| Economic Activity |
During the transitional period that is till 31st December 2003 the following regulations are binding with regard to registering businesses:
The application requesting an entry in the register must be written on an official application form and a suitable fiscal duty must be paid. Together with attached documents it is to be submitted to:
- suitable registering court (for commercial companies not having the status of legal person and for legal persons);
- suitable office keeping a register of businesses until 31st December 2001 (for physical persons); after 31st December 2001 to a suitable registering court.
A physical person starting a business should report this fact at municipality office within 14 days (at the department which deals with such matters.) Registering in the businesses register, which is still in force till the end of 2001, is filling a simple single-page form containing the following:
- entrepreneur's name, company name;
- entrepreneur's address, and if the business is performed outside home address also the premises' address;
- defining the scope of business activity;
- start-up date.
The application should be attached to a document confirming the entrepreneur's legal title to the premises (copy of the entry in a mortgage register, a hire contract, etc.)
The certificate of registration in the municipality register should be returned within 14 days. The following three addresses should be attached to the certificate:
- Voivodeship Statistic Office (to get the REGON number for statistic purposes)
- Tax Office (to define the way of paying taxes)
- National Insurance Office (to get insured, which is entrepreneur's duty.)
A decision denying the registration may be taken if:
- application pertains to business activity not contained in the acts of law;
- application contains formal errors;
- entrepreneur has been legally banned from performing the activity defined in the application.
A general principle is to submit the application by 31st December 2003. It is to be written on an official application form and submitted at the present registration authority or at a suitable for the applicant registering court. No fiscal duty is to be paid. The application together with all documents (for commercial companies and for legal persons) or with the certificate of registration (for physical persons) is then passed to a suitable registering court.
According to the law mentioned above a foreigner is:
- a physical person not having Polish citizenship;
- a legal person with a seat abroad;
- a partnership of persons mentioned in points 1 or 2 with a seat
abroad created on foreign law;- a legal person and commercial company not having the status
of legal person residing in Poland, controlled directly or
Indirectly by persons or companies mentioned point 1,2,3.When individual applications are examined the Minister of Home Affairs and Administration takes into consideration the fact of running a business in Poland, according to Polish law. Thus, the right to purchase property can be given to:
- commercial companies residing in Poland, if purchase of a property is directly necessary to run a business;
- businesses residing abroad which have agencies or departments in Poland.
The requirement for a foreigner to acquire the permit to buy property in Poland only refers to purchase of property right or the right of perpetual enjoyment of the property.
The Principles of Allotting the Permit
The permit to purchase property is given by the Director of the Department for Permits and Concessions of the Minister of Home Affairs and Administration as well as the Minister of Defence; in the case of agricultural property, the decision of the Minister of Agriculture and Development is needed.
The following information must be included in the application for purchase of property by a legal person:
- name, address of the premises, the applicant's address, scope of activity, personal information about members of the managing board,
- information about the company's shareholders physical persons and legal persons, their percent share in the initial capital of the applicant; if the applicant's shareholder is a legal person residing in Poland, information about its 'foreign' shareholders,
- details of the property to be purchased, particularly its type, address, area, any parts (buildings), mortgage register number, numbers of lots if only some lots are to be bought; if the case refers to dwelling or functional premises: its number, area, the share of land under the building,
- names and surname (firm's name) of vendors, address with zip code,
- defining the legal form of the property purchase (sale contract, contract of donation, setting up a perpetual enjoyment),
- revealing the aim of the property purchase and its size, defining what business activity is going to be undertaken on it and its profit for Poland;
- showing financial means for the declared business activity, especially for declared investments,
- signature of a person authorised to represent the applicant.
The following documents must be attached to the application:
- copies of current documents proving running a business activity in Poland, especially a certified copy of the entry in the applicant's commercial register issued not later than 3 months before submitting the application; a suitable minister's permit to open agency if the application points to such necessity,
- if the company's shareholder is a legal person: copy of the entry in its commercial register issued not later than 3 months before submitting the application; copy of the entry in the register of a legal person residing abroad (together with Polish translation)
- if the company's shareholder is a physical person: photocopy of pages in a current passport containing identity details of the person,
- vendor's written declaration containing their will to sell the property to the applicant's benefit showing form of the sale (for ex. sale contract), precise description of the property and the sum for which the property is to be sold; or putting it out to tender if the vendor is a commercial company, decree of partners or shareholders about the will to sell, unless the company's contract states otherwise,
- if the vendor is a legal person: a certified copy of the entry in the applicant's commercial register issued not later than 3 months before submitting the application,
- current copy of the entry in the mortgage register set up for the property being sold issued not later than 6 months before submitting the application,
- copy of the entry in the land register together with the outline from a geodetic map not later than 6 months before submitting the application; if the property in question was created as a result of dividing another property: the list of land changes or a decision approving the property division (does not pertain to buying homes),
- certificate from a suitable municipality office about the property's place in the current development plan which names the municipality's resolution and the voivodeship's official journal where the resolution was published (does not pertain to buying homes). If the purchase concerns land for shopping centres with working area exceeding 1000 sq. m in gminas with population smaller than 20,000 or exceeding 2000 sq. m in gminas with population bigger than 20,000, there should also be attached a prognosis of influence of building such structures on the local job market, communication, the existing shopping network, fulfilment customers' needs and interests. The opinions of the following authorities are also necessary: the Poviat Managing Board, the boards of neighbouring gminas and the poviat (town) Consumers' Spokesman. The prognosis and opinion are attached by gmina's managing board to the local development plan as it is a legal requirement.
- certificate about the NIP number (tax registration) and REGON number (statistic registration); in the case of business which requires a licence a certified copy of the licence,
- certificates from a suitable tax office and ZUS (national insurance) office proving no financial arrears,
- opinions of local government and local representatives of central government about the planned
If a business is purchased:
- documents about the business (depending on the way the business is purchased): the appointment of liquidator, assignee in bankruptcy, the agreement of the founding bodies and employees' councils, announcements about invitations for bids,
- a business plan showing the role of the property, the assumed production, presumed employment and cost of the investment (details concerning developing the property, machines, devices, purchase of technology),
- documents proving feasibility of the undertaking such as: the source of capital, the foreign shareholders' business activity (information from chambers of commerce of particular countries, information from first-rate banks),
- power of attorney in writing if the applicant acts without attorney, address of the attorney,
- address for correspondence
- fiscal duty stamps.
The condition required to purchase the property is proving that the property is necessary for the planned investment.
Time Limits
According to the regulations contained in the Code of Administrative Procedure, the proceedings concerning examining the applications for permits to purchase property by foreigners take about 2 months (provided that all necessary documents have been submitted, and the opinions of administration authorities received.) The decision to accept or reject an application is taken immediately after the examination has been closed; it stays in force for one year since it has been taken. After this period it expires by law. There is no way to prolong it, and the applicant must apply again submitting a complete set of documents.
Promise of Permit
In justified cases, for example when entering a tender for the property or joining companies, one may apply for getting a permit called 'promise'; the application for a promise has to meet the same legal and formal requirements as applications for a permit to purchase.
The promise is allotted after performing an administrative procedure, as in the case of the permit, within about 2 months. The promise stays in force for 6 months since its issuing. It defines the conditions after fulfilling of which a foreigner may apply for the permit. During the period of the promise's validity the Minister of Home Affairs and Administration may deny granting the permit, unless the situation changes.
The permit that follows a promise is given within 1 month.The Fiscal Duty for the Permit
A fiscal duty has to be paid for the permit after its issuing.
Documents and Information
The application, together with the attachments, as well as all documents directed to the Minister of Home Affairs and Administration are to be submitted in Polish. The documents which are written in a foreign language are to be submitted together with a translation prepared by a sworn translator.
The documents which are attached to the application should be submitted, if possible, in original; photocopies of documents must be officially confirmed (by a notary public, legal advisor, solicitor or the institution that issued the document.
According to the resolution of the City Council dated 25th May 2000, new firms which will create jobs, employ Świdnik inhabitants and keep this employment level till the end of the year 2003 will be exempt from property tax on the following conditions:
The exemption concerns businesses which are running business activity, which will register business activity, will create new jobs and employ workers after this resolution comes into force. The exemption does not pertain to businesses created due to transforming or restructuring already existing ones.
Physical persons who started business activity and were registered as unemployed directly before opening the business are exempt from the property tax on whole property or the part where the business is run. The exemption pertains to physical persons who will register business activity after this resolution comes into force.
The exemptions mentioned above pertain to separated zones of the 'Industrial-and-Storing Group', as well as the 'Technological Park,' in which the exemptions are in force.
The gmina authorities offer help in building infrastructure as needed by investors.
Last modified: 2002-10-24 06:19
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