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About Poland
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Poland
Author:
Triglav-Rysy

 

The Republic of Poland is a Central European country bordered by Germany to the west, the Czech Republic and Slovakia to the south, Ukraine and Belarus to the east, and the Baltic Sea, Lithuania and Russia (the Kaliningrad exclave) to the north.   

The name Poland (Polska) was first used in the 11th century, and is derived from the name of the tribe Polanie that settled the area between the Oder and Vistula Rivers after the break-up of the Roman Empire in the 5th century. Poland was admitted to the NATO pact in 1999. In June 2003, the Poles voted for the accession to the European Union that took place on 1 May 2004.

 

 Administration and Politics:

 

Poland is a democratic republic with the constitution whose current version dates from 1997.

The government structure consists of the Council of Ministers led by the prime minister. Ministers are appointed by the country’s president according to proposals by the prime minister. Ministers are usually members of the ruling coalition in the lower house of the Polish parliament called the Sejm. The head of state is the president elected by popular vote every five years. The present Polish president is Mr Bronisław Komorowski.

Furthermore, the country is divided into administrative units called voivodeships (województwo). The voivodeship has been the highest-level administrative unit in Poland ever since the 14th century. Under the act on the reorganisation of local government from 1998, 16 voivodeships were founded, replacing the previous 49 voivodeships that had existed since 1 July 1975.  

 

International Associations:

 

As already mentioned Poland became a fully-fledged member of the NATO in March 1999, and of the European Union in May 2004. The country showed its commitment to the accession to the NATO with its close cooperation in the Partnership for Peace. Therefore, it was invited to join the alliance at its first enlargement at the alliance’s summit in Madrid in July 1997. After the break-up of the Eastern Bloc Poland strove to be quickly re-integrated into the Western economy, thus joining the Western European Union already in 1994.  In addition, in 1996 it became a fully-fledged member of the Organisation for Economic Co-operation and Development. On 1 May 2004, Poland joined the European Union along with the other members of the Visegrád Group.

Political changes that ended the Cold War and changed the political map of Central Europe brought about open political relations between countries. Therefore, Poland has signed international treaties with all of its seven neighbouring countries. Last but not least, Poland is also a member of the Organization for Security and Co-operation in Europe.

 

Demographics:

 

Poland has almost 39 million inhabitants (according to the 2014 census). The country historically contained a lot of languages, cultures and religions. Due to border changes and migrations following World War II, Poland became an ethnically very homogeneous country. 96.74% of the inhabitants consider themselves Polish whereas a mere 1.23% of the population declared another nationality, and the rest did not declare any nationality (data from the 2002 census).

The official minority nationalities in Poland are the following: the Armenians, Belarusians, Czechs, Jews, Lithuanians, Germans, Russians, Slovaks, and Ukrainians while the official ethnic groups are the Karaims, Lemkos, Roma, and Tatars.

The country’s official language is Polish that belongs to the group of West Slavic languages. Apart from Polish, the languages of national and ethnic minorities are recognised as auxiliary official languages in the areas of minorities’ dense settlement. One of such languages is Kashubian spoken by the Kashubians in Pomeranian Voivodeship.    

Furthermore, Poland is a highly religious country: the great majority of the Poles are Roman-Catholics, and 75% of the population is practising Catholics.  The other religious people are members of the Jewish, Orthodox and Protestant minorities.

 

Transport and Communications:

 

By Western European standards, Polish road, water and rail networks are poorly developed. A total length of Polish roads amounts to 364,657 km while railway lines come to 23,420 km.  There are nine million cars registered in Poland as well as around two million trucks and buses (data from 2000).

The total number of airports comes to 122, and eight of them are major. In addition, the total length of navigable rivers and other waterways is 3,812 km.  The merchant fleet consists of 144 ships and 100 additional ships registered abroad. The major ports are Gdansk, Gdynia, Kołobrzeg, Szczecin, Świnoujście, Ustka, Warsaw and Wrocław.

In 2000, the share of the telecom sector in GDP was 4.4% (2.5% in 1996). In spite of a significant increase in the coverage (282 users per 1,000 inhabitants in 2000, compared to 78 users per 1,000 in 1989), the telecommunication infrastructure remains relatively poorly developed.

 

Economy:

 

Following the democratic changes of the political system, Poland carried out a rapid and intensive liberalisation of economy. Therefore, it is nowadays an example of the American-style aggressive economic model. After the outbreak of the global financial crisis in 2008, Poland was the only EU Member State that managed to avoid it.

In the 1990s, Poland quite quickly liberalised economy and went on to become one of the most successful transition countries. Due to the country’s large number of inhabitants and its integration into the EU, it has become the most attractive country for foreign investments.  These stimulate diversification of economic activities that move in the direction of a more intensive development of products with higher added value.    The Polish GDP is the 27th in the world. Transition also brought about extensive restructuring of economy.  In spite of slower privatisation in the 1989-2006 period, the private sector’s share in GDP rose from 18% to over 80%.   While the service sector is on the rise (over 60% of GDP), the industry’s share fell from 35% in 1992 to 25.7% in 2006.  

In the service sector, market services (especially business and real estate services) have experienced particularly rapid growth.  Apart from Slovenia, Poland is the first transition country that exceeded the value of its GDP from ten years ago.

The Polish economy grew for 177% from 1989 to 2007. While a large part of Europe still struggles to recover from the 2008 world financial crisis, Poland represents an island of economic success, a country where companies and individuals grow. The country has a large domestic market and an economy-friendly political class.  

Two of the reasons that Poland managed to avoid the crisis are low public debt and low indebtedness of enterprises and individuals. When the crisis began, the country’s public debt was below 50% of GDP. The reason for low public debt is the 1997 constitutional restriction of public debt at 60% of GDP.  In addition, Poland was mostly unaffected by the crisis on account of its national currency (zloty), low dependence on international trade, effective use of EU funds, tax relief for enterprises and a healthy banking sector. 

Stimulating entrepreneurship, particularly in Special Economic Zones, is another reason for growing Polish economy. One of these zones is situated in Łodź, a city that had strong textile industry until the fall of the Iron Curtain. However, in the 1990s numerous enterprises were closed down, leaving almost one third of the citizens unemployed. Nowadays, the unemployment rate is significantly lower, and the textile industry has survived, although in a different form (boutique sale, designing, etc.). Furthermore, the establishment of a Special Economic Zone in Łodź has attracted foreign investors from a variety of sectors, such the domestic appliances producers Bosch, Siemens Home Appliances and Indesit, the IT giants Dell and Fujitsu as well as the cosmetic companies Gillette and P&G.

Many professionals have called Poland the “top investment” destination of the European Union as the country’s economy is ranked sixth (in terms of size) in the European Union. In addition to the above-mentioned reasons, Poland also owes this designation to its favourable geographical location in the heart of Europe offering the Polish economy 250 million potential customers.

 

Projection of inflation and GDP for the Polish economy until 2017

 

Projection of inflation and GDP, indicates clearly projected developments in the Polish economy, with  the assumption of constant NBP interest rates.

National Bank of Poland published report, which shows that according to estimates, inflation will be on a lower level while economic growth in the perspective of 2017 will accelerate. According to the assumptions at end of 2017, inflation will reach 1.2%. What is interesting, assumed projection does not even reach the lower tolerance band of the inflation target by Polish central bank. The projection assumes that the Polish economy will grow in 2015 for 3.4%, in 2016 3.3% and in 2017 the growth will be 3.5%. Additionally optimistic predictions supports the prospect of decreasing unemployment rate from 9% in 2014 to 7.5% in 2017. Referring to the inflation rate in the current year, a noticeable drop in prices largely results from: high supply of agricultural products, the embargo on agricultural products from Russia, decrease in oil prices, lower costs of extraction of energy resources, a large supply of oil from Russia, Iraq, Saudi Arabia and favorable thermal conditions in Europe.

Generally, the impact of oil prices is visible in many aspects, low prices of the material support economic growth of importing countries by decrease of their operating costs, they enable record higher economic growth, growth in households' real incomes and hence consumption growth. The projection implies maintaining energy commodity prices at a similar level to 2017. At the labor market is estimated further increase of employment, decrease of unemployment and steady wage increase. Economic growth will also be supported by business investment spending. According to NBP projection, the main source of uncertainty for the inflation and GDP forecast it is the possibility of prolongation of the deflation period in Poland and euro area. The reason for this may be weakness of economies structures, higher geopolitical risk and worsening of consumer and producers feelings. The negative dynamics of prices would affect then the increase in the real cost of money, which in the absence of the possibility of reducing interest rates would restrict economic activity in the euro area. Hence, it is likely that shape of inflation will be below the path supposed in projection. In addition, this process will be strengthened by the end of the accounting EU's financial perspectives 2007-2013, which will take place at the end of 2016. Additionally, the low inflation would be affected by low demand pressure and low cost pressure.

However, despite these factors, investment growth will remain throughout the projection horizon higher than the GDP growth rate, which means that growth of investment rate will be maintained.

It is worth noting that projecting increase of the GDP is influenced by higher estimation data about GDP for Q3 and the whole 2014 published by the GUS. These data have been calculated in accordance with the new ESA 2010 methodology, which takes into account also production value of illegal activities.

 

 

Forecasts for the Polish economy are optimistic as further dynamic growth is anticipated in the country (Poland’s GDP has been rising ever since 2010, with an average growth rate of 4.5% per annum).  In addition, it is forecast that a low interest rate will be kept, thus influencing the growth of investments (3% compared to 0.5% in 2013).   

 

 

 

 

Forms of conducting business activity in Poland 

 

Business activity in Poland may be conducted in forms similar to those found in other European countries. Available types of business activity include:

- Commercial companies comprising:
Corporations (limited liability company and joint-stock company);
Partnerships (general partnership, limited liability partnership, limited partnership, limited joint-stock partnership); branch offices of a foreign company; representative offices of a foreign company; individual business activity (also as part of a civil partnership).
Cooperatives, associations, foundations and cross-border vehicles such as the European Company, or the European Economic Interest Grouping.

 

Setting-up a company in Poland

 

We have decided to describe the most popular type of business you might want to set up – self-employment.

First step: typing www.firma.gov.pl in your web browser.

Second step: filling out the registration form.

The filled-out form is also an application for:
- The registration in the Krajowy Rejestr Urzędowy Podmiotów Gospodarki Narodowej (The National Official Register of the Nationalised Industries Units) to receive a REGON number.
- The application to the Tax Office to receive a NIP number (if you don’t have one yet) and choose the form of taxation.
- The identification of the insurance contributions payer in ZUS (Social Insurance Institution) which is the person who will be responsible for paying the insurance contributions for themselves and the employees.

While filling-out the form you also have to define the type of business activity number. You can find the one that describes your kind of business in the Polska Klasyfikacja Działalności (Polish Classification of Activity).
The full list of them can be found here.

Then your entry should be valid and visible the day after you submitted the registration form. 

 

Read More: http://prod.ceidg.gov.pl/ceidg.cms.engine/

Central Registration and 

Information on Business

tel: 801 055 088

 

 

Restrictions

 

The most important restrictions as to the object are those that require the entrepreneur to obtain a prior administrative decision that enables them to undertake a given activity.

 

Concessions

Concessions are issued in areas of business activity that carry particular importance for national security or the safety of the citizens or other important public interest.

The requirement of obtaining a concession concerns activities that involve:

- exploring and identifying hydrocarbons and solid mineral ores subject to mining proprietorship, exploring or identifying a subterranean carbon dioxide deposit complex, extracting minerals from ores, subterranean non-reservoir storing of substances, subterranean depositing of waste and subterranean depositing of carbon dioxide;
- manufacturing and trading in explosives, weapons and ammunition, as well as military and law enforcement products and technologies;
manufacturing, processing, storing, transmitting, distributing and trading in fuels and energy, transferring carbon dioxide for its subterranean depositing;
- protecting people and property;
- distributing radio and television programming, save for programming distributed solely using the ICT system, which is not broadcast terrestrially, by satellite or over cable networks;
- air transportation;
- running casinos.
Before issuing a concession, the administrative body may verify if the entrepreneur meets the requirements of conducting business activity that requires a concession and whether it guarantees proper conduct of such activity.

 

Permits, licences, authorisations

Another manifestation of the restriction of economic freedom as to the object is the requirement for the entrepreneur to obtain a permit, licence or authorisation. However, the different names do not mean that we are dealing with different acts. All of these types of administrative decisions are equivalent – they carry the same legal effect with respect to the ability to conduct business. Therefore, the collective term permit will hereinafter be used to refer to all of these.

A permit allows an entity to undertake and perform a specific type of business activity provided that it meets the relevant statutory requirements.


Regulated activities:

Regulated activities are defined as such in the legislation. In order to conduct them, an entrepreneur must meet the requirements set forth in a given act.

For instance, regulated activity includes:
- currency exchange activities
- organising travel events
- detective services
- packaging and customising or marketing plant care products

 

Read More: https://msw.gov.pl/pl/bezpieczenstwo/koncesje-i-zezwolenia

Ministry of Interior

02-591 Warszawa, ul. Batorego 5

e-mail waii@msw.gov.pl

 
 
 

Forecasts for Enterprises:  

 

 

Export Destinations

 

The Polish economy’s main export destinations are predominantly EU Member States, particularly Germany, Great Britain, France, Italy and the Czech Republic. However, other markets also take a significant share of Polish exports. 

 

 

Import Destination

 

 

Poland imports the majority of goods from EU Member States, the leading ones being Germany, France, the Czech Republic and Italy. In addition, a large share of Polish imports comes from Russia and other world markets.

 

Institutions and non-governmental organizations

 

MINISTRIES OF POLAND:

 

Ministry of National Education

Al. Szucha 25

00-918 Warszawa

tel: (04822) 629-72-41

tel: (04822) 628-04-61

http://www.menis.gov.pl/

http://www.mnii.gov.pl/

minister(at)menis.gov.pl

 

Ministry of Finance

ul. Świętokrzyska 12

00-916 Warszawa

tel: (04822) 694-55-55

www.mf.gov.pl

biuro.prasowe(at)mofnet.gov.pl

 

Ministry of Economy 

pl. Trzech Krzyży 3/5

00-507 Warszawa

tel: (04822) 693-50-00

fax: (04822) 693-40-48

www.mgip.gov.pl

bpi(at)mpips.gov.pl

 

Ministry of Labour and Social Policy

ul. Nowogrodzka 1/3

00-513 Warszawa

tel: (04822) 661-10-00

www.mps.gov.pl

www.pozytek.gov.pl

 

Ministry of Culture and National Heritage

Krakowskie Przedmieście15/17

00-071 Warszawa

tel: (04822) 422-01-00

www.mk.gov.pl

rzecznik(at)mk.gov.pl

 

Ministry of Infrastructure and Development

Wspólna 2-4, 00-926 Warszawa 

22 273 70 00

 

Ministry of Administration and Digitization 

ul. Królewska 27

00-060 Warszawa

http://mac.gov.pl/

 

Ministry of Science and Higher Education

ul. Wspólna 1/3,

00-529 Warszawa

http://www.nauka.gov.pl/

 

Ministry of National Defence

ul. Klonowa 1

00-909 Warszawa

tel: (04822) 628-00-(31 do 34)

fax: (04822) 845-53-78

www.wp.mil.pl

bpimon(at)wp.mil.pl

 

Ministry of Agriculture and Rural Development

ul. Wspólna 30 tel: (04822) 623-10-00

00-930 Warszawa

www.minrol.gov.pl

kancelaria(at)minrol.gov.pl

 

Ministry of State Treasury

ul. Krucza 36 / Wspólna 6

00-522 Warszawa

tel: (04822) 695-80-00 / 695-90-00

fax: (04822) 628-08-72 / 612-33-61

www.msp.gov.pl

minister(at)mst.gov.pl

 

Ministry of Sport and Tourism

l.Róż 2

00-559 Warszawa

tel: (04822) 522-33-99

fax:(04822) 826-21-72

www.msport.gov.pl

 

Ministry of Justice

Al. Ujazdowskie 11

00-950 Warszawa

tel: (04822) 521-28-88

www.ms.gov.pl

inagorska(at)ms.gov.pl

 

Ministry of Interior

ul. Batorego 5

02-591 Warszawa

tel: (04822) 621-20-20

www.mswia.gov.pl

wp(at)mswia.gov.pl

 

Ministry of Foreign Affairs

Al. J. Ch. Szucha 23

00-580 Warszawa

tel: (04822) 523-90-00

www.msz.gov.pl

dsi(at)msz.gov.pl

 

Ministry of Environment

ul. Wawelska 52/54

00-922 Warszawa

tel: (04822) 579-29-00

www.mos.gov.pl

info(at)mos.gov.pl

 

Ministry of Health

ul. Miodowa 15

00-952 Warszawa

tel: (04822) 63-49-600

www.mz.gov.pl

kancelaria(at)mz.gov.pl

 

BUSINESS ENVIRONMENT INSTITUTIONS IN POLAND

 

Polish Information and Foreign Investment Agency (PAIiIZ)

Bagatela Street 12, Warsaw

phone: +48 (22) 334 98 00

e-mail: invest@paiz.gov.pl

website: paiz.gov.pl

 

Export Credit Insurance Corporation Joint Stock Company ( KUKE)

Sienna Street 39, Warsaw

phone: +48 (22) 356 83 00

e-mail: kontakt@kuke.com.pl

website: kuke.com.pl

 

Polish Tourist Organisation (POT)

Tytus Chałubiński Street 8, Warsaw

phone: +48 (22) 536 70 70

e-mail: pot@pot.gov.pl

website: pot.gov.pl

 

Polish Agency for Enterprise Development ( PARP)

Panska 81/83 Street, Warsaw

phone: +48 (22) 432 80 80

e-mail: biuro@parp.gov.pl

website: parp.gov.pl

 

Academic Incubators of Entrepreneurship (AIP)

Piękna 68 Street, Warsaw

phone: +48 (22) 745 19 19

e-mail: biuro@przedsiebiorca.pl

website: inkubatory.pl

 

Investor and Exporter Service Center (COIiE)

Swietojerska Street 9, Warsaw

e-mail: coie@armsa.pl

website: armsa.pl

 

Bank Gospodarstwa Krajowego

Al. Jerozolimskie 7 Street, Warsaw

phone: +48 (22) 522 93 14

e-mail: bgk@bgk.pl

website: bgk.pl

 

Technology Transfer Centre CUT

Warszawska Street 24, Cracow

phone: +48 (12) 628 28 45

e-mail: sekretariat@transfer.edu.pl

website: transfer.edu.pl

 

Special Economic Zones

Strona: strefyekonomicznewpolsce.pl

e-mail: kontakt@strefyekonomicznewpolsce.pl

 

Cracow Technology Park

Podole Street 60, Cracow

phone: +48 (12) 640 19 40

website: kpt.krakow.pl

e-mail: biuro@kpt.krakow.pl

 

POLISH DEVELOPMENT FUND

Ksiazeca Street 4, Warsaw

phone: +48 22 537 75 41

e-mail: biuro@pfr.pl

website: pfr.pl

 

National Tax Information

website: kip.gov.pl

phone: +48 (22) 330 0330

 

Polish Chamber of Commerce

Trebacka Street 4, Warsaw

Phone: +48 (22) 630 96 00

website: kig.pl

e-mail: kig@kig.pl

 

National Bank of Poland

Swietokrzyska 11/21 Street, Warsaw

phone: +48 (22) 185 10 00

website: nbp.pl

e-mail: listy@nbp.pl

 

Ministry of Treasury

Krucza Street 36, Warsaw

phone: +48 (22) 695 80 00

website: msp.gov.pl

e-mail: inwestor@msp.gov.pl

 

INSTITUTIONS:

 

Central Statistical Office of Poland - www.stat.gov.pl

Polish Information and Foreign Investments Agency - www.paiz.gov.pl

Business Club Triglav-Rysy – www.triglav-rysy.eu

Polish Chamber of Commerce – www.kig.pl

Warsaw Business Journal - www.wbj.pl

Warsaw Stock Exchange - www.gpw.pl

 

EMBASSY:

 

Embassy of the Republic of Slovenia to the Republic of Poland

Starościnska 1/23-24

02-516 Warszawa

T: (+) 48 22 8 49 82 82

F: (+) 48 22 848 40 90

E: vvr(at)gov.si

http://www.warsaw.embassy.si/

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All rights reserved, Triglav Rysy, design & development: Premuz & Stajnko, Bauman 2015