Expanding your business to a new country can be a great opportunity for growth, and Poland is an increasingly popular destination for businesses looking to expand internationally. With a population of almost 40 million, a strong economy, and a strategic location in the heart of Europe, Poland offers many advantages for businesses looking to expand. In this article, we’ll provide a complete guide to expanding your business to Poland, including whether you should establish a legal entity in the country or use an Employer of Record (EOR) service, the process for setting up an EOR in Poland, and the advantages of using EOR services.
Why you need to be interested on expanding into Poland
Poland is the sixth largest economy in the European Union, with a GDP of over $600 billion. It has a highly skilled workforce, with a high percentage of university graduates, and a low unemployment rate. Poland also has a strategic location in the heart of Europe, with easy access to other European markets. Additionally, Poland offers a relatively low cost of living and doing business compared to other European countries.
Should you establish in the country or use an Employer of Record services
When expanding your business to a new country, one of the first decisions you need to make is whether to establish a legal entity in the country or use an EOR service. Establishing a legal entity in Poland involves registering a company with the Polish government, hiring employees, and complying with Polish employment and tax laws. This can be a time-consuming and expensive process, especially if you’re not familiar with the legal and regulatory environment in Poland.
On the other hand, using an EOR service allows you to hire employees in Poland without establishing a legal entity in the country. The EOR service acts as the employer of record for your employees, handling payroll, taxes, and compliance with Polish employment laws. This can be a faster and more cost-effective way to expand your business to Poland.
Employer of Record Poland: the process step by step
If you decide to use an EOR service to expand your business to Poland, here are the steps involved in the process:
- Choose an EOR provider: There are many EOR providers in Poland, so it’s important to choose one that has experience in your industry and can provide the services you need.
- Sign an agreement: Once you’ve chosen an EOR provider, you’ll need to sign an agreement with them that outlines the services they’ll provide and the fees you’ll pay.
- Identify your employees: You’ll need to identify the employees you want to hire in Poland, including their roles and responsibilities.
- Onboard your employees: The EOR service will handle the onboarding process for your employees, including preparing employment contracts, handling payroll and taxes, and registering your employees with the Polish authorities.
- Manage your employees: Once your employees are onboarded, the EOR service will handle ongoing HR and payroll administration, including compliance with Polish employment laws and regulations.
Advantages of Employer of Record services
Using an EOR service to expand your business to Poland offers many advantages, including:
- Speed: Establishing a legal entity in Poland can be a time-consuming process, but using an EOR service can allow you to hire employees quickly and start operating in the country sooner.
- Cost-effectiveness: Setting up a legal entity in Poland can be expensive, especially if you’re not familiar with the local legal and regulatory environment. Using an EOR service can be a more cost-effective way to expand your business to Poland.
- Compliance: The EOR service will handle compliance with Polish employment laws and regulations, reducing your risk of non-compliance and potential fines.
- Flexibility: Using an EOR service allows you to scale your business in Poland more easily, as you can hire and terminate employees as needed without the constraints of a legal entity.
- Expertise: EOR providers have experience and expertise in handling employment and payroll administration in Poland, reducing your administrative burden and allowing you to focus on growing your business.
Expanding your business to Poland can be a great opportunity for growth, but it’s important to carefully consider your options for establishing a presence in the country. Using an EOR service can be a fast, cost-effective, and flexible way to hire employees in Poland, allowing you to focus on growing your business without the administrative burden of setting up a legal entity. With a strong economy, skilled workforce, and strategic location in the heart of Europe, Poland offers many advantages for businesses looking to expand internationally. By following the steps outlined in this guide, you can successfully expand your business to Poland and take advantage of all the opportunities this dynamic country has to offer.