Publication date: 28.06.2024
Opening a business by Ukrainians: comparison of conditions in Poland and Estonia
Introduction
Opening one's own business abroad is becoming more and more popular for Ukrainians, especially in countries such as Poland and Estonia. These countries offer attractive conditions for doing business, but there are significant differences in legal and tax requirements that should be considered when choosing a jurisdiction to register a business. In this article, we will compare the conditions for opening a business in Poland and Estonia, giving examples from the practice of our lawyers and lawyers.
Business registration requirements
Poland
Types of business structures:
Individual Entrepreneurship (JDG)
Limited Liability Company (Sp. z o.o.)
Joint Stock Company (S.A.)
Registration procedure:
Choice of business type and preparation of statutory documents.
Registration in the National Court Register (KRS).
Obtaining a REGON number, tax identification number (NIP) and VAT registration (if necessary).
Estonia
Types of business structures:
Private Enterprise (FIE)
Limited Liability Company (OÜ)
Joint Stock Company (AS)
Registration procedure:
Use of the electronic registration system (e-Business Register).
Submitting an application for company registration online.
Obtaining a commercial registration code and tax number.
Tax regimes
Poland
Corporate tax:
The standard corporate tax rate is 19%.
A preferential rate of 9% for small businesses with an income of up to 2 million euros.
VAT:
The standard VAT rate is 23%.
Reduced VAT rates - 8%, 5%, 0%.
Estonia
Corporate tax:
No corporate tax on retained earnings.
Rate of 20% on distributed profits.
VAT:
The standard VAT rate is 20%.
Reduced VAT rates - 9%, 0%.
Legalization of stay
Poland
Cards of temporary stay:
The card of the beat (temporary residence permit) on the basis of conducting business.
Submitting an application to the Voivodship Administration.
Estonia
Types of accommodation:
Temporary residence permit for business activities.
Submitting an application to the Department of Police and Border Guard.
Examples from the practice of our lawyers and advocates
Client 1: Opening of an IT company in Poland
Our firm's lawyers helped the client register a limited liability company (Sp. z o.o.), prepare statutory documents and ensure registration with the KRS. The client also received advice on tax issues and assistance in registering as a VAT payer. During the consultation, a legal analysis of the situation was carried out, on the basis of which written legal advice was provided on the next steps.
Client 2: Logistics company in Estonia
Our lawyers accompanied the process of registration of a logistics company in the form of OÜ through the e-Business Register. Consultations were provided on optimizing the tax burden and obtaining a temporary residence permit. The lawyer's analysis of the situation showed that registration in Estonia would reduce tax costs, which became the basis for a legal opinion on the situation.
Client 3: Startup in the field of biotechnology in Poland
Our specialists provided comprehensive support for startup registration, including legal advice and assistance in obtaining grants for business development. The conducted legal analysis of the situation indicated the need to attract additional investors, which was reflected in the lawyer's written consultation.
Client 4: Restaurant business in Estonia
The lawyers of our firm helped to register the restaurant in the FIE form, ensured that all necessary permits and licenses were obtained, and also provided advice on tax issues. A lawyer's request to the local authorities made it possible to quickly confirm the presence of all the necessary conditions for opening a restaurant. The legal opinion was provided in the form of written legal advice.
Client 5: Trading company in Poland
We ensured the registration of a trading company, helped the client in obtaining a credit card and provided support in the process of opening a bank account and concluding lease agreements. The lawyer's analysis of the situation included a study of the legal aspects of renting commercial real estate, on the basis of which a written legal opinion was drawn up.
Legal on the situation and consultations
In the process of working with clients, our lawyers and lawyers regularly provide such services as writing a lawyer's request, analysis of the situation by a lawyer, analysis of the situation by a lawyer, legal analysis of the situation, written legal advice, written legal advice, online legal advice and online advice of a lawyer, legal opinion, legal consultation online , written legal consultation , writing a lawyer request .
We also provide a legal opinion on the situation, make a lawyer's request and a lawyer's opinion. And legal advice online or a written consultation of a lawyer necessarily includes a lawyer's opinion.
For example, one of our clients requested an online consultation from a lawyer regarding the possibility of expanding his business in Estonia. After a detailed legal analysis of the situation, we prepared a written consultation of a lawyer, which described in detail all possible risks and benefits.
Another client received written legal advice on optimizing tax obligations in Poland. The legal opinion on the situation included recommendations on the use of preferential rates of income tax and VAT. The lawyer's opinion helped the client to make an informed decision about doing business in Poland.
Conclusions
Opening a business by Ukrainians in Poland and Estonia has its advantages and disadvantages. Poland offers a clear and stable environment for doing business, while Estonia is known for its transparency and innovative approaches, particularly in e-government. When choosing a jurisdiction for business registration, it is important to take into account the specifics of tax regimes, registration procedures and the possibility of legalization of stay. Our lawyers and lawyers are always ready to provide professional assistance in choosing the optimal solution and ensure the successful start of your business.
