labour office competent with respect to the seat of place of residence of the person submitting such a statement - on condition that this person is able to present a registered statement and an employment certificate or contract, as well as copies of documents confirming that ha had been paying contributions to the social insurance, if it was required in relation to work performed by him,
   4. a foreigner - a sports coach or a sportsman working for sports clubs and other entities whose statutory activity encompasses the popularization of physical culture and sports,
   5. a doctor and a dental surgeon participating in a training or realizing the programme of specialty, on the basis of the provisions on the specialities of doctors and dental surgeons.

In the said cases it is not required to seek employees among the unemployed or prove in the course of proceedings connected with the issuance of a work permit that it is not possible to find a candidate with the required qualifications in the local labour market among the Polish citizens or foreigners exempt from the requirement of having a work permit.

4. Employment without the necessity to obtain a work permit

In specified cases, the employer in Poland my employ certain categories of workers without the necessity to obtain a work permit issued by the voivode competent for the seat of the employer applying from the permit. The regulations in the act on employment promotion and labor market institutions define the status of foreign persons who do not have to obtain a work permit in Poland, as well as enumerate legal acts which regulate the employment of foreign persons who have been exempt from such an obligation.

30 August 2006 (Dz.U. 2006 nr 156 poz. 1116) defines foreigner who don't need work permit.

Groups of persons and foreign persons who are not subject to employment permits have been defined in article 87 of the act on employment promotion and labor market institutions (Journal of Laws of 2008 no. 69, item 415 with later amendments).

The employment permit will not be required in the case when a foreign national performs work for a foreign employer and is delegated by the employer to an entity with the seat within the territory of Poland for the period of no more than 30 days a year in order to perform a task defined by the delegating person in a mode other than realizing and export service (concluding from article 88 item 1par. 3 of the act on employment promotion and labor market institutions).

5. Employment of EU citizens and citizens of European Economic Area

According to the principle of the freedom of movement of persons (article 39 of the Treaty establishing the European Community), foreign nationals - EU citizens do not need to obtain an employment permit in Poland.

From 17 January 2007 UE citizens and EEA have free access to the polish labour market.

6. Performing work by foreign citizens within the scope of export services.

Matters related to issuing permits for foreign nationals realizing export services within the territory of Poland have been regulated by the decree of the Minister of Labor and Social Policy issued on 21 July 2006 on detailed rules and procedures for granting work permits and promises to foreigners employed at rendering export services provided by foreign employers within the territory of the Republic of Poland (Journal of Laws of 2006 no. 141 item 1003 with later amendments).

It is a foreign employer who applies for work permit for foreigners performing work for the foreign employer and is delegated to Poland to realize export service.

Voivode, appropriate in terms of place of export service realization, issues a decision regarding promise and work permit.

7. Visas.

Issuing visas to foreign citizens has been regulated with the act of 13 July 2003 on foreigners (Journal of Laws No. 06.234.1694 with subsequent changes). According to the regulations under this act, foreigners entering the territory of Poland receive a visa dependent on the purpose of his or her entry and stay. One of the stay visas is the visa issued in for the purpose of conducting economic activity and the visa issued for the purpose of performing work. A visa is issued to a foreigner who submits a promise of issuing a work permit in the territory of the Republic of Poland, or a written statement of the employer of the intention of entrusting the performance of work, if work permit is not required. Visas are issued for the period of stay corresponding to the period indicated in the promise or the statement, however, no longer than one year.

The foreigner staying within the territory of Poland may obtain an extension of the stay visa in extraordinary cases if the conditions defined in the above-mentioned act have been complied with. Visa extensions are issued in the form of a decision by the voivode competent in respect to the place of stay of the foreign person.

The visa for the purpose of performing work is granted or refused to be granted by the consul competent for the place of permanent residence of the foreign citizen.

The regulations of the above-mentioned act do not apply to the citizens of the European Union member states or the members of their families, as well as the citizens of the European Economic Area states, which do not belong to the European Union, however, under agreements concluded with the European Union take advantage of the freedom of movement of persons, and members of their families within the scope regulated with the Act of 14 July 2007 on the terms and conditions of the entry into and the stay in the territory of the Republic of Poland of the citizens of the EU Member States and the members of their families.

Limitations of economic activity liberty

Cases when an entrepreneur is obliged to get a concession defines the Economic Freedom Act.

2. Fabricate and turn of explosive materials, weapon and ammunition and products andtechnology of military or police use.

4. Protection of person and property,

5. Aerial transportation,

6. Propagation of broadcasting program and television

Permission is required by reason of conducting economic activity in range defined in separate Acts in Article 75 of the Economic Freedom Act. Examples of permissions in economic activity

1. Permissions on wholesale turnover of alcoholic drinks with defined alcohol contents, sale of alcoholic drinks for consuming on place or beyond place of sale, produce and bottling of wine products,

2. Permissions on organizing and conducting activity in range of fate game and bets,

3. Permissions on conducting economic activity in area of special economic zones,

4. Permissions on conducting of insurance activity,

5. Permissions on earning transportation of a person taxi,

6. Permissions on conducting custom store house or bond,

7. Permissions on organizing of touristic performance and mediating in a name of clients in covenation concerning touristic services,

8. Permissions on national earning transportation of person by car vehicles other than taxi.

Conducting certain kinds of economic activities requires proper qualification from an entrepreneur. Proper qualification has been imposed by particular acts. Professions like this are: tax advisors, attorneys at law, legal advisors, fluent comptrollers, fluent judicial and sworn translators, stock brokers, agents and actuarial brokers, academic teachers.

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European Commision: doing business in Europe