Is opening a construction company in Poland a long and complicated process? Myth!

Establishment of the most popular legal forms in Poland with AssistPRO online or through a notary:

  • Fast
  • Without bureaucracy
  • With a reliable partner

There will probably always be a demand for construction services, and a good specialist or repair firm should not worry about orders. However, it should be remembered that running a construction company requires experience and is associated with certain risks.

In order to open a construction business, it is necessary to register a company. A construction company can be opened in any form

  • whether it is a sole proprietorship (pl. jednoosobowa działalność gospodarcza) or a closed joint-stock company (pl. spółka z o.).

The most appropriate form of business for the construction industry would be:

  • Sp. z. o. o. (closed joint-stock company)
  • or the creation of a branch

The choice of business form affects, among other things, the entrepreneur’s liability and tax issues.

AssistPRO offers a complete package for the creation of a construction company, which includes:

  • Obtaining a PESEL or Polish qualified electronic signature;
  • Search for a legal address;
  • Document preparation;
  • Opening a bank account and advising on the contribution of share capital;
  • Counseling on employment of foreigners;

Opportunities for opening a construction business in Poland:

I. Setting up a construction company through a notary
pl. Sp. z. o. o. (closed joint-stock company)

II. Creating a construction company online
pl. Sp. z. o. o. (closed joint stock company)

III. Creating a branch

Through a notary, the company is established in the presence physically or by proxy Online, no physical presence in a foreign country is required
– However, one trip to Poland is required to open a bank account and one trip to the Polish consulate in your country.
Through a notary, the establishment of a branch in the presence of physically or by proxy

Duration: 1 to 2 months *

Duration: up to 1 month *

Duration: 1 to 2 months *

Authorized capital – min. EUR 1 112

Authorized capital – min. EUR 1 112

Limited liability for the company’s obligations (in certain cases, members of the board of directors may assume such liability).

Limited liability for the company’s obligations (in certain cases, members of the board of directors may assume such liability).

A foreign entrepreneur shall be liable for the obligations of the branch with all his present and future property without limitation.

Accounting costs are about 150 euros per month for up to 25 documents

Accounting costs are about 150 euros per month for up to 25 documents.

– the branch must keep separate accounts in Polish;
– a foreign entrepreneur operating in Poland in the form of a branch is a cash taxpayer and will have limited tax liability in Poland.

Requirements for opening a construction company

No special rights, licenses or permits are required to establish a construction company. The owner is also not required to have the appropriate education.

A license or permit may be required only for technical functions, such as design,

construction expertise or construction management. However, the entrepreneur does not have to have such qualifications himself, but can hire employees with appropriate qualifications.

Liability and risks in managing a construction company – possible penalties

Working in the construction industry comes with a number of risks. In addition to those that apply to running any business, you will need to pay great attention to the health and safety of yourself and your employees, as well as meeting deadlines, which usually result in contractual penalties. The employer is responsible for the employee. Conducting safety training for new employees is mandatory.

It is also worth thinking about company and equipment insurance. Contracts in the construction industry often include contractual penalties for non-performance or improper performance of an order, related, for example, to deadlines.

Important! Construction company and data protection regulations (RODO)

A prospective entrepreneur managing a construction company, due to the entry into force of new EU legislation on 25 May 2018, namely Regulation 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals with regard to the processing of personal data and on the free movement such data and the repeal of Directive 95/46/EC (abbreviated: RODO), is obliged

among others:

  • Ensure the level of security of personal data in accordance with the principles specified in the RODO Regulations,
  • appoint a person responsible for the protection of personal data, etc.

The obligations relating to RODO are limited to authorizing the persons who will have access to personal data (employees, contractors, etc.), contracting the transfer of processing of personal data to third parties, obtaining consent from the person whose personal data is collected (if required by RODO), and informing such person of his/her rights.

The cost of opening a construction company in Poland:

I. Setting up a construction company through a notary
pl. Sp. z. o. o. (closed joint-stock company)

II. Creating a construction company online
pl. Sp. z. o. o. (closed joint-stock company)

III. Creating a branch

Through a notary, the company is established in the presence physically or by proxy Electronically, no physical presence in a foreign country is required
– However, one trip to Poland is required to open a bank account and one trip to the Polish consulate in your country
Through a notary, the company is purchased in the presence of physically or by proxy
1800 Eur.
from940Eur.
net +23% VAT
950 Eur.
from490Eur.
net +23% VAT
1700 Eur.
from899Eur.
net +23% VAT
Additional costs: share capital (min. 5 000 PLN), legal address (virtual office 230 €/year), Polish personal code or e-mail address. signature. Additional costs: share capital (min. 5 000 PLN), legal address (virtual office 230 €/year), Polish personal code or e-mail address. signature. Additional costs: other taxes, translation costs.

Determination of the PCD for construction activities

In order to establish a construction company, it is necessary to choose PCD codes suitable for such activities. The range of services that a construction and repair company can provide is extremely wide. The main PCD numbers are those from sections 41 and 43, and the following codes are most commonly used:

41.10.Z: execution of construction projects for the erection of buildings

41.20.Z: Construction work associated with the construction of residential and nonresidential buildings

43.31.Z: plastering

43.32.Z: Installation of joinery

43.33.Z: Floor, wall and wall cladding works

43.34.Z: Painting and glazing

43.39.Z: performance of other construction finishing works

Construction company – with or without VAT?

An entrepreneur can take advantage of VAT exemption – due to the achieved turnover. However, he will be obliged to become a VAT payer if his total income for the year exceeds 200,000 PLN. An entrepreneur can also run a construction and renovation company as an active VAT taxpayer from the outset. This is definitely advantageous for those for whom input VAT (expenses) will exceed output VAT (income), and in particular when:

  • services will be provided mainly to active VAT taxpayers,
  • this type of service is taxed at a rate lower than 23%,

Fiscal cash register in a construction company

The Law on VAT, more precisely Art. 111 par. 1 indicates that entrepreneurs who sell to individuals who do not carry out entrepreneurial activities and one-time farmers are obliged to keep records of turnovers and amounts of output VAT with the use of fiscal cash registers. In addition, it should be noted that construction services are not among the types of activities that are exempt from the obligation to have cash registers. Thus, the future entrepreneur has 2 options:

  • 1) immediately purchase a fiscal cash register and register sales to individuals or,
  • 2) take advantage of the subjective exemption from fiscal cash registers due to the fulfillment of conditions, namely if the service provider receives full payment for the activity performed through the post office, bank and records and evidence documenting payment clearly show the specific activity in question, or subjective exemption, not exceeding the limit of PLN 20,000. As for the construction industry, from January 1, 2021 it was to be covered by the online fiscal cash register.

The right equipment for the construction company

Once you have gone through the formalities of setting up a construction company, you need to focus on choosing the right equipment and construction equipment. You may need an excavator, crane, manipulator, forklift, hammers, drills, mortar, or concrete mixers, and more. It is also often necessary to purchase a delivery truck. But, not every aspiring entrepreneur can afford to finance construction equipment. In that case, they can be leased. The lessee receives an object from the leasing company for a certain period of time in exchange for monthly installments. At the end of the contract period, you can decide to buy the asset and become its owner.

We can also help you in this matter!