Holding companies in Poland
A Polish holding company is a legal entity that does not necessarily perform any commercial activities but it owns shares in another company. The holding will purchase an outstanding part of the shares meaning that it will have the power to take important decisions related to the owned company.
Foreign investors who choose to do business in Poland using a holding company are usually looking for certain advantages offered by this particular business form. Our Polish law firm can help you open a holding company and comply with the requirements for these types of legal entities. Businessmen interested in starting a holding company in another country, for example in Ireland, can receive professional company registration services from our partners – LawyersIreland.eu.
|Legal entities used
Limited Liability Company
|Registration with the Polish National Court Register
3 to 4 weeks
Dividend taxation exemption possible under certain conditions
|Limitations for advantages available to holding companies and their subsidiaries located in the Polish special economic zones
The holding company needs to hold at least 10% of the shares in the subsidiary (subsidiaries) it controls in Poland in other to benefit from certain tax advantages
5,000 PLN for the Limited Liability Company
19% standard corporate income tax rate and a 9% reduced tax
There is no holding company regime in Poland
|Direct or indirect shareholders (with limitations)
|Accounting and Reporting
|Annual financial statements. The final calculation of the income tax is made within 3 months of the end of the tax year
|Number of double taxation treaties
Advantages of a holding company
Poland does not impose a holding company regime, however, these companies can benefit from the taxation regime for dividends and capital gains. The main advantage of the holding company is that it is exempt from taxes on profits and these profits are re-invested in the business.
The withholding tax on dividends in Poland is 19% but it can be reduced in the following cases:
– if a tax treaty applies;
– if the parent-subsidiary directive is applicable.
The EU Parent-Subsidiary directive is also applicable in Poland and it stipulates that dividends paid to a Polish tax resident company are exempt from the Polish withholding tax in the following conditions:
– the company receiving the dividends is not tax-exempt in its country;
– the recipient of the dividends owns shares in a Polish company;
– a tax information exchange exists between the countries where the companies are based.
Poland has signed a number of double tax treaties which allow for reduced withholding rates and are beneficial for all types of companies, holding companies included. If you need more details about these double tax treaties, our lawyer in Poland can help you.
Investments in Poland
Poland offers many business opportunities and foreign investors benefit from the same treatment as resident ones. The country has several Special Economic Zones where companies are offered benefits and incentives.
You can contact us if you want to know more about other business types in Poland as well as the legislation for foreign investments. In case you need VAT registration services or EORI registration services, our lawyers are ready to assist you.
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