Starting cooperation with a foreign company or starting business in another country by Polish entrepreneurs is an ambitious step which can open new possibilities. A Polish company abroad brings freshness by offering new products and unknown services. However, to avoid misunderstandings and errors, it is worth to thoroughly familiarise oneself with procedures and documents required in a foreign location. We present several significant steps which are worth undertaking when starting foreign business and describe the required document: a certificate from the Central Register and Information on Economic Activity (CEIDG) in English.
The market
The first step is detailed analysis of the target market where we want to conduct our business. We must examine the competition and legal regulations pertaining to our type of activity. It is worth remembering that we will always have higher entry barrier as a non-native but Polish company. There can already be similar service providers abroad and it is worth calculating market saturation and the risk that is connected with it. To find out more about Polish economic reality, see: What’s behind Poland’s economic ‘miracle’?
Cooperation with a foreign business partner It is not indispensable to operate as a business abroad. Activity in Poland can go hand in hand with offering services abroad. By selling services and products to customers abroad, a Polish company can decrease risk connected with focusing activity on one market or region, which enables it to cope with possible crises better. However, negative aspects of such cooperation must also be taken into consideration, for example cultural differences which affect manner of communication and conducting one’s business. When planning a business, Polish entrepreneurs must also assess currency risk, find advisors and partners who can provide support locally and consider greater amount of time that will be dedicated to logistics and deliveries.
Source: Pexels
Documents for company registration abroad
Depending on a country, company registration procedure may vary. In some countries, it can be a complex process requiring involvement of local partners or representatives. Among others, entry into the Central Register and Information on Economic Activity (CEIDG) in English or a certified copy from the National Court Register (KRS), which we discuss in another article, can come in handy. If a company decides to take a more advanced step and establishes a company abroad, it may require drawing up company documents such as articles of association, initial capital or gathering required documents.
Tax law and labour law
It is crucial to understand local tax law and financial regulations which shall apply to a company operating abroad. If we plan to employ employees abroad, it is necessary to understand local provisions pertaining to employment, remuneration, social insurance etc.
Translations for companies
Numerous countries require translation of company formation documents into a local language or English. Translation of an entry into CEIDG (the Central Register and Information on Economic Activity) can be one of key documents that will require translation.
Entry into CEIDG in English can be download free of charge directly from the website of the Central Register and Information on Economic Activity. The procedure is not complicated and consist in providing NIP (Tax Identification Number) of an entrepreneur and on completing subsequent fields, according to instructions. However, our clients report that foreign entities frequently do not trust documents obtained from website systems. So what to do then? Who should prepare an English version of an entry into CEIDG? A translator with proper qualifications! It is recommended to have a certified (sworn) translation which ensures its reliability and acceptance by foreign institutions.
Source: Pexels
FAQ
How can Polish entrepreneurs enter foreign markets?
When deciding on business expansion to foreign markets, Polish entrepreneurs must select a form appropriate to possibilities of a business and purposes of its expansion. The most frequent forms of conducting business abroad under own firm include independent export (direct or indirect) or conducting a foreign branch. Indirect forms (with the use of foreign entities) include licensing, franchising or takeover of a foreign company.
What is a foreign branch?
A foreign branch can be conducted in a form of a commercial unit, production division or distribution center. It is a solution for enterprises focused on long-term investment and disposing of resources allowing for independent management of own foreign business. It is a strategy ensuring efficiency and speed of action, but also entails high costs and increased business risk.
What are the strategies of entering a market?
The most effective strategies of entering foreign markets by Polish entrepreneurs include export (abroad sale of products or services created in Poland), licensing (granting a license for sale of our products or services to a foreign partner), franchising (granting a right to conduct a business by foreign entities under our brand), joint venture (establishing a company with a foreign local partner), abroad branch (an option that ensures the greatest control over actions conducted on a new market) or takeover of a foreign enterprise.
What is business expansion?
Business expansion consists in expanding its activity to foreign markets, that is its internationalisation for the purpose of gaining new customers and increasing income. This means starting export of own goods and services or transferring a part of the activity abroad in a form of separate business entities.
Where can I translate company registration documents?
If you look for a reliable translation services of company registration documents, it is best to entrust this task with a professional sworn translator whose qualifications and services are recognised both by national and foreign institutions and offices. The Office of a Sworn Translator of the English Language Jacek Kasprzyk in Wrocław is a translation service provider that offers translations which fulfil all legal requirements.
Source: Pexels