Branch Offices
A branch office does not have a legal personality. It is considered to be a constituent part of a foreign enterprise and may only carry on the same business as the head office. It is required to use the foreign entrepreneur’s official name, together with the translation of its legal form into Polish and the extension “branch in Poland”. The branch office must appoint a person in Poland who will represent this entity (Branch Office Manager).
A branch office is however required to maintain a set of accounting records in Polish in accordance with the Polish Accounting Act and comply with monthly and annual tax reporting for VAT and corporate income tax.
It is quite popular type of conducting business activity in Poland.
Representative Offices
The scope of activities which a representative office is allowed to pursue is very limited. Such entities are established solely for the purpose of advertising and promoting the business of the foreign entrepreneur which opened the representative office. A representative office must also appoint a person to represent it in Poland and must use the name of the mother company, together with the translation of its legal form into Polish and an extension “representative office in Poland”.
A Representative Office is required to maintain a set of accounting records in Polish. There are less stringent tax considerations and compliance issues because of the nature of the business. Input VAT will be non recoverable as such entity has no income, while an annual corporate income tax return as a minimum, must be completed and submitted.
It is a less popular type of conducting business activity in Poland than a branch.
Source: Trinity_Shelf_Companies
Market leader in Poland and one of the pioneers of ready-made, shelf companies
in the CEE.
