With the imminence of the Brexit, many UK companies will choose to move or expand their operations in other EU countries. Luckily, there are plenty of expansion options and business owners can choose based on various criteria, such as the workforce, the closeness to the UK and even the taxation system. However, there is also the question of the most suitable business form under which the UK company can operate. While in the case of country, Poland is a good option because it can match many of the criteria requested by UK business owner, including when it comes to an English-speaking workforce, in terms of business forms, the Polish branch office and the subsidiary could represent the best alternatives.
Let’s see below what both business forms have to offer and how to choose between them.
The Polish branch office, a good alternative for financial companies
It is a known fact that London is one of the most important financial capitals of the world and it would make sense for many companies in this field to seek to expand to other EU destinations once the Brexit is completed in order to keep their EU-based clients. In this case, creating a branch office in Poland could represent the ideal solution because the parent company will have full control over the Polish business. The requirements for starting a branch in Poland are also less stringent and quicker to complete. In terms of licenses, these can be obtained quite quickly with the local authorities. Poland has streamlined many of the company incorporation and licensing procedures, so that moving a company from another country here can be done quite quickly.
The subsidiary will be treated as a domestic company
UK companies operating in other industries can use the subsidiary as a business form when expanding to Poland. In order to create a subsidiary, the English company will need to use a local legal entity and, in most cases, the limited liability company is the best choice because of the low share capital requirements and the simple registration procedure which can be completed in a matter of days.
Choosing to expand a company in another country is definitely not an easy decision, however, when it must be made, the country in which it will relocate should meet certain requirements. In the last few years, Poland has evolved a lot from an economic point of view which has gained the confidence of many investors from other EU countries, including the UK for whom taking the step of expanding their businesses here has turned into a winning situation.