Doing Business in Poland
Doing Business in Poland
Are you a member of a UK company wishing to export overseas? Interested in entering or expanding your activity in the Polish market? Then this guide is for you!
The main objective of this Doing Business Guide is to provide you with basic knowledge about Poland; an overview of its economy, business culture, potential opportunities and an introduction to other relevant issues. Novice exporters, in particular will find it a useful starting point. Further assistance is available from the UKTI team in Poland. Full contact details are available at the end of this guide.
The purpose of the Doing Business guides, prepared by UK Trade & Investment (UKTI) is to provide information to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Reports contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Reports contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.
Content
Introduction Preparing to Export to Poland How to do business in Poland Business Etiquette, Language and Culture What are the challenges? How to Invest in Poland Contacts Resources/Useful Links 4 7 7 12 14 15 16 17
Introduction
Poland is located in the centre of Europe at the crossroads of the main north/south and east/west trade and transport routes. Poland has enjoyed uninterrupted growth since 1992, even through the current world recession. The Polish economy continues to be among the leaders in Central Europe. In 2009, Poland was the best performing economy in the EU with 1.8% growth and growth was again positive at 3.8% in 2010. The country has proved to be most effective on the whole continent in managing the crisis. Thanks to this Poland managed to go up in a number of rankings assessing the economic performance of countries worldwide. Political Overview Poland has a stable political system based on a multi-party democracy established in 1991 after decades of communist rule. The head of state is the President who is directly elected for a fiveyear term and may serve only twice. Parliament is composed of two chambers, the Senate and the lower house, the Sejm. Both are elected for four years. The executive is vested in a Prime Minister and Cabinet. There is a developed judicial system. Bronisaw Komorowski from the Civic Platform Party (PO) was elected President on 6 August 2010. Donald Tusk from the Civic Platform Party (PO) is Prime Minister as a result of parliamentary elections held in Poland on 21 October 2007. The next Parliamentary elections will take place in October 2011. Poland joined the European Union on 1 May 2004.
Opportunities in Poland
Located at the heart of Europe, Poland is the largest of the new EU member states, with a population of 38 million and a land mass roughly the size of Spain. It is a great springboard for UK companies planning to expand to other Central & Eastern European countries, as well as emerging markets further east. In recent years, Poland has been one of the fastest developing countries in the EU. Consumer spending in Poland is proving resilient to the general downturn across the rest of Europe and is expected to remain strong this year.
EU Structural and Cohesion Funds will help maintain Poland as a market offering growth, stability and good prospects for UK business. Poland's allocation of 67 billion will underpin investment in Polish infrastructure, environmental and technology projects, as well as supporting human and regional development. There are business opportunities in a range of sectors from infrastructure to healthcare, consumer goods to traditional and advanced engineering. Polands co-hosting of Euro 2012 championships has driven development in airports, railways, motorways, stadium and sport infrastructure, security and other related sectors. There are plans to build and modernize a dozen airport terminals and over 1500 kilometres of railway. New stadia are being built and others are undergoing refurbishment and extension, making Poland one of the largest construction sites in Europe! In the security sector, city authorities are investing in vehicle and people recognition systems, stadium and city monitoring, and fan management and access control. Although work on larger projects is under way, many lower-tier opportunities remain, and the Polish Government is totally committed to the success of the championships - think London 2012 on a smaller scale. Ensuring a successful Euro 2012 will be a key driver in increasing the growth in tourists visiting the country, which continue to rise year on year.
Getting here and advice about your stay FCO Travel Advice
The FCO website has travel advice to help you prepare for your visits overseas and to stay safe and secure while you are there. For advice please visit the FCO Travel section Getting here
By air
By air
There are over 300 flights a week between the UK and Poland and in addition to regular airlines; there are also budget flights from UK regional airports to Warsaw, Krakw, Gdask, Katowice, Bydgoszcz, Pozna, d, Szczecin and Wrocaw. Due to Poland's size and the condition of the road and rail network, air travel within the country can be a good alternative to travel by train or car. The journey time between Warsaw Frederic Chopin Airport and the centre of Warsaw by taxi is approximately 30 minutes.
At the airport
Be careful to avoid taxi touts - licensed taxis are readily available. They show a company name and telephone number and a price per km is clearly visible. In Warsaw, the 175 bus runs frequently between the airport and the Central Railway station (Dworzec Centralny).
Visas
Passports should have 6 months' validity remaining when you enter Poland. EU/UK nationals do not require visas. Consult the Polish Embassy website for information about residence/work permits. See www.polishembassy.co.uk
Your stay
Warsaw in your Pocket: http://www.inyourpocket.com/poland/warsaw is a comprehensive general guide for visitors. As well as the website it is available free of charge in hotel foyers etc.
You can commission these services which are chargeable and operated by UK Trade & Investment (UKTI) to assist British-based companies wishing to enter or expand their business in overseas markets. Under this service, the Embassy's Trade & Investment Advisers, who have wide local experience and knowledge, can identify business partners and provide the support and advice most relevant to your company's specific needs in the market. To find out more about commissioning work, please contact your local UKTI office. See www.ukti.gov.uk
Sources of information
Information on business in Poland is also available from these commercial and government websites: Master Page, Poland: http://www.masterpage.com.pl A searchable directory of business and tourism links. It is the leading English language source of information about Poland that is published in Poland. Polish News Bulletin: http://www.pnb.pl Coverage of business, finance, etc. issues. Polish Market: http://www.polishmarket.com Basic information on banking, telecommunications, pharmaceuticals etc. sectors, market research. Polish World: http://www.polishworld.com Links to business, economy, investment etc. web-sites. The Official Web-Site of Poland: http://poland.pl Basic information on Poland, economy and its institutions. The Polish Ministry of the Economy produces annual economic reports (in English) covering a wide range of areas, including statistics, trends, foreign trade details, interEU trade and a breakdown by industry and sector.
British Polish Chamber of Commerce (BPCC) www.bpcc.org.pl Fabryczna 16/22 00-446 Warsaw Tel: + 48 22 320 0100 (5 lines) Fax: + 48 22 621 1937 [email protected] Extensive portal site offering information on the working of the BPCC and how to do business in Poland as well as links to market information and in-house partner search.
Polish Agency for Information and Foreign Investment Polska Agencja Informacji i Inwestycji Zagranicznych (PAIiIZ) Bagatela 12 00-585 Warszawa Tel: +48 22 334 99 05, 334 9800, 334 9836, 334 9833 +48 22 628 98 89 Fax: +48 22 334 9999 www.paiz.gov.pl (English version available). Polish Chamber of Commerce (KIG): http://www.kig.pl Provides basic information on KIG activities, structure; directory of business opportunities.
Import Controls
Import restrictions may take the form of licenses, requirements, bans, and quotas. Licences are required to import radioactive materials, military goods and petroleum. Bans and quotas normally apply to selected agricultural produce and to some industries, notably the automotive industry.
Legislation
Polish legislation although harmonized with EU requirement, is complex. Revisions, amendments and regular corrections take place. When considering new projects in Poland it is worth consulting one of the international law firms established here, for example Ernst & Young, PriceWaterhouseCoopers, Deloitte & Touche or the Polish Information and Foreign Investment Agency www.paiz.gov.pl
Taxes
Taxes levied in Poland include: corporate income, VAT (goods and services), local taxes set by local authorities such as real estate tax, excise tax, personal income tax, inheritance and gifts tax and capital gains tax. Corporate income tax is 19% and income tax is in two bands: 18% and 32%. For further details of taxes, visit www.paiz.gov.pl. or check the tax issues area on the British Polish Chamber of Commerce website at http://www.bpcc.org.pl. Poland has double taxation agreements with more than 60 countries, including the UK. Poland has also entered into investment protection treaties with a number of countries, including the UK.
VAT
As of 01.01.2011 the basic VAT rate is 23%, which is applied to majority of goods and services. 8% VAT applies to certain goods and services, e.g. goods related to fire protection specific groceries, gastronomy services, services of hotels, folk art articles, supply, construction, modernisation and rebuilding of buildings within the framework of social housing programme (i.e. houses not bigger than 300 sq. m. and flats not bigger than 150sq. m.). 5% VAT applies to supply of books and branch magazines as well as to certain (basic) food products. 0% rate is mainly applicable to export, intra-Community supply of goods and international transport services.
Excise Tax
In accordance with EU regulations, the Excise Duty Tax Act governs specific tax treatment for harmonised and non-harmonised excise goods. Harmonised goods include engine oils, fuels, gas, heating oil, alcohol and tobacco among others. Non-harmonised goods include cosmetics, perfumes, firearms, passenger cars, fur clothing and other goods. In most cases the tax is calculated as either a percentage of the manufacturing sale price of the goods, or as a percentage of the customs value of the imported goods.
Responding to Tenders
UK companies bidding for work in Poland with consortia, local partners or on their own should be aware that as part of the tender specification they will usually be required to submit certain certificates along with their tender bid. These are certificates stating that they are registered, up to date with their tax, social and health insurance payments and that company directors, or members of the management board, do not have a criminal record. Such certificates do not exist in the UK but there are equivalent UK documents or accepted substitutes that companies can submit to satisfy this requirement. The UKTI Poland team can provide help with tender documentation requirements on request.
The UKTI team in Warsaw is always looking for potential business opportunities for UK companies. Many of these will be tenders so UK companies should be aware of how best to take advantage of tender opportunities in Poland.
Language
English is widely spoken by young people but interpretation may be required for business meetings, particularly outside Warsaw and other major cities. The UKTI team can help your company find a translator or interpreter.
Even if you are using an interpreter for the substance of your meeting, a few words of Polish go a long way. Below are some commonly-used phrases:
English Hello Good day/morning (used until midevening) Good evening Goodbye Yes / no Please / thank you Thats all right Excuse me My name is Polish Cze Dzie d o b r y Pronunciation Cheshch Dzyen dobri
Dobry wieczr Do widzenia Tak / nie Prosz / d ziku j W porzd ku Przepraszam Nazywam si
Dobri vyechoor Do veedzenyah Tahk / nye Prosheh /dzyenkooyeh Fpozhontku Psheprasham Nazivam syeh
Polish people can be voluble and gesticulation is an integral part of conversation here. However, little significance is placed on specific gestures and you do not need to worry about inadvertently causing offence. Polish business people wear suits for business meetings. Dressing well for a meeting is expected as it shows your counterparts that you value the opportunity to meet them. Lunch or dinner meetings are becoming increasingly common, but they are used more as a way to cement good relations than to hammer out details. As in many other countries, the person who proposes such a meeting will pay the bill.
Negotiations
No negotiating style can be said to be specifically Polish. As with other aspects of business in Poland, much depends on the age and amount of international experience of the person you are dealing with. The key to success in negotiation is clear communication and language understanding. It is important to be very well prepared for the first meeting. Technical data and prices are very often discussed right from the outset and you should be ready to talk about the terms of any proposed collaboration from the word go. Polish partners are usually reluctant to provide information about turnover, competition, share of the market etc before they meet you in person but they are more open to release information of this kind face to face. In general the exporter would be expected to share in cost of any promotional campaign to enter into the Polish market.
We hope that you have found this guide useful. For further information, please contact your International Trade Adviser or one of the UKTI team in Poland.
Contacts
If you have a specific export enquiry about the Poland market which is not answered by the information on this report, you may contact:
UK Trade Service
&
Investment
Enquiry
Tel: +44 (0)20 7215 8000 Fax: +44 (0)141 228 3693 Email: [email protected] You will be signposted to the appropriate section on our website or to our Poland Desk.
Resources/Useful Links
Country Information: BBC Website
http://news.bbc.co.uk/1/hi/country_profiles/default.stm
Economic Information: Economist http://www.economist.com/countries/ Export Control Export Control Organisation: http://www.businesslink.gov.uk/exportcontrol Export Finance and Insurance:
ECGD http://www.ecgd.gov.uk/
Intellectual Property
Intellectual Property Office: www.ipo.gov.uk
Market Access
UK Trade & Investment Doing business in Poland
Market Access Database for Tariffs (for non-EU markets only): http://mkaccdb.eu.int/mkaccdb2/indexPubli.htm SOLVIT Overcoming Trade Barriers (EU Markets only) www.bis.gov.uk/EUMarketAccessUnit
http://www.npl.co.uk/
Intellectual Property: http://www.ipo.gov.uk/
Trade Statistics
National Statistics Information: http://www.statistics.gov.uk/hub/index.html UK Trade Info: https://www.uktradeinfo.co.uk/
Travel Advice
FCO Travel: http://www.fco.gov.uk/en/travel-and-living-abroad/ NHS: http://www.nhs.uk/nhsengland/Healthcareabroad/ Travel health:
http://www.travelhealth.co.uk/
UK Trade & Investment Doing business in Poland Produced by: the UKTI Poland Team