Poland is increasingly becoming a highly fertile land for doing business.
Whether you are a Polish citizen with entrepreneurial dream or a foreign
entrepreneur looking to expand your business in the country, there are tons of
business opportunities and a very healthy business environment.
The most popular industries for starting small scale business in Poland are
financial services, real estate, logistics, transport business, food, tourism
and online business, but having rich soil and favorable climate, the Agriculture
industry is also full of opportunities.
Well, whatever the type of small business you plan to start in Poland, you
need to do some ground work ahead. This article will guide you through five
essential steps to start a small scale business in Poland.
Research is mandatory for starting business anywhere in the world, and so it is when you plan to start a business in Poland. Take time to research the business ideas, check the feasibility of the business idea, do market research, and know the competition and consumer behavior. Get all the numbers together to come up with a solid business plan.
2- Business Structure & Registration
Deciding on the business structure is crucial. A small scale business in
Poland can be started as a sole trader, which represents the simplest business
structure available for registration in this country and which is addressed to
natural persons. The procedure on how
to form a company ranges from country to country and
the fees and taxes associated with it vary accordingly, but also on the
business form under which the company operates.
For example, in the case of a person starting a small scale business and
who is registered as self-employed, the registration with the Trade Register
will cost PLN 100; at the same time, a person starting a sole trader can
benefit from specific tax exemptions or deductions (in the case of persons who
are citizens of the EU starting their first small business abroad). This type
of company is taxed following the personal income tax system, which is not the
case for those who want to open a LLC in Poland.
Local and foreign businessmen who want to start a small scale business in
Poland can use these two business forms when entering a commercial activity in
Poland, but the steps for opening a company
will vary greatly. The sole trader can be registered much faster and following
only a few registration steps, while the LLC, which is a corporate body, has
more complex registration requirements (appointing directors, drawing the
articles of association, etc).
Regardless of the company type selected, it is important to know that a small scale business set up in Poland can operate as one of the following: a food unit, clothing store, online shop, small coffee shop or small restaurant and other similar businesses activities, which require a small location and few employees. Of course, the type of activity can be influenced by the capital the businessmen are willing to invest in the business. Those who dispose of a large capital and who want to expand a business in Poland or in another European country can set up a subsidiary, for example.
3- Permits & Licenses:
Not all type of businesses, but many require special permits and licensing,
so make sure to obtain the relevant permits and licenses. Here
you can find the details of business activities requiring licenses and permits
4- Actionable Business Plan
Investors who want to start a business on their own or with other associates should create a plan to enter the local market, even when opening a small scale company. This is why it is recommended to have a well documented business plan with actionable contents. The study of competitors and consumer that you did in the beginning should be placed together with estimates of the operational costs and the needs of the company.
Ideally, the business plan should cover the first few years, but just in
case, you want to get things started faster, you should have the action plan
for at least for the first year of economic activity.
5- Operations & Marketing
Having business registration and licensing requirements met and an action
plan in hand you are all set to start business operations. Try to cut the costs
as much as you can. Know the startup must haves and can waits.
Then, it is highly advisable to promote your business; both online and offline
environments. Make sure to have a solid marketing plan in order to reach the
potential customers and convert them into loyal brand advocates. All types of companies, online and
offline, need to keep tweaking their marketing strategies to address to their
target market, so it’s going to be a continuous process.
The Bottom Line:
Starting a small scale business in Poland is easy, both for the locals and
foreign investors, but running it successfully requires hard work and
dedication. The more effort you put in, the better your business grows!