Why make your life difficult and set up a company in England with a branch in Poland, instead of settling for ordinary activities in our country? Although such a solution may seem at first glance an unnecessary complication, it brings measurable financial benefits. Maintaining a company in Great Britain is much cheaper than in Poland, and since we are in the European Union, operating in Poland by an island company is also not a problem.
Why is it worth it?
The LTD company, i.e. a limited liability company, is a form of activity recognized all over the world. Great Britain is a location that inspires trust and positively influences the company’s image. It also brings great financial benefits and does not threaten the interests pursued in Poland. By using the services of an intermediary office, opening and running an office in the UK does not require much commitment. It is worth mentioning that the parent company in England has no obligations to its branches and shareholders may remain anonymous in public records.
Interested in a company in England? See the promotional offer.
Finance
First of all, you can count on much lower taxes, for example by using dividends that are not taxed in the UK. The tax-free amount in the UK is approximately PLN 40,000. You become a VAT payer in the United Kingdom only when you reach the high level of 79 thousand. pounds (unless you wish to register as a VAT payer in advance). In addition, limited liability companies in the UK do not have to pay ZUS (they only pay employee contributions), which means that you can save a lot by hiring a director part-time. A director employed by a British company and having a NIN (National Insurance Number) acquires the right to a British pension, much higher than that which can be obtained in Poland.
Obligations in Poland
Registration of a LTD company (limited liability company) in Great Britain with a branch in Poland gives you the opportunity to run a company in our country on terms similar to ordinary Polish business, but much cheaper. It is the duty of the Polish branch to use the English company name translated into Polish to designate the branch. Additionally, the phrase “branch in Poland” should be added to the name. Such a branch must appoint a person responsible for conducting business in the territory of the Republic of Poland, which can only be carried out in the form and scope corresponding to the superior company in the UK.
See also: Hiring EU Citizens in the UK and getting a NIN after Brexit
Legal side
The form of a branch of a foreign company is regulated by the Hague Convention of 1961. It should be remembered that the branch is not an independent company and does not have legal personality, which means that the company in England is not responsible for the branch in Poland. On the other hand, a branch may apply for VAT status and hire employees. The branch pays income tax on profits earned in the area in which it operates.