Poland is fast emerging as one of the most attractive destinations for starting a business in Europe, as it offers a dynamic environment built on strong economic growth, a skilled workforce, and appealing government incentives. For companies in the UK and elsewhere looking to expand, Poland is becoming an increasingly attractive proposition.
Poland’s robust economic growth has been fuelled by foreign investment, improved infrastructure, and its strategic geographical location in the centre of Europe, offering easy access to both western and eastern markets. This makes it an operational hub for businesses that set up there. With the country seeing annual growth of more than 5%, companies have a strong foundation to develop and thrive.
Another major advantage is Poland’s talent pool of well-educated and highly skilled individuals. Businesses benefit from access to professionals across a wide range of industries, ensuring that the right expertise is always within reach. On top of this, the Polish government actively supports foreign investment through incentives such as grants and special economic zones. These benefits make it easier for new businesses to establish themselves and scale quickly.
For many international companies, a practical first step is opening a branch office in Poland. This provides a cost-effective way to enter the market, test opportunities, and build a local presence before committing to full incorporation.
In short, Poland’s growing economy, skilled workforce, and pro-business government policies are just some of the driving factors behind why it is becoming a leading destination for companies looking to expand in Europe. If you are considering business formation abroad, Poland is a market well worth your attention.
The Polish Market
What may be a surprise to many is that the Polish market is the largest in Central Europe and that, coupled with the added advantage of a skilled, yet low-cost labour market, means that it is not only growing more but it is attracting significant investment and has an economic growth of over 5% annually. Additionally, Poland, as mentioned, is in the heart of Europe, making it not only a central but key logistics hub for businesses looking to access the European markets with ease.
Economic Growth
Poland is in the ideal location for setting up your European business, thanks to its increasingly impressive economic growth and strategic geographical positioning. It shares a border with Germany, a powerhouse for European trade, and is near other developed and growing countries and economies in central and eastern Europe, making it a crucial player in the EU, enhancing its appeal. Over the years, Poland has been developing its transportation infrastructure, including roads, railways, airports, and seaports, offering a seamless, strong, and efficient connection within Europe.
Poland, being an EU member, has cleverly integrated itself with richer and more established countries, that have resulted in a boost of foreign investment and exports from Poland. This integration has not only strengthened its economy but also positioned Poland as a vital gateway for businesses looking to access the broader European market; a strategic and money-fueling position to be in.
A key driver behind Poland’s resurgence as an attractive investment opportunity and its economic growth is the fact that its average hourly wage is low, but the workforce is highly skilled, meaning that Poland offers European manufacturers and businesses looking to expand a cost-effective base without any trade barriers. Poland’s economic growth rate of over 5%, its central and strategic location, and access to multiple markets make it an excellent choice for establishing a European business.
Skilled Workforce
The level of the population that is educated in Poland, as well as the level of natives who are employed, is rising. Poland is becoming recognised for its skilled and educated workforce, and the IZA World of Labour report indicates that the employment share of college graduates, specifically in the STEM fields (science, technology, engineering, and maths) rose from 13.9% in 2000 to 37.2% in 2021.
This is a significant rise, and as a result, Poland is a country that is benefiting from a growing number of universities and institutions that are continuously supplying the market with qualified professionals, well educated workers, and a talent pool of individuals entering the labour market who are ready to meet the demands and requirements across a range of industries.
Government Incentives
Poland also offers a wide range of government financial incentives for foreign investors. The aim is, of course, to incentivise, attract, and support businesses that wish to expand into the Polish market. Below, we discuss just a couple of the incentives.
- Grants – Companies establishing themselves in Poland can access grants covering up to 25% of their investment, making it an attractive option for businesses. Additionally, within Poland’s Special Economic Zones (SEZ), enhanced grants of up to 50% are available, further incentivising foreign investment in Poland’s growing economy. SEZ are strategically located and offer various benefits to encourage investment in specific regions.
- Financial Support – Poland also provides access to further financial support through EU-funded schemes. These funds are designed to promote innovation, research, and development to further attract businesses to Poland. The Polish government supports and incentivises businesses to find Poland as their home and a prime location for launching and growing a European business.
Setting Up Your Business in Poland
Starting your European business in Poland is a great opportunity to expand into a new country and strengthen and grow your organisation in ways you wouldn’t have thought possible. This is due to Poland’s exceptional talent pool and well-educated and eager workforce; growing infrastructure and location, sitting centrally whilst encapsulating other countries’ wealth, and the government incentives that the Polish government offers.
When setting up a business in Poland, there are four legal structures to choose from, all suiting different needs. The most common is the Limited Liability Company, which is ideal for small to medium-sized enterprises due to its flexible structure and limited liability. For larger businesses, there is the option of a Joint Stock Company and a Partnership structure, which is a collaborative approach with shared responsibilities. For entrepreneurs and individuals, the Sole Proprietor structure provides simplicity and direct control.
We are European Company Formation and Expansion specialists, offering businesses the support, information, and guidance needed to expand their businesses into Poland. We have a team of multilingual staff who are here to simplify, streamline and support you in every aspect of your enquiry. Please call us on +44 (0) 20 8421 7470 or complete our online contact form and we will get back to you promptly.
