Branch · Oddział · Poland 2026
Setting up a branch in Poland: steps, costs and obligations 2026
With a branch (Polish: oddział), your company operates directly in Poland without forming a new legal entity. This guide explains how registration works, what it costs, which obligations follow and when a Polish sp. z o.o. is the better choice.
What is a branch in Poland?
Polish law calls a branch an “oddział przedsiębiorcy zagranicznego”. The legal basis is the 2018 Act on the participation of foreign entrepreneurs in business transactions in Poland. Companies with their seat in the EU or the EEA can open a branch. Companies from other countries, such as the UK or the US, can do so where an international agreement grants reciprocity; have this confirmed by a lawyer before you start.
- No separate legal personality: the parent company remains the contracting party and is liable.
- Limited scope of activity: the branch may only do what the parent company actually does.
- Required name: the parent company’s original name, its legal form translated into Polish and the words “oddział w Polsce”.
- Authorised representative: one or more persons represent the parent company in the branch. They do not need Polish citizenship or Polish language skills.
A representative office (przedstawicielstwo) is different. It may only advertise and promote the parent company and cannot conclude business of its own. For sales, projects or an operating team it is usually too narrow.
Branch or sp. z o.o.?
The most important decision comes before registration: should Poland become part of your existing company or a company of its own?
| Criterion | Branch (oddział) | Sp. z o.o. |
|---|---|---|
| Legal form | part of the foreign company | separate Polish company |
| Liability | The parent company is liable for all obligations of the branch. | generally limited to the company’s assets |
| Minimum capital | none | PLN 5,000 |
| KRS court fee | PLN 500 | PLN 250 (S24) or PLN 500 |
| Activity | only as the parent company | as defined in the articles of association |
| Management | authorised representative | own management board (zarząd) |
| External perception | foreign company with a Polish location | Polish employer and contracting party |
| Typical use | sales, projects, pilot phase, small teams | permanent teams, hubs, local responsibility |
Costs, timeline and variants of company formation are covered in Setting up a Polish sp. z o.o.. If you first want to employ people without an entity of your own, Subsidiary, branch or EOR in Poland compares all three routes.
Setting up a branch in Poland in seven steps
- Define the target picture. Which tasks will the branch take on, how many people are planned for the first 12 to 24 months, and is a branch enough or do you need a company?
- Resolution of the parent company. Management resolves to open the branch and appoints its representative.
- Prepare the documents. Current commercial register extract, articles of association and power of attorney for the representative, each with a certified Polish translation by a sworn translator.
- File with the KRS. Only electronically via the Portal Rejestrów Sądowych (PRS), in Polish and with a qualified electronic signature, trusted profile or personal signature.
- Registration and numbers. After registration the branch receives its KRS number as well as its NIP tax number and REGON statistical number. Additional tax data such as the bank account and the place where the books are kept are reported to the tax office afterwards.
- Set up operations. Bank account, accounting, payroll, registration with the social insurance institution ZUS, employment contracts and workplace.
- Build the team and hand over. Fill the first key role, run recruiting and onboarding, define reporting to the parent company and hand responsibility to local leadership.
Costs of a branch in Poland
| Item | Guide value 2026 | Note |
|---|---|---|
| Court fee for KRS registration | PLN 500 | standard fee for the application to the register of entrepreneurs |
| Publication in Monitor Sądowy i Gospodarczy | PLN 0 | abolished since 29 November 2025 |
| Certified translations | variable | depends on the length of the register extract and articles of association |
| Stamp duty on a power of attorney | PLN 17 where applicable | only if a power of attorney is filed for the proceedings |
| Minimum capital | none | unlike the sp. z o.o. |
| Accounting and payroll | ongoing, variable | separate bookkeeping in Polish is mandatory |
Registration costs are the smallest item. Most of the budget goes into salaries, employer contributions of roughly 19.5 to 22.1 percent, recruiting, workplace and local leadership. How to get from gross salary to total budget is explained in Employer costs in Poland 2026. You can model your own scenario with the KPA cost calculator.
How long does it take to set up a branch?
For applications filed via PRS, the registry court generally has seven days to decide. If there are formal defects, the period starts again once they are corrected. In practice the preparation takes longer: obtaining the register extract, having translations made and organising powers of attorney and signatures.
Before the branch can really operate, you also need a bank account, accounting, payroll and the first hire. Plan the timeline backwards from the first working day of your first employee.
Obligations after registration
- Name: always with the legal form in Polish and the words “oddział w Polsce”.
- Accounting: separate accounts for the branch, in Polish and under Polish accounting law.
- Notifications: report changes to registered data to the KRS; certain changes concerning the parent company must also be reported to the competent ministry within 14 days.
- Taxes: corporate income tax (CIT) on the profit attributable to the branch as a permanent establishment; the standard rate is 19 percent. Clarify VAT and transfer pricing with your tax adviser.
- Employer duties: social security contributions to ZUS, payroll tax, occupational safety and occupational health examinations.
This overview does not replace legal or tax advice. KPA works with law firms and tax advisers in Poland for that.
When a branch makes sense – and when it does not
A good fit
- sales or projects in Poland with the same activity as the parent company
- pilot phase with a few employees
- quick start without minimum capital or a separate management board
- full control from headquarters is wanted
Rather an sp. z o.o.
- The team is to grow permanently and be led locally.
- Liability should be separated from the parent company.
- Poland is to deliver services the parent company does not offer itself.
- Customers, partners or candidates expect a Polish company.
Many companies start with a branch or an EOR model and form an sp. z o.o. later. What matters is setting up contracts and employees from the start so that this switch remains plannable.
What KPA takes on for your branch
KPA is not a law firm. Qualified specialist partners handle legal and tax questions. KPA is responsible for the operational part: target picture and choice of structure, coordination of law firm, tax adviser, bank and payroll, recruiting the first key roles and – as Interim Country Lead – local leadership until handover to your management.
Formation with specialist partners and market analysis costs EUR 11,900 net; the Launch Check at EUR 4,900 net is fully credited. More on the overall process: Setting up a company in Poland and Hiring employees in Poland.
Frequently asked questions about a branch in Poland
How much does it cost to set up a branch in Poland?
The court fee for KRS registration is PLN 500. The former PLN 100 fee for publication in Monitor Sądowy i Gospodarczy no longer applies since 29 November 2025. There is no minimum capital. Translations, advice and ongoing accounting and payroll come on top.
How long does branch registration take?
The registry court generally decides on complete applications filed via PRS within seven days. Preparing the register extract, certified translations and powers of attorney usually takes longer than the proceedings themselves.
Does a branch need a Polish managing director?
No. The parent company appoints one or more authorised representatives. They do not have to be Polish citizens or speak Polish.
Is the parent company liable for the branch?
Yes. The branch has no legal personality of its own. The parent company is liable for its obligations.
Can a branch hire employees?
Yes. Employment contracts are concluded on the basis of a power of attorney from the parent company. Payroll, ZUS contributions and payroll tax are handled in Poland.
What is the difference between a branch and a representative office?
A representative office may only advertise and promote the parent company. A branch may do business, generate revenue and employ staff within the scope of the parent company’s activity.