12 July in Polish Investment and Trade Agency in Warsaw has taken place practical seminar “Temporary relocation of business from A to Z: How Ukrainian companies can enter polish market during the war and benefit form state aid?”. PAIH and Diia.Business.Warsaw, advisory centre of the Ministry of Digital Transformation of Ukraine co-organized this event and Eucon Legal Group and E-Report Accounting Office were substantive partners.
Seminary it has begun from the greeting from the speakers. Council Member of PAIH Zdzisław Sokal drew attention to scale of assistance, which was given by the Poland, to possibilities, to need of giving constructive assistance for Ukrainians and especially for Ukrainian entrepreneurs. Attorney and managing partner of EUCON Yaroslav Romanchuk thanked Poland for unprecedented assistance, outlined the vectors of activity of Association of Ukrainian Business in Poland, which supports not only businessmen, but also Ukrainian students, who are studying in Polish universities and from the first days of full-sized war in Ukraine collecting and transporting humanitarian assistance. Yaroslav Romanchuk stressed that Ukrainian entrepreneurs should not appear as usual emigrants, but as investors, employers and taxpayers. Viktoriia Bulghakova, consultant of Diia.Business.Warsaw, for her part, noted that Diia.Business.Warsaw, advisory centre of the Ministry of Digital Transformation of Ukraine provided more than 1000 consultations, in which 90% of them related to beginning of business activity in Poland, which shows, that relocated Ukrainian entrepreneurs adapted and are ready to resumption of theirs activities, and such events as this seminary are necessary to support Ukrainian companies in Poland.
During the part named “Polish support and PAIH offer for Ukrainian business” Zdzisław Sokal was talking about possibilities of setting up a business in Poland. Speaker especially outlined ways of relocations, official registration of business activity, compared features of tax systems in Poland and in Ukraine, pointing on the need for the detailed exploration of Polish tax system, its structure and mechanisms of legal business activity. Expert assessed present economic situation and told about kinds of economic subjects in Poland.
Tetyana Chuzha, Project Manager of Export Centre of PAIH, forwarded to participants valuable information about possibility use of PAIH support in Poland. Ms. Tetyana explained in details complementary offer of PFR Group, describing structure of Group and possibilities which particular structures forming PFR give and also operation of co-working space in PAIH, which is free of charge for Ukrainians. PAIH unites polish exporters, investors in Poland, Polish investors abroad, foreign investors and foreign contractors. Expert outlined geography and purposes of PAIH as partner in international business through the prism of three the most important pillars – export, investment and partnership, and highlighted the services which Kyiv branch, which is temporarily relocated to Warsaw, provides to Polish investors, who are interested in entrance to Ukrainian market,. Speaker discussed initiatives supporting Ukrainian business in Poland, which are aimed at the development of Polish-Ukrainian partnership, including the reaction to russian military aggression.
In the next part “Ways of business relocation to Poland, legal procedure of relocation or starting business activities” Yaroslav Romanchuk outlined range of problems in the context of the relocation of Ukrainian business to Poland and understanding Polish market’s realities by Ukrainian entrepreneurs. Speaker gave practical advices, which will avoid specific risks and mistakes commonly made by Ukrainian entrepreneurs, in detail explained stages, kinds (registration of company, representation, redomiciliation), costs, consequences, advantages and disadvantages of business relocation (through the prism of each method). Mr. Yaroslav focused also on advantages of Polish market for foreign investors (special economic zones, industrial parks, state grants, structural programs, access to funding, state export credits, cheap bank credits, specific tax relief) and each of legal form of conduct business activity in Poland, including their advantages and disadvantages. Speaker described activity of Ukrainian Business Hub in Warsaw and scope of services and possibilities, which it offers to Ukrainian entrepreneurs.
Andrii Romanchuk, attorney at law, partner in EUCON, head of office in Warsaw, outlined main areas of activity of Ukrainian companies, entering the Polish market. They are mostly representatives of trade, retail, IT, manufacturing industry, etc. A separate category of clients are companies interested in scaling up the business in the new markets and startups. Another area of activity is M&A. There are often cases that Ukrainian companies enter Polish market via the merger with Polish subjects. Mr. Andrii outlined the need to carry out a preliminary “homework” when the way of entering to Polish market is being chosen, by conducting an in-depth business analysis.
Further, in the framework of the speech on “Tax system and tax accounting in Poland” Yaroslav Romanchuk began his report by listing the main tax rates in Poland, outlined the realities of the process of paying taxes by legal entities in Poland (in the context of the type of legal form of conducting business), described the functioning of the Convention for the Avoidance of Double Taxation and its features, in particular, the peculiarities of paying taxes in the context of residency, declaration of income received abroad. The speaker also touched upon the issue of taxation through the prism of the implemented BEPS plan and its consequences. Also important is the issue of categories of taxpayers in Poland.
EUCON Senior Lawyer Inha Livandovska, delivering a speech on “Issues of migration and labour law. How to obtain the right to reside in Poland in view of the latest legislative changes”, focused on the aspects of the grounds for legal stay in Poland, including visa-free regime, visa, residence card, as well as the acquisition of one of the statuses – temporary protection or refugee, describing the features of each of the grounds, validity of documents, pitfalls, risks, mechanisms for obtaining documents and statuses. The speaker stressed the need for a thorough analysis of their own needs and future plans to plan and prepare the necessary documents to legalize their stay in Poland in the most optimal status for a particular person. Ms. Inha also told the participants about the amendments to the Law “On assistance to citizens of Ukraine in connection with the armed conflict on the territory of Ukraine” adopted in July 2022 and some other changes. At the end of her speech, the expert considered the issue of legalization of stay in Poland for the purpose of employment.
Artur Shewczyk, the Chairman of the Board, E-REPORT Accounting Office, spoke about how to choose an accounting firm for accounting services in Poland during the event. Thus, the speaker noted that, first of all, it is necessary to determine the range of needs and approaches to doing business. The expert carried out a comparative analysis in the context of the advantages and disadvantages of attracting an in-house accountant and outsourcing in the form of a professional bureau in the categories of continuity of work, accuracy of calculations, time and resources, control, experience, technology and costs. Then Mr. Artur considered the issues of security of documentation and data protection, proactive approach to the task, the system of support of the client’s activities, and also indicated the list of services offered on the market, drawing attention to the importance of taking into account the feedback about the bureau and the experience of specialists.
Quite important is the topic of financial support and financial instruments for business in Poland, which was considered by Andriі Romanchuk. According to the data provided by the speaker, Poland during 2014-2020 became the most successful beneficiary of funding from EU funds, which were effectively used for the development of various sectors of the economy. According to the speaker, attention should be paid to the possibilities of using financial instruments in Poland in the context of the planned EU allocation of 160 billion euros during 2021-2027, of which 125 billion will be allocated for co-financing and 35 billion – for loans. Further, the audience had the opportunity to learn more about the factors that make the Polish market attractive to foreign investors, as well as about seven types of financing. Equally important among the issues discussed were the types of sources of financing for entrepreneurial activity and the list of the most common problems that startups encountered when running their business in Poland and using financial instruments.
The workshop concluded with Inha Livandovska’s presentation on “Acquisition of ownership of real estate by natural and legal persons”. Within the framework of the topic, Ms. Inha analyzed the points regarding the acquisition of ownership rights by foreigners, as well as the purchase or acquisition by a foreigner of shares in companies owning real estate in Poland, as well as the necessary permission of the Minister competent for the internal affairs, for which a foreigner must apply. The lawyer outlined the content of two possible conditions for issuing a permit to a foreigner and their peculiarities. Inha Livandovska emphasized that it is important to take into account the aspect of the area of real estate acquired by foreigners 1) for the purpose of meeting their own living needs, 2) for the purpose of economic or agricultural activities in Poland. Also, the participants received the necessary information on the acquisition of real estate by a company in which foreigners are co-owners, and on the purchase or acquisition of shares in companies located in Poland that own real estate. As the speaker emphasized, another important point is that non-compliance with the restriction or lack of the necessary permit leads to the invalidity of the real estate acquisition transaction.
In the final part of the event, the speakers answered all the questions of the participants and noted the importance of continuing the dialogue in this format to support Ukrainian business in Poland and the development of Polish-Ukrainian business partnership.