Mergers and acquisitions can help businesses grow rapidly. Choosing to consolidate or restructure existing companies in Poland can prove to be a strategic advantage because the investor relies on an already built foundation.
Mergers in Poland
There are two types of mergers in Poland:
– taking over an existing company; or
– merging two companies into a new company.
By purchasing a company in Poland, the new owner is the legal successor to all the company’s rights and obligations. The company that purchases another company also takes over the administrative decisions and concessions and permits are automatically transferred to the company that made the purchase.
In most cases, there are no taxes for merging two Polish companies. However, this changes if the distributions are made in cash or if prior to the merger , the acquiring company has no shareholding. Also, there is a different situation when the aquiring company has at least 10 percent of the shares in the company that is being bought.
The entire Polish merger process can last anywhere between six to eight months. The merger time is shorter if the merger is between a parent company and its fully owned subsidiary or between sister companies.
A merger between two existing companies can be profitable if both businesses are prospering.
Acquisitions in Poland
Polish acquisitions can mean the purchase of a company’ shares or particular assets. For assets, the purchase generally requires a minimum amount of formalities and can be done quickly if there is no Polish real estate involved. The sale price of the assets should be based on their market value.
The standard Value Added Tax in Poland of 23 per cent applies on the sale of goods.
For the acquisition of a business, the process is easier and it implies minimum paperwork if land purchase is not included in the deal. When purchasing a business or an organized part or a business in Poland, detailed lists of assets and liabilities must be prepared.
Because each merger or acquisition has its own particularities, it is advisable to seek specialized counseling when deciding to make such an investment. Our team of Polish lawyers can help you with any legal questions and aspects concerning mergers and acquisitions in Poland. Contact us for personalized legal advice and consultancy.