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Manufacturing in Poland

Manufacturing in Poland

Poland is a very attractive and business friendly location. The country has become the choice for business owners that want to open a company and have strategic access to Central and Eastern Europe and Russia. A favorable business climate, attractive start-up costs and the investment grants and incentives offered in Poland’s Special Economic Zones make the country a good location for manufacturing companies.  

Manufacturing sectors in Poland

Some of the main manufacturing sectors in Poland are:

  • – the domestic appliances and electronics sector;
  • – the automotive sector;
  • – aviation industry.

The domestic appliances and electronics sector is highly developed in Poland. There are certain investment incentives available for the electronics sector and the labor force is very skilled. International companies and manufacturers of electronic equipment are present in the Polish market.

Poland is very well positioned as a passenger and commercial vehicle manufacturer. Also, the country is a productive supplier of automotive components. One of the country’s best assets in this sector is the cost-to quality ratio. The production quality is comparable to western European countries, but as in many cases in Poland, the cost of production remains lower in Poland when compared to other countries. The Polish automotive sector is the largest domestic market in the CEE.

The food and beverage manufacturing industry is also very well developed. This particular industry has had steady growth rates and the country remains the one to have the top agriculture and processed foods industry in Central and Eastern Europe, and also one of the largest in the EU. The industry includes a number of subsectors and, as far as foodstuffs are concerned, we can mention the production sector and the food processing sector, the latter including the activities related to preparing raw products and packaging them for marketing. 

The Polish aviation industry is based on a qualified workforce and a well-developed supplier network. 

Investors in Poland can enter the manufacturing sector in various sub-sectors and they can implement programs for the improvement of quality products as well as efficient asset utilization. When they decide to open a company in Poland in this field, investors can also consider selling niche products to grow their sales.

Some of the issues entrepreneurs need to take into consideration before starting their business include having the up-front capital investment, implementing the process or work organization, and hiring qualified employees. 

Open a company in Poland in the manufacturing sector

Opening a company in the manufacturing sector is subject to certain conditions, depending on the particular manufacturing industry, as well as a number of general steps. Below, our Polish company formation agents present the steps that are mandatory for starting a business, whether it is for manufacturing foodstuffs, tobacco or others. 

  1. choose the type of company: the Polish limited liability company is used both by local and foreign investors because the founders are only liable up to their capital investment in the business. 
  2. draw up the company documents: the Articles of Association and the Memorandum contain all the relevant information about the company, its type, founders, scope and registered address.
  3. comply with the capital requirements: the minimum share capital for the Polish company needs to be deposited in a Polish bank account opened with a bank of choice.
  4. appointing the directorship: the management board, as well as the directors, need to be appointed.
  5. register: the registration of the company is made with the National Court Register; upon completion, the company receives an identification number.
  6. others: subsequent steps include applying for special permits and licenses as well as making the relevant tax and social security registrations.

The manufacturing sector is encouraged through a range of incentives, namely those that encourage research and innovation in the field. Investors who are willing to apply for these types of grants are required to submit their products with the National Center for Research and Development and/or the Agency for Industry Development. Investors who are interested in company formation in Poland and wish to know more about the application method for grants can reach out to one of our specialists. 

A fast growing economy

Poland has one of the fastest growing economies in Europe and it offers a large domestic market for foreign investors. The fastest growing sector in Poland is currently the services sector (including distribution, transport, storage and communication), followed by construction and various manufacturing sectors (investment goods, intermediate goods, durable consumer goods and non-durable consumer goods). The food and beverage sector in Poland is one of the mostproductive manufacturing sectors in the country, accounting for approximately 20% of the gross output of the manufacturing sector.

Our team can provide investors with complete details on how to open a company in Poland and our tax specialists can offer detailed information on the taxes payable by companies in the manufacturing industry and in other business sectors.

The country is among the top ten manufacturers in the EU. In 2018, the manufacturing sector grew by 5.8%, and in February 2019, the same sector grew by 6.9%. According to Eurostat, in 2017 the value of sold industrial production was 5% for Poland. The following statistics from June 2019 are relevant to the production/manufacturing sector in the country: 

  • • Coal, petroleum, gas: hard coal production: 96.8 thousand tons; lignite 90.4 thousand tons; 96.2 thousand tons of petroleum oils obtained from bituminous minerals.
  • • Foodstuffs: cured meat 99.3 thousand tons and 103.1 thousand tons canned poultry meat; 100.6 thousand tons milk and cream powder and 101.4 thousand tons fresh cheese.
  • • Beverages: 111.6 thousand hectoliters of vodka (100%), 103 thousand hectoliters of fruit wines and 95.1 thousand hectoliters of malt beer. 
  • • Tobacco: 102 million units of tobacco products containing either tobacco or tobacco mixtures and substitutes. 
  • • Textiles: woven fabrics, both less and more than 200 g/m2: 166.7 thousand m2.

Statistics Poland, a monthly edition for the production of major industrial products, provided the statistics above. 

Poland is also one of the main producers of wooden furniture in Europe, with 1.9 billion pieces produced in 2017 according to EU statistics. 

For more information on how to set up a business in Poland or details about taxes, please contact our Polish company formation specialists.