A limited partnership is one of the forms of conducting business activity in Poland. It is a good solution for entrepreneurs who only want to invest capital in a business venture to make profits from it. In the case of a limited partnership, there are no concerns about the safety of personal assets, because the liability for the company’s obligations is borne by the remaining partners – those managing and representing the company. See what you should know about a limited partnership in Poland.
Partners of a limited partnership in Poland
A limited partnership in Poland is a personal commercial partnership that has legal capacity and the capacity to perform legal acts. This means that the company is an entrepreneur (not partners), acquires in its own name (e.g. office space) and independently incurs liabilities (e.g. cash loan in a bank). In the event of a dispute, the limited partnership will be litigation parties (plaintiff or defendant). At least one general partner and at least one limited partner are required to establish a company. A single-member limited partnership cannot be established.
- General partner – represents the company and is liable for its liabilities (debts) without limitation.
- Limited partner – is liable for the company’s liabilities limited to the amount specified in the agreement (limited partnership sum).
Establishing a limited partnership in Poland is associated with numerous benefits. The partners independently decide who will be the general partner and who will be the limited partner. Thanks to this, one of them can fully focus on running the company’s affairs, and the other limits his role to a financial contribution.
Who can establish a limited partnership in Poland?
Partners of a limited partnership can be both natural persons and legal entities. The country of origin is irrelevant. A partner of a limited partnership can be a foreign company or a foreigner from outside the European Union.
What to do to establish a limited partnership in Poland?
To establish a limited partnership in Poland, you need to conclude a partnership agreement. This can be done in the form of a notarial deed or via the Internet (S24 system). Companies established in S24 are usually entered into the register within 2 business days. In the case of a notarial agreement, the waiting time is about 2 weeks.
How much does it cost to establish a limited partnership in Poland?
In the case of a company established via the Internet, notarial costs are not covered. The court fee is PLN 350. In the case of completing the formalities at a notary, a court fee of PLN 600 must be paid.
When is it worth considering establishing a limited partnership in Poland?
Establishing such a company will be beneficial if the undertaking is burdened with a high financial risk. This form is also beneficial for entrepreneurs whose significant part of the income is allocated to investments, and companies with a turnover below EUR 2,000,000 per year, in which the income is consumed entirely by the partners;
What are the benefits of establishing a limited partnership in Poland?
The advantages of establishing a limited partnership in Poland are hard to overestimate. See what you can gain by choosing this form of running a business:
- Flat-rate health insurance contribution – not counted from the partners’ global income.
- Low tax – effective taxation of the general partner in a “small” limited partnership is up to 17.3%
- Estonian CIT – a limited partnership can benefit from Estonian CIT.
- Unlimited advances – there is no limit on the payment of advances on the company’s profit during the year.
Don’t want to make a mistake when starting a business? Take advantage of the help of advisors who will guide you through the entire process of registering a company in Poland.
This is what you need to know about a limited partnership in Poland!
A limited partnership is required to maintain full accounting. This means that every limited partnership must maintain accounting books. For someone who has never had contact with Polish tax law, this may be difficult. That is why it is so important to entrust accounting to a professional company that will provide support in your native language. Using our help, you do not have to worry about getting lost in the maze of regulations. We have experience in helping foreigners and provide support at every stage of starting a business.
