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Posts by john5951  

Joined: 6 Oct 2008 / Male ♂
Last Post: 23 Sep 2011
Threads: Total: 3 / Live: 2 / Archived: 1
Posts: Total: 7 / Live: 4 / Archived: 3

Speaks Polish?: No

Displayed posts: 6
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john5951   
23 Sep 2011
Law / Setting up SPZOO and SPK in Poland [16]

ok, let's forget the SPZOO / SPK construction for arguments sake.

Another option would be the spolka cywilna (civic partnership), with 2 partners. This is not a legal entity for the law, which means that my partner and I are personally liable, and that I will be taxed PIT, not CIT. Basically the same rules apply as for a sole proprietorship. This does not have to be a problem, as there are no large liabilities or long term commitments (there will be no risk of personal bankruptcy). If the risk increase at a later stage I can always change the structure of the company.

This would bring the taxation to the same level as the SPK (if I understand it correctly), with the drawback of personal liability. An advantage would be much lower accountancy fees and a easier legal structure to maintain.

Are my assumptions correct?
What is the difference between a spolka cywilna and a spolka jawna (which is a legal entity) as far as running the business is concerned? Signing contracts (e.g. renting an office / phone lines / etc), or conducting business (signing agreements etc) for example?
john5951   
23 Sep 2011
Law / Setting up SPZOO and SPK in Poland [16]

Thank you for your replies! This is very helpful.

Why would this structure lead to any legal problems / so much additional accountancy cost? It is quite a common structure in the Netherlands / Germany / ...

I did receive the advise to have a third party MD in the SPZOO, although I don't completely understand why. Will we have liability problems when we have a shareholder / MD combination? Will the SPK face liability issues because of this?

The SPZOO will not conduct any business after the first 1-2 months. All I need for this business is a 0 declaration once a year. This cannot be that expense, can it? This should be billed as a one time fee (say 1 month fee).

The SPK will be the 'vehicle' with the income & expenses and in need of the accounting services.

I have contacted some accounting offices in Krakow, and the rates are very different. There will only be a few transactions every month (10-20) plus the ZUS payments of the 2 partners. I have quotes for a structure with only a SPZOO, and these range from 200 - 800 PLN. This is a huge difference for me. I understand there are quality differences between accountants, but a factor 4?

The easiest way would be to start as a Spółka cywilna, but this means limitless liability which is exactly what I want to avoid.

The turnover in the first year will be nowhere near 1mln (target is around 300K), but this is exactly why I like the SPK single taxation.
john5951   
22 Sep 2011
Law / Setting up SPZOO and SPK in Poland [16]

I am planning to set up a business in Poland, and I am currently looking at the legal structure. The business will be run by my business partner and me. We will provide services, and do not have a lot of investments and assets. I have been advised to set up a SPZOO (with my business partner and me as share holders) and a SPK. The SPZOO will not do business after the first months (to spend the 5000 pln capital requirement). The SPZOO will be the limitless partner in the SPK, and my business partner and I will be the limited partners. This will effectively bring down our tax rate to 19% (instead of 19% CIT and 19% PIT in case we only run a SPZOO).

Are there any draw backs to this construction? Why is not everybody using this structure?
Is it correct that the 19% tax rate is for the first 85.000 PLN per partner?
Do you have any experience with an accounting office that you can recommend (in Krakow)?
Do you know of a consultant that can arrange the registration of the companies for us (in Krakow)?

Thanks
john5951   
28 Jan 2009
Work / What jobs pay 10,000 zlotych per month? and Where can i find one? :o) [101]

It depends on what your goals are in life, and what your definition of a vegetative state is… Yes, I have a new car; Yes, I have a huge plasma TV; Yes, I live in an apartment in the middle of the center of my city… Does this all define happiness for me? No!

I know enough about personal finance to make sure I can live a life that is comfortable for my standards. Do I need > 10.000 pln for that? No! According to the OECD’s purchasing parity index, I need to earn about 65% of what I am currently earning to keep the same purchasing power. I am not going to earn this much, this means I will have less expendable income, but enough to lead a comfortable life…

Everybody has to make this decision for them self…
john5951   
28 Jan 2009
Work / What jobs pay 10,000 zlotych per month? and Where can i find one? :o) [101]

I pity the people who only care about money... poor people!! I gave up my current job, paying the equivalent of 16.000 PLN a month with excellent benefits, and accepted a job offer paying less than half this amount without decent benefits, just to have a chance to move to Poland and live my life in Krakow!

I love this city and I love the people!! Sure, there will be times of regret, but this will not outweigh the good times!
john5951   
16 Jan 2009
Life / DVB-T in Krakow [4]

I've read that there is a test going on with DVB-T (digital terrestrial TV; pl.wikipedia.org/wiki/DVB-T) in Krakow. Does this mean I can receive all channels digitally for free? Do I need to subscribe somewhere? I have a TV with a build in DVB-T tuner; will this work, or do I need a separate decoder with smarcard?

Thanks!