Investor’s Guide – Poland How to do Business

Edition 2009

www.paiz.gov.pl www.jpweber.com LEGAL NOTICE EDITION 2009

This guide presents an overview of the Polish ISBN: 83-60049-69-6 legal system and business environment. We intended it to provide a general outline of the © Copyright by PAIiIZ and JP Weber Dudarski Sp. k. topics mentioned above and believe that all the information is correct on the day of writing and Polish Information and Foreign Investment printing. Please bear in mind that Polish law Agency (PAIiIZ) is changeable, especially taxation regulations (Polska Agencja Informacji i Inwestycji once in a fiscal year. Zagranicznych SA) ul. Bagatela 12 We would like to emphasise firmly to the 00-585 Warsaw readers that the information in this guide is not tel.: +48 22 334 98 00 professional advice and should not be treated fax: +48 22 334 99 99 as a substitute for legal, tax or business advice. [email protected] The investor should seek professional advice www.paiz.gov.pl before making any legal, tax or investment decision. JP Weber will be pleased to discuss JP Weber Dudarski Sp. k. specific problems. Member of JP Weber Group ul. Rynek 39/40 JP Weber Group companies, Polish Information 50-102 Wroclaw and Foreign Investment Agency and the co- tel.: +48 71 36 99 630 authors in person reserve that they cannot be fax: +48 71 36 99 639 held responsible or liable for any damages (or [email protected] losses) that may arise with regard to action www.jpweber.com taken or not taken in accordance with the information presented in this guide.

 About PAIiIZ About JP Weber

The Polish Information and Foreign Investment JP Weber is a prestigious address for international Agency (PAIiIZ) has been serving investors for investors and entrepreneurs wishing to 16 years. Its mission is to increase Foreign directly invest within Poland. Throughout the Direct Investment (FDI) by encouraging investment process, we offer professional international companies to invest in Poland. support for international companies and senior PAIiIZ guides investors through all the necessary decision makers ensuring that their corporate administrative and legal procedures along the responsibility is maintained throughout their way to setting up their business. activities in Poland.

Agency: Boasting more than ten years of investment experience, our proven track record has enabled  helps investors to enter to the Polish market, us to evolve into a trusted business partner  provides quick access to the complex for numerous demanding customers. Cultural information relating to economic and legal awareness is a cornerstone of our business environment, strategy, enabling our team to fully integrate  helps in fnding a convenient investment with our customers, ensuring that customer location and obtaining investment experience remains a positive benchmark incentives, for JP Weber. Our teams are comprised of  advises in each phase of the investment interdisciplinary and multilingual experts, process, specializing in felds such as law, tax, fnancial  helps fnding the appropriate partners and accounting and project management. suppliers as the new locations,  supports frms already active in Poland. JP Weber´s core competencies comprise:

Agency’s mission is also to create a positive JP Weber Investments JP Weber Advisory image of Poland across the world, to promote  Direct Investments  Legal Services Polish goods and services abroad by organizing  Merger & Acquisitions  Tax Advisory conferences, seminars, exhibitions, workshops  Corporate Finance  Financial and study tours for foreign journalists. Accounting

In order to provide the investors with the best Within GMN International, we work with possible service a network of Regional Investor world renowned accounting frms from over 35 Service Centers has been established across countries globally, enabling JP Weber to gain Poland. Their goal is to improve the quality of best practice leaning´s, as well as benefts from a region’s investor services as well as to provide a solid base of international professionals. an access to the latest information - such as, the investment offers and regional micro-economic data.

These Centers hire professionals that have been trained by PAIiIZ and are fnanced by local authority funds.

 Investor’s Guide – Poland How to do Business

 INDEX

I. Introduction 17

II. Preparing for Business 19 – the most underlining facts about Poland

II.1. Political & Legal Stability 21 II.1.1. Political system 21 II.1.1.1. The Parliament 21 II.1.1.2. The President 22 II.1.1.3. The Supreme Chamber of Control 22 II.1.2. Government administration 23 II.1.3. Poland International 25 II.1.3.1. Poland in the European Union 25 II.1.3.2. Poland´s Single Market 25 II.1.3.3. Poland and the Monetary Union 26 II.1.3.4. International organisations 26 II.1.4. System of justice 28

  INDEX

II.2. Domestic Market 31 II.5.2. Stock exchange and capital market regulations 70 II.2.1. Population and language 31 II.5.2.1. Warsaw Stock Exchange 71 II.2.2. Macroeconomic Indicators 32 II.5.2.2. Financial Supervision 72 II.5.2.3. Acquisition of material blocks of shares 73 II.2.2.1. Gross Domestic Product 32 II.5.2.4. Venture Capital Funds 74 II.2.2.2. Consumer Price Index 34 II.5.3. Insurance Regulations 74 II.2.2.3. Foreign trade 35 II.2.2.4. Local cost effectiveness 37 II.2.3. Tourism 38 II.6. Infrastructure 77 II.6.1. Transport 77 II.3. Resources & Industry Clusters 43 II.6.1.1. Road System 77 II.3.1. Geographic location and climate 43 II.6.1.2. Railways 78 II.6.1.3. Air transport 79 II.3.2. Natural Resources 44 II.6.1.4. Waterways 80 II.3.2.1. Coal & lignite 44 II.6.2. Telecommunication 80 II.3.2.2. Oil & Gas 46 II.3.2.3. Other deposits 46 II.6.2.1. Telecommunications Systems 80 II.3.2.4. Crops & Livestock 48 II.6.2.2. Density and connection lease market 81 II.6.2.3. Data transmission system and density 83 II.3.3. Energy Sector 49 II.3.4. Industry Clusters 50 III. Setting up business 87 II.4. Labour Market 55 - get to know about the first steps to be taken II.4.1. Education 55 III.1. Incorporation 89 II.4.1.1. The education system 55 III.1.1. Conducting business activities 89 II.4.1.2. Special education 59 III.1.2. Limited Liability Company 90 II.4.1.3. Teachers 59 II.4.1.4. Scientific and R&D 60 III.1.3. Joint-stock Company 92 III.1.4. Other corporate entities 93 II.4.2. Human resources 61 III.1.4.1. Civil partnership 93 II.4.2.1 Employment and Labour force 61 III.1.4.2. General partnership 93 II.4.2.2 Unemployment 63 III.1.4.3. Limited partnership 93 II.4.2.3 Salaries 65 III.1.4.4. Professional partnership 94 III.1.4.5. Limited joint-stock company 94 III.1.4.6. Sole proprietorship 94 II.5. Financial Centre 69 III.1.4.7. Branch office 94 III.1.4.8. Representative office 94 II.5.1. Banking and financial institutions 69 III.1.4.9. European Company 95 II.5.1.1. The National Bank of Poland 69 III.1.4.10. European Economic Interest Grouping 95 II.5.1.2. Commercial banks 70 III.1.5. Establishing and registering an entity 95

10 11 INDEX

III.2. Taxes 99 IV.1.2.1. Warehouse & industrial market 144 IV.1.2.2. Office market 145 III.2.1. General Overview 99 IV.1.2.3. Retail and commercial market 146 III.2.2. Taxation of company 100 IV.1.3. Acquiring real estate 147 III.2.2.1. Income Tax 100 IV.1.4. Investment process 150 III.2.2.2. Value Added Tax 104 III.2.2.3. Tax on civil law transaction 106 IV.1.4.1. Analysis 150 III.2.2.4. Custom and Excise tax 106 IV.1.4.2. Step-by-step investment process 150 III.2.2.5. Duty-free zones 107 III.2.2.6. Customs bonded warehouse 108 III.2.2.7. Local taxes 109 IV.2. M&A 155 III.2.2.8. Stamp duty 110 IV.2.1. The Polish M&A market 155 III.2.3. Taxation of individuals 110 IV.2.2. Regulations governing M&A 156 III.2.3.1. Personal Income Tax 110 III.2.3.2. Inheritance and donation tax 112 IV.3. Public Private Partnership (PPP) 157 IV.4. Important Regulations 161 III.3. Investment Incentives 115 IV.4.1. Polish trade regulations 161 III.3.1. EU Structural Funds 2007 - 2013 115 IV.4.1.1. Import/export licensing 161 III.3.2. Special Economic Zones (SEZ) 120 IV.4.1.2. Customs tariffs 161 III.3.3. Labour market instruments 122 IV.4.1.3. Customs procedures 162 III.3.4. OECD Guidelines for Multinational Enterprises 123 IV.4.2. Currency and exchange controls 163

IV.4.3. Competition law 163 III.4. Accounting & Finance 127 IV.4.4. Regulations for entering into contract 165 III.4.1. Accounting and financial regulations 127 IV.4.5. CO2 Emission Allowances 165 III.4.2. Financial statements 128 III.4.3. Audit and publication 129 IV.5. Securing Business 169 IV.5.1. Property rights 169 III.5. Employment of Staff 131 IV.5.1.1. Patent legislation 169 III.5.1. Employment of workers 131 IV.5.1.2. Trademarks 170 III.5.2. Polish social security system 133 IV.5.1.3. Copyrights 170 IV.5.2. Product certification 171 IV. Doing business 139 IV.5.3. Public Procurement Law 171 - from Start-Up to performing a direct investment IV.5.4. Bankruptcy and restructuring 174

IV.1. Greenfield Investment 141 IV.1.1. Activities requiring licenses, concessions or permits 141 IV.1.2. Real Estate Market 143

12 13 INDEX

V. Sources of Information 177 V.1. Polish Information and Foreign Investmen Agency (PAIiIZ) 179 V.2. Regional Investor Assistance Centres 183

VI. Appendices 193 VI.1. Selection of FDI´s in Poland 193 VI.2. International schools in Poland 225

JP Weber in Poland 231

14 15 I. Introduction

The idea for this guide came about through daily The editorial team understand that this contact with foreign companies undertaking publication is not intended as a solution or business activity in Poland. From this experience, answer to all possible questions. We have simply we have collected a list of questions related to drafted the key areas of the business and legal business, including the political environment and environment. Consequently, we hope our guide Polish law, starting from company foundation will be an opportunity for discussion between and ending with exit taxation. readers and the editorial team. We will, of course, be happy to answer any questions We want to present ‘Doing business in Poland’ related to the issues presented in this book. as a guide for business activities in Poland. This guide is a result of the JP Weber Group’s Accession to the European Union has widely combined experience gained through advising opened the European market for foreign foreign investors. Investment projects are very companies and has created benefts for investing sensitive for decision makers who need to be in Poland. In particular, incentives such as the familiar with an environment that will influence regulations on public aid and the lowering of their investment. Since each project completed the taxation rate, together with a motivated by us was different in nature, we have been and qualifed labour force, have created able to gather remarks from investors and opportunities to compete with other European have summarised them below to give you companies. Poland is becoming a leading crucial information about Poland, fnancing, country as a direct investment destination due the business climate, real estate, public aid, the to the fact that it offers guarantees of legal investment process, labour law and taxation. regulations related to conducting business and We hope this summary will serve as a road map achieving business goals such as proft and a to investment opportunities in Poland. friendly legal business environment.

This guide was prepared by professionals from JP Weber who are specialists in their feld and experienced in advising foreign companies.

16 17 II. Preparing for Business – the most underlining facts about Poland

18 19 II.1. Political & Legal Stability

four years through a majority voting system. When II.1.1. Political system sitting in joint session, members of the Sejm and the Senate form the National Assembly, presided Poland is a democratic multi-party republic, by the Marshal of the Sejm. The National Assembly reflecting a mixture of parliamentary and forms in three different situations: to adopt a new presidential models. The governmental system Constitution, to receive the oath from a newly is based on the separation of and balance elected President, or when an indictment against between legislative (the Parliament or National the President of the Republic is brought to State Assembly), executive (the President and the Tribunal. Council of Ministers) and judicial powers (courts and tribunals). The Senate has the right to initiate legislation and reviews, approve or reject acts passed by the Sejm The supreme law of the Republic of Poland or to propose amendments to those acts. However, is the constitution rewritten in 1997, passed the Senate’s veto may be overruled by an absolute on 2nd April and submitted for ratifcation by majority vote in the Sejm. It is the Sejm, ultimately, national referendum. The constitution assures that decides on the fnal version of any legislative freedom of economic activity, any limitation of act. The legislative initiative is also granted to the which should be based on law. President, the Council of Ministers and to any group of at least 100,000 citizens coming up with a draft law. II.1.1.1. The Parliament On the approval of the Senate, the Sejm also appoints the Commissioner for Civil Rights The Parliament is composed of two chambers: the Protection (Ombudsman; Rzecznik Praw lower house, including the Sejm, which comprises Obywatelskich) for a fve-year term. The 460 deputies elected for four years through a Ombudsman has the duty of guarding the proportional voting system in a general election. civil rights and freedoms of Polish citizens and The upper house includes the Senate, which residents and the implementation of the law comprises 100 senators, who are elected every and of principles of community life and social

20 21 Political & Legal Stability

The Council of Ministers is the executive body II.1.2. Government that manages the current state policy, ensuring administration the execution of the law, approving the draft of the budget, protecting the interests of the State Treasury, and ensuring public order as The government in Poland consists of central and well as the internal and external security of the local administrations: the Offce of the President of state. the Republic of Poland, the Council of Ministers, with its respective ministries, and the structures Currently, the Council of Ministers consists of comprising the central administration. 18 members responsible for:

Ministry Functions Represents the Council of Ministers and directs their work, supervising territorial self-government within the guidelines and in ways described in Prime Minister the Constitution and other legislation, acting as the superior for all government administration workers. Concerned with various aspects of Polish Ministry of Agriculture and Rural Development agriculture and improving its rural areas. Concerned with various aspects of Polish culture, Ministry of Culture and National Heritage including the protection of its heritage. Concerned with creating the best conditions justice. The Ombudsman remains independent, overruled by the Sejm with a 3/5 majority vote). for business activity, and initiating and co- and is responsible only to the Sejm. Ministry of Economy ordinating policies regarding economic activity Poland’s current President is Lech Kaczyński, and development. a former activist in the pro-democratic anti- II.1.1.2. The President Communist movement in Poland, the Workers’ Caring about the environment in Poland and Defence Committee. Ministry of the Environment ensuring the long-term, balanced development of the country. The President is elected via a general election for Drafts Poland’s budget, and deals with taxes, a fve-year term and can spend a maximum of II.1.1.3. The Supreme Ministry of Finance fnancing of the local self-governments and two terms of offce. The President is the head of Chamber of Control issues related to public debt. state, the supreme representative of the country Represents and protects the interests of the in foreign affairs and also the Commander-in- Republic of Poland and of Polish nationals and Chief of the armed forces. He appoints candidates The Supreme Chamber of Control (Najwyższa Izba Ministry of Foreign Affairs legal persons abroad, promotes Poland abroad, for the post of Prime Minister and appoints the Kontroli) is an institution that cannot be exactly maintains diplomatic relations with other cabinet according to the Prime Minister’s proposals. qualifed as a legislative, executive or judicial countries and international organisations. However, he has also the right to dissolve the power. Nevertheless, it is one of the oldest state parliament if it is unable to form the Government institutions in Poland. The NIK is entitled to audit Administrates the healthcare system, or approve the draft of the State Budget. all state institutions including the National Bank Ministry of Health pharmaceutical policy, promotes health and of Poland, Government and local Government deals with the prevention of diseases. Apart from the legislative initiative, the President administrative units and other corporate bodies Responsible for the issues related to also has the right to veto acts approved by and Non-Governmental Organisations which Ministry of Infrastructure construction, spatial order, housing, maritime Parliament (although this veto can itself be perform or receive public contracts. economy, communications and transport.

22 23 Political & Legal Stability

Controls the main administration and security The voivodeships are divided into poviats marking the culmination of a negotiation Ministry of Interior and Administration branches of the Polish government. (boroughs/powiaty), which are divided further process which frst began on 31 March 1998. into communes (gmina). On 21 December 2007 Poland joined the In charge of judiciary issues within the scope Schengen area: a territory with no checks at not reserved by separate legislation for the There are two types of poviats: the basic internal borders formed in the 24 member Ministry of Justice competence of other public bodies, and territorial division unit that comprises the entire States. taking into account the principles of judicial areas of the bordering boroughs, a land poviat; independence. or the whole town area, a town with the rights The main benefts for Poland from joining the Regulates all issues regarding the labour market of a poviat. European Union are: Ministry of Labour and Social Policy and conditions, including the social security system. A commune is the fundamental community and  harmonisation of Polish law with EU Policy for national education. The ministry the smallest administrative unit. The scope of regulations, Ministry of National Education prerogatives do not include higher education. its activity comprises the public affairs of local  access to over 460 million customers signifcance, unreserved statutorily for other within the EU, Manages in peacetime all of the activities of entities. Predominantly, a commune is responsible  the possibility of applying for EU structural the Armed Forces, the realisation of the general Ministry of National Defence for satisfying the primary, concrete needs of its funds, assumptions, decisions and directives in the area inhabitants. It deals with planning and managing  infrastructure development. of national defence. the land, environmental protection, roads, Supervises and manages the State Treasury, bridges, streets, public transport and supplying The harmonisation of Polish law, as well as Ministry of State Treasury responsible for the privatisation of state-owned the inhabitants with electricity and heating. It also access to EU structural funds, has helped enterprises and national investment funds. keeps the surroundings tidy, as well as managing to increase the attractiveness of Poland for Functions related to the preparation and and maintaining the communal buildings and the foreign investors. The European Union is now implementation of the national development public usage facilities. Poland’s largest trading partner. During 2008, strategy, which includes the concept of the the share of total Polish exports rose to 77,8% Ministry of Regional Development country’s zoning and functions related to the The local government’s decision-making and and imports to 61,9%. management of the European Union’s assistance supervisory bodies are the councils, operating at funds. all three levels of the local administration. Council members are elected in general, direct elections. II.1.3.2. Poland´s Single Administers governmental activities in science Once appointed, they appoint or dismiss local Ministry of Science and Higher Education and higher education and has a budget for Market administrative offcers including mayors of rural scientifc research provided by State funds. communes (wójt), mayors of towns and cities Oversees sport clubs, deals with promotion and (burmistrz, presidents of large municipalities), As a member of the European Union, Poland Ministry of Sport and Tourism development of sports and matters related to heads of the poviats (starosta) and, as mentioned participates in the Single European Market. The tourism. before, the marshal. freedom of movement of people, goods, capital and services makes this market much more competitive. The administrative division of Poland is The leader of the executive is the voivodeship based on three levels of administration, i.e. marshal (marszałek), elected by the regional II.1.3. Poland The freedom of movement of people is very 16 voivodeships/provinces (województwa) assembly (sejmik) and co-existing with the International important, especially in reference to freedom of headed by provincial voivode (governor/ voivode. The self-Government executes tasks movement for workers. However, some Member wojewoda), appointed by the Prime Minister, in the following scope: public education, health States apply restrictions for workers from new EU who is the superior of the team governmental promotion and protection, environmental II.1.3.1. Poland in the countries as the possibility of work in any country administration, the supervision body over protection, modernising the rural areas, public within the EU area signifcantly affects the labour the territorial self-government units as well roads, collective transport, land development, European Union market. as the senior body as per the regulations for culture, social welfare, tourism, counteracting administrative proceedings. unemployment and activating the local labour Poland became a member of the EU on 1 May The freedom of movement of goods is one of market. 2004, together with nine other countries, the fundamental principles of the single market.

24 25 Political & Legal Stability

It constitutes the prohibition of quantitative The basic requirements for joining the Euro are in Paris. The main objective of the OECD is strengthening international security. Its main restriction on exports and imports between the Maastricht criteria of economic convergence, to coordinate socio-economic policies of the objective is to ensure – by political and military Member States. It is the rule that products including fscal (the general government defcit Member States in order to stimulate economic means -- the freedoms and security of all its complying with the standards set in the and public debt) and monetary criteria (price growth, employment, social development and Member States. It obliges each Member State Member State of origin will also comply stability, the level of long-term interest rates international trade and capital flows. Therefore, to share the risks and responsibilities, as well as with the standards of the Member States of and exchange rate stability). The requirements the organisation develops common rules to the benefts, of collective security and requires destination. regarding the general government defcit be applied in different areas of the economy, that each undertake not to enter into any other results in the need for signifcant reform of which takes the form of recommendations, international commitment that might conflict The freedom of movement of services implies public fnances in Poland. The fulflment of resolutions, declarations and agreements. The with this Treaty. the rights of individuals and companies to offer the exchange rate criterion will be preceded organisation includes the most economically and provide services without hindrance in all by entering into ERM-2, something initially not developed countries to create ‘the richest In 1997, the Alliance invited Czech Republic, EU Member States. EU Treaty regulations on planned until the end of 2009. club’, an exclusive organisation representing Poland and Hungary to negotiate with a view the free movement of services essentially cover less than 1/6 of the world’s population, and to adopting them as members of NATO. The all types of services provided against payment. From 24th January 2009, it has been possible to providing about 2/3 of the global production Polish accession to NATO on 12 March 1999 Individual citizens and companies have the right conclude agreements and provide performances of goods, 3/5 of world exports and 4/5 of the was one of the most important events in the to offer and provide services in other Member in foreign currency in Poland pursuant to the total public development aid. modern history of our country. This alliance States on the same terms as those applied to amendment of Article 358 of the Civil Code forms the basis of Polish security and defence; the country’s own citizens and companies. and the deletion of § 9 Section 15 of the Poland started its cooperation with the it is also a major factor in the political-military Foreign Exchange Act s. There are currently no OECD in 1990 and became a member in stability in Europe. Any obstacles to the freedom of movement of obstacles to making payments in Euros. 1996. Thanks to its OECD membership, the capital are prohibited according to EC treaty. regulation of foreign investment and changes . WTO EU citizens must be able to transfer unlimited in the foreign exchange law in Poland has sums of money between Member States, open II.1.3.4. International been carried out more quickly. Its membership The World Trade Organisation was established bank accounts, invest funds or borrow money organisations in the most prestigious club of economically on 1 January 1995. Poland was one of the in other Member States. EU citizens who move developed countries in the world is concrete founding countries. The main responsibility of to another Member State to work or retire must proof of Poland’s current economic stability. the WTO is the liberalisation of the international have the right to transfer money from one EU After 1989, Poland began an intensive period This undoubtedly improves the global image of trade of goods and services, investment country to another. of economic development, supported by its Poland, because we are now seen as partners policies of trade support, the settlement of membership in various international organisations. with a strongly growing economy and stable trade disputes, and the respect for intellectual In Poland there is an important 12-year transition This helped to accelerate development, promoting legal rules. Membership in the OECD facilitates property rights. Countries acceding to the WTO period for the purchasing of agricultural land and the Polish economy globally and enabling access to preferential credit lines provided by are required to adapt domestic legislation to forests. collaboration with other countries. Currently, international fnancial institutions. In addition, the standards of the World Trade Organisation Poland is a member of: through its membership in the OECD, Poland and to grant concessions to foreign entities. was given the opportunity to co-liberate in The WTO has 153 members at present, the II.1.3.3. Poland and the  The Organisation for Economic the global economy, as well as forming a new most recent to join being the Republic of Cape Monetary Union Cooperation and Development (OECD), identity for the OECD. Verde. The WTO has eliminated many barriers  The North Atlantic Treaty Organization (NATO), between countries and people by reducing  The World Trade Organization (WTO), . NATO tariffs. The rules of the WTO (contained in The next stage of integration will be joining the  The World Bank, agreements and contracts) are the result of Monetary Union as well as the adoption of the  The International Monetary Fund (IMF). NATO (the North Atlantic Treaty Organisation) negotiations among the WTO members. The Euro as the offcial currency of Poland. Although is a political-military organisation established core document is the General Agreement on offcial declarations say that Poland aims to join . OECD on 24 August 1949 as a result of the signing of Tariffs and Trade (GATT). GATT comprises 60 the Eurozone by 2012-2013, there are still many the Treaty of Washington in April 1949. It is an agreements, which were signed individually in conditions to satisfy frst. Moreover, in order to The Organisation for Economic Cooperation organisation comprising 10 European countries specifc areas by each Member State. adopt the Euro the Polish constitution will need and Development was set-up by the Convention as well as the United States and Canada. NATO’s to be changed. of 1960, which came into force one year later. purpose is to put the collective protection of its The headquarters of the institution is located members as a basis for preserving peace and

26 27 Political & Legal Stability

. World Bank judges the conformity of local government As a member of the European Union, Poland is II.1.4. System of justice authority resolutions to the regulations also subject to certain international organisa- The World Bank has operated since 27 and normative acts of local government tions with international judicial power. These December 1945, and its headquarters are In accordance with the Polish Constitution, judicial administration authorities. organisations include: located in Washington DC, USA. Currently, its power consists of courts and tribunals, which are main task is to support the development of independent from the other institutions of power. Administration justice system scheme  The European Union - Court of Justice of the market economy whilst combating all the The system of justice is based on the Supreme the European Communities and Court of causes of poverty in the world. Poland acceded Court, the common courts, and the administrative Supreme Administrative Court First Instance, to the World Bank in 1986. The President of the and military courts. Judges are independent and in Warsaw - Naczelny Sąd  The United Nations - International Court National Bank of Poland represents the country cannot be dismissed: they are subject only to the Adminitracyjny w Warszawie (NSA) of Justice, in the meetings of the WB. From 1990 until Polish Constitution and regulations.  The Council of Europe - European Court 1996, Poland received funds from the World of Human Rights, Bank (equivalent to USD 3.374 billion) to assist . Polish courts system  The International Criminal Court. in the transformation of Poland. Of this money, Voivodship Administrative Court 46% was spent directly on the restructuring of The Supreme Court supervises the activities of the - Wojewódzki Sąd Administracyjny The international system of justice exists to sup- the Polish economy to adapt it to the principles common and military courts. It is the highest judicial (WSA) plement the national courts and makes decisions of free market trade. By the year 2000, the WB body, whose rulings are not subject to further only when the national justice system is incapable supported the development of private sector review by another court. The Supreme Court deals According to the Polish Constitution, the tribu- of resolving the dispute at the national level. industries and environmental protection. Today with cases under particular regulations, provides nals (The Polish Constitutional Tribunal and The its function is gradually starting to comply with uniformity and accuracy of interpretation of the State Tribunal) are outside the structure of the the European Investment Bank. law, and issues opinions on bills. Polish system of justice, although the concept and defnition of ‘system of justice’ still applies . IMF Polish courts system scheme to them.

The International Monetary Fund has existed since The Constitution Tribunal is a judicial body es- Supreme Court - Sąd Najwyższy 1945, while it has been operating on a permanent tablished to resolve disputes on the constitu- basis since 1947. Currently, it has more than 180 (cassation) tionality of the activities of state institutions: members, including Poland. Its head offce is in Its main task is to supervise the compliance of Court of appeal, Regional Courts Washington, USA. Its main tasks are: statutory law with the Constitution. It adjudi- cates in compliance with the Constitution of Court of appeal (C.A.) - Sąd Apelacyjny  the development of international co- legislation and international agreements (as

operation in the feld of monetary policy, (appeal) well as its ratifcation), on disputes over the  securing the stability of exchange rates, powers of central constitutional bodies, and in Regional Courts (R.C.) - Sąd Okręgowy  monitoring the international debt of compliance with the Constitution of the aims Member States, and activities of political parties. Its judgements Regional Courts (R.C.) - Sąd Okręgowy  supporting the development of trade are fnal. in the world. (appeal) The State Tribunal is the judicial body, which rules District Courts (D.C.) - Sąd Rejonowy Poland has been a member of the IMF since 1986, on the constitutional liability of people holding at which time Poland received 1.8 billion SDR units the highest State offces. It is empowered to rule (Special Drawing Rights, which function within . Administrative justice system for the removal of individuals from public offce; the IMF as a unit of account). In 1995, Poland was to impose injunctions on individuals against their able to repay its debts incurred in international The Supreme Administrative Court is the court appointment to senior offces; to revoke an indi- institutions, before becoming a full member of of last resort in administrative cases e.g. those vidual’s right to vote and to stand for election; to the IMF. betweens private citizens (or corporations) and withdraw previously awarded distinctions and in administrative bodies. This court deals with criminal cases to impose penalties stipulated in appeals from lower administrative courts. It the criminal code.

28 29 II.2. Domestic Market

been low in recent years (2007 – 0.3 per 1,000 II.2.1. Population and people), Poland’s work force is still among the language youngest in Europe, with 24.545 million people of working age as of 31 December 2007. The retirement age for men is 65 years and for The population of Poland (as of 31 January women 60 years. 2008) is 38.135 million, making it the eighth biggest country in Europe in terms of population Approximately 61.2% of Poles live in cities and and the sixth largest in the European Union as urban areas. a whole. Although population growth rate has

Poland’s work force Million 25

20

15

10

5

0 pre-working working post-working Age Source: Central Statistical Offce, Demographic Yearbook of Poland 2008

30 31 Domestic Market

Ethnically Poland is one of the most homogenous Polish GDP has been growing steadily for almost the regions. The biggest GDP was generated countries in Europe, with over 98% of the II.2.2. Macroeconomic two decades, since 1991. The average growth in Masovia (21.6% of Polish GDP), but the population ethnic Poles. The major ethnic Indicators in the years 1992-2008 was almost 4.5%, with main contributor here is Warsaw, which alone minorities are German, Belarusian, Ukrainian the lowest rate (in 2001)1 1.0%. For almost fve generated approximately 13% of Polish GDP. and Romanian. years (between 1995-1997 and 2006-2007) Per capita GDP in Warsaw is three times higher II.2.2.1. Gross Domestic Polish GDP grew at least 6% per year. Despite than the Polish average. High per capita GDP Most educated Poles, especially in the business Product the major recession facing many economies in is also noticeable in other big cities, including community, speak at least one foreign language, 2008 and 2009, frst quarter grown in Poland Poznań (twice the national average), Kraków with English the most popular. In addition in 2009 in Poland was 1.9 (year-on-year) - the (60% above the national average), Wrocław to this, German and Russian are also spoken The GDP of Poland was USD 525.7 billion in highest growth rate in the European Union, and the Tricity of Gdańsk, Sopot and Gdynia frequently, due to the geographical closeness 2008, equivalent to USD 666.1 billion meas- making the country one of only two in the (45% above average). The strongest region of these countries. ured with Purchasing Power Parity. This makes European Union not seeing a GDP decline. after Masovia is Silesia, generating 13% Poland the 21st largest economy in the world of Polish GDP, followed by Greater Poland and the ninth largest in Europe. Per capita GDP Polish GDP is generated through industry (9.3%), Lower Silesia (8.1%) and Lesser Poland was respectively USD 13,799, or USD 17,482 (31.7%), services (65.5%) and agriculture (7.4%). with PPP. (2.8%), though GDP per capita varies in

Gross Domestic Product per capita in selected countries Gross Domestic Product per capita by voivodships

0 10 20 0 40 50 60 70 80 90 100110 100% Austria Belgium Bulgaria 98,5% Cyprus 75,6% Denmark Estonia 91,1% Finland 7,4% France 87,4% Greece Spain Ireland 159,7% 105% Japan 89% Lithuana Luxemburg Lotvia 91,8% Malta Netherlands 67,6% Germany 107% Norway a 76% Poland 80,4% 106,1% Portugal Czech Republic Russian Federation Legend: 68,4% Romania 86,7% Slovakia Thousand zlotys Poland= 100 Slovenia 160% United States 18,7 21,2 24,8 27,4 29,8 44,4 Sweden 80% Ukraine Hungary 2000 United Kingdom 2007 Italy Source: Central Statistical Office, Concise Statistical a - according to the offcial exchange rate Yearbook of Poland 2009, Warsaw 2009

Source: Central Statistical Offce, Concise Statistical Yearbook of Poland 2009, Warsaw 2009 1 Cf. International Monetary Fund, World Economic Outlook Database 2009

32 33 Domestic Market

After Masovia (159.7% the national average), with an average yearly inflation of 4.2% in 2008. II.2.2.3. Foreign trade as a market economy since 1990. This is due the biggest per capita GDP is generated in Lower It is worth noting that the inflation rate has been to the fact that Poland is mostly importing Silesia (107%), Silesia (106.1%) and Greater quite low in recent years and relatively stable capital goods for industry and manufacturing Poland (105.3%). The regions with the lowest per in comparison with the last 10-20 years. The In 2008 Poland imported USD 206.1 billion components, rather than consumer goods. The capita GDP are the voivodships in the ‘eastern wall’: graph below shows the inflation rates between worth of goods and exported USD 169.5 attached graph shows the value of imports Lublin (67.6% of the average), Subcarpathian 1997 and 2008. Many Poles still remember the billion2. The trade balance was therefore USD and exports, as well as the trade balance in the (68.4%), Podlaskie (73.4%), Warmian-Masurian hyperinflation, a characteristic of the economy -36.5 billion. A defcit in the external trade period from 1995 until 2007 (in USD billion). (75.6%) and Świętokrzyskie (76%). The attached change-over period in the years 1990-1991, balance has been a characteristic for Poland map presents the per capita GDP of the various with inflation rates exceeding 1.000% in some voivodships (in Polish Zloty and %). months. Polish trade between 1995 and 2007 170 mdr USD In 2008, the Polish consumer price index was II.2.2.2. Consumer Price Index above average for the European Union and the 160 Euro Zone. However compared with other EU 150 members in the region (marked in light blue) Consumer price index inflation was calculated it is quite low; only Slovakia had a lower rate 140 as 3.6% year-on-year in July 2009, compared in 2008. 10 Annual average inflation in Poland 120 %16 110 14 12 100

10 90 8 Import 80 Imports 6 4 70 Eksport 2 60 Exports 0 50 Saldo 1997 1998 1999 2000 2001 2002 200 2004 2005 2006 2007 2008 Balance 40

0 Harmonised CPIs in European Union % 15, 20

12 11,110,6 10

7,9 0 6, 6 5,5 4,7 4,5 4,4 4,2 4,2 4,1 4,1 ,9 ,9 ,7 ,6 ,6 ,5 , , ,2 ,2 ,1 -10 2,8 2,7 2,2 -20 y y a e a a e a a a a a a k n g re Ital eec

a -0 Spai eland Latvi Malt opean Franc United Ir Poland Cyprus ro Gr Austri Estoni Finland Sweden Slovaki Bulgaria Belgium 1995 1996 1997 1998 1999 2000 2001 2002 200 2004 2005 2006 2007 Sloveni Portugal Hungar Romani Germany Lithuani Denmar Eu Eur etherlands Luxembur Czech Rep. N Source: Central Statistical Offce, Yearbook of Foreign Trade Statistics 2008 Source: Central Statistical Offce, Harmonised Index of Consumer Prices 2008 2 Central Statistical Offce, Annual Economic Indicators 2008

34 35 Domestic Market

With the change from a communist, plan- Imports II.2.2.4. Local cost effectiveness labour costs are both low and competitive. On the based economy to the current free trade % other hand, what really counts is the fact there is market, the direction of Polish foreign trade has 25 a high availability of labour on the market. The been reversed. Beforehand, the most important . Costs of Labour young structure of Poland’s population and the trade partner was the USSR. Nevertheless, high standard of Universities ensure a continuing 20 Poland has always had a high trade rate with During past years one of the main reasons for direct and growing potential for a highly skilled and its direct neighbours. In 1990, the frst year of investment in Poland has been its lower average educated labour force. economic reforms, Germany became Poland’s 15 labour costs compared to other European Union most important trade partner and remains so countries. It is indeed still the fact that average until today. In 2007, 25.9% of Polish exports 10 and 24.1% of Polish imports were exchanged Hourly labour costs in European Union in 2008 with Germany. No other country exceeds 10% in any direction of trade. Other important 5 countries for imports are: Russia (8.7%), China (7.1%), Italy, France and the Czech Republic. 0 Polish exports also flow to: Italy (6.6%), France Germany Russian China Italy France Czech (6.1%), Great Britain, the Czech Republic Federation Republic and Russia. The following chart presents the percentage of foreign trade with the most Finland Norway important countries in 2006 and 2007. Exports % Sweden The global economic recession is having a 0 Estonia noticeable impact on Poland’s foreign trade. Russia The numbers from the months January to April 25 Denmark 2009 show a decrease of 5% in exports and Ireland Latvia Lithuana almost 14% in imports, when calculated in 20 UK Polish Zloty. Due to the signifcant devaluation Netherland of the Zloty against foreign currencies since Belarus 15 Belgium the fourth quarter of 2008, however, this POLAND Germany decrease is much more visible in USD or EUR. Luxembourg 10 Ukraine However, the overall decline has increased the Czech Rep. export shares of its most important partners. France 5 Slovakia The share of Germany, Italy and France in the Swissland Austria Moldavia overall Polish exports in the frst four months Hungary 0 of 2009 increased, to 26.6%, 7.1% and 7% Germany Russian China Italy France Slovenia Romania Czech Croatia respectively. On the imports side the main Federation Republic Portugal gainer is China with its share increasing to 10% Spain Bos. & Herz. Serbia over the same period. All of the other biggest Legend: Italy Bulgaria import partners saw falls in their market share. 2006 2007 Macedonia If these trends continue until the end of the EUR/hour Albania year, China will have become Poland’s second Source: Central Statistical Offce, Yearbook of Foreign from 0 to 10 Greece 3 Trade 2008 most-important import partner . from 10 to 20

from 20 to 25 from 25 to 0 up to 0

3 Central Statistical Offce Foreign Trade Turnover in Total and by Countries. January - June 2009, Source: Federal Statistical Offce of Germany, 2008

36 37 Domestic Market

Looking deeper, the low labour costs are combined . Cost of transport with competitive productivity, which indicates the created value per working hour. This combination Due to the decision to make signifcant investments of competitive productivity alongside the total into its infrastructure, Poland will increase the amount of average salaries serves to back up the number of fast roads and improve its transport argument for underlining direct investments in connections. In the close future, the main cities Poland. of Poland will be connected by motorways (this is not the case as yet). Furthermore, the European The next indicator shows, that the increase in the motorway number 30 will be fnished and function average cost of working hours has developed as one straight motorway connection between quite moderately compared to countries like Berlin and Moscow. Romania or Bulgaria. Sharp rises in wages are the result of shortages in availability, and in this The costs of transport were reduced in the past example - the qualifed labour force. Since direct when Poland became part of the Schengen investment decisions are based on a longer time Agreement, allowing fast and easy travelling horizontal, it is important to have a closer look at within the countries which are part of Schengen. the size of the country. Bigger countries tend to Today a country becomes automatically part of develop in a more stable fashion in each of the Schengen by joining the EU. indicators than smaller countries, where shortages and capacity limits occur suddenly and within a short period of time. Due to the fact that Poland II.2.3. Tourism (with almost 40 M citizens) is by far the biggest of the new European Union countries, it can be considered as rather stable when taking the actual Poland is the one of the most frequently visited economic core data into account. countries in Central Europe among new EU for the development of domestic and foreign Arrivals by countries members, with many natural and cultural assets tourism. The coastal area around the Baltic Sea is worth mentioning in particular. The Masurian Total Including Country / group Changes in labour costs per hour Q1 2008/Q1 2009 Lake District, the Tatra Mountains and other arrivals in tourists in % 25,0 of countries regions of the country with a clean environment thousand thousand and a micro-climate favourable to the health. 20,0 18,6 18,6 More than 321 spas offer health facilities and Total 11810 2360 treatments in 75 places located in areas that are 15,0 27 countries of unique for their natural healing environments. the European 10310 1700 10,0 The largest of these are Nałęczów, Krynica Zdrój, 7,7 8,0 8,0 Union 5,9 6,2 6,6 6,6 Augustów, Kołobrzeg, Ciechocinek, Rabka 4,8 5, 5,5 5,0 ,7 ,7 ,8 and Duszniki Zdrój. The most reflective places Neighbours 2,2 2,2 2, 2,9 1,5 0,5 for their historical backgrounds are Kraków, outside 1360 520 0,0 Warsaw, Wrocław, Gdańsk, Toruń, Oświęcim Schengen -0,6 and Wieliczka with its salt mine. Each of these Important -5,0 -, 50 50 -5,5 places are highly attractive for tourists and are overseas places of both relaxation and interest. -10,0 USA 30 30 y a a e a a a a a a n g EL Other overseas* 20 20 EZ16 EU27

Spai The Institute of Tourism estimated that in the frst Latvi Malt Franc Poland Cyprus Austri Estoni Finland Sweden Slovaki Bulgaria Sloveni Portugal Hungar Romani quarter of 2009 11.8 million foreigners arrived Germany Lithuani Rest of the Luxembur Czech Rep. 90 90 in Poland, mainly from Germany and the Czech World Republic. United Kingdom Source: website Institute of Tourism http://www.intur.com.pl/ *Australia, Japan, Canada, South Korea Source: Federal Statistical Offce of Germany, 2009

38 39 Domestic Market Warsaw – view on the Palace of Culture and Science at night

Results obtained in the frst quarter of 2009 indicate a rather surprising increase in the share of business travel, with other reasons for visiting - such as tourism or transit to another country - slightly down. Business arrivals, tourism and family social events still dominate people’s reasons for visiting.

Arrivals by reasons for visiting

Main objectives Russia, Belarus, of arrivals (%) Total EU Countries Main overseas Ukraine

Business 34 97 44 23 Tourism 22 85 6 30 Visits 16 44 16 30 Shopping 7 17 12 2 Transit 7 13 13 0 Other objectives 14 43 9 15

Source: Institute of Tourism http://www.intur.com.pl/

40 II.3. Resources & Industry Clusters

Generally, Poland is an unbroken plain II.3.1. Geographic stretching from the Baltic Sea in the north to the location and climate Carpathian Mountains in the south. Although the average elevation is just 173 m above sea level, with only 3% of Polish territory along the Poland, offcially the Republic of Poland, is southern border averaging at higher than 500 often considered to be the ‘heart of Europe’ m, the landscape is relatively diversifed with due to its central location. Throughout history, terrain variations generally running in bands it has served as one of the most important trade from east to west. Poland is traditionally divided routes on the continent, connecting the north, into fve geographic zones. south, east and west of Europe together thanks to its geopolitically advantageous location. The Baltic coastal plains are a low-lying region, Poland has belonged to the European Union which form Poland’s mostly smooth coastline since 2004, with its eastern border constituting and northern border. It provides many kilometres the eastern fringe of the entire community. of sandy beaches, complete with coastal lakes, At 1,163 km it is the longest exterior land sand dunes and cliffs. border of the European Union (the total length of Poland’s national borders is 3,511 km). By To the north of the central lowlands, the geographical area, Poland is the ninth largest lake region includes the only primeval forests country in Europe, and the sixth largest in the remaining in Europe. Glacial action in this European Union as a whole, with a surface area region formed many lakes and low hills over of 312 679 km2. Its neighbouring countries are many centuries. In fact, there’s no other region Germany to the west, the Czech Republic and in Europe outside Finland where so many post- Slovakia to the south, Ukraine and Belarus to the glacial lakes can be found. Small lakes dot the east, and Lithuania and the Russian province of entire northern half of Poland, and the glacial Kaliningrad to the north-east. Poland belongs formations that characterise the lake region to the Central European time zone, GMT + 1 extend as much as 200 km inland in western hour, except for between March and October Poland. when it switches to daylight saving time.

42 43 Resources & Industry Clusters

The largest zone, the central lowlands, is a Coal is extracted in underground mines and its found in three places in Poland: since 2002 it has also been an open-cast mine, narrow band in the west which expands to the calorifc value is bigger. Although the mining the importance of which is very low. north and south as it extends eastward. The method itself is more expensive, it does not cause  Turów: in the south-western end of Poland, There are many other deposits of lignite in Poland, terrain is relatively flat, cut by several major rivers, any signifcant impact on the land above it. Despite close to Germany and Czech Republic, which have not been exploited as of yet. One of including the Oder (Odra), which constitutes some limited, so called, ‘mine damages’ on the exploited by the PGE SA, the biggest is in the surroundings of Legnica in Poland’s natural border with Germany in the surface, it is possible to construct buildings, roads  Bełchatów: in the south from Łódź, extracted Lower Silesia. There is currently a debate as to west, and the Vistula (Wisla) in the centre, which and even entire cities above such mines. by the PGE SA, whether to start exploiting these beds, a move at 1,047 km is the country’s longest river. There are three areas in Poland, where coal is or  Konin: in the east from Poznań, extracted by which could eventually make some villages in was extracted: ZE PAK SA. the area disappear. The attached map shows the To the south are the lesser Poland uplands that lignite deposits in Poland – in dark blue the ones connect the ranges in south-central Poland  Lower Silesia: in the surroundings of There is also one small stand-alone lignite mine that are currently exploited, in light blue the ones - the Sudeten and Carpathian mountains. The Wałbrzych and Nowa Ruda. Coal is no in Sieniawa, in a village close to Świebodzin in which have been discovered but not exploited as highest peak in the Sudeten is Śnieżka (1,602 longer extracted here, with the region now Lubusz. It used to be an underground mine, but of yet. Most of these are geologically confrmed. m). The Carpathians in Poland are the highest set up to develop other kinds of industries, and most picturesque mountains in the country, maintaining one of the biggest and best Lignite deposits in Poland with Poland’s highest mountain peak being Rysy operating Special Economic Zones, (2,499 m) in the Polish Tatras.  Upper Silesia: the traditional Polish regionfor Gdańsk coal mining (and also the steel industry). Poland has a moderate climate with relatively Approximately 5,000 m2 of coal is cold winters from December to March. January available. Most of the mining companies temperatures average -1°C (30°F) to -5°C (23°F), and activities are located around Katowice, but in the mountain valleys they may drop as Mysłowice, Dąbrowa Górnicza, Rybnik, Szczecin low as -20°C (-4°F). Summers, which extend Jastrzębie Zdrój and neighbouring cities, from June to August, are usually warm, sunny  Lublin voivodship: the youngest coal mining Toruń

and less humid than winter. July temperatures region with one coal mine at Bogdanka, close Gorzów Wlkp. range from 16.5°C (62°F) to 19°C (66°F) but in to Łęczna. There are many perspective 4 August they can easily reach 35°C (95°F). The deposits here . Poznań KONIN Warszawa average annual rainfall for the whole country SIENIAWA Zielona Gora is 600 mm a year, although isolated mountain Roughly 80% of this coal is consumed for energy locations may receive as much as 1300 mm a generation, with more than 50% used for power ADAMÓW year. and power-heat plants, and the rest being used to heat plants and private households5. Lublin Wrocław Lignite is extracted in open-cast mines. This TURÓW II.3.2. Natural Resources BEŁCHATÓW Kielce method has much more of an impact on the environment, not only by physically changing the II.3.2.1. Coal & lignite landscape (by digging a big hole in the ground), but also in terms of pollution. The calorifc value is Kraków Rzeszów also much lower than that of coal. It is therefore Coal and lignite are the main raw materials for not worth transporting lignite long distances and the energy production in Poland. The major it is not used by private households. Due to these differences between the two materials are the factors, power plants are often built very close means of mining them and their calorifc value. to mines. Such a duet of mine and plant can be Legend: Lignite deposits (geological reserves documented and future) Exploited deposits 4 Polish Geological Institute, Hard Coal 2009 5 Central Statistical Offce, 2008 Consumption of Fuels and Energy Carriers TURÓW Names of exploited deposits nad mines

44 45 Resources & Industry Clusters

II.3.2.2. Oil & Gas Due to the industrially and economically Głogów in Lower Silesia by one of the biggest The nickel ore lies in Lower Silesia, close to insuffcient deposits of natural gas and oil, polish companies, KGHM SA. The copper is Ząbkowice Śląskie, where it was exploited until Poland relies heavily on imports to meet its extracted here in underground mines together 1983 at which point it ceased to be economically The deposits of crude oil and natural gas in energy needs. Up to 95 % of oil and gas imports with other metals such as silver, nickel and feasible9. Poland are limited. In 2007 the overall quantity come from Russia. There are several pipelines lead. of crude oil mined in Poland was around for gas and one for oil, most of which are transit Iron ore is also important. Iron ore was extracted Among chemical deposits, the most important 700,000 tons, whereas 20 million tons were pipelines to other European countries. Transit in Poland in the 20th century in the areas around in Poland are salt (rock salt) and sulphur. Salt 6 imported . In the case of natural gas, domestic countries from Russia to Poland are Belarus and Częstochowa, in Świętokrzyskie and close to deposits located in Lesser Poland have already exploitation (with more than fve million cubic Ukraine. Łęczyca. The quality of these deposits was very been exhausted (Wieliczka and Bochnia). The meters) can only cover approximately 40% of poor and have not been considered industrial economic importance of other beds in eastern the demand. Exact import data is not currently There are several plans and projects to diversify standard since the 1990s. New deposits of iron Greater Poland (Kłodawa) and in Kujavian- 7 available . imports of these two energy resources. The ore, containing traces of titanium and vanadium Pomerania (Inowrocław and Mogilno) are now possibilities include building new pipelines, e.g. have been identifed in the Suwalskie region, being exploited. The biggest deposits of oil can be found in the from Caucasus or Nordic Countries, or building close to the north-eastern boarder of Poland. area around Gorzów Wielkopolski, although oil is gas storage at Baltic ports. Such investments are The exploitation of these beds is not currently Sulphur deposits, one of the biggest in the also extracted in the Western Pomerania, as well expensive, however, and need to involve many economically feasible as they lie relatively deep world, are situated mainly in south-eastern in the Carpathians and Sub-Carpathians. Deposits different countries. Due to several economic (850 to 2,300 meters below the ground) and are Poland, around Staszów and Tarnobrzeg. Poland under the bed of Baltic Sea are also used and gain constraints and political tensions, making located in an environmentally protected area. used to be the leading producer of sulphur in even more industrial meaning. predictions about future developments is very the world. However, since the development of diffcult. Other metallic deposits in Poland are zinc and technology to recapture sulphur from crude The exploited deposits of natural gas are spread lead ore as well as nickel. These are located on oil and gas deposits, the direct extraction has in the Subcarpathians (Jasło, Krosno, Gorlice) the border between Silesia and Lesser Poland and declined in importance. Nowadays, only one bed in the southern Greater Poland (Ostrów Wlkp., II.3.2.3. Other deposits are extracted close to Olkusz and Chrzanów. of sulphur at Osiek (Staszów) is exploited10. Jarocin, Kościan, Grodzisk Wlkp. Góra), in the Lubusz (Krosno Odrz., Wschowa), at the border between Lubusz and West Pomerania Aside from energy deposits - metallic, chemical Exploitation of other deposits in Poland (Myślibórz, Strzelce Kraj., Międzychód, and rock deposits can also be found in Poland. Barnówko-Mostno-Buszewo [BMB]), and in Out of all the metallic deposits, by which we Number of Capacity Resource Yearly Exploitation the coastal area of West Pomerania (Kamień mean the ore deposits of base metals, the most deposits Geological Industrial Pomorski)8. There are also some gas deposits important of those are beds of copper, which accompanying the oil in the Baltic Sea. are extracted in the area between Legnica and Metallic

Copper ore 14 1 543 m tons 1 164 m tons 24 m tons Gas and oil exploitation in Poland Zinc and 21 141 m tons 16 m tons 4 m tons lead ore Number of Deposits Resource Yearly Exploitation Nickel ore 4 14 m tons 0 0 beds Exploitable Industrial Chemical Natural gas 263 138 bn m3 73 bn m3 5 bn m3 Crude oil 84 23 m tons 14.5 m tons 0.7 m tons Rock salt 19 84 bn tons 4 bn tons 3 m tons Sulphur 18 520 m tons 31 m tons 857,000 tons

6 Polish Geological Institute, Petroleum 7 Polish Geological Institute, Natural Gas 9 Polish Geological Institute, Mineral Resources of Poland, Metallic Deposits 2009 8 Polish Geological Institute, Deposits of natural gas 10 Polish Geological Institute, Mineral Resources of Poland, Sulphur 2009

46 47 Resources & Industry Clusters

There are many different rock deposits that are zander, sole, trout, salmon, bream, cod, plant in Poland, and in Europe as a whole, available and exploited in Poland. The most mackerel, pike, sprat and eel. is located at Bełchatów. With 4,400 MW of widely mined are the sand and gravel that can maximal power and 27-28 TWh of energy be mined almost all over the country. Regions As the agriculture uses approximately 50% of produced per year, this one plant alone caters especially rich in other rock deposits are: the land, food production plays an important for almost 20% of Poland’s energy demands. role in Poland. The most important crops are The other large power plant is located in Turów  The Sudetes – the mountains in the south- grains, like wheat, rye, and maize (corn). Other (in the south-western end of Poland) with an western part of Poland. They are very rich important vegetables are hops and rapeseed, output of 2,100 MW, amounting to almost in different specifc rock deposits such as with garden vegetables and fruits also raised 10% of Poland’s domestic energy needs. granites, syenites, basalts, porphyries, in industrial quantities, including tomatoes, Another 10% is covered by the group of plants quartz slates, marbles and sandstones, cucumbers, cabbages, lettuces, apples, located close to Konin in the eastern Greater  Świętokrzyskie Mountains, with sandstone strawberries and plums. The Polish vegetative Poland. The group known as Pątnów-Adamów- and limestone, period lasts approximately 200 days, meaning Konin (PAK) comprises four power plants with  Kraków-Częstochowa Upland, with that most fruits and vegetables come into a combined output of almost 2,300 MW. All limestone, season just once a year. Conditions in Poland of the above mentioned plants are fuelled by  Lublin Upland, with Cretaceous limestone are not appropriate for tropical fruits such as lignite from mines located nearby. and marls, bananas, oranges and pineapples.  The surroundings of Nida, with plaster11. The power plants supplied by different kinds of It is also popular to gather forest fruits and coal are mostly located in the coal extracting mushrooms. The most popular forest fruits are region in Silesia. The biggest of these include: II.3.2.4. Crops & Livestock bilberries (blueberries), while the most popular mushrooms are boletus, bay boletus and species  plant Rybnik (1,775 MW of power), like leccinum and suillus. A Polish speciality is  plant Jaworzno (1,345 MW of power), Over 28.7% of Poland is covered by forest, chantarelle. Champignon is the only type of  plant Łaziska (1,155 MW of power), most of which consists of Scots pine. Other mushroom that can be raised artifcially and it  plant Siersza (800 MW of power). conifers found in Poland are spruce and fr. Polish meadows and lakes are home to many is raised in Poland. There are also several kinds of broadleaf trees, different species of bird, the most important of The biggest coal-fred power plants located including oaks, birches, alders and beeches. which are the white stork (almost every fourth outside Silesia are: The forests are natural habitats for several stork in the world comes from Poland, making II.3.3. Energy Sector animal species such as red deer, roe deer, wild it an important symbol and mascot of the  plant Kozienice, located in southern Masovia, boar, foxes and hares. It is also quite common country) and the white eagle, which is included on the Vistula river, with an output of to encounter hedgehogs, and different kinds on the Polish coat of arms. The most common The industry connected with energy supply can 2,800 MW. This is the second-biggest of frogs and snails. In Poland there are also birds, found almost everywhere, are pigeons be divided into two groups: power plant in Poland and the biggest some species which cannot be found or are and sparrows. Other birds include magpies, wild non-lignite-fuelled plant, not common in other European countries. This ducks, swans and geese. In the lakes, mostly in  the production and supply of electric power,  plant Połaniec, located on the south-eastern includes wisent, which appears only in the Masuria, one can also fnd cormorants, herons,  the production of fluid fuels. Świętokrzyskie, on the Vistula river, with ancient woodland of Białowieża, Podlachia. pelicans and flamingos. The most common an output of 1,800 MW, Other such species include the brown bear in coastal bird is the seagull. The frst group consists of all power plants and  power plant group Dolna Odra (Lower Oder), Białowieża, in the Tatras, and in the Beskids, power-heat plants. Electric power in Poland a group of three power plants located in the grey wolf and the Eurasian lynx in various The animals raised in agricultural households is produced almost exclusively from coal and Nowe Czarnowo and Szczecin at the Oder forests, the moose in northern Poland, and the in Poland include cows, pigs, sheep, horses, lignite. Only about 2% of electricity is produced River. The overall electrical output of the beaver in Masuria, Pomerania, and Podlachia. goats, chickens, ducks, geese and rabbits. via natural or renewable sources12. plants is almost 2,000 MW, Some interesting species can be found in the  plant Opole, located in Brzezie, close to mountains, including mouflons in the Sudetes Species of fsh used for culinary reasons include Power plants powered by lignite are located Opole, at the Oder river, with an output and chamoises in the Tatras. carp (an important dish for Christmas), herring, directly at the lignite mines. The biggest power of 1,500 MW. This relatively new plant,

11 Polish Geological Institute, Mineral Resources, Rock deposits 2009 12 Central Statistical Offce, Concise Statistical Yearbook of Poland, Table Balance of Electricity 2008

48 49 Resources & Industry Clusters

built between 1993 and 1997, is due to be The production of fluid fuels in Poland is done developing industry clusters in Poland with most popular industries include: expanded in the next few years. in refneries belonging to two petrochemical their directions for the global selling market, companies: as well as the industry clusters in the different  The automotive industry: Fiat (in Tychy), Opel Besides from the above examples, almost every voivodships. (as former part of GM, in Gliwice), Volkswagen large city contains additional so-called power-  PKN ORLEN, the biggest company in Poland, (in Poznań), and GM DAT (former Korean heat plants, which use the same technology owning the refneries in Płock, Trzebinia and fuel (coal), but are intended to produce and Jedlicze, heat more than electrical power. Such plants  LOTOS, based in Gdańsk, owning the Development of industry clusters in Poland supply the heat for the industrial and central refneries in Gdańsk, Gorlice, Jasło, and heating systems in the cities, as well as Czechowice-Dziedzice. delivering a portion of electrical power to the Gdańsk surroundings. The crude oil for these refneries is mostly Petrochemistry imported from Russia Energy There are several hydroelectric power plants in Poland, the most important of which is located in Solina (on the San river) and in Włocławek II.3.4. Industry Clusters Szczecin (on the Vistula river). Poland also has several “offshore” or as Vivendi “Server” for Western hydro-pump storage power plants, which are in European markets Deutsche Bank fact power accumulators. The biggest of these The Polish industry is based on two main pillars. Glaxo Smithkline Global world base for Poznań Warszawa Poland or Estern Europe: are Żarnowiec (700 MW) and Porąbka-Żar (500 One on traditional industries, which have - banks VW MW). survived the post communistic times and have Citigroup - Insurences - telecom been adapted to new modern forms of activity. - Global advisory companies Although wind power has almost no signifcance The second pillar are newly created industrial VW - Media Electrolux Mostly as “Contributor” or - FMCG so far, new wind-turbines are being built in clusters formed through large initial investments “Server” for local Polish sales Wrocław market or as a spring board in many areas in Poland, including Wolin in West in the form of Greenfeld investments by foreign the East Toyota LG Pomerania. Additionally, some of the more global players. These foreign global players have “offshore” or as traditional power plants may be modifed in the attracted new suppliers and helped to develop “Server” for Western European markets GM future to run by biomass. existing polish companies to match new Katowice production requirements. Here, the creation of Fiat Delphi There are currently no nuclear power plants special economic zones was one of the major Kraków in Poland. In the 1980s, construction of aspects which determined the development of such a plants was started in Żarnowiec, but new modern industries. construction was eventually suspended and fnally terminated at the beginning of the Especially for small and medium sized During the communist period Poland put a lot Daewoo, in Warsaw) producing cars, and 1990s. Since 2005 the Polish Government has companies, the growing scale of developing of emphasis on its heavy industries including Volvo (Wrocław), Solaris (Poznań) and MAN outlined a desire to build at least one nuclear industry clusters became as important for the its mining, metallurgy, machine construction, (Poznań) producing buses. There is also a power plant in the future. These intentions local market as the local cost competitiveness shipbuilding and arms sectors. After the wide range of suppliers producing were formalised in 2009’s release of Poland’s for the global reach of the companies. political, social and economical turnaround of components for factories and customers. energetic strategy until 2030. The introduction the late 1980s however, this kind of industry Other world producers present in Poland of nuclear power was one of the points of this Since industry clusters form an area of special was no longer supported by the government include GM Fiat, Isuzu, Volkswagen and strategy13. Neither the location nor any other Know-how among the labour market, the who needed to change and reduce the nature Toyota who produce engines and gearboxes. details are set as of yet, but the investment advantage for direct investing companies has of its employment. This created the possibility  Home appliances: all world leading producers should be fnalised by 2020. had a strong influence on the time needed to of establishing new industries in Poland and have plants in Poland, including Whirlpool reach the targeted volume within the defned opened the way for foreign investment. (Wrocław), Electrolux (several plants in quality. The graphics show certain kinds of Silesia and Lower Silesia), Bosch and Nowadays, the industrial sector employs Siemens (Łódź) and Indesit (Łódź). approximately 29% of all employed Poles. The  20 Ministry of Economy, http://www.mg.gov.pl, Polish Energy Strategy until 2030.

50 51 Resources & Industry Clusters One of thousands of lakes in the region of Mazury

Industry clusters in the voivodships  Food production: many different, mostly Polish companies, producing different meat, vegetable and fruit products, as well Voivodships Field of industry as beverages. This also includes investment High - Tech, Machine in foreign companies like Nestle, Cadbury’s, Lower Silesian Industry Automotive Masterfoods and Unilever.  Electronics: with the strongest emphasis Chemical, High - Tech, Kuyavian - on TV sets. Due to the presence of LG, Machine and Food Pemeranian Toshiba, Thomson and Sharp, Poland is an Industry empire in TV set production. Every third Machine and Food TV set in Europe is produced in Poland. Lublin Industry, BPO, Logistic,  Cosmetics: Avon, Beiersdorf, Procter&Gamble Tourism and others. Timber, Food and  Other consumer goods: Goodyear, Michelin Lubusz Electrical Industry and Bridgestone.  Petrochemical: PKN Orlen is the biggest BPO, Household goods, Łódź Polish company, with LOTOS and PGNiG Logistic following closely behind. Chemical Industry, BPO,  Others: including the aviation and train Lesser Poland Tourism, High - Tech construction industries, textiles, ceramic, Food and Building furniture, communication and IT technology, Masovian Industry, BPO all of which are strongly represented in Poland. Food, Building and Opole Chemical Industry The traditional industries are also present. Subcarpathian Air Craft Industry Mining is mostly concentrated around the Food and Machine Silesian coal basin and copper mining in Lower Podlaskie Industry, Tourism Silesia. There are also several steelworks in Silesia. The future of shipbuilding is uncertain Tourism, High - Tech, Pomeranian – Polish shipyards went bankrupt in the end of Water Economy 2008 to pay back public aid received from the Tourism, BPO, Polish Government. Silesian Automotive Metal and Building The construction industry is also quite strong, Świętokrzyskie Industry, Health and with its boom coming in the years 2005-2007 Rehabilitation Sector due to the conjuncture on the market for private homes that was stopped at the end of 2007. The Tourism, Timber and Warmian most prestigious polish construction and design Food Industry, alternative - Masurian offces, mostly located around Warsaw and Energetic Silesia, are currently entering consortiums with Automotive, Logistic, western companies. As Poland is hosting the Greater Poland BPO European Football Championships in 2012, there West - Logistic, Food and are several major public as well as some private Pomeranian Timber Industry, BPO construction projects currently in the works.

52 53 II.4. Labour Market

Since 2004 an obligatory one year pre-primary II.4.1.Education education (‘0 grade’ – zerówka) has been introduced for children at the age of six in II.4.1.1. The education pre-primary education and nursery schools. According to the education reform of the system Ministry of National Education, the school age will soon be lowered by one year. Until the school year of 2011/2012, children will have The Polish education system is well developed, the right to attend primary school at the age especially in the cities. Although the number of of six, but after the school year 2012/2013 this State owned schools and Universities is rather will become compulsory. Also the pre-primary stable, the number of private institutions is education of children between the ages of three growing in response to recent market demand. and fve will become obligatory from 2011.

Pre-school education is part of the formal . Compulsory full-time education system of education in Poland. There is a well- established network of state pre-schools that Full-time compulsory education in Poland lasts children may attend between the ages of three 10 years and covers education in the already and six. Formal school education before the mentioned ‘0 grade’, the six-years of primary age of six is not compulsory, although currently education and the three-years of lower about 60% of the nation’s children attend secondary education. Admission to primary such schools, mostly in the cities. Pre-school school is based on age. Primary school education education helps those between the ages of is divided into two stages: three and fve develop their communication and social skills, so they can cope with any situation. 1. Stage I – grades 1 to 3, called integrated Pre-primary education establishments primarily teaching which is meant to provide a deal with preparing children for education in smooth transition from pre-primary to school school. education 2. Stage II – grades 4 to 6

54 55 Labour Market

Polish education system scheme In the third year, pupils take another Post secondary school – szkoła policealna (max. compulsory examination. This exam is external 2.5 years), meant for people with secondary age years of education and standardised and is designed to check the education who want to obtain a vocational 29 22 child’s abilities, skills, and knowledge in the feld qualifcations diploma upon the passing of an 28 21 of humanities and science. From 2009 it will exam. 27 20 also encompass foreign language profciency. 26 19 Pd. D. - doktor The maturity examination is compulsory for all 25 18 . Upper secondary and post-secondary graduates who apply for higher education. It 24 17

on education comprises a written part assessed by external 2 ti 16 ca Regional Examination Commissions and an 22 du 15 e This part of a child’s education covers the ages 16- oral examination assessed by school teachers. 21 er 14 master - magister gh 18, or 19-20. Candidates who have successfully 20 post secondary bachelor - licencjat, inżynier hi 1 graduated from lower secondary school may Children of foreigners who are subject to school - szkoła 19 policealna 12 choose between the following types of schools: compulsory education in Poland can attend maturity examination primary and lower secondary public school on 22 15 General secondary school - liceum (three years), the same terms as Polish pupils. This also applies 21 14 offers general upper secondary education and, at for upper-secondary education, although the end, a fnal maturity examination (Matura) that whether it is free of charge or requires a fee

20 l 1

ve is necessary for admission to higher education. depends on the student’s, and their parents’, le

y legal basis of residence. Also, there are many 19 ar 12 technical Specialised secondary school – liceum proflowane private international schools in major cities specialised ond

18 upper college - ec 11

upper sec. s (three years), which differs from the general (see appendix 2), which provide adequate secondary technikum

school - er 17 school - basic vocational school - 10 secondary school by offering specialised upper education in English or other languages for the liceum zasadnicza szkoła zawodowa liceum upp 16 profilowane 9 secondary education (e.g. economic, electronic children of expats. All schools are required to exam and fashion design among others). satisfy the requirements of the Polish national

15 y 8 system, some of whom additionally offer ar

gymnasium l Technical secondary school – technikum (four the International Baccalaureate Programme. 14 ond 7 c wer ve lo se 1 le 6 years), offers technical and vocational upper Attending bilingual school helps children to 12 5 secondary education. It also offers the fnal adapt to their new home and students may Matura examination. also learn the language and culture of their 11 4 new home and of other countries. 10  primary school Basic vocational school – szkoła zasadnicza (two- 9 2 three years), after fnishing school, graduates . Higher education 8 1 have access to the trade or occupation of 7 0 supplementary schools. There are several types of higher education and study programmes in Poland: The school year is divided into two semesters each year of school education are necessary Supplementary general secondary school between September and June. Pupils attend when children change school (to another place – liceum uzupełniające (two years), meant for Professional higher studies – wyższe studia primary school fve days a week, from Monday of living). the graduate of the basic vocational school, zawodowe (three-four years), the graduates to Friday. offering general upper secondary education and obtain a professional degree of licentiate or The requirements for admission to lower preparing them for the Matura examinations. engineer (in the feld of engineering, agriculture Pupils are assessed separately in each subject, secondary school are the successful completion or economics). This is the Polish equivalent of a the evaluation of which depends entirely on the of primary school and a primary school leaving Supplementary technical secondary school bachelor’s degree. teacher. If the student feels that the periodical certifcate. In 2002 an externally standardised – technikum uzupełniające (three years), offers or annual mark given by their teacher is too test was conducted for the frst time upon vocational upper-secondary education for Master’s studies – studia magisterskie (fve- low, they have the right to take a verifying the completion of primary school. Tests are students in preparation for their Matura. six years), the graduates obtain a professional examination. Certifcates of completion for comparable on the national stage. degree of magister, or an equivalent degree,

56 57 Labour Market

which is the Polish equivalent of master’s degree preparing them for practising a profession. of graduates in 2006/2007 grew to 410.000 Professor – professor, the highest academic depending on the study course profle. compared with 2005/2006 when 394.000 degree, awarded by the President of the The institution of higher education runs full- completed their studies. Republic of Poland after receiving a petition Postgraduate master’s studies – uzupełniające time courses, evening courses, extramural from the academic council and upon the studia magisterskie (two-2.5 years), meant for courses and external courses. The basic system The biggest centres of higher education are resolution of the Central Commission. graduates of professional higher studies and of studies is the full-time mode. in Warsaw, Kraków, Wrocław, Poznań, Łódź, offering them the possibility of obtaining a Lubin, Gdańsk and Katowice. In total there professional master’s degree. According to Eurostat, Poland holds fourth are 455 higher education establishments in II.4.1.2. Special education place after the United Kingdom, Germany Poland, 29% of which are state-owned. There Postgraduate studies – studia podyplomowe (one- and France in terms of the number of people are 18 universities, 17 technical universities, 11 two years), meant for graduates of all types of enrolled in tertiary education. In the 2007/2008 medical academies, 6 agricultural academies Polish law guaranties everyone the right to be higher education institutions. academic year, 1.93 million people studied at and 5 economics academies. educated. This means that the Polish education system, under the supervision of the Ministry Apart from the philology students and foreign of National Education and Sport, is supposed Fields of Education 2007/2008 students, 45.2% of students attend foreign to ensure the education of children and young language courses at university. Especially active people with activity limitations. Such people % 25 are students of business faculties, many of can get their education in general access whom study more than one foreign language. schools and in integrated (inclusive) schools, as 20 well as in special needs schools. . Academic degrees 15 According to the Ministry, 3% of Polish students Many departments of state higher education have special needs. Students with special needs 10 establishments run doctoral courses (three-four may attend: years). Candidates applying for PhD course 5 must have a master’s degree or an equivalent,  public special education units (primary while foreign candidates must provide a schools, lower secondary schools, basic 0 diploma of a master’s degree course of study vocational schools, vocational secondary obtained in Poland or a legalised diploma or schools, general secondary schools and l t s s s s g n w another certifcate confrming the completion post-secondary schools) la arts

health of higher education obtained abroad and  public education units (regular, integrative, tection physics biology ocessing ro transpor recognised under separate provisions as special or therapeutic classes) informatic humanities engineerin pedagogica st technology

social service equivalent to a polish degree. There are several  individual education programs at home social sciences re security service

personal service academic degrees that graduates continuing and construction re veterinary madicine

onmental p their education at doctoral courses can work The integration into general access school is and fo nalism and informatio towards, including: subject to the positive recommendation given re envir mathematics and statistics jour chitectu

business and administration by a competent authority and/or the child´s ar

manufacturing and pr Doctor – doktor, after three to four years of parents. chitectu

ar study, this is awarded to candidates who submitted and successfully defended a doctoral Source: Central Statistical Offce, 2008 dissertation before a thesis committee and II.4.1.3. Teachers passed a doctoral examination. There are two types of higher education higher and tertiary education facilities, among institution, the University type, which offers which 56.43% were women. The most popular Habilitated doctor – doktor habilitowany, Teachers must have a higher education studies in humanities; science; medical science; faculties among students were the business awarded to candidates with a doctor’s degree qualifcation, the type of which depends on the economics; the arts; pedagogy and military and administration faculties. Of these, 48.5% having important academic achievements and teaching level. studies and the professional type, which students studied full-time, and 51.5% took who proposed a dissertation and completed educates students in specifc professional areas evening or extramural courses. The number the procedure. Pre-primary school teachers have the same

58 59 Labour Market

responsibilities as teachers in primary education KBN is a governmental body, which was set Employment by type of ownership for the frst three years of a child’s education. up by the Polish Parliament. It is the supreme II.4.2. Human resources The teacher is required to hold at least a authority on State policy in the area of science bachelor’s degree. Teachers may receive their and technology. It combines the role of a II.4.2.1 Employment and Family members initial training in three-year teacher training ‘typical’ ministry of science and technology 4% colleges which award the title of licentiate or with that of a funding agency presenting Labour force Employed a diploma. Many teachers at this level have guidelines for the country’s scientifc policy, completed higher education and are graduates submitting plans for budgetary expenditure in In the frst quarter of 2009, 15.7 million Polish and selfemployed of universities or higher education schools the area of research in science and technology, people were employed. This number is slightly 19% (pedagogical academies). and distributing funds among scientifc and lower than that of the fourth quarter of 2008, but Employed permanent research institutions. KBN’s works are headed higher than at the beginning of 2008. Depending 57% At the secondary level, teachers employed in by its chairman, the Minister of Science. on the economic sector, 13.2% were employed Employed temporary the three-year lower secondary school are in agriculture, 31.3% in industry and 55.5% in 20% required to have at least the qualifcations PAN is a state scientifc institution that functions services. In comparison with fgures for 2008, outlined above with the title of licentiate. as a learned society acting through an elected the employment rate in the services sector has Upper secondary school teachers must have corporation of leading scholars and research increased, while the numbers in both agriculture completed university education with a master’s institutions. Operating through its committees, and industry have declined. degree or an equivalent qualifcation. PAN has become a major scientifc advisory body. Professional training is required at all three levels PAN as a research centre is currently comprised of education. Teachers should be specialists in of 79 research establishments (institutes and Employment by type of ownership two subjects, have computing skills and a good research centres, research stations, botanical The overall activity ratio is 54.5, meaning that command of at least one foreign language. gardens and other research units) and auxiliary 54.5% of Poles in the production age of 15- According to the Teachers’ Charter, a teacher can scientifc units (archives, libraries, museums 64 are economically active. This includes both obtain the following professional promotional and foreign PAN stations). A very special part of Private farms employed (50%) and unemployed (4.5%). The grades: the Academy is its committees, the Academy’s 27% rest (45.5%) is economically passive. Most of network of 107 committees constituting a these are in education or obtaining additional  trainee teacher, major representation of all researchers in skills, others are passive due to sickness or  contract teacher, Poland. Each scientifc committee constitutes disability, family commitments, or the fact  appointed teacher, a self-governing representation of a scientifc Public they are already retired. The activity ratio has Other private  chartered teacher. discipline for the purpose of integrating Polish 27% signifcant differences depending on the level scholars. 61% of education. Among people with tertiary Chartered teachers with outstanding education, the activity ratio is 81.5, while professional achievements may be further Over 40 R&D centres have been opened in Poland among people with vocational education, the awarded the honorary title of education by foreign investors including Google, Unilever, ratio is 66.2 (secondary vocational) and 64.3 professor. Siemens and Motorola. This is mostly because of (basic). The lowest ratio is among people with the lower R&D costs in Poland, the availability and basic education (19.5) followed by 48.2 as the quality of R&D labour forces, the quality of the ratio of people with general secondary universities and research centres and the proximity education. II.4.1.4. Scientific and R&D to customers as well as government R&D incentives. Generally there are over 200 R&D centres in Poland The average working time was 39.7 hours a (employing 98,000 R&D workers), including the week, slightly lower than in the frst quarter of There are two important institutions responsible Polish Academy of Sciences, and independent and 2007 and the frst quarter of 2008. for Poland’s scientifc development: the State specialized R&D centres and support agencies. Committee for Scientifc Research (Komitet Considering the number of students and young Badań Naukowych, KBN) and the Polish workers in the R&D sector, the potential of Poland Academy of Sciences (Polska Akademia Nauk, in this feld is extremely promising. PAN). Source: Central Statistical Offce, Quarterly Information on the Labour Market - 1st quarter 2009

60 61 Labour Market

Employment by sections II.4.2.2 Unemployment

2002 2005 2006 2007 Sections in thous. Registered unemployment in May 2009 was 10.8%14. The graph below represents the monthly Total 12803,3 12850,7 13220,0 13553,6 rates since 1990 One can see the seasonality Agriculture, hunting and forestry 2161,1 2138,9 2140,6 2140,4 whereby every year there is a peak in winter. This is of which agriculture 2109,0 2092,8 2092,9 2092,3 mostly due to construction work and agriculture, which tend to follow seasonal patterns. Fishing 6,3 4,9 4,6 4,4 Industry 2887,9 2912,1 3003,4 3106,8 Mining and quarring 2009 185,1 181,4 179,1 Monthly unemployment rates 1990-2009 manufacturing 2440,8 2508,7 2605,5 2712,8 25

electricity, gas, water supply 238,1 218,3 216,5 20 Construction 676,6 622,9 690,9 724,5 15 Trade and repair 1988,0 2058,8 2082,9 2161,8 Hotel and restaurants 210,9 219,4 228,7 235,4 10

Transport, storage and communication 724,7 699,9 738,7 758,5 5 Financial intermediation 290 295,4 308,5 234,0 0 Real estate, renting and business activities 897,1 950,4 1004,1 1056,9 Public administration and defence, Source: Central Statistical Offce, Unemployment Rates, 2009 383,8 872,0 881,0 895,7 compulsoty social security Unemployment rates differ from region to region. Education 894,6 1026,3 1026,7 1026,4 The lowest unemployment in May was in Greater Health and social work 851,7 706,8 715,4 720,5 Poland (7.9%), Masovia (8.2%), Silesia (8.4%) and Other community, social and personal Lesser Poland (8.8%). The highest unemployment 365,6 382,9 394,5 398,3 services activites was in Warmian-Masurian (18.1%), Kujavian- Pomeranian (14.6%), West Pomeranian (14.5%) Source: Central Statistical Offce, Employed Persons by Section 2009 and Lubusz (14.4%). The map below presents the unemployment rates in the various voivodships.

Unemployment in Poland by voivodships Legend:

Poland - 10,8%

7,9 to 10,5 10,6 to 1,1 1,2 to 15,7 15,8 to 18,1

Source: Central Statistical Offce, Monthly Information on Unemployment in Poland May 2009 14 Central Statistical Offce, Selected Monthly Macroeconomic Indicators

62 63 Labour Market

Unemployment rates can also vary within 11.9%, slightly above the Polish average, has II.4.2.3 Salaries in the enterprise sector was PLN 3,144 and the different regions. The lowest rates are always in many districts with unemployment signifcantly national average was PLN 3,096). Depending on the big cities: Poznań in Greater Poland (2.3%), above or close to 20%15. the investigated quarter, the salaries in Poland Warsaw in Masovia (2.3%), Katowice in Silesia The average salary within the enterprise sector as rose approximately 3-5% per year between (2.5%), Cracow in Lesser Poland (3.6%), The attached graph presents the Polish of May 2009 was PLN 3,193.90 (a fgure which 2002 and 2006. In the years 2007 and 2008 the Gdańsk in Pomerania (3.5%), and Wroclaw in unemployment rates compared with other corresponds to USD 987.69, calculated on the annual increase was 8-11%17 , a trend which Lower Silesia (4.4%). However, unemployment selected countries (based on 2006 data). It is average monthly exchange rate in May 2009 of has been since halted by the global economical rates are growing in more rural districts. clear from this that among other European USD 1 USD = PLN 3.2337)16. This average salary crisis. May 2009’s numbers show an increase of Greater Poland, with the lower unemployment countries, Poland has signifcantly higher is slightly higher than the national average (e.g. less than 4% year-on-year. rate, has a district with unemployment above unemployment with only Slovakia sharing a in the fourth quarter 2008, the average salary 18% (Złotów) and there are several with rates similar picture. The numbers and proportions Relative deviations of avarage monthly gross wages and salaries from the avarage wages and salaries around 15%. In Masovia there is even a sub- are changing dynamically however. This is due in the national economy region with 21% unemployment, in which to the diffcult situation in the world economy one district has unemployment of over 30%. starting from the fourth quarter of 2008. %-40-0 -20-100 10 20 0 40 50 60 70 80 90 Lower Silesia, with an unemployment rate of Agriculture, hunting and forestry

Unemployment rates in comparison with selected countries Fishing

0 5 10 15 20 Industry Austriab Belgium Mining and quarrying Bulgaria Cyprus Denmark Manufacturing Estonia Finland Electricity, gas and wather supply France Greece Spainb Construction Irleand Japan Trade and Repair Lithuana Luxemburgd Lotviab Hostels and restaurants Malta Netherlands Transport, storage and communication Germanyb b Norway Financial intermediation Polandbe Portugal Czech Republic Real estate, renting and busisness activites Russian Federation b Romania Public administration and defence, compulsoty social security Slovakiar Slovenia United States Education Swedenb Ukraina Ukraine Health and social work Hungaryb 2000 2000 United Kingdom 2006 2007 Italyb Other community, social and personal services activites

Source: Central Statistical Offce, Concise Statistical Yearbook of Poland, Warsaw 2008 Source: Central Statistical Offce, Concise Yearbook of Poland, Warsaw 2008 16. 15. Central Statistical Offce, Unemployed Persons and Unemployment Rate by Voivodships, Subregions and Poviats 2009 Central Statistical Offce, Average Monthly Nominal Gross Wages and Salaries in Enterprise Sector, May 2009 17 Central Statistical Offce, Employment, Wages and Salaries in National Economy in 2008

64 65 Labour Market Gdansk - Town Hall and Neptune statue

This picture can be supplemented by HR consulting companies that are investigating the market based on opinion polls. One of the biggest polls performed in 2008, with more than 55,000 participants, shows an average salary of PLN 3,800, with men averaging at PLN 4,500 and women PLN 3,150. This median is also much higher in companies with foreign capital (PLN 4,200), than those owned by Polish investors (PLN 2,600). The fve sectors with the highest and lowest salary medians, according to the survey, are presented in the tables below.

The highest and lowest salary medians

Industry sector Median salary in PLN

Telecommunications 5500 IT 5100 Insurances 4950 Banking 4900 Power and heat 4500 industry

Industry sector Median salary in PLN

Agriculture 3000 Public sector 2900 Health service 2800 Education, schools 2522 Culture and arts 2500

66 67 II.5. Financial Centre

undertaking measures designed to ensure the II.5.1. Banking and regular operation of the fnancial market (its financial institutions stability, safety and transparency). Consumer issues such as dealing with complaints, fnancial education and codes of best practice were not The banking system in Poland is built on three considered particularly important before 1 pillars: January 2008.

I. Central bank (the National Bank of Poland – NBP) The PFSA is supervised by the President of the II. Commercial banks Council of Ministers. III. Cooperative banks.

From 1 January 2008, banking supervision has been carried out by the Polish Financial II.5.1.1. The National Bank of Supervision Authority (PFSA), as stipulated in Poland the 21 July 2006 act on the supervision of the fnancial market. The National Bank of Poland is the Republic of The merger of the fnancial and banking Poland’s central bank. Its tasks are stipulated supervision was a pragmatic decision based on in the Constitution of the Republic of Poland, the evolution of the Polish fnancial market, the the Act on the National Bank of Poland and the growing signifcance of multinational fnancial Banking Act. The fundamental objective of the groups and cross-sector fnancial products. NBP’s activity is to maintain price stability. The most important areas of activity for the NBP Before 1 January 2008, banking supervision, are: conducted by the Commission for Banking Supervision, had a limited objective which was to  monetary policy, ensure the safety of deposits held by banks. The  the issue of currency, aims of the PFSA are much broader and include  the development of the payment system,

68 69 Financial Centre

 the management of offcial reserves, Mergers and acquisitions are among the a joint-stock company founded by the State  The Act on Trading in Financial Instruments,  education and information, most important methods of growth used Treasury. The WSE began its activity in April  The Act on Capital Market Supervision.  services to the State Treasury. by commercial banks. These transactions 1991, at the time of writing (June 2009) investors became popular in Poland as early as the mid- could buy and sell on WSE stocks of almost 380 The capital market in Poland was created in The management authorities of the NBP are 1990s and have led to signifcant changes in companies. In August 2007 WSE launched the 1817, when the frst Mercantile Exchange was the President of the NBP, the Monetary Policy the operation of the entire banking system New Connect – a market for young companies set up to operate in the Warsaw Exchange. Council and the NBP Management Board. over the following decade. As a result, the with a large growth potential, on which more Activity in its current form started on 16 April The Monetary Policy Council lays down the number of entities decreased, in particular than 90 companies are currently listed. The WSE, 1991, by organising, from the beginning, foundations for monetary policy, sets interest those which were economically weak, with the as well as the others entities operating in the Polish securities trading in an electronic form. rates and defnes the level of obligatory reserves existing banks becoming modernised and the capital markets (i.e. investment frms and entities for commercial banks. The Management Board growth potential of the fnancial market rising operating investment funds), is authorised by the The Stock Exchange is a joint-stock company directs NBP activities. Its fundamental tasks signifcantly. Consolidation has also resulted Polish Financial Supervision Authority (Komisja established by the State Treasury, the initial capital include the implementation of resolutions for in the diffusion of banking activity and risk Nadzoru Finansowego). Transactions on the WSE of which is PLN 41,972,000 and is divided into the Monetary Policy Council, the adoption and management standards elaborated by highly are executed from 8.30 am to 4.30 pm (this does 15,174,400 ordinary shares. At the end of 2008, implementation of the NBP plan of activities, developed countries over the years. not apply to block trades). its shareholders comprised 35 players, including the execution of the fnancial plan approved banks, brokerage houses, the stock exchange by the Council and the performance of tasks International investors have a decisive impact The following instruments are all traded on company and the State Treasury. Shares held by related to the exchange rate policy and the on consolidation in Poland. Another important the WSE: shares, bonds, subscription rights, the State Treasury represent 98.82% of capital. payment system. trend noted is that universal banks have futures, options, index participation units, The General Meeting of Shareholders is the dominated these transactions. Such entities allotment certifcates, investment certifcates, highest decision-making body, its main function are both the initiators of the transaction and and derivative instruments. being to select 12 members of the Supervisory institutions most sought after for a merger or Board and the President of the Management acquisition. In the Polish banking sector, there Capital market in Poland is regulated by three Board. The Management Board comprises four is still great potential for the development of main acts: members, with the President of the Management mergers and acquisitions and the process of Board being elected for a three-year term. banks’ consolidation is still to be fnished. In  On Public Offering, Conditions Governing Poland, further M&A transactions will mainly the Introduction of Financial Instruments The purpose of the WSE is to organise trading in result from those entered into on international to Organised Trading, and Public fnancial instruments. The Exchange provides a markets by the owners of Polish entities. Companies, concentration of buy and sell offers in one place  On Trading in Financial Instruments, and time in order to determine the course of the II.5.1.2. Commercial banks  On Capital Market Supervision. transaction. Trading systems valid on the Warsaw II.5.2. Stock exchange Stock Exchange are characterised by the exchange and capital market All of these are dated 29 July 2005. of individual fnancial instruments being based on As of the end of 2008, 649 banks and branches the orders of buyers and sellers, and therefore of credit institutions conducted operations in regulations being called order-driven. This means that in Poland. II.5.2.1. Warsaw Stock order to determine the price of the instruments, a Exchange summary disposition of purchase orders and sales Number of banks and branches of credit The Warsaw Stock Exchange (Giełda Papierów must be prepared. The matching of these orders institutions conducting operations: Wartościowych w Warszawie S.A., WSE) is is done according to strict rules, and the checkout The functioning of the Warsaw Stock Exchange process takes place during trading sessions. To is based on three legal acts dated 29 July improve the liquidity of traded instruments, the 2004 2005 2006 2007 2008 2005: members of the exchange or other fnancial Total, of which 653 619 617 615 619 institutions can act as market animators, placing  The act on Public Offering, Conditions (on the basis of an appropriate agreement with Commercial banks 54 54 51 50 52 Governing the Introduction of Financial Exchange) orders to buy or sell the instrument Branches of credit institutions 3 7 12 14 18 Instruments to Organised Trading, and on its own account. The subjects of the trade on Cooperative banks 596 588 584 581 579 Public Companies, the stock market are securities (stocks, bonds,

70 71 Financial Centre

rights, rights to shares, investment certifcates and and competitiveness of the market and make of the fnancial market, as well as to ensure less of the total vote, respectively, Is obliged derivatives), forward contracts, options and index Warsaw the fnancial centre of Central and confdence in that market, and to safeguard the to notify the Polish Financial Supervision units. Eastern Europe. The Polish Exchange is now an interests of the fnancial market participants. Authority and the company of this fact important capital stock market in Europe and a immediately. This must be done no later Warsaw Stock Exchange operates in fnancial leader in Central and Eastern Europe, using the The tasks of PFSA include, among other than within four business days from the instruments on two markets: potential development of the Polish economy and things, undertaking measures aimed at date on which the shareholder became, or the dynamism of the Polish capital market. ensuring the regular operation of the fnancial by exercising due diligence could have  The WSE Main Market has run since the market, undertaking measures aimed at the become, aware of the change in his share Stock Exchange’s inception on 16 April 1991. development of the fnancial market and its in the total vote. The market is supervised by the Polish Statistic information: competitiveness and undertaking educational and information measures related to fnancial In the case of a change resulting from the . Number of companies market operation. acquisition of shares of a public company in a transaction on a regulated market (e.g. a stock Domestic companies Foreign companies Total The PFSA is composed of a Chairperson, two exchange), the above mentioned requirement Main market 313 25 338 Vice-Chairpersons and four members. is due no later than within six trading days from the transaction date. Parallel market 38 0 38 Of note is that, in civil-law cases arising from TOTAL 351 25 376 the relationships entered into in connection The notifcation requirement mentioned above with participation in trading on the banking, applies also to a shareholder who: pension, insurance or capital markets, or . Market value (EUR million) relating to entities operating on those markets,  has held over 10% of the total vote and the FSA’s Chairperson has the powers of a this share has changed by at least: Domestic companies Foreign companies Total prosecutor ensuing from the provisions of the  2% of the total vote, in the case of Code of Civil Procedure. a public company whose shares have Main market 62 651.66 58 338.80 120 990.46 been admitted to trading on the Parallel market 509.32 0.00 509.32 offcial stock- exchange listing market, or TOTAL 63 160.99 58 338.80 121 499.78  5% of the total vote, in the case of a public II.5.2.3. Acquisition of company whose shares have been admitted Source: Warsaw Stock Exchange material blocks of shares to trading on a regulated market other than the one specifed above  has held over 33% of the total vote and Financial Supervision Authority and notifed to Rules regarding the acquisition of material this share has changed by at least 1%. the European Commission as a regulated II.5.2.2. Financial Supervision blocks of shares are applicable only to public market, companies. There are some specifc levels of In some cases, the acquisition of shares may be  NewConnect is organised and maintained votes that can be executed during general done only by way of a tender offer. In the event by the Exchange acting in the key market for The Polish Financial Supervision Authority shareholder meetings, the exceeding of which of the acquisition of a number of shares in a an alternative system of trade. It was created (Komisja Nadzoru Finansowego, PFSA) initiated causes some special duties to come into play. public company, which increases a shareholder’s for the young and growing companies, its activity in September 2006. In its present form, Anyone who: share in the total vote by more than: particularly working with new technology the PFSA covers banking supervision, capital and has functioned since 30 August 2007. market supervision, insurance supervision,  has achieved or exceeded 5%, 10%, 15%,  10% within a period of less than 60 days, The subject of trade in an alternative system pension scheme supervision and the supervision 20%, 25%, 33%, 50%, 75% or 90% of in the case of a shareholder holding less than may be shares, the rights to shares (PDA), of electronic money institutions. The FSA’s the total vote, or 33% of the total vote at the company, rights, depositary receipts and other equity activities are supervised by the President of the  has held at least 5%, 10%, 15%, 20% securities. Polish Council of Ministers. 25%, 33%, 50%, 75% or 90% of the  or 5% within 12 months, in the case of a The main purpose of this supervision of total vote and as a result of a reduction of shareholder holding 33% or more of the Currently, the WSE implements the development the fnancial market is to ensure the proper its equity interest holds 5%, 10%, 15%, total vote at the company. strategy, designed to enhance the attractiveness operation, stability, security and transparency 20%, 25%, 33%, 50%, 75% or 90% or

72 73 Financial Centre

such acquisition may be done only by way of a Funding in the VC mostly comes from foreign  fre and other natural disasters coverage for tender offer to subscribe for sale or exchange investors. However, over the last few years farm building, of those shares in no less than 10% or 5% of Polish entities have also been very active in this  workers’ compensation (social security the total vote, respectively. area. scheme covering health and pensions),  lawyers’ notaries and councillor’s third party Polish law provides mandatory buy-out liability, insulation. A shareholder in a public company, II.5.3. Insurance  tax advisors’ third party liability, who individually or jointly with its subsidiaries or Regulations  other insurance, listed in the applicable law. parent entities has reached or exceeded 90% of the total vote in the company, shall be entitled, within three months from the day on which Legal acts in Poland specify two sections of this threshold has been reached or exceeded, insurance. The frst section includes life insurance, to demand that the other shareholders sell all whilst the second section includes the remaining the shares held in the company. personal and property insurance types. An insurance company cannot conduct insurance activity simultaneously in the scope of both these sections.

The main legal acts related to insurance activities in Poland regulate the areas of:

 insurance activity,  insurance mediation,  compulsory insurance,  the Insurance Guarantee Fund and Polish Motor Insurers’ Bureau,  insurance and pension funds supervision and Insurance Ombudsman.

Insurance activities can be pursued only by an II.5.2.4. Venture Capital Funds insurance company established as a public limited company or a mutual insurance society. The Polish Venture Capital (VC) funds started to operate insurance market is supervised by the Financial in Poland at the beginning of the 90s. These Supervision Commission (Komisja Nadzoru days between 40 and 50 VC management Finansowego – FSC). Brokers must be locally licensed. companies are present on the Polish market, a signifcant proportion of which are foreign The policy language is in Polish, as is the unit of entities looking for investment opportunities currency: zloty (PLN). in Central-Eastern Europe. The most common types of entities active in the VC area are: The main compulsory insurance according to Polish law:  investment funds,  investment banks,  third party automobile liability (with a  special funds in the structure of the minimum limit of EUR 1.5 million for corporal financial corporations, injury in each accident and EUR 300,000 for  consulting companies. material damage in each accident),  farmers third party liability,

74 75 II.6. Infrastructure

II.6.1. Transport

II.6.1.1. Road System

In recent years the Polish road system has undergone an extensive period of renovation, with government spending on road construction seeing a huge boost due to the inflow of European Union funds for infrastructure projects. In May 2009, Poland had 93 international roads with a total length of about 18,300 km, including about 750 km of motorways and over 500 km of express-ways. At the moment there are around 720 km of national roads being built or rebuilt. Under new construction are 225 km of motorways, 245 km of express-ways and 95 km of bypasses, while 155 km of existing roads are undergoing a process of modernisation.

76 77 Infrastructure

Status of the roads, May 2009:

Gdańsk S6 S22

S A1 S6 Szczecin S11 S51 S8 S10 Białystok A6 Toruń S7 S S10 Gorzów Wlkp. S11 S5 S8 S19 A2 Poznań A1 Warszawa A2 Zielona Gora A2 A2

S17 S11 S S19 S5 A1 S8 S7 Lublin Wrocław A8 S12 S11 S12 A4 Kielce A4 S17 A1 S74

Kraków Rzeszów A4 Legend: A4 S1 S7 Existing roads S69 S19 Built roads of PKP Polish Railway Lines. There are also City Airport Ready 2009 over 14,200 level crossings with roads and Bydgoszcz Ignacy Jan Pa- pedestrian passages, including 2,700 of which Bydgoszcz Tender derewski Airport Singed Contracts are guarded by workers on the lines. PKP Polish Railway Lines maintains over 26,500 structures, Gdańsk Gdańsk Lech Wałęsa Airport Plannedtender including almost 7,000 bridges and viaducts. Zielona Zielona Góra Airport To be prepared Góra John Paul II International Kraków Source: General Directorate for National Roads and Motorways 2009 II.6.1.3. Air transport Airport Kraków-Balice Katowice Katowice International Airport Łódź Władysław Reymont Lines), part of state-run PKP Group. The rail Polish air transport was initiated in 1919 with Łódź II.6.1.2. Railways Airport network is very dense in western and northern a flight between Poznań and Warsaw. In 1929, Poland, while the eastern part of the country LOT Polish Airlines was established, which is Poznań Poznań-Ławica Airport Poland is served by an extensive network of is less well developed. There are 23,429 km still the international flag carrier of Poland. The Rzeszów Rzeszów-Jasionka Airport railways. In most cities the main railway station of railway tracks managed by PKP SA and biggest Polish airport is the one at Warsaw: the Szczecin-Goleniów Szczecin is located near the city centre and is well owned by the state. The extent of railway line Warsaw Frederic Chopin Airport. Other airports “Solidarność” Airport connected to the local transportation system. concentration varies from 3.7 km to 15.6 km in Poland include: Wrocław Copernicus Airport Wrocław The infrastructure is operated by PKP PLK SA of line per 100 km2. The national average is (PKP-Polskie Linie Kolejowe: PKP-Polish Rail around 6.08 km of line per 100 km2. There are 1,500 stations operating on the network

78 79 Infrastructure

still fxed-line telephones; however its market operators. In 2008 the existing mobile telephone II.6.2.2. Density and II.6.1.4. Waterways share is currently decreasing – from 58% in 2000 operators Polska Telefonia Komórkowa Centertel to 27% in 2007. The fxed-line telephone market Sp. z o.o., Polska Telefonia Cyfrowa sp. z o.o., connection lease market in Poland is still dominated by Telekomunikacja Polkomtel S.A and P4 Sp. z o.o. (acting from Next in the way of transport in Poland are the Polska S.A., which provides around 79% of fxed 2007) gained new competitors: The fxed line telephone market in Poland is waterways. The network of Polish waterways, lines. Alternative operators comprise around characterised by a low level of penetration, with comprising navigable canals and canalised 21% of the number of fxed lines in 2008, the  Mobile Entertainment Company Sp. z o.o. only 27 fxed telephone lines for every 100 people. or free-flowing rivers, as well as a number of main competitors being Netia S.A. and Telefonia (Mobilking) – MVNO, In 2007, 58.4% of Poles declared themselves interconnected lakes, is nearly 3,650 km long. Dialog.  CP Telecom Sp. z o.o. (Carrefour Mova) to have a fxed-line phone in their households. There are three main inland waterways in – MVNO, Telekomunikacja Polska S.A. is the most Poland: the river Oder, the river Vistula and the The market shares of TPSA and alternative  MediaTel S.A. (telepin mobi) – MVNO, spontaneously recognised brand among fxed- waterway Warta-Notec-Kanal Bydgoski. Access operators in terms of revenues in 2008  Cyfrowy Polsat S.A. – MVNO, line operators (98% of respondents). The second- to the Polish inland waterways from the Baltic  Aster Sp. z o.o,. best well-known operator is Netia (with 56.6% Sea is possible via the Port of Gdańsk or the 1%  Crowley Data Poland Sp. z o.o. (CROWLEY of respondents). Another recognized provider is Port of Szczecin. TeleMobile) – MVNO, 1,1% Tele2 (51.0% of respondents). According to a  Netia S.A. – MVNO. UKE survey, a fxed-line phone is an important 6,5% means of contact for local calls. The frequency of Today, the internet is a major source of information. II.6.2. Telecommunication using a fxed-line phone for local calls is very high, 5,4% The number of Internet users (with permanent with 43.9% of respondents using it every day and broadband internet access) in Poland reached 4,6% half of the respondents (50.6%) several times a 4.4 million in 2008, constituting over 6.5% II.6.2.1. Telecommunications week. 6% growth from the previous year. The most popular Systems form of access to the internet in households is The number of fxed-line users 2005-2008 still via service provider Neostrada TP and offers % from cable television operators. Broadband 20 The Polish telecommunication infrastructure is internet access services are dominated by 13 continuously developing. Not only has the number telecommunications operators, three of which are 15 of the potential providers increased steadily, but 75,4% fxed line telephone operators, four of which are also various new forms of telecommunication mobile telephone operators and the rest of which 10

have entered the Polish market contributing to the are cable television providers. 19,2% growth in the numbers of customers. According 5 to the Urząd Komunikacji Elektronicznej (Offce of Legend: The Polish telecommunications market is gradually Electronic Communications) report, the value of approaching Western European markets. In order 0 % % % %

the telecommunications sector at the end of the Telekomunikacja Polska S.A. to win over new customers, telecommunications % -4,1 -4, % -4,8 -4,9

2008 was PLN 48.6 billion. Netia S.A. operators are trying to retain their current clients -5 -6,6

by offering many incentives. These incentives -9,9

Telefonia Dialog S.A. -11,6% -12,1% Polish people are using the internet and mobile Tele2 Polska Sp. z o.o. include free minutes and better service quality -10 telephones more and more. In 2008, about 50% either at the same price or as an extension to UPC Polska Sp. z o.o. of Poles said they used the internet. Regarding their existing service range. They also offer better Polska Telefonia Cyfrowa Sp z o.o. . -15 mobiles communications, there are now more packages, including telecommunications services 2006/2005 2007/2006 2008/2007 active mobile phones in the country than Others and banking or television services. inhabitants. 2005 by comparison had only 28% Legend: of the population using the internet and 70% of Source: Offce of Electronic Communications, Telekomunikacja Polska S.A. the population were mobile phone users. Market Report about Telecommunication Market 2008 Alternative operators. Total growth was dominated at frst by the increasing revenues of its mobile operators. The second The mobile telephone segment is characterised by Source: Offce Electronic Communications, Report segment of the telecommunications market are a rapid increase in the number of subscribers and about Telecommunication Market 2008

80 81 Infrastructure

According to the UKE report, in 2008 more market in 2008 in terms of achieved revenues Share of the telecommunication operators in term of revenues from retail connections leases than 43 million people used mobile telephones, were: Telekomunikacja Polska S.A., Exatel S.A., % meaning a penetration of about 115.2%. Over Telekomunikacja Kolejowa Sp. z o.o., Netia 60 92.6% of Poles said they use at least one mobile S.A., Crowley Data Poland Sp. z o.o. and GTS phone. Spontaneous awareness of the three Energis Sp. z o.o. The greatest revenue in Legend: largest mobile phone operators is at similar this market sector in 2008 was achieved by 50 2007 2008 51%

The number of mobile technology users (million) and penetration 49% % 40 50 140 4,9 45 41,9 115,2% 108,6% 120 0 40 6,7 96,% 5 100

29,2 20 % % 22 76,4% 22 0 80 2,1 25 60,4% 10 17,4 14%

60 4% %

20 45,6% 10% 1,9 5% 6,4% 6% 6% 15 0 10,0 40 6,6 25,9% Telekomunikacja Exatel S.A. Telekomunikacja GTS Energis Netia S.A. Others 10 4,0 17,6% Polska S.A Kolejowa Sp. z o.o. Sp. z o.o. 2,0 10,2% 20 5 0,90 5,0% 2,1% Source: Offce Electronic Communications, Report about Telecommunication Market 2008 0 0 1997 1998 1999 2000 2001 2002 200 2004 2005 2006 2007 2008 II.6.2.3. Data transmission The retail market for broadband Internet Source: Offce of Electronic Communications, Report about Telecommunication Market 2008 system and density access is an important one for the future development of telecommunications and will be the starting point for many levels: Era (90.2%), Orange (88.4%) and Plus Telekomunikacja Polska S.A., which since 2002 new services. Poland’s Internet service is (87.4%). has been in frst position in terms of revenues developing rapidly, with many different types and the numbers of leased connections. of technology used for broadband Internet Most households (67.0%) said they have a access. The most popular data transmission home computer. Almost four ffths (79.6%) of technology is xDSL, with a market share of those households with a computer also have more than 50%. Other technologies used internet access at home. Of these, 96.7% of to provide broadband access include cable Polish internet users said they use high usage modems in TVK networks, mobile Internet frequency at least once a week. The majority and LAN/WLAN Ethernet. Just 1% comes of those who use the Internet at home use an from other technologies, though both FTTC always-on connection, usually broadband. and FTTH technology became very popular According to the UKE report, the value of last year and the number of FTTC and FTTH the retail connection lease market reached connections have increased by almost 100%. over PLN 448 million by the end of 2008. The These trends comply with those of other biggest operators on the retail connection lease European countries:

82 83 Infrastructure Niechorze - Baltic Sea

Data transmission technology in European Union % 40 Other 5 Fibre/LAN 0 Cable DSL 25

20

15

10

5

0 y y e e k n g Ital eec Spai eland Franc Ir Poland Gr Iceland Norway Finlland Sweden Belgium Portugal Hungar Germany Denmar Luxembur Czech Rep. Slovak Rep. Netherlands

Source: Organization for Economic Cooperation and Development, 2008

The most popular company for providing wired broadband Internet access is Telekomunikacja Polska S.A. with a 45% market share. Other providers are UPC sp. z o.o., Netia S.A., Multimedia S.A., Vectra S.A., Aster sp. z o.o., Dialog S.A., Toya sp. z o.o. and INEA S.A. In January 2009, wired broadband Internet achieved 11.7% penetration, meaning that 33% of households now use this technology.

Mobile broadband connections are characterised by rapid development. The reason for this is the development of UMTS technology. Today over half of Poland is already covered by this technology, allowing for the use of the Internet and HSDPA functionality.

84 III. Setting up business - get to know about the first steps to be taken

87 III.1. Incorporation

Unless international agreements state otherwise, III.1.1. Conducting and all requirements are fulflled, a foreign company or natural person based outside the EU/ business activities EFTA may conduct business only in the form of:

 Limited partnership, The general rules related to conducting business  Limited joint-stock partnership, are regulated by the Freedom of Economic Activity  Limited liability company (LLC), Act dated 2 July 2004. This act is also known under  Joint-stock company. the name of ‘business constitution’, because the Act governs the undertaking, conducting and Nevertheless, such business entities founded legal limitation of business activities in Poland. in Poland in accordance with Polish Law, and in All descriptions presented in this act, such as compliance with the above mentioned Act, may entrepreneurship, economic activity, licenses, or conduct business in Poland without any restriction, permits lists for a specifc type of business, are based on the same rules as Polish companies as applicable across Polish law related with business. members of the European Union. It follows that The rules of the Act are applicable to naturals there are no restrictions related to the source of and legal persons. However, the Act distinguishes capital and, consequently during its performance, between the investors from EU/EFTA and other no administrative permit can be applied for by third party countries. virtue of the mother company being the source of capital. Conducting business by naturals or legal persons from EU/EFTA is free, under the same conditions Instead of founding a legal entity in Poland, a foreign and rules as for Polish individuals or companies. company may create a branch or a representative Such a foreign entity may choose any legal form offce in Poland. The branch offce is restricted for their business activity in Poland freely with in conducting business activity only in the scope the same restrictions as are applicable for Polish of the mother company. The registration process naturals or companies, if any. is close to the LLC, because it shall be registered in court of entrepreneurship (the Entrepreneurs’

88 89 Incorporation

Register, referred to as KRS) and shall use its own concerns only the registration process of the a two-tier system and the separation of the KRS number. III.1.2. Limited Liability LLC. management and oversight functions carried Company out by the supervisory board is prescribed by Furthermore, the representative offce may The formation of a LLC is executed in front of law. only perform in the feld of advertising or the Polish notary and the Articles of Association marketing activities for the beneft of the As mentioned above, the Limited Liability must be notarized. However, the company may The Management Board is a body which is mother company. However, such entities are Company (LLC) is the most popular legal vehicle be founded by attorneys upon the power of responsible for the affairs of the company and obliged to perform all activities in accordance for foreign investment in Poland. the attorney represents the company in relation to the third with Polish law, especially Polish Accounting parties. The duties and prerogatives of the Rules. The register of representative offces is Literally translating as a company with limited The Articles of Association should specify: Management Board differ signifcantly from the held by the Ministry of Economy in Warsaw. liability, the concept of the Polish LLC was duties and prerogatives of the Board of Directors The representative offce and branch offce inspired by German law, the Polish LLC being  the business name of the Company known in other countries. The Management shall appoint the representative acting on the very similar to the German limited liability including the additional description’ Spółka Board may consist of Polish citizenships or/ behalf of each entity. company. The name of the LLC emphasises the z ograniczoną odpowiedzialnością’ or its and foreigners. Members of the Management fact that the shareholders of the entity are not abbreviation ‘sp. z o.o.’ , Board may be appointed from the shareholders Polish law allows domestic and foreign personally liable for the company’s debts. The  the seat of the company, or from other people. The management board enterprises to operate under a wide variety main feature of the LLC is to ensure that the  the scope of the business activity, may consist of one or more members. Unless of legal forms. Besides the limited liability company is treated as the separate legal entity  the amount of share capital, the Articles of Association stipulate otherwise, company, which is probably the most attractive from its shareholders or sole shareholder.  information, including the number and members of the management board are legal vehicle for foreign investors to conduct nominal value that each shareholder holds, appointed and dismissed by the resolution of business in Poland, there are a number of other The signifcant advantages of the LLC in should the shareholders hold more than the General Meeting of Shareholders. forms of business organisations. comparison with other legal forms provided by one share, Polish law are as follows:  whether the duration of the company is As mentioned above, the Supervisory Board The Polish Commercial Companies Code limited. is not simply a compulsory body. It exercises sets forth six forms of commercial association  the relatively low costs of the establishing permanent control over all areas of the as follows: of the company, As mentioned above, the Commercial company’s activity. However, the management  the fact that the company comes into Companies Code outlines the minimum board is not bound by the instructions given by  General Partnership, existence upon the execution of the Articles content of the Articles of Association, but the Management Board. The Supervisory Board  Limited Partnership, of Association and may conduct business it is quite common to have a wide range of consists of at least three members appointed  Professional Partnership, activity immediately, additional rules which makes this legal form by the resolution of the General Meeting of  Limited joint-stock Partnership,  the quick registration process of the very flexible. Under Polish law, the LLC must Shareholders. The foreign investors usually do  Limited Liability Company (LLC), Entrepreneurs’ Register (KRS), have a minimum share capital of PLN 5,000.00 not appoint a supervisory board in their Polish  Joint-stock Companies.  the limited liability and low minimal share (fve thousand) with the minimum nominal subsidiaries. capital, value of one share being PLN 50.00 (ffty). Apart from the Polish Commercial Companies  the clear rules in day-to-day duties of the Contributions may be made in cash or in kind, The third body known as the General Meeting of Code, Polish Law also provides other legal companies’ governing bodies, the contribution in kind being at the free Shareholders is a body created by shareholders. forms to conduct business activities. Below we  the low cost of running the company and disposal of the management board. The commercial code distinguishes between will provide you with a short description and the fulflment of requirements provided by ‘Ordinary’ and ‘Extraordinary’ General characteristic of each of the aforementioned Polish law. Corporate bodies of a limited liability company Meetings. The Ordinary General Meeting of forms. However, we will concentrate on the Shareholders is held within six months of the limited liability company to present the bigger The LLC may be established by one or more The limited liability company may have three end of each fnancial year. Polish law stipulates picture of this legal form, which is often chosen people. However, the LLC cannot be founded governing bodies: the management board, precisely which items should be put on the by foreign investors. by another single-shareholder LLC governed the general meeting of shareholders and the agenda (e.g. consideration and approval of by Polish or foreign law. Nevertheless, Polish supervisory board. The latter is required only if the management report and fnancial report). law does not prohibit the holding of 100% of the company has more than 25 shareholders and The Extraordinary General Meeting is called in shares in an LLC by another single-shareholder if its share capital exceeds PLN 500,000.00. The cases provided by the Articles of Association LLC. Therefore, the above mentioned restriction Polish corporate governance system is basically and if the people or bodies authorised to call

90 91 Incorporation

the general meeting believe there to be a need is treated as the separate legal entity from its may be made in cash or in kind and the to do so. The shareholder may be present at the stockholders or sole stockholder. The joint-stock contribution in kind must be at the disposal of III.1.4. Other corporate meeting either in person or by representatives may be established by one or more people. the management board. entities with the power of attorney granted in writing. However, the joint-stock company cannot be founded by another single-shareholder limited Corporate bodies of a joint-stock company Liability in a limited liability company liability company governed by Polish or foreign III.1.4.1. Civil partnership law. The restriction concerns only the registration The join-stock company has three governing The shareholders of a limited liability company process. The statute of the joint stock company bodies: the management board, the general are not responsible for any of its debts or the should be signed in front of the Polish notary. assembly and the supervisory board, which is A civil partnership governed by the civil code Company’s obligations. Instead, shareholders Nonetheless, the company may be founded by compulsory. The features, duties and obligation is used for small businesses. A civil partnership can only lose their investment (for example, attorneys upon the power of attorney granted of the supervisory board and management board does not have any legal personality and is when the monetary contribution or in-kind by foreign investors. The company comes into are almost the same as in the case of a LLC. considered by Polish law as a civil agreement contribution invested to take up the shares in the existence on the implementation of the statute. between at least two individuals or legal share capital of the company). Polish law states Only registration in the Entrepreneurs’ Register The general assembly is a body created by entities. The partners of the civil partnership that other people may be liable for a company’s provides the joint-stock limited company with stockholders who may exercise the rights are jointly and separately liable for any debts obligations. In the case of the limited liability of its full legal status. stipulated in the Commercial Companies Code incurred in the partnership. The partners are an organisation (before the registration in the and the statute. An Annual General Assembly registered in the Business Activity Register. The Entrepreneurs’ Register), the responsibility for The statute should specify: must be called within six months of the profts of the civil partnership are taxed with the company’s obligation is borne jointly by the company’s fnancial year and the items on the personal income tax. Foreign investors rarely company and the people acting on its behalf.  the business name of the Company, agenda are stipulated by law. choose this legal vehicle for their investments To protect the economic relations between the including the additional description ‘spółka in Poland. contractors of the limited liability and public akcyjna’ or its abbreviation ‘S.A.’, Liability in a joint-stock company institutions (e.g. the tax offce), Polish law states  the seat of the company, that in certain circumstances members of the  the scope of its business activity, Just as in the case of the LLC, the stockholders III.1.4.2. General partnership management board may be liable for the debts  whether the duration of the company is of the joint-stock company are not responsible of the company. limited, for any debts and any obligations of the  the amount of the company’s share capital Company, and Polish law does not provide any A General Partnership is an association of at and the amount paid up to cover the share exemptions from this principle. The stockholders least two partners operating an enterprise III.1.3. Joint-stock capital before its registration, can only lose their investment (e.g. monetary under its own business name. The General Company  the nominal value of the stocks and their contribution or in-kind contribution invested to Partnership is governed by the Commercial number with an indication of whether they take up the shares in the share capital of the Companies’ Code. The Company is registered are registered or bearer stocks, company). To protect the economic relations in the Entrepreneurs’ Register. The General A joint-stock company is very similar to a limited  whether various types of stocks are between the contractors of the limited liability Partnership is not a separate entity, it is a liability company concerning the liability of provided, and if so, the number of stocks and public institution (e.g. the tax offce) legal organisation with the capacity to acquire shareholders, governing body and the taxation. of a specifc type and their related rights, Polish law states that in certain circumstances rights, incur debts, sue and be sued. The rights However, the provisions of the Commercial  the founder’s name, members of the management board may be and obligations of the partners are stipulated Companies Code are relatively more formalistic  the number of people in the Management liable for the debts of the company. in the deed of partnership. Each partner has an and provide additional obligations which must Board and Supervisory. (At least the minimum unlimited liability for the debts of the General be fulflled by the bodies of the company. This and maximum number of members of these Partnership. has a direct impact on the cost of establishing bodies with the information concerning and running the Company. In fact, this the entity authorised to defne legal form is used for business planning IPO, the membership). III.1.4.3. Limited partnership searching for PE/VC investors or when this form is required by Polish law (e.g. banks, pension Under Polish law the joint-stock company funds and other fnancial institutions). must have a minimum share capital of PLN In the General Partnership all partners are fully 100,000.00 and the minimum nominal value liable for the partnership’s debts, whereas in the As in the case of a LLC the joint-stock company of the stock must be PLN 0.01. Contributions case of the Limited Partnership they are general

92 93 Incorporation

partners. They have unlimited liability and are investors. The business name of a joint-stock form only regard the involvement of administrative board. The member or members limited partners whose liability is restricted to company should include the names of one international business in Poland. Despite this, of the administrative board have the power to their fxed partnership contributions. On the or more general partners and the additional the representative offces may not conduct represent the company. Under the single-tier other hand, if the business name of the Limited description (‘spółka komandtowo-akcyjna’) business activities in Poland and can only carry system, the administrative board may delegate Partnership includes the name of a limited If the stockholders’ name is included in the out activities regarding the advertising and the power of management to one or more of partner in the partnership’s business name, the partnership’s name, the stockholder has promotion of a foreign investor. its members. limited partner will have an unlimited liability unlimited liability for any obligation of the if he were the general partner. Although a partnership. The minimal share capital is PLN partnership itself is not a legal entity, it may 50,000.00 and the statute must be signed III.1.4.9. European Company III.1.4.10. European acquire rights and incur liabilities, acquire title in front of the Polish notary. The partnership Economic Interest Grouping to real estate and sue or be sued. comes into existence upon the registration in the Entrepreneurs’ Register. On 8 October 2004, the council regulation The mixed construct of the limited partnership (EC) No. 2157/2001 on the Statute for the Apart from the European Company, Polish with a limited liability company as a sole general European Company (SE) entered into force. law provides a second supranational form of partner is used quite often by foreign investors. III.1.4.6. Sole proprietorship The European Company is regulated by the business organisation, known as the ‘European It is used in order to limit liability and to achieve European Economic Interest Grouping and Economic Interest Grouping’. The main feature the optimal taxation model. the European Act dated 4 March 2005. The of the EEIG is that its purpose is not to make The simplest form of doing small business European Company may be formed through profts but to develop the economic interests in Poland is the legal form known as sole four ways: merger, the formation of a holding and activities of its members. III.1.4.4. Professional proprietorship. The proprietorship is created company, the formation of a joint subsidiary, partnership upon the registration in the Business Activity or the conversion of a public limited company Register held by the head of the municipality. previously formed under national law. The SE III.1.5. Establishing The owner has unlimited liability for any debts must have a minimum subscribed capital of A professional partnership is a partnership connected with the sole proprietorship. This EUR 120,000.00. Monetary contributions and and registering an established by professionals (e.g. lawyers, legal form is used by foreign managers and in-kind contributions are also allowed. In the entity doctors and tax advisors for the purpose of directors as a platform to render their services case of a cash contribution, at least one-quarter rendering professional services). A partner of for Polish companies. of the nominal value should be covered before the professional partnership may only be a the registration. Shares subscribed for in-kind The frst step in establishing an entity is to choose person authorised to conduct the profession. contributions must be covered in full no later the appropriate legal form. This has a signifcant The main feature of the professional partnership III.1.4.7. Branch office than one year after the date of the company’s effect on the further process. The limited liability is that a partner is not liable for the obligation registration. companies or join-stock companies are probably of the partnership incurred in connection with the most attractive legal vehicles for foreign the professional activities of other partners. Foreign investors may establish branches in The Statutes of the SE must function as investors conducting business in Poland. The Poland to conduct the same business as the governing bodies of the general meeting of formation of a LLC and join-stock company is foreign investor. From a legal point of view, shareholders and either a management board executed in front of the Polish notary and the III.1.4.5. Limited joint-stock the branch is part of the foreign enterprise and and a supervisory board (known as two-tier Articles of Association must be notarised. After company does not have its own legal identity. The branch system) or an administrative board (known as this, the company as an organisation is established. is registered in the Entrepreneurs’ Register and one-tier system). Under the two-tier system, The company in an organisation may, in their may conduct business upon its registration. the SE is managed by the management board. own name, acquire rights, including ownership A limited joint-stock company has two types of The member or members of the management of immovable property and other rights in remit, participators. It has at least one partner with board have the power to represent the company incur obligations, sue, and be sued. This is crucial unlimited liability (General Partner) and at least III.1.4.8. Representative and the members of the management board in the frst stage of establishing an entity. one partner which is a stockholder. The limited office are appointed and dismissed by the supervisory joint-stock is a mixture of a partnership and board. No person may be a member of both the The company must also choose their business a joint stock company. This form of activity management board and the supervisory board address. In the registering process, the address is is relatively uncommon, however, it is used Foreign investors are also allowed to establish of the same company at the same time. Under confrmed by the lease agreement or the title to in atypical investments conducted by PE/VC representative offces, which in their simplest the one-tier system, the SE is managed by an ownership of real estate.

94 95 Incorporation View on Zakopane at night

The initial capital of the company must be paid in  notary deeds on establishing the company, full by the LLC and at least 25% by the joint-stock and on the subscription of stocks, company.  documents appointing the company’s governing bodies, with a specifcation of All companies in Poland must have a bank appointed members (Management Board account. The documents required for this and Supervisory Board), depend on the individual bank (e.g. articles  specimen signatures of the all member of of association/statute, and the specimen Management Board certifed be a notary signatures of those authorised to represent the or made in person or through their presence company). It is also possible to open an account in Court, for the company in the organisation.  a statement from all members of the Board of Management that the stock payments The next step is to submit an application to and contributions in kind envisaged by the the National Court Register. This is due to charter have been effected lawfully, recent changes in Polish law alongside the  a confrmation for the stock payments application for a REGON identifcation number, from bank or an investment company. an application to receive a Tax Identifcation Number (NIP), as well as an application for a The court fee for the registration is PLN 1,000.00 Social Insurance Institution (Zakład Ubezpieczeń and PLN 500.00 for the publication of Monitor Społecznych). Sądowy i Gospodarczy.

Registration of the LLC at the regional Economic As mentioned above, the following applications Departments of the National Court Register are submitted alongside the application for the competent for business activity location requires company’s registration: the submission of the application form (KRS- W3) signed by the management board with the  an application for a REGON identifcation following attachments: number issued by the Statistics Offce (Główny Urząd Statystyczny) – free of  articles of association, charge  documents appointing the company’s  an application for a Tax Identifcation governing body (Management Board), Number (NIP) issued by the Tax Offce with:  a statement from all members of the the confrmation of the legal title to the Management Board that the contributions offce/real estate, in which the company towards initial capital have been made by has its seat – free of charge, however an all shareholders in full, application for VAT costs PLN 170.00  specimen signatures of all members of  an application to Social Insurance Management Board certifed by a notary Institution – free of charge. or made in person through their presence in Court,  a list of the shareholders and the number and nominal value of shares held.

The following attachments to the application form (KRS-W4) are required in registration the joint-stock company:

 a company’s statute,

96 III.2. Taxes

The Constitution includes the rule that its III.2.1. General regulations should be applied directly unless Overview its other regulation says otherwise. It means an interpretation of tax regulations should always conform to the Constitution. If there is The tax system applicable in Poland is based on a regulation in tax law that is inconsistent with three pillars: a certain regulation of the Constitution, the Constitution should be applied.  the Constitution of the Republic of Poland,  internal tax regulations, The Polish tax system consists of tax titles and  EU tax regulations regarding Art. 93 of the the act of Tax Ordinance. Generally tax titles are Treaty establishing the European Community. divided into direct and indirect titles. Direct tax titles are related to possessions like income, real The Constitution of the Republic of Poland is the estate property or inheritance. Indirect tax titles most important legal document in the Polish tax are related to other subjects like goods and system because it regulates all principles to create services (e.g. VAT, excise tax). an applicable law system in Poland, including the tax system. According to the Constitution, the The act of the Tax Ordinance specifes the basic following subjects can be established in law: rights and obligations of taxpayers and tax authorities and procedures. the levying of:  taxes, Since 1 May 2004 when Poland joined the  other public fees. European Community, Polish legislators are obligated to harmonise the internal Polish tax the defnition of: system with EU regulations. The changes above  entities and subjects of taxation, all relate to VAT and excise tax. Since this date  tax rates, a lack of implementation or an implementation  exemption, tax relief and remission in taxes. inconsistent with the EU-legislator’s intention in the above-mentioned range is always

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interpreted to the taxpayers’ advantage. Taxpayers that have their place of  an average share capital of each company in the related entities and include amongst residence or board of directors in Poland the group amounts to at least PLN others a calculation of prices and point out the The Polish tax authorities consist of (in (residents) are liable to a tax obligation 1,000,000, risks inherent to each party. The aim of such accordance with their validity): for total profts regardless of the country  one of companies in the group, referred to documentation is to show that the conditions of generating those profts. Taxpayers that as the holding company, owns 95% of the transactions are the same as those between  the Minister of Finance, don’t have their place of residence or shares directly in the share capital of other non-related entities. In the case of a tax control  tax chambers and customs chambers, board of directors in Poland (non companies, called subsidiaries, the documentation has to be presented within  tax offces and customs houses. residents) are liable to a tax obligation  there are no other relations in the group seven days of the date of request. only for profts generated in Poland. and also with companies outside the group  all companies in the group have no tax If prices do not comply with market conditions, Taxation of partnerships arrears, the tax authorities are entitled to estimate the III.2.2. Taxation of  the ratio of proft to income generated by value of transactions using one of following company Incomes and costs generated by a partnership the group in every tax year amounts to at methods: are taxed separately by each partner according least 3%. to the proportion of possessed shares and to  comparable uncontrolled price method, III.2.2.1. Income Tax the chosen tax rate (in the case of individuals). The legal basis for a tax capital group is an  resale price method, agreement for three years, in the form of a  reasonable margin (cost plus) method, Branches of foreign companies notary deed that has to be registered at a tax  transaction proft method. Income tax is governed in the Corporate Income offce. Companies from the group cannot use Tax Act, hereinafter referred to as ‘CIT’, and the Foreign investors have the possibility to choose any tax exemptions. If a proft or a loss calculated by the tax Personal Income Tax Act, hereinafter referred to a legal form for their activity in Poland. This authorities is respectively higher or lower than as ‘PIT ‘. A regulation type that should be used could be a partnership, a capital company or Transfer pricing that given by an entity, a 50% penalty tax rate in a concrete case depends on a legal form of a branch. is applied. an entity. Depending on the legal form, the All transactions carried out between related income of an entity or of a shareholder will be The branch is, in general, treated for tax purposes individuals and/or corporate entities are under the Since 2006, Polish taxpayers are entitled to taxed, i.e. CIT for a limited company and a joint- as a Polish company, with the consideration of special supervision of tax authorities. The reason apply for an agreement with the Minister of stock company, PIT for a limited partnership or the legal form of its head offce. Only Polish- is a transfer of profts to the country of a related Finance in scope of transfer pricing. This is a registered partnership. generated incomes and costs are subject to entity because of favourable tax rates. known as the Advanced Pricing Agreement Polish taxes. (APA) and is related not only to transactions Entity of taxation According to Polish regulations, a relationship between Polish taxpayers, but also between From the legal point of view a branch is not a exists when: Polish and international entities. According to CIT: separate entity, but a unit of a foreign company.  a legal person, Therefore, there is no withholding tax on profts  an entity participates directly or indirectly The main advantage of the APA is the confrmation  an organisational entity without cor- transferred to its head offce. in the management or control of another by the tax authorities that the calculation and porate personality, except partnerships, entity or holds at least 5% of shares in application of transfer prices chosen by a taxpayer  tax capital group. Tax capital group another entity (capital relationship), are correct. The APA obliges tax authorities to  there is a familiar relation or other relation accept presented methodology. According to PIT: It is possible to optimise corporate income tax resulting from an employment between  a partner in a limited partnership or obligations by forming a tax capital group. The individuals who act as a manager or a The APA concerns transactions which shall registered partnership, main advantage of this solution is the calculation supervisor in different corporate entities both be concluded after the submission of an  a company without corporate personality of a taxable proft by adding the profts and losses and/ or the same individuals act as a application for the APA or those that started that has its place of residence or board of of all the companies in the group. However, the manager or a supervisor in the same time before and are currently in progress. It does not directors in another country where conditions that have to be fulflled are highly in different entities. refer to transactions which were started before according to the law of this country it restrictive. the submission of an application and on the APA is treated as a legal person and all its If a relationship exists, one of related entities is completion date were subject to any tax control incomeis taxed in the country regardless of A group can be formed only by the limited liability obliged to prepare a transfer pricing document, or proceedings. the country generating the income. and joint-stock companies based in Poland, if: which should describe all transactions between

100 101 Taxes

Subject of taxation The Polish legislator excluded some incomes paid back to shareholders only in case of the  a Polish capital company holds directly and costs from the taxation subject; therefore dissolution of the capital company. no less than 25% shares in a capital The subject of taxation is a proft regardless of they cannot be taken into consideration by company from an EU country, the income source it was received from. Proft calculating the proft. Examples of other non-deductible costs:  other capital companies, whose income is is an amount of surplus between revenues and taxed in an EU country, directly holds no tax-deductible costs received in a fscal year. If This regulation applies, for example, in cases  non depreciated value of fxed assets that less than 25% shares of both the amount of tax-deductible costs exceeds the of loan and credit interests paid by a Polish are spent for free, aforementioned capital companies. amount of income, the difference is a loss. If a corporate entity to its affliates. If all the liabilities  most penalties and fnes, taxpayer incurs a loss, he can reduce proft in of a Polish corporate entity from different  expenditures for a car over determined limits, With respect to dividends, the exemption following fve years by the amount of this loss, sources (such as loans, credits and invoices),  representation expenses. applies when a capital company from an EU but the reduction cannot be higher than 50% due to its affliates who hold no less than 25% country directly holds no less than 10% of of the loss in one year. of shares, exceed three times the share capital The defnition of revenues includes, amongst shares from a Polish capital company for value of the Polish corporate entity, the loan others, due revenues, even if they are not a continuous period of at least two years. In case of a share in an individual or corporate or credit interests are not recognised as a tax- received, excluding payments in advance, free Both acts (CIT and PIT) allow a number of entity’s proft (dividends), non-resident incomes deductible cost for a period in which a loan and partially free benefts. exemptions or lower tax rates for the income/ due to so-called licence dues (i.e. loan interests, or credit exceeds a triple share capital value. licence fees, royalties, rent for machines etc.) This limitation was put into force to avoid Tax rates and intangible services (such as management so-called ‘thin capitalisation’, which refers to and advisory services or market research), the the fnancing of a current business activity via Income source Tax rate income is considered as the taxation subject, loans and credits. This can easily be paid back not the proft. to the borrower instead of capital that can be 18% up to PLN 85,528* business activity (self-employed) unless the linear 32% over PLN 85,528* taxation is not declared the tax credit amounts PLN 556.02 - capital company income, - share in capital companies profts, i.e. dividends (withholding tax), 19% - interests, - business activity (self-employed) – after the declaration of the linear taxation. non-residents’ income due to licence dues 20% (withholding tax) and intangible services - some incomes: - donations, exemption - incomes of some entities. * new rates in force since 1 January 2009

The special exemption concerns licence dues proft generated by non-residents in Poland. and dividends paid by a Polish capital company Therefore a non-resident’s place of residence to another capital company outside Poland or and regulations regarding double tax treaties, the EU. Regarding licence dues, the exemption of which Poland is part, should be taken into applies when: consideration when settling the fnal tax rate.

 an EU capital company holds directly no less Obligations than 25% shares in a Polish capital company, According to the general rule, a payer of

102 103 Taxes

income tax is obligated to pay a tax advance Subject of taxation total annual turnover will be lower than PLN obligation arose. In a VAT-declaration, a VAT before the 20th day of the month that follows 50,000. In this case, an entity is not obliged to tax payer has to show the difference between the month in which the tax obligation arose or  payable delivery of goods and payable its turnover, however is also not eligible to deduct output tax resulting from sales, and input tax in case of ‘small’ taxpayers: before the 20th providing of services in Poland, input tax from purchases. resulting from purchases. In case of a surplus day of the month that follows the quarter in  export of goods, of output tax, a VAT payer is obliged to pay this which the tax obligation arose. Additionally a  import of goods, An intra-community acquisition and delivery are surplus to a bank account of a tax offce within taxpayer has an obligation to submit an annual  intra-community acquisition of goods with allowed only for entities that are registered as an a time limit set forth for tax declarations. In tax declaration within three months following remuneration in Poland, EU VAT payer. case of a surplus of input tax the taxpayer can the year in which tax obligation arose.  intra-community delivery of goods. apply for VAT returns on his bank account or Consignment stock assign it to the next settlement period. The exception relates to dividends, licence dues Entity of taxation and intangible services. In this case the tax has A consignment stock is a warehouse where raw In case of an import of goods VAT showed in to be paid within seven days following the  a legal person, materials moved by a supplier – who is a VAT a customs declaration should be paid within month in which the tax obligation arose.  an organisational entity without corporate payer in another EU state than Poland – from 10 days from the date of customs clearance. personality, its warehouse in another EU state than Poland There are some possibilities to save the VAT  individuals that carry out an independent are stored. The consignment stock is located in obligation in case of the import of equipment III.2.2.2. Value Added Tax business activity (VAT has its own defnition Poland and managed by a Polish VAT payer. or factory facilities. of business activity, therefore every case should be analysed separately. This procedure is a simplifcation that allows VAT return from tax offce suppliers not to register for VAT in Poland, because VAT payers are also entities who: all formalities connected with taxation and tax VAT may be recovered by two methods – reports are completed by a Polish VAT payer. indirect and direct.  perform intra-community delivery of new transport means, Tax rates  perform intra-community acquisition of goods in Poland, Activity Tax rate  are recipients of services provided or goods delivered by taxpayers having their all besides below mentioned 22% registered seat, fxed place of business activity or place of residence outside Poland. some goods and services specifed in the Act 3% and 7%

Entities having their registered seat, fxed place - export of goods of business activity or place of residence outside - intra-community delivery of goods 0% Poland and who are subject to registration as - international transport a VAT payer in Poland are obliged to appoint a tax representative. This obligation does not - some used goods The Value Added Tax Act (hereinafter referred concern entities from any EU member state. ed to as ‘VAT ‘) uses the following terms: - financial services Entities that perform activities mentioned in  output tax – when resulting from a sale, the ‘Subject of taxation’ are obliged to register Obligations The indirect return of input tax is the most a salesman is obligated to show an as an active VAT payer before undertaking the common method for companies which have invoice and to pay to the bank account frst taxable activity. From the frst activity they A VAT payer has an obligation to submit a monthly sales and expenses on a constant of a tax offce, have to issue invoices with the proper VAT rate, monthly tax declaration until the 25th day level. A VAT payer may recover the input tax  input tax – a tax that a buyer of goods or according to special regulations. of the month following the month in which via deduction from output tax. services has to pay to a salesman, but has a the VAT obligation arose or, in the case of possibility to deduct it from his own output There is the possibility of not registering for ‘small’ VAT payers, before the 25th day of the The direct tax return means the refund of VAT tax or to receive it back from a tax offce. VAT if an entity foresees that the volume of a month following the quarter in which the VAT by money transfer from the tax offce in the

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amount of VAT paid during the purchasing customs rates and obligations are governed on III.2.2.5. Duty-free zones process. This method is common for the start- the EU level, although the local country praxis up phase, like industrialisation or purchasing is still important and is recognised as binding of assets, when input VAT is accumulated. The and valid (i.e. the technical and procedural A duty-free zone (DFZ) is a separate entity not return of VAT is generally made within 60 days aspects). inhabited as part of a larger customs area, under the condition that Tax Offce will not which is treated as a foreign country for which a suspend this period because of control in a The import of goods, such as raw materials from uniform customs system applies. All entries and VAT payer company. The VAT act also governs a non-EU country into the EU and eventually exits of DFZ are under customs supervision. the shorter term of 25 days for refund, but to Polish territory, creates an obligation to pay only under certain conditions. All the above customs and VAT in the country of customs The advantage of a DFZ is that foreign mentioned deadlines may be easily extended clearance or country of destination for supply. merchandise (other than from EU or EEA) by the tax offce during the tax control. The procedure depends on obligations of the brought in are sold without import duties, supplier and delivery procedure. excise tax and VAT.

Excise tax There are seven duty-free zones in Poland (as of 16 March 2009): Activity Tax rate The act of Excise Tax regulates production and trading of harmonised (motor fuel, heating - loans granted by a shareholder of partnerships oil and gas, alcohol and tobacco products) Map with duty – free zones - contribution to a new company and capital 0.5% and non-harmonised (goods which are not increase harmonised) excise-duty goods. - loans granted by shareholder capital companies exemption Gdańsk harbour Entity of taxation - donations 2% Szczecin - sale of a property  a legal person, - sales of some fnancial rights, including shares 1%  an organisational entity without corporate Terespol personality, Warszawa airport  individuals that carry out transactions taxed by excise tax. Mszczonów III.2.2.3. Tax on civil law of the Customs Union, a fact which caused transaction signifcant changes in customs clearance Subject to taxation: Gliwice regarding import and export goods to and from Polish territory. Any existing customs  production of harmonised excise-duty goods With respect to a business activity, the following barriers between Poland and EU member states  taking out harmonised excise-duty goods transactions amongst others are taxed with tax disappeared. The transfer of goods between from a tax warehouse, on civil law: the EU member states is realised by intra-  sale of harmonised excise-duty goods in community acquisition and supplies, both for Poland, Tax on civil law transactions should be paid goods and services. Additionally on 1 January  export and import of harmonised excise-duty within 14 days from the date of a transaction. 2008 Poland fulflled its conditions and joined goods, the Schengen zone, resulting in the abolition of  intra-community acquisition of harmonised border check points between Poland and its EU excise-duty goods, III.2.2.4. Custom and Excise tax neighbour countries.  intra-community delivery of harmonised excise-duty goods. The transfer of goods between Poland and non- Custom Tax EU countries is still governed by the Customs Tax rates are expressed as percentage of the Code and is classifed as import-export. All value of goods or on a volume basis (fxed rate Since 1 May 2004, Polish territory became part regulations related to customs clearance, per product unit).

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III.2.2.7. Local taxes Vehicle tax:

 historical vehicles The most important local taxes are for  as a reciprocity rule – vehicles possessed entrepreneurs: by foreign embassies, consulates and other

Kind of tax Scope Tax base

- land used for business activity purposes, - for land and buildings – area, Property tax - building or its parts, - for structures – value. - structure or its parts used to conduct a business activity. - lorries over 3.5 tons, - admissible total weight of a Vehicle tax - trailers, vehicle for lorries and trailers, - buses. - number of seats – for buses. - number of hectares resulting - activity conducted with using Forest tax from the register of lands a forest. and buildings. - for farms – amount of hectares - arable land, taken for calculation purposes, - aree- and bush-covered land on depending on a quality of a land, Agricultural tax arable land, - for other lands – amount of III.2.2.6. Customs bonded - excluding lands used for business in Poland (as of 16 March 2009). hectares resulting from the activity other than agricultural. warehouse register of lands and buildings. Map with bonded warehouses A customs bonded warehouse is a building or other secured area in which dutiable goods Tax rates or exemptions in the property tax missions, that use diplomatic privileges and (other than from EU or EEA) may be stored, and vehicle tax are determined by a commune immunity upon acts, agreements or council, but they cannot be higher than limits customs manipulated or undergo manufacturing opera- Gdańsk harbour tions without payment or duty under bond and given by the legislator. in the joint custody of the importer, or his agent, Forest tax: Szczecin and the customs offcers. It may be established Examples of exemptions established by the legislator:  forests with woods no older than 40 years and managed by the state or by private enter- Terespol prise. In the latter case a customs bond must be Warszawa airport  forests registered individually in the register posted with the government. Property tax: of historical monuments Mszczonów  real estate used by associations to conduct Agricultural tax: The main advantage of a customs bonded a statutory activity among children and Gliwice warehouse is that all payments connected youth  arable lands of the lowest quality with a goods import (import duties, excise tax  lands and buildings registered individually  lands for a new farm up to the area of 100 and VAT) are postponed until the moment in the register of historical monuments hectares – on certain conditions of their withdrawal for consumption within – on certain conditions Poland.  non-arable lands, ecological arable lands, There are seven customs bonded warehouses excluding used for business activity

108 109 Taxes

III.2.2.8. Stamp duty sources. As a rule, proft from each source is which the tax obligation arose or, in the case Tax rates calculated separately. Proft is an amount of of ‘small’ taxpayers, before the 20th day of surplus between revenues and tax-deductible the month following the quarter in which the Married couples and sole parents are entitled to Stamp duty is collected from state administration costs, received in a fscal year. If the amount tax obligation arose. Additionally, a taxpayer tax their income individually or jointly, if certain agencies’ activities that are specifed in of tax-deductible costs exceeds the amount of is obliged to submit an annual tax declaration conditions are met, excluding the case in which regulations, i.e.: income, the difference is a loss. If a taxpayer before 31 March following the year in which one of them is taxed by the linear rate. incurs a loss, he can reduce the proft in next the tax obligation arose.  registration for VAT: PLN 170.00, following fve years by the amount of this loss, The PIT Act allows a number of exemptions  giving a power of attorney: PLN 17.00, but the reduction cannot be higher than 50% In the case of the remuneration of employees, or lower tax rates for income/proft generated  certifcate that an entity has no overdue of the loss in one year. It does not apply to loss an employer is obligated to calculate, deduct by non-residents in Poland. Therefore, a non- tax liabilities: PLN 21.00. payable on disposal of items, properties and and pay the monthly tax advances to a resident’s place of residence and regulations rights connected to properties. competent tax offce. of double tax treaties, of which Poland is a part, should be taken into consideration when III.2.3. Taxation of The Polish legislator excluded some income Individuals who receive any income from abroad settling the fnal tax rate. individuals and costs from the taxation subject; therefore are obliged to calculate and pay monthly tax they cannot be taken into consideration by advances themselves. calculating the proft. Additionally, in some cases III.2.3.1. Personal Income Tax regulations of double treaties, of which Poland is part, can change the status of an individual, Income source Tax rate and therefore the country of taxation of some Entity of taxation income sources, or reduce tax rates, e.g. for - employment contracts dividends, interests or licence dues. - civil law agreements - activity performed personally (e.g. members  a partner in a limited partnership or - 18% up to PLN 85,528* of board of directors), registered partnership, The defnition of revenues includes, among - 32% over PLN 85,528* - business activity (self-employed) – unless  a company without corporate personality others, due revenues, even if they are not - the tax credit amounts PLN 556.02 that has its place of residence or board received, excluding payments in advance, and the linear taxation is not declared of directors in another country (but only free and partially free benefts. - rental if according to the laws of this country, it - other is treated as a legal person and all its The deductible costs for people who do not run - business activity (self-employed) – after the income is taxed in this country regardless a business activity are strictly defned in the Act, declaration of the linear taxation - 19% of the country generating it), e.g. - capital gains, interests  an individual. - non-residents’ income due to licence dues  50% of income for certain activities, e.g. - 20% (withholding tax) and intangible services According to the Polish Personal Income Tax exploiting copyrights, Act, all individuals are liable to tax their income  the annual lump-sum cost, that in 2009 - some income: by PIT, but depending on their residence status, amounts to PLN 1,335 for employees, - return of business trip costs, like per diem, the tax liability can be unlimited and limited. The  20% of income for civil law agreements, travel and accommodation expenditures, frst of these refers to the worldwide income of  social insurances, - expenses paid by an employer for education a resident – an individual who has his centre of  internet, up to the value of PLN 760 per year, and enhancement of qualifcations of his - exemption economic or vital interest in Poland or stays in  expenses for rehabilitation purposes. employees, Poland for longer than 183 days in a calendar - the value of some benefts paid by an year. The second concerns a non-resident’s Obligations employer due to an accommodation of income that arose or was sourced in Poland. employees. The tax year for all individuals is the calendar Subject of taxation year. During the year, income tax payers are * new rates in force since 1 January 2009. obliged to pay a tax advance before the 20th Polish regulations defne a lot of income day in the month following the month in

110 111 Taxes

III.2.3.2. Inheritance and Business opportunities for Poland can be considered attractive. Due to a solid base of donation tax economic growth over the past years, Poland has not been hit by the global fnancial crisis in the same way like other countries. There are multiple Entity of taxation are individuals. reasons for this, the most important of which is that Poland is still targeting a GDP growth for Subject of taxation 2009 with a positive Outlook for the upcoming years. Acquisition by individuals of ownership of items located in Poland or of property rights exercised The banking sector is stable, the main indicators in Poland due to: for FDI´s are excellent and local government investment is at a high level. Furthermore the  inheritance, legacy, structural funds from the EU will underline this  donations, tendency and keep the investment volume on a  the gratuitous cancellation of joint high or even increasing level. ownership. The public aid for industrial FDI is ensured with the Tax base agreements about the Special Economic Zones (SEZ). The opportunities are highly interesting for Value after the deduction of debts and burdens long term direct investments. calculated according to the condition of an item or a property right on the acquisition date and market prices on the tax obligation date.

Tax rate

Depends on the personal relation of a receiver to a person, from whose items or property rights were acquired. As a rule, the further relation between these, the higher the applicable tax rate. This ranges between 3% and 20%.

The legislator foresees some exemption from inheritance and donation tax, e.g.:

 the acquisition of a flat or a block of flats – for the amount of 110 m2, but only after the fulflment of certain conditions,  the acquisition of an item or a property rights from one person during the last five years – up to PLN 9,637 depending on the personal relation between a receiver and the person from whom items or property rights were acquired,

112 113 III.3. Investment Incentives

Business opportunities for Poland can be will be increased owing to necessary domestic considered attractive. Due to a solid base of contribution from the Polish Government. economic growth over the past years, Poland Financial support will be provided within the has not been hit by the global fnancial crisis framework of Operational Programmes. The in the same way like other countries. There are three most important Operational Programmes multiple reasons for this, the most important are: Infrastructure and Environment, Innovative of which is that Poland is still targeting a GDP Economy and Human Capital. Furthermore, growth for 2009 with a positive Outlook for the each region has its own specifc Regional upcoming years. Operational Programme.

The banking sector is stable, the main indicators Financial support will be provided not only as for FDI´s are excellent and local government investment grants (accumulating to admissible investment is at a high level. Furthermore the limits of regional aid), but also as other types of structural funds from the EU will underline this aid, among others: tendency and keep the investment volume on a high or even increasing level.  R&D activity grants,  environmental grants, The public aid for industrial FDI is ensured with  training grants. the agreements about the Special Economic Zones (SEZ). The opportunities are highly The support is granted in the form of interesting for long term direct investments. reimbursement of incurred costs, which means that the investor must have their own fnancing III.3.1. EU Structural source (possibly in the form of a loan). Funds 2007 - 2013 In case of investment grants, it needs to be stressed that support will only go to innovative investments generating new technologies, From 2007 to 2013 Poland will gain EUR 67.3 logistic solutions, products, services, projects billion of EU Structural Funds support. This sum committed to the increase of productivity and

114 115 Investment Incentives

export or implementing a substantial logistic projects. Investments of key supra-regional  environmentally friendly energy infrastructure a consistent system for the implementation modifcation in the company. importance concerning the social infrastructure and energy effciency, of ESF in Poland. The establishment of a (health care, culture and higher education) will be  energy security, including diversifcation single Managing Authority will facilitate the The following table illustrates all of the complementary to these areas. of the energy sources, monitoring of the programme’s implementation, operational programmes available in Poland:  culture and cultural heritage, while at the same time providing for an  health security and improving the effciency immediate response should any problems in its of the healthcare system, implementation arise. Name % of total funds Amount in EUR billions  infrastructure of higher education, OP Infrastructure and Environment 41.90 27.9  technical assistance – European regional The HC OP contains fve priorities implemented development fund, at the central level: OP Innovative Economy 12.40 8.3  technical assistance – cohesion fund. OP Human Capital 14.60 9.7  employment and social integration, OP Development of Eastern Poland 3.40 2.3 . Operational Programme - Human Capital  the development of human resources (HC OP) and adaptation potential of enterprises OP Technical Assistance 0.80 0.5 and the improvement of health condition 16 Regional Operational Programmes 24.90 16.6 Financed from the European Social Fund (ESF). for working people, European Territorial Cooperation Programmes - 0.7  high quality of the educational system, In view of the scale of social problems, 14.6%  tertiary education and science, Source: Ministry of Regional Development of the structural measures will be allocated  good governance. to the implementation of projects which Poland has received EUR 67.3 billion for the The expected value of these indicators of have been co-fnanced by the European The HC OP contains fve priorities implemented period 2007-2013. expenditure on the implementation of the Lisbon Social Fund. A substantial part of these funds at the regional level: Strategy goals will be reached by concentrating under that programme will be focused on the . Operational Programme -- Infrastructure the Community funding on the activities implementation of the Lisbon Strategy goals.  the labour market open for all, and Environment (IaE OP) for the conformity of the national transport  the promotion of social integration, system with the European system, mainly the The programme will concentrate on supporting  regional human resources for the economy, Considering needs regarding transport, the development of the transport infrastructure the following areas: employment; education;  the development of education and environment and other types of infrastructure, of transnational outreach with respect to the social inclusion; development of the adaptability competences in the regions, 41.9% of the total Structural Funds have so principles of balanced development. of workers and enterprises as well as issues  technical assistance. far been earmarked for this programme under connected with the development of human the NSFR. This has been fnanced from the The IaE OP contains 15 priorities: resources in rural areas. It will create an effcient . Operational Programme - Innovative European Regional Development Fund (ERDF) and and effective public administration at all levels, Economy (IE OP) the Cohesion Fund.  water and sewage management, implementing a good governance principle and  waste management and the protection of health promotion in human resources. Financed from the EFRD. The IaE OP supports key investment aimed land , at sustaining and improving environmental  resource management and counteracting The overall goal of the programme is to enable 12.4% of the total of the Structural Funds will conditions. Issues connected with balanced environmental risks, Poland’s full human resources potential through be allocated to the IE OP. development will also have a major importance  initiatives aimed at adjusting enterprises increasing employment; the adaptability of the due to the following streams of investment in to the requirements of environment enterprises and employees; raising the level of It is assumed that the highest performance the energy sector: protection, education in society; reducing areas of social value indicators will be reached under this  environment protection and promotion of exclusion and supporting the development of programme. The focus of the IE OP is to increase The necessary investment in the diversifcation ecological habits, the state’s administrative structures. the number of innovations by increasing R&D of traditional energy sources is to be achieved  ten-t road and air transport network, outlays, the development of cooperation using market mechanisms.  environmentally friendly transportation, The combination of all areas supported by the between the B&R sphere and businesses, as  transport safety and national transport ESF and resources are concentrated on one well as diversifying entrepreneurship potential. Investing in renewable energy, reducing demand networks, programme comprising central and regional The investment should be responsive to the for energy and otherwise environmentally friendly components, resulting from the need to ensure needs of the Community market.

116 117 Investment Incentives

The programme supports innovation at a The outreach of the OP DEP covers the areas II: Infrastructure of the information society the list of activities implemented under national level. Innovation at local or regional of intervention of other programmes but it regional programmes resulting from a number levels will be supported and promoted through differs in that its scope is restricted to selected  broadband network of Eastern Poland, of premises, of which the most important the Regional Operational Programmes. areas which, because of the scale of activities  voivodship growth centres, is to ensure the consistency between the and the expected long-term results, may have  systems of municipal public transport, regional approach and goals and priorities of The main goal of the innovative economy a special impact on the development process.  infrastructure of congress and fair travel. the national and European strategies, as well Operational Programme is the development This programme is an additional element of as taking into account activities concerning of the Polish economy based on innovative support under the structural funds which will III: Transport infrastructure state aid for the SMEs sector (uniform criteria enterprises. The Programme’s detailed objectives enhance the actions of other programmes in for the granting of aid will be laid down at the include: increasing the innovativeness of Eastern Poland.  Road infrastructure. national level). enterprises; enhancing the competitiveness of Polish science; creating better, sustainable jobs The Objective of the Operational Programme IV: Sustainable development of tourist potential A maximum of 3% of ERDF allocations for and increasing the use of ICT in the economy. Development of Eastern Poland is, ”Hastening based on natural conditions each of the 16 ROPs may be used for housing the pace of social and economic development projects which meet the requirements laid down The IE OP contains nine priorities: in Eastern Poland pursuant to the sustainable  promoting sustainable tourist development, in the relevant regulations. These activities are development principle.”  developing bicycle routes. complementary to ROP projects regarding  the research and development of new urban areas threatened with degradation and technologies, The main objective of the programme will V: Technical Assistance social exclusion. Such solutions, despite being  R&D infrastructure, be achieved through the implementation of planned and implemented at a regional level,  capital for innovation, specifc objectives, namely:  support for the process of implementation will form a component of activities connected  investments in innovative undertakings, and promotion of the programme. with the improvement of the housing situation  the diffusion of innovation,  stimulating the development of knowledge contained in the state policy, with regards to  the Polish economy on the international based on a competitive economy, . Regional Operational Programmes housing. market,  improving access to broadband Internet  establishing electronic administration for in Eastern Poland, Nearly one quarter of the budget (24.9%) is General rules for project development the information society,  developing selected metropolitan functions allocated to investment in the development of  increasing economic innovation for the of voivodship cities, regions. Before applying for a particular grant, an information society,  improving accessibility and the standard entrepreneur must defne:  technical assistance. of transport links in voivodships of Eastern The justifcation for the preparation of the 16 ROPs Poland, is the decentralisation of the programming of  The project’s objective, . Operational Programme - The Development  enhancing the role of sustainable tourism regional development, an increased effectiveness  The expected effect and benefts to be of Eastern Poland (OP DEP) and the economic development of the of the provision of development activities by the derived from the project, macro-region, public administration, the strengthening of the  The starting and closing date of the project, The Operational Programme Development of  optimising the implementation process of civic and self-government dimensions, as well as as well as the duration of each project stage, Eastern Poland (OP DEP) is fnanced from the ERDF. OP Development in Eastern Poland. the effective use of structural measures for the  The project’s implementation path, period of 2004-2006 by regions under the IROP.  The people involved on the project, The reason for the development of this pro- The objectives of the ROPs are on the one hand  The costs involved, gramme was that additional funding was set by voivodships in compliance with regional  The actions necessary in order to start awarded from the European Regional Devel- The OP DEP contains fve priorities: development strategies, while on the other project implementation, opment Fund for the fve most disadvantaged hand they are also inscribed in such NSFR goals  The limitations and threats to project regions: Lublin, Subcarpathian, Podlaskie, I: Modern Economy as the enhanced competitiveness of individual implementation, Świętokrzyskie and Warmian - Masurian. regions and the promotion of balanced  An analysis of fnancial sources, These voivodships are characterised by: low  the infrastructure of universities, development.  An analysis of requirements to be met by living standards; a low dynamic of economic  supporting the establishment and co- the benefciary and the project (whether development; poorly developed, inadequate financing of fnancial engineering instruments All ROPs have a similar structure, but their it be eligible for co-fnancing or not), transport infrastructure and insuffcient - Supporting innovativeness, contents and fnancial resources are specifed  An analysis of the technical and fnancial growth factors.  promotion and cooperation. at the regional level. The need to harmonise aspects of the project.

118 119 Investment Incentives

Regardless the type of a programme, one has obtain special permission which is issued by SEZ maintained for at least fve years from the in order to defne the profle of candidates or to take the following facts into consideration: authorities. employment date (three years for SME). job advertisements.

 the fnancing authority will not assign Granted, CIT exemption can be utilised by the 2. Intervention works - This kind of program any funds until it is presented with a Special Economic Zones in Poland investor by the end of a given SEZ’s existence provides subsidised jobs to unemployed coherent, logical and complete project, (currently 2020), but it cannot exceed the people based on an agreement between the  development of a project requires admissible intensity of regional aid. CIT Labour Offce and an employer. The program considerable expenditure of time and money, Sopot exemption is provided only for profts earned is targeted at unemployed people who are in Słupsk  not all projects will be granted support Suwałki from activities conducted within an SEZ. diffcult situations on the labour market. The (failure to meet the criteria or comply with Olsztyn Labour Offce reimburses the wage costs of the procedures will result in rejection), In the SEZ permission, the investor must people hired under the program to employers.  the project must be addressed to a clearly Kostrzyn provide investment outlay, the intended level of The duration of this scheme and the amount specifed group of benefciaries and respond employment, the date of commencing business reimbursed depends on the target group. to documented needs, and the deadlines for fulflling all obligations  the project must be in line with the Legnica mentioned in the permit, which is usually valid 3. The preparation of new workplaces - This benefciary’s statutory objectives and Starachowice by the end of a given SEZ’s existence. type of subsidy can be offered as reimbursement Jelenia Góra individual strategy, Wałbrzych tarnobrzeg It takes between three and four months to against the cost of purchasing workplace  the project should contain a detailed Katowice complete all the requirements needed to equipment. The amount of this reimbursement timetable of actions - a cost estimate, as Mielec obtain the SEZ permit and to start business is limited and cannot be higher than six times well as a system of promotion, monitoring Kraków activity entitled to CIT exemption. The SEZ the average monthly salary in Poland. and evaluation, management collects an annual fee for  the project costs must be fairly calculated, administrating the SEZ. 4. On the job training - Based on this program, based on the actual costs incurred, with the Source: PAIiIZ the Labour Offce may delegate the person to account being removed from any the training without concluding an employment unexpected circumstances, The map above shows the main headquarters of III.3.3. Labour market contract with the employer. The duration of  a benefciary should ensure the sustainability each of the 14 SEZs (source PAIiIZ). In addition instruments this work experience can be from a minimum of a project for a minimum of fve years, to these, many regions also include subzones of three months to a maximum of 12 months. or, in the case of SMEs (small and medium to help the investor place their project in the In such cases, the selected group will be paid enterprises), a minimum of three years most suitable location. The combined area of In order to hire unemployed people the companies by the Labour Offce. When the training period following the project’s completion. all the SEZs is currently 12.531 ha, although the may approach the local Labour Offce, which ends, it is possible to conclude the work total area of the SEZs cannot exceed 20,000ha. can support entrepreneurs using various agreement with selected candidates. If an entrepreneur is interested in investing in labour market instruments. The main forms of III.3.2. Special a specifc location currently outside an SEZ, it assistance include the following activities: 5. Financial support for training programmes Economic Zones (SEZ) is possible (under certain conditions) to include for all potential employees who may acquire the location within an SEZ. 1. Assistance in the process of recruiting new qualifcations or vocational skills through employees with suitable qualifcations. First of all, practical work performance at a given post. A Special Economic Zone (SEZ) is a specially The conditions for conducting business within the Labour Offce collects and disseminates the earmarked area with local infrastructure an SEZ are as follows: job advertisements and informs entrepreneurs 6. The reimbursement of social security support, in which business activity can be about potential candidates; it then initiates and contributions in the case of the employment of conducted on preferential terms (corporate  investment expenditure should amount to organises contacts and interviews unemployed an unemployed person delegated by the Labour income tax exemption). The primary objective at least EUR 100,000, people and employers. The Labour Offce can Offce. The reimbursement of social security of providing public aid within an SEZ is to assist  the entrepreneur’s own share should be also be informed about the current situation contributions up to 300% of the minimum in the reduction of development disparities at least 25%, and planned changes to the local labour monthly salary in Poland is based on the between regions, thereby strengthening  investment must be maintained for at least market. Often there are also various organised contract concluded between the prefect and economic and social cohesion. In order to five years from the investment completion events, such as labour exchanges. Assistance in the employer. The amount can be reimbursed operate within an SEZ and beneft from the date (three years for SME), the process of recruitment is also carried out by only after the fulflment of two conditions: that aforementioned exemption, the investor must  newly created workplaces must be career consulting services, which are provided the person delegated by the Labour Offce has

120 121 Investment Incentives St. Mary’s Cathedral in Kraków

been employed full-time within 12 months and are based in that country. The Polish OECD NCP that the employee is still employed after 12 is located at the Polish Information and Foreign months. Investment Agency (Polska Agencja Informacji i Inwestycji Zagranicznych S.A). Entrepreneurs interested in labour authority support should contact the appropriate Labour The guidelines contain, among other things, Offce and prepare and submit the required the following rules: application and documentation depending on the type of support required.  enterprises should respect the rights of their employees to be represented by trade unions and other bona fde representatives III.3.4. OECD Guidelines of employees, and engage in constructive for Multinational Enter- negotiations, either individually or through employers’ associations, with such prises representatives with a view to reaching agreements on employment conditions,  enterprises should, within the framework OECD Guidelines for Multinational Enterprises of laws, regulations and administrative are annex to the OECD Declaration on practices in the countries in which they International Investment and Multinational operate, and in consideration of relevant Enterprises. They contain recommendations, international agreements, principles, providing voluntary principles and standards for objectives, and standards, take due account responsible business conduct for multinational of the need to protect the environment, corporations operating in or from countries public health and safety, and generally to adhered to in the declaration. The guidelines are conduct their activities in a manner legally non-binding. The business community, contributing to the wider goal of labour representatives and non-governmental sustainable development, organisations were all engaged in the  enterprises should not directly or indirectly developing of these guidelines. A defnition offer, promise, give or demand a bribe of multinational enterprises usually comprises or other undue advantage to obtain or retain companies or other entities established in more business or other improper advantage, than one country and so linked that they might  when dealing with consumers, enterprises coordinate their operations in various ways. should act in accordance with fair business, The guidelines cover business ethics on marketing and advertising practices and employment, human rights, the environment, should take all reasonable steps to ensure information disclosure, combating bribery, the safety and quality of the goods or consumer interests, science and technology as services they provide. well as competition and taxation.

According to the OECD Council, each adhering country must set up a National Contact Point (NCP). The NCP is an entity responsible for the promotion of the guidelines on a national level. An NCP handles all enquiries and matters related to the guidelines in that specifc country, including investigating complaints about a company operating in, or whose headquarters

122 III.4. Accounting & Finance

from EU Directives. The amendment dated III.4.1. Accounting and March 2008 implemented regulations from financial regulations the 2006/46/WE EU Directive. Among others, it is concerned with consolidating fnancial statements and extends to a scope of obligatory The Polish accounting regulations are very disclosures presented in statements. It also similar to other systems and are constantly being introduced to the management of the entities synchronised with the International Accounting the responsibility to prepare and publish their Standards and EU regulations, to make them fnancial results. comparable. In situations which are not regulated by the Law Regulations Accounting Law, proper standards can be used.

Polish accountancy law is constituted by the Also there is an allowance, for a specifed Accountancy Act of 29 September 1994 and group of companies, to do so according to Polish GAAP (which so far constitutes six International Financial Reporting Standards. standards). The provisions of the Accounting Companies listed on the Warsaw Stock Exchange Law apply to the entities whose registered are obliged to prepare consolidated fnancial offces or place of executive management are statements in accordance with International located in Poland. The Act enumerates foreign Financial Reporting Standards. Furthermore, people, foreign companies operating through the subsidiaries of such companies may choose branch offces or registered subsidiaries, fnancial statements in accordance with EU and obliging them to maintain full accounting International Financial Reporting Standards if records in compliance with Polish law. they prefer.

The Accounting Act does not differ considerably Accounting facts from International Financial Reporting Standards, which were adopted by the EU Accounting records must be maintained in both and are harmonised with regulations resulting the Polish language and currency. Amounts

124 125 Accounting & Finance

denominated in foreign currencies are converted The entity’s manager ensures the preparation Polish accounting Law is often changing, into Polish at the average exchange rate set III.4.2. Financial of the fnancial statements within three months due to the application of solutions from the by the National Bank of Poland. In general, statements from the date of the balance sheet, as well as International Financial Reporting Standards all accounting documents should be in Polish its presentation to the relevant authorities. and EU accounting regulations. apart from source documents, though it should be remembered that these should be translated Entities shall prepare the fnancial statement The approval of the statements shall take place The aim of the implementation of these into Polish at the behest of the tax authorities on the last day of the fnancial year referred to within six months after the date of the balance international regulations is to equalise and auditors. in article 12, paragraph 2 of the Accounting sheet. the competitiveness of enterprises. The Law. Principles for the measurement of assets, harmonisation of accounting regulations will The accounting period lasts 12 months, and liabilities and equity and the determination have an effect on increasing the quality and is usually the same as a full calendar year. Of of the fnancial result should be applied III.4.3. Audit and comparability of information given by the course, the company may choose different respectively as specifed in chapter 4 of the publication companies. It also effects the improvement dates, but the Tax Authorities must be informed Accounting Law. in the reliability of fnancial data in front of about this change. Bookkeeping can be done business partners and fnancial institutions. internally by a qualifed employee or externally Issuers of securities admitted to or intending The obligation of auditing and the publishing of by an accounting offce. Documents and to fle for admission to or issuers of securities the fnancial statement refers to consolidated accounting books must be kept in the company’s pending admission to trading in one of the statements of capital groups, joint stock head offce, as well as in an accounting offce. regulated markets of the European Economic companies, banks, insurers and entities which Documents for each year must be kept for fve Area may prepare their fnancial statements operate on the basis of regulation on trading in years, payroll documentations for longer period in accordance with International Financial securities and regulations on investment funds and fnancial statements permanently. Reporting Standards. or pension funds.

The responsibility for fulflling these obligations Another group of companies allowed to use Other companies are obliged to be audited in the feld of accounting falls entirely on the the International Financial Reporting Standards if they have met at least two or three of the Manager of a company. The scope of this regulations are entities which are members following conditions during or preceding the responsibility was extended and emphasised in of capital groups, in which a parent company accounting year: the implemented regulations of the 2006/46/ prepares consolidated fnancial statements WE EU Directive. under International Financial Reporting  the average number of employees con- Standards. verted into full-time employment is Entities are required to apply all accounting equivalent to at least 50 people, principles included in the Accounting Law, to These decisions can be made only by the  the total assets as at the end of the fnancial truly and fairly present their fnancial position approving body of such companies. year were at least the Polish zloty equivalent and fnancial results. The economic substance of EUR 2.5 million, of transaction is a base for recognising events, Financial statements consist of a balance sheet,  the net revenue from the sales of goods including business transactions, in the books a proft and loss account, an introduction for resale and fnished goods and the of accounts and a presentation in the fnancial to the fnancial statements and notes and financial transactions for the fnancial year statements. The company can apply some explanations. Entities which are a subject was at least the Polish zloty equivalent of simplifcations within its accounting principles, to annual audits also prepare a statement of EUR 5 million. provided that it has no signifcant negative changes in equities and a cash flow statement. impact on the presentation of their fnancial For fnancial statements, an annual report The aim of the audit is expression by a statutory position and its fnancial results. of company activity should be included. The auditor with a written opinion. The audit report covers information about events having contains a report on whether the fnancial signifcant influence on company’s activity, and statements are correct, and whether they give also presents the company’s achievements and a true, fair representation of the property, projections. All documents must be prepared in fnancial position and the fnancial result of the both the Polish language and currency. audited entity.

126 127 III.5. Employment of Staff

or 26 days of paid annual leave. The III.5.1. Employment of employee is not allowed to renounce their workers leave and the employer is obliged to pay the equivalent to an employee for unused leave, Every investor who wishes to start and develop  receive sickness allowance, their business activity in Poland must take into  working time rules, account the employment of workers. Polish  special protection of some employees’ law describes and regulates various possibilities groups, of employment. The main legal form of  procedure of termination of employment. employment is the employment relationship regulated by the Polish Labour Code from 26 The Labour Code lists various forms of June 1974. The employment relationship is employment contract: connected with the system of guarantees and rights of employees. In accordance with the  For a trial period - This kind of contract Labour Code the employee has right to: may be concluded only once between a given employee and employer. Its purpose  Receive the remuneration for his work, the is to check the employee’s suitability to financial conditions of which are defned in perform the duties for an extended period the employment agreement and the of time. The trial period may not exceed employer is obliged to pay it regularly to three months, an employee. The employee may not earn  For a fxed period - This kind of contract is less than the minimum monthly remunera- defned by a specifed date. The law does tion which in 2009 is PLN 1,276.00 for not regulate the maximum duration of such full-time work, an agreement, but the terms of the contract  Use their holiday leave time - The employee should be reasonable. However, there is has the right to annual paid leave, the length a limit to the number of such contracts of which depends on their seniority, but in which can be concluded with one employee. general every employee is entitled to 20 In accordance with the Polish law, a

128 129 Employment of Staff

permanent employment contract must The contract expires automatically with the end insured person. Open pensionable funds follow after two consecutive contracts for a of the term or when a given task or activity has belong to the 2nd pillar of the social insurance fixed period, been completed. An employment agreement and are managed by private investing frms  For an indefnite period, may be terminated upon mutual agreement of (Public Pensionable Associations) that invest  For a period of absence of another employee. both parties (at any time and regardless of the premiums into fnancial markets. type of contract), by one of the parties upon  3rd Pillar (IKE) – is a free capital pillar, which is The employment contract must defne the prior notice (at the end of a specifed notice organised as an investing fund. The insured parties, working hours, fnancial conditions, period), or by one of the parties without prior people choose the insurance company type of work and place of its performance, and notice (if a serious breach on the side of the (associations of the mutual insurance, should be concluded in writing. Asides from other party occurs or if employment cannot be insurance associations). After reaching a the employment contract, the employee should continued for certain reasons). The notice period pensionable age the pensioners (women receive from the employer written information depends on the type of contract concluded III.5.2. Polish social at 60, man at 65) get pensions from the concerning their employment within seven days by the parties and the actual duration of the security system Social Security Institution (ZUS) and the after starting work. The employee is obliged to employment. Open Pensionable Fund (OFE) through an perform their work in the hours specifed in Agent Company, and the eventually the contract, to carry out the instructions of In general (there are many exemptions in Polish Pillar I, II & III payment from the free 3rd pillar. their supervisors and act in the interest of the law), foreigners who are going to perform work employer. in Poland are obliged to obtain a work permit. In 1999 a reform of social insurance was carried Obligatory social insurance contributions paid The need to obtain the work permit concerns out, which was based on the co-fnancing of by the employee and the employer Apart from the employment relationship non-EU citizens who are going to work in premiums by the employer, the employee and regulated by the Labour Code, there are other Poland as an employee. In the case of citizens three pillars – one repartition and two capital According to the Act from 13 October 1998 forms of employment based on the Civil Code of non-EU countries who are members of the pillars. regarding the social security system social – known as civil law contracts. These contracts management board in legal entities in Poland, insurance in Poland includes: give more latitude in formulating the content of Polish law gives a simplifcation. Namely, they The social security system in Poland is based on legal relationship between the parties without are allowed to perform the work in Poland three pillars: pensionable insurance any minimal guaranties which result from for a period not exceeding six months, within the Labour Code. The parties may decide on 12 months without the work permit, after  1st Pillar (ZUS) – obligatory and common.  rental insurance such matters as the amount of remuneration receiving an appropriate legal document which Premiums, deducted from salaries, are written  insurance in case of sickness leave or or working time because these factors are not permits the worker to stay in Poland. from the individual account of an insured maternity leave, known as sickness insurance regulated by the Civil Code. The most common person. The institution which manages the  insurance in case of accidents at work and contracts under the Civil Code are as follows: Because of the recent changes in the Polish 1st pillar is the Social Security Establishment. occupational diseases, known as accident regulations concerning the legalisation of work Pensions, received from the 1st pillar, are insurance Task contract – This kind of contract is also and residence of foreigners in Poland, the based on the repartition system, which has called as agreement of result. The employee procedure connected with obtaining a work the character of the generation contract. This According to above mentioned Act regarding receives a defned task which must be carried permit in Poland has been simplifed. Various means that payments of pensions are the social security system, obligatory out in order to achieve specifed results and the types of work permits were implemented financed from the contribution of the people pensionable and rental insurance concerns employer is obliged to pay the salary for the but now there is no ‘promise’ to grant work who currently work. The system functions physical people, who in Poland are: realisation of tasks according to the provisions permits anymore. A company who is going effciently only if the premiums of employees, in the contract. to employ a foreigner receives a work permit which supply the system, are delivered in an  employees, after submitting a complete application with amount suffcient for the payment of present  people running non-agricultural activity or Service contract – Based on the contract, the the required documentation. With the work pensioners. Thanks to obligatory premiums people cooperating with them, employee receives defned tasks and activities permit, the foreigner can receive the visa in of 12.22% of gross salary, people acquire  people who perform casual work, which must be realised by the employer. The order to perform the work or permission to have pensionable rights that aren’t inherited.  people who perform a job on the basis of employee performs the work by himself because temporary residence in Poland. The last step  2nd Pillar (OFE) – is also an obligatory element agentive contracts, contractor contracts or there is no subordination or work performance is signing the contract between the foreigner of the social security system, the capital fund. another contract concerning the provision under someone’s management, which is and the employer according to the conditions The premiums, deducted from salaries, are of services, to which according to the Civil characteristic of an employment contract. mentioned in the work permit. written from the individual account of the Code are applied regulations about

130 131 Employment of Staff

contractor contracts or individuals who contracts or individuals who cooperate cooperate with these people, with these people, Total cost to the employer  people on parental leave or who receive  people running non-agricultural activities maternity benefts. or individuals who cooperate with them.

Sickness insurance In general the yearly base for social insurance in 11,57% the following calendar year can’t be higher than The social security system, obligatory sickness the amount relative to 30 times the proposed 6,55% Legend: insurance concerns the following people: average monthly salary in the national economy for the given calendar year. As of 2009, this is Employee social contributions  employees, PLN 95,790. Employee Health Care Contribution  members of agricultural production coop- 60,22% 15,60% Employer Spcial Seciurity Contributions eratives and cooperatives of agricultural The employer spends 19.52% of the gross Income tax circles, salary on pensionable insurance. The other Net to be paid  people who perform substitutionary services. contributions for the social security institution (ZUS) regard the following insurance: rental, 6,06% Voluntary sickness insurance concerns the sickness, accident, health insurance, Labour following people, covered by obligatory Fund and the EAG Fund. pension able and rental insurance, on their own application: Social security contributions (15.71%), income tax and health insurance (20.25%) are also  people who perform casual work, deducted from the gross salary. EU Regulation 1408/71 territory of the other membership country,  people who perform the job on the base of is liable to the legislation of the frst agentive contracts, contractor contracts or The employer must also pay part of any social Since 1 May 2004, after Poland joined the membership country. This is valid under the another contract concerning providing security contributions (16.60 %). European Union the regulations harnessing condition that the predicted period of work services, which according to the Civil Code the rules of being liable to social insurance won’t be longer than 12 months and the apply to regulations about contractor’s For example: (included in EU Regulation 1408/71) are employee wasn’t delegated instead of obligatory. According to EU regulations the a person whose period of delegation has people moving across the European Union for expired. Gross Employer increased earnings are liable to legislation only salary Employee Employee Income Net Total Social in one of the membership countries. It was agreed Social Health Care Tax to be employer Security called as a rule of the unity of applied law. in Contribution Contribution paid cost Contributions contract A general rule is that a hired manual worker 4,000.00 548.40 310.64 287.00 2853.96 739.20 4739.20 or a person running an activity on their own account (e.g. a non-agricultural activity) is 3,000.00 411.30 232.98 199.00 2156.72 554.40 3554.40 liable to the legislation of the country in which the activity or work is performed.

The general rule, described above, is applied together with the following exceptions and specifc situations included in art. 14 par. 1a and art. 14a par. 1a of regulation 1408/71: Employees must adhere to the following criteria:  A hired manual worker, who is employed by the usual employer on the territory of  delegated to work due to the orders of the one of the membership countries and was country’s employer, temporarily on the delegated by the employer to work on territory of the second country, in order to

132 133 Employment of Staff Market Square in Wroclaw

perform the activity for the second account, before beginning to perform work in employer (subordination to employer, with country of employment, must frst perform work respect to the time, place and kind of on their own account in their home country (place performed work), of habitation).  have an existing contract in the delegating country, Extension of delegating employees or people  have their salary paid by the employer, working on their own account from Poland to UE/  have a predicted period of delegation that EOG countries isn’t longer than 12 months. This period of delegation must be stated at the beginning, If, due to unexpected reasons, the delegation or  the employee mustn’t be delegated person working on their own account cannot be instead of another employee whose period ended according to the previously stated period of delegation has expired. of less than 12 months, then depending on the applying legislation of the delegating country in There are conditions which must also be applied which territory the activity is usually run, the time by the delegating employer. The delegating limit can be extended. employer must run the casual activity within the territory of Poland. Overall activity is taken into consideration, such as:

 the seat of the company and managing board  amount of employees that aren’t delegated to work abroad,  the place in which most of the contracts with the clients is concluded,  the law which the contracts are subordinated to,  the achieved turnover in the appropriate period in the delegating country.

The choice of criteria depends on the concrete case. As a result there won’t be any chance to delegate employees when the activity of the employer in the territory of the country comes down to running the internal administration.

Moreover, regarding the delegating of employees, this is also true when the delegating company is the agency of temporary work.

In the case of people running a business on their own account, which temporarily works in the territory of another membership country, before certifying an E101 form, ZUS’s division will also make some arrangements.

Decision no. 181 adds the condition that the person who is running the activity on their own

134 IV. Doing business - from Start-Up to performing a direct investment

136 137 IV.1. Greenfield Investment

IV.1.1. Activities requiring licenses, concessions or permits

The general law stipulates that the undertaking and conducting of business activities is free. However, Polish law also states some exceptions to this general rule. It means that the undertaking and conducting of certain activities is limited and requires the consent of the Polish authorities or entry into the register of regulated services. We can divide the above- mentioned activities into four main groups:

 activities which may be undertaken and conducted freely,  activities which may be undertaken and conducted on the basis of a concession,  activities which may be undertaken and conducted on the basis of a license or permits,  activities which may be undertaken and conducted upon registration into the register of regulated activities.

Furthermore, Polish law states that certain professional services may be conducted only by

138 139 Greenfield Investment

people who have an appropriate certifcate (e.g. a permit or license). Polish law states that for types of regulated business activities. Below are Sopot), Poznan, Katowice or Lodz have lso tax advisors, lawyers, real estate, appraisals, almost thirty types of business activity you are some of the business activities which require developed a strong position. Not only have architects, accountants or fnancial advisors). required to obtain a permit or license. Below entry into the register of regulated activities: they attracted Industrial, BPO- or logistics you will fnd some of the business activities investments, in addition they have become To conduct certain types of activities (e.g. bank which require such administrative decisions:  the archiving of employees and personal serious markets for international developers or insurance funds, pension funds) Polish law documentation, and investors, which have invested in local requires the establishment of a specifed legal  national and international road transport  storage enterprises, commercial and housing projects. form (e.g. joint-stock company). (including goods and passengers),  telecommunication,  forwarding agency,  the manufacturing of alcoholic beverages, The fnancial crisis, which limited or partly Concessions  railway stations,  detective services, blocked access to fnancial sources led to a  tourism agencies,  work agencies, generalized “high risk classifcation” of Poland A concession is issued for a period of time  private investigation and detective services  the organising of horse races. within the CEE countries on one level with between fve and 50 years and is stipulated  conduction of business in special economic Hungary, Ukraine or the Baltic countries. After for business activities which have a signifcant zones, the frst wave of panic, international investors importance for the interests of the State (e.g.  the operation of banks, insurance companies, have stated that the Polish economy is stable national security, public safety and major public brokerage agencies, investment funds or IV.1.2. Real Estate Market and will probably be the only big country within interests). pension funds, the EU with a positive economic growth this  wholesale trade and manufacturing of year. This aspect of stability is attracting new Licenses and permits alcoholic beverages, The Polish real estate market has been strongly potential investors to Poland. Nevertheless the  casinos, lotteries and gambling. dominated in the past years by the outstanding adjustment in the strong growth of real estate Polish law also states other types of Registration for the register of regulated activities position of the Polish capital Warsaw as the prices has probably prevented the market from administrative decisions which are mandatory centre for major investment activities. In a the creation of a Real Estate bubble, which has in order to undertake and conduct business Such activities may be conducted when the second wave within the last fve years other already been developing quite strongly in the activity. When the entrepreneur fulfls the entrepreneur fulfls their statutory requirements cities as Wroclaw, TriCity (Gdansk, Gdynia, housing market. statutory requirements stated by law, they and upon registration into the register of may apply for an administrative decision (e.g. regulated activities. Polish law states twenty

Authorities responsible for issuing concessions

Activity requiring a concession Authority

Searching, Exploration of minerals; underground storage of substances and waste in rock masses Minister of Environment or in underground mines The manufacturing of and trading in explosives, ammunition, weapons and other items and Minister of Internal Affairs and Administration technology for military or law enforcement purpose Manufacturing, processing, storing, delivering, President of the Energy Regulatory Authority distributing and trading of fuels or energy Security services for persons and property Minister of Internal Affairs and Administration Radio and television broadcasting President of the National Broadcasting Authority Air transportation President of the Civil Aviation Authority

140 141 Greenfield Investment

Poland is now going through a phase of The Development of modern warehouse space for those modern-standard warehouses are for 2009 due to the global fnancial crisis and a consolidation but in a third wave we do expect in Poland exceeded more than 5 mln m2 in between 3,5 – 5 EUR depending on location of rise in the EUR towards the PLN. This negatively the following market developments: 2009, which has been built mostly amongst warehouse and time of contracting. influences the total rental prices of the majority the major industrial centers such as Warsaw, of modern offces in Warsaw or other cities.  more selective choice of attractive locations Katowice or Poznan and among existing or Industrial factories are either developed in BTS (while new well located objects have lost planned Polish highways. Two famous logistics (build-to-suit) solutions on a minimum of 7 - Within the last 5 years a wave of foreign within the crisis from 7,5% - 15% of the locations in Poland are Piotrkow Trybunalski 10 years fnancial leasing-/rental- contracts or BPO and specifc local Investments with high boom-value, the price decrease of 2nd and and Strykow (next to Lodz), which proft from mainly built by industrial companies themselves. quality requirements in towns like Krakow, rd choice locations will exceed 20% or 25% their precise central position and the fact These industrial companies invest directly in Poznan or Wroclaw have had a strong impact due to higher vacancies and more competition they have already attracted global players individual locations because of specifc location on the development of modern offce space on the market) into their portfolio. Logistics, FMCG and key requirements (often high unemployment, in these regions. These markets had been  focus on investments and growth in less investments in electronics and white goods are high availability of workers, closeness to dominated previously by local offce supplies developed Cities with 100.000 – 500.000 the drivers for new warehouse developments. customers / suppliers or raw materials, etc.). with low quality. This was unsuitable for global inhabitants (Lublin, Rzeszow, Kielce, Beside that Poland often plays a strategic role Those peripheral locations are usually chosen players who invested in BPO or other services. Bialystok,…) – third wave after Warsaw, and as a server market for further expansions to in order to keep investment and production Meanwhile after a certain quality level was other top polish cities (Poznan, Wroclaw, Eastern markets. Based on that approach it can costs low and to achieve the highest possible set, local Polish developers have entered the Tri City, Krakow, Katowice, Lodz). be assumed that future development will be level of workforce availability. A well developed market and created local brands for smaller and  the role of build quility will grow and become focused closer to the eastern border of Poland. peripheral plot offered by a local municipality or medium size offces, which are also accepted more crucial for the valuation of the real estate. Today we can defne fve major Clusters for the ANR* for a Greenfeld investment can cost by foreign customers. Warehouse investments in Poland: around 25 to 40 PLN / sm (within a SEZ usually The polish market is becoming more mature more), while a medium developed private plot Top central average rents in major Polish cities, and with limited access to fnancing it can now  Upper Silesia around Katowice, in a top logistics region can be offered for 2009 be considered a “Buyers Market” which offers  Central Poland around Lodz, between 100 and 200 PLN / sm. investors the opportunity to verify some options  Warsaw and Mazowieckie, Lodz longer than before during an uncontrolled  Greater Poland around Poznan, Poznan “time to market” acting.  Lower Silesia around Wroclaw. IV.1.2.2. Office market Katowice Tri City IV.1.2.1. Warehouse & Between 1990 and 2000 the Warsaw Offce Szczecin industrial market market was in the centre of the frst investment Wrocław wave, which started in the Capital during the Cracow transition process. During this process almost all global players, consulting companies and Warsaw GREATER POLAND WARSAW banks installed their head offces in Warsaw 0 5 10 15 20 25 0 to communicate the necessary presence in the /sq m/month market and in order to start business activities The rents paid in Warsaw oscillate between 25 CENTRAL LOWER SILESIA within the whole country. After this frst to 30 EUR / sm in central locations, while outside POLAND investment wave like in other CEE Capitals, city locations have a range between 15 and 20 UPPER SILESIA Warsaw has become one of the most expensive EUR. We have the same picture in Krakow as offce markets in the world. A steady supply of in Wroclaw or Tricity, but just a level lower for new and modern offce space over the last years reaching maximum rents of 20 EUR / sm. has reached a level of more than 3 mln m2 by the end of 2008. In Warsaw – less than 50% Especially this year during the fnancial crisis of this space is offered in the city centre, while and the growth of the EUR, leasers have started the offer on non-central locations has risen in to look for savings as well in the rental side Major developers have established their projects the last few years. A top result in vacancy of 2 costs. Service charges of 4 – 5 EUR / sm have in 10-20 different locations. Rental costs – 4% like in 2008 will defnitely not be possible been analyzed exactly and the requirements

142 143 Greenfield Investment

for professional facility management and stages. The frst basic satisfaction through the The market of shopping malls in Poland has protected against any third parties acting against equipment of buildings have risen signifcantly creation of big hypermarkets and malls, the grown very strongly within the last few years. the owner. Ownership is not time-limited. Neither in order to deliver the required quality. Many change of focus from hyper- to supermarkets Insuffcient existence of coherent and developed the government nor public offces have any right leasers have renegotiated their contracts to pay and the establishment of discount markets shopping streets or city areas have initialized to intrude ownership, the only exceptions being at least the service charges in PLN, which are mostly in rural regions in order to substitute developers to build big shopping malls, which those presented in the zoning plan. also paid in PLN by the owners. In order to close little local shops. Now the trend is to minimize have been integrated into the cityscapes or The Polish legal system offers several types of new bigger rental contracts Rent free periods the distance from customers living areas instead built just outside the cities. Warsaw owns 6 big rights to real estate: have been extended to attract bigger customers of forcing them to travel long distances to the objects with 59,000 to 110,000 sm, a similar with more than 1.000 sm in rental area. suburban hypermarkets and malls. Investors are picture can be found in Wroclaw or in Lodz  ownership, now more open to enter municipalities which with the prestigious Manufaktura.  perpetual usufruct, have between 50.000 – 100.000 inhabitants  easement over real estate, IV.1.2.3. Retail and for supermarkets or for discount markets with Prices for commercial rents are falling with  mortgage, commercial market a minimum of 15.000 inhabitants. additional space on the market. Prime locations  lease. will not lose attractiveness, but older objects A legal insecurity for all retail investors occurred with insuffcient service and quality will either Ownership After Russia and the Ukraine, Poland is the within the last two years (from 18 th September have to adapt their pricing to new market biggest consumer market in CEE and the biggest 2007) due to the Act on Large Retail Schemes. conditions or go through redevelopment Full ownership gives the widest scope of rights within the new EU accession countries. This The act demanded that each retail investment processes to be state-of the art for more related to real estate and can be restricted fact was already clear in the beginning of the with a sales area above 400 sm achieved demanding customers. Today smaller prime only under certain circumstances, which are transition process and it is one of the reasons additional permission from the local authorities objects with a maximum of. 200 sm oscillate defned by the Civil Code (neighbour or zoning why the retail market is now the most mature to establish such an object. This act blocked between 50 – 80 EUR / sm while bigger leasers regulations), administrative law or wiliness and developed real estate market in Europe. more than 50% of the potential to create a pay around 20 – 50 EUR / sm for good locations. of the owner. Ownership rights are the most Over 1,000 sm an average rent can be found complete and have a full scope of the usage of on a level of 8 – 12 EUR / sm down to 5 EUR the property of land or building. The right of Number and types of stores in Poland for Hypermarkets, which are the major players ownership is protected against all third parties, for object operators. who are trying to act against the owner. The Size criterion Number of Total area Foreign ownership ownership rights are not time limited. The Type (sqm) stores (sqm) share government or public offces do not have any Hypermarket >2,500 374 2,566,685 83.2% IV.1.3. Acquiring real right to influence the ownership, except the zoning and taxation regulations. Supermarket 400-2,299 2,716 2,125,077 56.1% estate Department store >2,000 95 390,550 9.5% Perpetual usufruct Trade stores 600-1,999 462 451,966 20.3% Legal entitlement to real estate Perpetual usufruct is established with respect Source: Central Statistical Offce 2008 Entitlement to real estate is regulated by the to land owned by the State Treasury or local Polish Civil Code from 23 April 1964. Real estate government authorities. It is usually created for is understood to be grounds with premises, 99 years (the minimum period is 40 years) and From the beginning of the 90´s big French new object in a municipality because each including facilities such as apartments, and may be extended. The perpetual usufructee retail groups as Carrefour, Auchan, Géant and project was strictly combined with intensive houses etc., which are separate subjects of is allowed to use the land in the same scope E.Leclerc had already started trading in Poland political lobbying. Almost each political decision property in accordance with Polish Law. Full as the owner. However, the purpose of land with big hypermarkets to meet the signifcant maker – especially in the smaller municipalities ownership gives the widest scope of rights related use is defned by an agreement and should demands of the population’s quickly growing – did not want to carry such a political burden. to real estate and can be restricted only under be recognised before purchasing the right market. Today´s modern retail supply exceeds Finally this act has been deemed to be contrary certain circumstances, defned by the Civil Code of usufruct. This is because the owner (State more than 8 mln m2 and is again dominated by to the Polish Constitution by the Constitutional (neighbour or zoning regulations), administrative Treasury or local government) may terminate Warsaw and the other remaining top 7 Cities. Tribunal in June 2008. This decision brought law or the owner’s will. Ownership is the ultimate the agreement if the land is used in a way more security for investors and developers. right to real estate and provides the owner with contradictory to the way defned in the The retail market passed already passed certain a complete range of usage. Ownership is legally agreement. The purpose is generally defned

144 145 Greenfield Investment

by development and zoning regulations. According to the above property rights and the real estate and mortgage register kept by and Administration is required via acquisition or contractual rights related to usage by third the proper court. As a consequence of the new other legal action. A Polish company becomes The perpetual usufruct is transferred under the parties, the law recognises so-called sales and entry of the buyer, the perpetual usufruct is controlled by a foreign company (which takes same rules as regular ownership and property leases back contracts. These allow a foreign transferred. place when more than 50% of votes on the rights for real estate. No special permit from the company or natural person to get long-term Shareholder/Stakeholder Meeting belong to a owner (the State Treasury or local government rights for property use. Public purchase foreign entity or when a company is controlled unit) is required (except when the transfer is by similar naturals as members of governing carried out by foreigners). Real estate acquisition Purchasing real estate from public or bodies like Board of Directors). government-controlled authorities entails a Fee for perpetual usufruct Real estate acquisition is regulated by the special procedure, which involves public tender Exemptions for EEA companies provisions of the Polish Civil Code. Property or auction. Public or government authorities Usufructees must pay the government an annual transfer may be based only on a sales guarantee equal conditions to all potential The AARE classifes foreigners according to a fee (until 31 March 2009) separate from the agreement, which stipulates all the parties’ buyers. foreign company’s registered seat or foreign obligatory land tax. The fee is calculated with rights and obligations. Both real estate and natural persons place of abode when they are respect to land value and cannot be changed perpetual usufruct transfers become valid Acquisition of real estate by foreigners located both within and outside the EEA. more than once a year (for special types of land through a sales agreement, which is obligatorily this period can be extended to fve years). signed in front of public notary in the form of When on 1 May 2004 Poland became a When foreign companies and nationals are the notary deed. member state of the European Union and registered inside the EEA they are exempt from Ownership vs. perpetual usufruct consequently joined the European Economic obtaining an acquisition permit. These entities Pre-sales agreement Area, the real estate purchasing procedure was do not require any permit for the acquisition of A substantial difference between perpetual altered to become more attractive for foreigners shares/stocks or real estate, except agricultural usufruct and ownership is that in the perpetual Prior to the fnal transfer of rights, decision makers interested in investing in Poland. land and a forest. However, purchasing usufruct the building is a separate object of may establish a so-called pre-sales agreement agricultural land or a forest (12 years from 1 ownership from the land, and acts as a second for selected land (or land with buildings). It However, certain binding regulations of May 2004) or the so-called ‘second house’ object. After constructing a building, the is not necessary but highly recommended Polish Law defned by the Act from 24 March (fve years from 1 May 2004 until 30 of April perpetual usufructee becomes its owner with to make the pre-sales agreement in front of 1920 about the Acquisition of Real Estate by 2009) still entails obtaining a permit, even for full ownership rights. In case of the termination a public notary. In the pre-sales contract it is Foreigners (further referred to as the AARE), foreigners registered inside the EEA. of the perpetual usufruct, the usufructee has possible to oblige the second party to realise still states that foreigners with a seat registered the right to obtain an equivalent market value specifc conditions related to the property in outside the EEA intending to purchase real Procedure of permission process of the building which is part of the property question, such as clarifying legal status, the estate in Poland must obtain a permit from held in the perpetual usufruct. payment of mortgage and preparing for fnal the Minister of Interior and Administration. The standard procedure involves obtaining sales. The pre-sales agreement may guarantee The required permission is issued in the form a permit from the Ministry of Interior and Another right to real estate the rights for future property transfers, even of an administrative decision. This means that Administration, which takes on average three- without any pre-payment or minimal amounts neither a public notary nor a Polish court or four months of administrative procedures. The Polish Civil Code also recognises the right as pre-payment. Government body can register or proceed with Moreover, it is also necessary to collect all to use real estate in the form of lease, without such action, and that the non-EEA entity will required documents, which is a time-consuming ownership rights. Any legal entity, including Real estate and mortgage register become neither owner nor usufructuary. process. a foreign company or natural person, may lease land without any special permit from The above mentioned rules are binding for Shares acquisition A foreign businessperson may apply for a the Ministry of Interior and Administration or ownership or perpetual usufruct transfer. promise regarding a prospective acquisition. any special conditions from local authorities. Both transactions differ in terms of when This rule also applies to any acquisition of Such a promise is in the form of a guarantee The freeholder may give his right to use and they actually come into force. In the case of transactions or other legal actions when the that he/she will obtain the permission without additionally to gain proft from the property to ownership transfer, the date of signing the transaction concerns the shares/stocks (with the any special conditions or requirements. a third party. The Polish Civil Code recognises fnal agreement is the day the buyer becomes exemption of listed companies) of a legal entity However, the promise is not an act that allows two types of lease contracts: umowa najmu the property owner. Perpetual usufruct with a registered seat in Poland, regarding the purchasing real estate or shares/stocks. In (where only its use is possible) and umowa transfer requires (apart from signing the sales owner or perpetual usufructuary of the real order to close or transfer ownership, a permit dzierżawy (for use and proft gain). agreement) entering the new usufructee into estate. Permission from the Ministry of Interior is mandatory.

146 147 Greenfield Investment

Area Development and Construction (CADC), is responsible for drawing up a local development the CADC may take up to six months, depending IV.1.4. Investment process which defne the basic scope of the buildings plan of the land. As a consequence of the zoning especially on whether the application presents the allowed. plan the purpose of the land’s use is changed from expected influence of the investment in the local IV.1.4.1. Analysis agricultural to industrial, or vice versa. community. The zoning plan defnes all conditions regarding Environmental decisions The choice of location affects about 80% of prospective land use and the scope of business the investment and follow-up costs (including that may be conducted on the land. The scope is After obtaining the zoning plan or CADC it is development costs, transport costs, wages, wide and allows the owner to use the property for possible to start architectural and design work. taxes and energy). The frst choice between a variety of business activities. During this stage the investor is obliged to sign the Greenfeld and Brownfeld defnes the basic pre-agreements for connecting the utilities (such scope of possibilities to choose between the Local authorities are empowered to create zoning as gas, water and energy) with proper suppliers. location advantages. plans with respect to municipality development. Furthermore, connection to the public road must The municipality creates the zoning plan in be agreed with the offce managing the roads. Below is a short extract about the main location accordance with voivodship and country zoning factors which we must consider during the plans. After completing the initial layout and technical investment process. description, the investor may apply for an Zoning plans may be changed by the municipality investment-related environmental decision. The  Greenfeld vs. Brownfeld, either in accordance with the owner’s application scope of the environmental decision is related  the investment inside or outside the special or when the area is modifed by the Government. to the type of production or range of business economic zone, The latter situation is rather exceptional and takes activity.  the distance, quality and time of logistics to place when the modifcations are related to public the main customers, interest (such as building roads and railways). During the re-development process the investor  labour costs, availability and the quality of should recognise previous technology and desired blue-collar and white-collar workers Every special economic zone has a valid and administrative decisions via due diligence. Usually  infrastructure and development costs (all For the phase of architectural planning, a binding zoning plan and the investment process re-development requires new administrative media, roads, access and extension minimum period of three-six months must be may start soon after purchasing the land. decisions, including any environmental decisions. possibilities), taken into consideration before a well-prepared  the availability of required components document is sent to the architectural offce to Conditions for area development and The environmental decision process may be suppliers, apply for a building permit. Many companies often construction concluded after the application is completed,  the appropriate contacts in local authorities. underestimate the volume of offcial documents providing the local government’s answer states and procedures which must be prepared in order A signifcant area of Polish territory has no zoning that the decision is not requested for such a type to start their operations in Poland. plans. This situation requires an application to of production or activity. Situations in which it is IV.1.4.2. Step-by-step the municipality for CADC. CADC is required for necessary to obtain the environmental decision investment process Building permits for construction or re- any investment process and land development or are specifed in the Act on Environmental Law development process new investment, such as the re-development of from 27 April 2001. brown feld sites. Owners must apply for a CADC Architecture Planning After collecting the title to use the property or the from their local authority. However, the Ministry The environmental decision (or local authority’s property itself, it is possible to start the investment of Agriculture may also be involved and this opinion that the decision is not required) is If the Start of Production (SOP) or other process. may extend the process leading to obtaining the an indispensable element of the investment deadlines for an investment have been set up decision. process, as it is the frst condition required to for a near date, the planning of buildings and Zoning plans obtain a building permit. If the environmental other utilities must be prepared in advance. An application for a CADC should confrm decision is required, the investor must prepare If the location has an offcial zoning map at The construction of a building is possible when specifed conditions e.g. that at least one adjacent an Environmental Impact Assessment (EIA). its disposal, an architect can start planning the real estate has the appropriate zoning plan plot is developed for a similar aim, has access The EIA is an evaluation of how the production without any delay. If there is no zoning map regulated by the Act from 27 March, 2003 on to a public road and that the infrastructure is and technology will impact the environment, in the investor must apply for Conditions for Zoning Planning. The local authority (municipality) adequate for the planned investment. Obtaining accordance with the best knowledge available.

148 149 Greenfield Investment Old Market Square in Poznan

According to Environmental Law the procedure Construction Law describes all necessary for obtaining Integrated Pollution Prevention and documentation, applications, permissions and Control (IPPC) is one of the most complicated agreements which must be attached to the environmental permit procedures as production application for the building permit. and technology have a signifcant influence on the environment. IPPC is issued by the governmental The investor may start the construction work by authorities of the voivodship. Environmental Law taking two steps. In the frst step they must obtain describes the types of production that have a a ‘validation stamp’ from the municipality offce negative influence and the types which require after 14 days of issuing the permit, which confrms governmental control from a higher level. its validity (no application claims from neighbours). In the second step the investor notifes the The procedure regarding the environmental building supervision offce and submits the proper decision may take up to three months, including application. Construction work may start within time for preparing the EIA, and the IPPC can even seven days starting from the date of submitting take up to fve months. The bulk of the investment the proper application. process is realised after the completion of the EIA. Usage and operation permit

Building permit The Start of Production (SOP) is an important milestone for every investment. The construction The fnal application for a building permit may process is divided into several phases in accordance be put forward to the local authorities once with the SOP time schedule. During the the investor has permission for all of the above, industrialisation phase the investor should make including agreements and opinions and also preparations for obtaining the usage permit. when the architectural or re-development project is fnished. An important fact to bear in mind is that equipment must be certifed with a CE mark. Certifcation The building and construction process is regulated is required to confrm that the equipment was by the Act on Construction Law (CL) of 7 July 1994. produced using the best knowledge available and During the construction process the following is safe for workers. parties are involved: the investor, the supervisor, the designer (architect) and the construction site Factory facilities need approval by the following manager. units: fre, employment and sanitary offce. Prior to the SOP the investor must notify the mentioned The building permit describes the obligations of all offces that the construction and industrialisation the participants. It is valid only for three years from works are completed and that the equipment its date of issue. obtained positive test results.

The re-development process does not require After the application, each offce may audit the a building permit (a formal application is factory independently. If no audit takes place suffcient) for types of works that do not involve within 14 days, the company may start the SOP. heavy machinery or altering the structure of the Furthermore, the investor must measure the building e.g. painting the property, changing emission, check its influence on the environment the windows and gates etc. (the scope is and compare the results against appropriate specifed by CL). This procedure helps to save norms of Environmental Law. time, but construction work cannot exceed the scope specifed in the formal application.

150 IV.2. M&A

cure the business and lead to the restoration IV.2.1. The polish M&A of its proftability. Therefore, such situations are market constantly monitored by organisations active in the mergers and acquisition feld in Poland.

One of the natural methods of implementing A defnite advantage of takeovers in Poland is projects in Poland is to take over existing business the use of entities enjoying preferences related entities. Nowadays, the following reasons for to operations in special economic zones. transactions in Poland can be identifed: After certain requirements are met, it is possible  good business opportunities resulting from to take over an entity operating within the the weakening of business entities due to the special economic zone, which may relate to a global fnancial crisis and signifcant further reduction in operating costs. depreciation of Polish currency (over 25% compared with August 2008), Privatisation processes which still involve a  taking over businesses in order to obtain relatively signifcant percentage of Polish state- preferences resulting from operations in owned companies make it possible to fnd special economic zones, interesting targets for takeovers.  the privatisation of state-owned companies,  looking for strategic partners to enable further It should be noted that the intention of selling a growth while fnancial markets are frozen. company via such a process includes taking part in public tendering procedures organised by the The fnancial crisis, although not as devastating as Ministry of State Treasury. It is crucial to prepare in other countries, has caused certain companies the appropriate documentation professionally (especially those operating in sensitive branches as indicated in the freely available, detailed or incurring losses due to investments in currency tender specifcations. options) to face bankruptcy proceedings. In many such cases, however, capital support Undoubtedly, the initial signs of market and appropriate reorganisation may begin to improvement will cause investors to return to

152 153 M&A

standard transactions between intact companies  companies based in the EU, partners of the target company or in conditions which justify a company’s purchase  companies based outside the EU, which partnership (merger by takeover), or sale. expand into the EU market,  formation of a company to which the  Polish business entities which increase the assets of all merging companies or In case of a takeover, it is necessary to plan the scale of their operations. partnerships devolve in exchange for shares whole process in an appropriate way, which of the new company (merger by formation usually consists of the following elements: The most commonly encountered barriers for of a new company). investors during company takeovers, which  the choice of an investment adviser/partner often prevent the implementation of expansion The target company, partnership or companies looking for entities to be potentially taken plans, include: or partnerships merging by formation of a new over, company will be dissolved, without conducting  initial negotiations,  insuffcient knowledge about the local liquidation proceedings, on the day in which  due diligence – extensive legal, tax and market, its structure and entities operating they are removed from the register. business analysis of the entity concerned, on it (diffculties in fnding potential entities  fnal negotiations, according to results of to be taken over/partners for cooperation), It should be noted that a plan of the merger due diligence,  insuffcient knowledge of the legal and tax of the companies requires a written accord  closing the transaction – executing a contract. realities in the target investment country, between those merging companies.  insuffcient knowledge of solutions which What makes the transaction easier, and allow more proftable acquisitions of As of the day of merger, the bidding company sometimes determines its success, is the choice business entities with the use of companies or the newly formed company takes all of the right advisers/partners that will fnd the already operating in the Special Economic rights and duties of the target company or right entity to be taken over and will obtain an Zones, partnership merging by formation of a new appraisal benefcial for the buyer.  ignorance of the specifc negotiation company. In particular, the bidding company process and local business culture resulting or the newly formed company will take over A crucial element of a successful transaction from cultural differences. any permits, concessions and reliefs granted is the appropriate performance of due to the target company or partnership or any diligence, which requires cooperation with of the companies or partnerships merging by highly competent legal advisers, tax advisers IV.2.2. Regulations formation of a new company (unless otherwise and business consultants. These people will governing M&A provided in the commercial companies code conduct the necessary analyses and describe all or the decision on granting the permit, given circumstances crucial to the analysed company consent or relief). in a fnal report. The above actions are necessary The rules of the mergers and acquisitions of to identify the legal and tax hazards in the the companies have been included in the Polish The mergers have an effect on the territory company’s operations and to validate future code of commercial companies. of Poland, and the turnover of the involved business plans. enterprises that exceed a certain amount are Companies may merge with other companies covered by the initial control of the President The representation of the parties constitutes or partnerships; however, a partnership may not of the Offce of Competition and Consumer part of the investment contract (purchase be the bidding party or the newly formed one. Protection. contract for shares), which includes the basic Partnerships may merge with other partnerships agreements of the parties, representations and only through formation of a company. promises of the present owners, contractual penalties and conditions precedent. A merger may be effected through the:

Entities which perform the most takeovers in  transfer of all assets of a company or Poland include: partnership to another company in exchange for the shares that the bidding  private equity funds, company issues to the shareholders or

154 155 IV.3. Public Private Partnership (PPP)

Public-private partnerships (PPP) are institutions,  contribute more than 50% of their funding, over which state (local) authorities can work  own more than half of their shares, together with private investors to achieve  exercise supervision over their managing common goals in an effective, accelerated and bodies, simple way.  or have the right to appoint more than half of the composition of their supervisory or PPP`s promote growth, because more investment managing bodies. projects can be completed at the same time.  associations of entities referred to in item a) or b) A Legal act, which sets out the rules of cooperation between public authorities and Taking the above into consideration, we can private institutions, is an Act on Public-Private enumerate some of the entities that fulfl the Partnership dated 19 December 2008. This act requirements of the statute to be regarded as has become part of the tools which already public entities including: the organs of public function in the Polish legal system, creating a authorities, including organs of government cohesive whole. administration; state control, law enforcement bodies and their associations; municipality; The PPP Act regards the bodies, which may be country and provincial authorities; entities considered as public entities in Art. 2 Sec. 1, to be: fnanced by the state; and the local government (including other central or local government  a public fnance entity as defned by the legal people created under separate legislation regulations on public fnance, for the purpose of performing public tasks)  a legal person other than under a) created with the exclusion of enterprises, banks and specifcally for the purpose of fulflling general commercial companies. needs. A person that is non-industrial and non-commercial in nature, and if the entities The new PPP Act has maintained the possibility referred to in this provision and under item 1, of the gratuitous assignment of real property individually, jointly, directly or indirectly by to a private partner or a PPP company for the another entity: duration of a PPP project. Moreover, the PPP

156 157 Public Private Partnership (PPP) Traditional manufacture in Lodz

Act has introduced improvements concerning company, a limited partnership or a limited joint- administering of real properties, such as: stock partnership (Public Private Partnership Company). This is a special purpose vehicle, the  the possibility of the assignment of a scope of which is provided in the PPP contract of property to a private partner or special the PPP Act). Due to this fact any amendments purpose vehicle without holding a tender of to the contract or of the articles of associations the Act on Real Property Management), which must fall within the scope are set out in  the possibility of sale with a discount. the PPP contract.

In order to carry out an investment project An exemplary model of cooperation between under the PPP formula, a public entity and public and private partners: private partner may establish a joint-stock

PRIVATE PARTNER

PROPOSITION OF THE PPP PROJECT

PERMISSION FOR REALIZATION ANALISYS OF THE MINISTER OF FINANCE PUBLIC PARTNER OF THE PPP PROJECT PROJECKT

INFORMATION ON THE PPP PROJECT (14 DAYS)

MINISTER OF ECONOMY

158 IV.4. Important Regulations

Once approval has been granted, the product may IV.4.1. Polish trade be imported into Poland. If this type of approval regulations has already been granted in another EU country, the importer may present (at Customs) a statement from the producer confrming the country in which After Poland acceded to the European Union, the product has been approved. it has been required to follow European trade regulations and replace its national law. CAP (Common Agricultural Policy) import licenses are required for several products imported from ‘third countries’ such as the US into any country IV.4.1.1. Import/export in the EU. Such import licenses, often referred to licensing as AGRIM Certifcates, are issued in Poland by the Agencja Rynku Rolnego (Agricultural Market Agency). One of the most common questions about starting a local import/export business concerns the import/export licensing or the licenses IV.4.1.2. Customs tariffs required to start an import/export business. Importers of products that are new to the Polish market must request prior product approval by The polish customs service has an offcial Tariff contacting the National Institute of Hygiene Browser. The Tariff Browser (a module of the where they should request a permit. Along Integrated Tariff System - ISZTAR) provides with this request, the importer should submit information on goods in international trade to the following: customs administration and traders. The Tariff Browser presents data from the TARIC system  a copy of the invoice, (goods nomenclature, duty rates, restrictions,  the product certifcate, tariff quotas, tariff ceilings and suspensions)  the producer’s laboratory specifcation, and national data (VAT, excise tax, restrictions  the label (in Polish). and non-tariff measures) as well.

160 161 Important Regulations

The Tariff Browser is maintained by the Customs the health and safety of citizens or would of provisions of intellectual, commercial Department of the Ministry of Finances within jeopardise the country’s security (e.g. and industrial property. As a result of EU the framework of the Integrated Customs Tariff weapons, paralyzing gases etc.), accession, EU customs laws apply directly to Information System - ISZTAR2. The browser  the State - against the loss of cultural Poland. In particular the Council Regulation provides detailed information concerning the heritage (primarily against the exportation (EC) 1383/2003 of 22 July 2003, concerning commodity turnover to Customs Administration of goods with cultural value), customs action against goods suspected of and to all those concerning that issue. EU data  authors, artists, industrial and commercial infringing certain intellectual property rights coming from the TARIC system and the Polish rights owners - against infringement of and the measures to be taken against goods, data (VAT and excise taxes), as well as some intellectual property rights, trademark and were found to have infringed such rights. national non-tariff measures not integrated patent rights etc. in the TARIC database, are presented in the browser. and control the area of: IV.4.2. Currency and exchange controls  the State’s customs policy instruments, IV.4.1.3. Customs procedures regulating the targets and volumes of international trade (e.g. monitoring the The main purpose of foreign exchange law execution of customs quotas), is to protect the so called ‘foreign exchange The principal roles of the Customs Service  the enforcement of national and interest ‘ of the state. After the turmoil of the include: international regulations relating to past decade and the spate of currency crises prohibitions and restrictions in the occurring almost simultaneously in different  exercising customs control on the commer- international trade, the enforcement of parts of the world, protecting this interest IV.4.3. Competition law cial international exchange, regulations regarding permissible load of should mean being able to prevent any  assessing and collecting customs duties and vehicles to ensure proper use of roads by negative trends which could result in a crisis. taxes in the part calculated at the State’s carriers, and the enforcement of Another function of foreign exchange law Competition law is based on the Act of 16 border (VAT, excise,) agreements concerning customs prevention is to introduce mechanisms which, if a crisis February 2007 on competition and consumer  fghting against smuggling activities and with Poland being a party, does happen, create administrative barriers protection. The most important actions counteracting customs fraud.  foreign currency control, including to capital outflow. Poland is currently in the forbidden through this law are: combating so-called money laundering middle of a debate over modifcations to its While performing these roles, the Customs In order to discharge the above-described foreign exchange law. This could be introduced the concluding of illegal competition-restricting Service must fulfl a series of responsibilities, roles and responsibilities, the Customs in the course of its harmonisation with EU law agreements (Art. 6) by: the most important of which (apart from the Service co-operates with other services concerning joining the EURO currency zone. It fscal function) include the protection of: in the country, such as the police, border may be a good time to consider the purpose  directly or indirectly fxing prices, control, general customs inspectorate and of the current regulatory restrictions to capital  limiting or controlling production or sales,  national industry - against trade in goods tax authorities. Also included in this are movement and, even more importantly, their sharing sales or purchase markets, which would adversely affect the con- customs and investigation services from effectiveness.  applying burdensome or dissimilar terms ditions of competition in the country, other countries, commercial organisations, and conditions in equivalent contracts with  natural environment - against an entry of research and scientifc institutes, universities After the revision of law in Poland at the other trading parties, thereby differenti- hazardous substances and micro-organisms and similar organisations. beginning of 2009, the parties can choose ating the conditions of competition for  world fauna and flora - against illegal their contract of payment in a currency these parties, predatory circulation of endangered The import of infringing products may be other than Polish zloty. This is an important  making the conclusion of contracts species, blocked through cooperation with customs difference between the old regulations in conditional upon the acceptance or  consumers - against the entry into the offcials in special procedures that were Polish law, which stated that residents can rendering by the other parties of market of goods which are substandard provided for by the Regulation of the Council pay in a currency other than polish zloty only supplementary performance, which has with relation to Polish norms or whose of Ministers on 2 February 1999. This considers with the approval of the Polish National Bank, nothing to do with the subject of the period of use has expired, the procedure and operating principles the NBP. contract and has no customary relation  society - against the entry of goods, items for Customs Authorities for withholding thereto, or appliances which are hazardous to life, goods in the case of the suspected violation  restricting access to, or eliminating from

162 163 Important Regulations

the market enterprises not covered by the The Competition and Consumer Protection to bank accounts and other properties of the Other law sources agreement, Court ruling may be further appealed to the debtor).  agreeing terms and conditions of bids by Supreme Court, whatever the amount involved, In Poland you have to pay special attention to enterprises entering the tender or by those but only for questions of law (in Polish, kasacja). Polish competition protection legislation is several international civil law regulations, an enterprises and the party organising the The appeal must be fled within 30 days effcient and its enforcement mechanisms example of which is the Council Regulation No tender, in particular with respect to the following the date of receipt of the ruling of function in a satisfactory manner. EU 44/2001 of 22 December 2000 on jurisdiction scope of the works or the price. the Competition Protection Court. regulations, which apply directly in Poland and the recognition and enforcement of as of 1 May 2004, should further strengthen judgments in civil and commercial matters. abusing a dominant market position (Art. 9), in A system of fnes is imposed by the President of the effectiveness of the Polish competition Other examples include the United Nations particular by: the Offce for failure to comply with competition protection authorities. This is due to the fact Convention on Contracts for the International law. that the President of the Offce will closely Sale of Goods - CISG of 11 April 1980 and the  directly or indirectly imposing unfair (exces- cooperate with the Commission regarding the New York Convention of 1974 on the Limitation sively high or unjustifably low) prices, The penalties are discretionary and may range enforcement of competition law within Poland Period in the International Sale of Goods.  limiting production, sales or technical from: and the EU as a whole. development, Contracts between Polish and foreign  counteracting the formation of conditions  up to 10% of the total annual revenues companies use the International Private Law necessary for the creation or development of an entity in case this entity enters into (the Act from 12 November 1965), because the of competition, agreements which aim to prevent, restrict IV.4.4. Regulations for rules of international law may defne proper  imposing burdensome terms and conditions or distort competition; abuses its dominant entering into contracts law as concerning the rights/obligations of of contracts, resulting in unjustifed profts position; or proceeds with a merger each party arising from the agreement. Parties for the enterprise. before obtaining a clearance decision from should govern the agreement under the law the President of the Offce, Contracts in Poland are based on the rules of that will secure their interest and will guarantee Source: offcial homepage of Offce of Competition and  the PLN equivalent of EUR 1,000 to EUR the party’s autonomy. This is the main regulation that the agreement will come into effect. Consumer Protection uokik.gov.pl 50 million, if no information or incorrect for contractual law in the Polish Civil Code. information was provided during the merger Contract law deals with promises which create Relations between companies and Competition law is enforced by the central or anti-monopoly inspection proceedings, legal rights and obligations. Polish law does not entrepreneurs administrative body named the ‘President of  the PLN equivalent of EUR 500 to EUR require the same consideration as common-law the Offce for Competition and Consumer 10,000 for each day of delay in compliance systems. In the Polish law system, all parties The Act on the Combating of Unfair Competition Protection’ (the Offce). The decisions and with a decision of the President of the must agree the essential terms, including the from 16 February 2007 aims to protect enterprises guidelines of the President of the Offce, as Offce or the ruling of the Competition and price and the subject matter of the contract. from the affects of unfair acts in business. It well as court rulings issued pursuant to appeals Consumer Protection Court. Nevertheless, parties are used to constructing applies to relations between companies and against the decisions of the President of the their agreements to avoid any future disputes entrepreneurs. It also covers the issue of consumer Offce, may be published in the Offce’s Offcial In addition, competition law provides for and to protect their interests by searching for a protection, where consumer interests are being Journal. penalties which may be imposed by the a ‘golden middle solution’. Contracts in Poland infringed. The infringing companies may be sued President of the Offce, on a natural person may be made in writing or by word of mouth. by other more honest companies. The administrative decisions of the President of acting as a manager or being a member of However, there are exceptions to this rule, such the Offce related to competition law may be a managing body of an entity or a group of as real estate sales or the sale of shares in a This regulation has a general clause stating that appealed against to a special court set up within entities (up to a maximum of 50 times the company, which requires acting in front of the an act of unfair competition is an act which is the Regional Court of Warsaw (the Competition average remuneration) for breaching the law. notary in public. illegal or contrary to good practices. and Consumer Protection Court). Appeal applications must be fled within two weeks Fines imposed by the President of the Offce may There are many examples of these agreement of the date of receipt of the relevant decision. be appealed to the Competition and Consumer available on the Internet in English, though it IV.4.5. CO2 Emission The appellate proceedings are governed by the Protection Court. Such fnes constitute the should be taken into consideration that such Allowances provisions of the Code on Civil Proceedings on revenues of the State budget and may be examples may not be useful depending on the commercial matters. collected pursuant to executory administrative case-by-case willingness of each party. proceedings (these proceedings consist of a At the beginning of 2009, Carbon dioxide forced seizure of assets, and measures related (CO2) had a concentration of 387 ppm (parts

164 165 Important Regulations

per million) within the Earth’s atmosphere by trading system, while the National Administrator any plant operator subject to the EU ETS are volume. As a result of Directive 2003/87/EC for the Allowance Emission Trading Scheme will given out for a sequence of several years at of the European Parliament and Council, a function as administrator. The Administrator once. Each such sequence of years is called a greenhouse gas trading system was created will maintain the National Allowance Register Trading Period. The frst EU ETS Trading Period in the European Union, whereby the goals set and the list of businesses participating in the expired in December 2007 covering all EU forth in the Kyoto Protocol could be more easily system, in addition to preparing the National ETS emissions since January 2005. With its achieved. This was approved by the Council in Allocation Plans. Due to the Directive’s termination, the frst phase of EU allowances 1997, following the conclusion of an inter- provisions, the National Allowance Register will became invalid. Since January 2008, the second governmental agreement in the same year. be open to the public. Each year the Member Trading Period has been under way and will States shall submit a report on the application last until December 2012. One CO2 emissions The Directive creates the legal means with of this Directive to the Commission. allowance is equivalent to the right to emit which to fulfl the Kyoto Protocol’s goal to 1 Mg of carbon dioxide. As far as Poland is decrease the emission of greenhouse gases, Under the Kyoto Protocol, countries with concerned, the overall amount of allowances by implementing an effective European unused emission allowances may sell their for the accounting period 2008-2012 amounts greenhouse gas allowance trading system. unused allowances. This right to sell may to 1,042,576,975 Mg (according to the Polish also serve as an incentive to private business National Allocation Plan). The Polish parliament adopted a national to invest in modern, environmentally friendly greenhouse gas emission trading system (the technology. An entity which emits CO2 into the ‘GGETS’) on 3 December 2004. The emission atmosphere without having suffcient emission trading system was scheduled to come into allowances has to pay a penalty amounting to effect from 1 January 2005, covering all aspects EUR 100 for each allowance which it does not of industry in the energy, thermal, petrochemical possess. The penalty is imposed by the Provincial and paper sectors. Pursuant to the GGETS, the Environmental Protection Inspector. Emission affected entities will be required to apply for allowances are valid only within a particular a greenhouse gas emission permit, which will period of time. After its lapse, allowances are entitle each emitter to emit a defned amount subject to annulment. of such greenhouse gases into the atmosphere. The holder of a permit will be entitled to emit The European Union Emission Trading System gases into the environment up to its assigned (EU ETS) is the largest multi-national emissions limit. If such a holder so chooses, they may also trading scheme in the world, and is a major pillar sell any unused gas emission allowances on of EU climate policy. The ETS currently covers the open market to other gas emitters likely to more than 10,000 installations in the energy exceed their assigned allowances. and industrial sectors, which are collectively responsible for close to half of the EU’s CO2 GGETS states that the individual allowances emissions and 40% of its total greenhouse gas granted to each gas emitter will be determined emissions. by the National Allocation Plan (the ‘Plan’) prepared at least three years in advance. The Under the EU ETS, large emitters of carbon Plan establishes the total number of allowances dioxide within the EU must monitor and to be granted during a given time period, the annually report their CO2 emissions, and they number of allowances granted to each gas are obliged every year to return an amount emitter, along with the criteria to be used in of emission allowances to the government, allocating the allowances. A gas emission equivalent to their CO2 emissions in that year. permit will be issued by either the county chief In order to neutralise annual irregularities in executive or provincial governor in response to CO2-emission levels that may occur due to receiving an applicant’s motion. The Minister extreme weather events (such as harsh winters of Environment Protection will supervise the or very hot summers), emission allowances for

166 167 IV.5. Securing Business

protection right in force annuities are to be paid. IV.5.1. Property rights Patents are granted after an examination as to whether an invention is new, involves original On 22 August 2001 a new Industrial Property research and is commercially viable. A utility Law came into force. This replaced the four model is to be new and useful and to relate to previous items of legislation (Laws on Inventive the shape, construction, or arrangement of an Activity, Trade Marks, Integrated Circuit Patents object that has a durable form. Applications are and on the Patent Offce). The new legislation published 18 months form the priority date. does not signifcantly change the regulations applied to industrial and commercial intellectual The patent or protection right of a utility model property rights. gives the owner the exclusive right to exploit the invention on the territory of Poland while it is valid. This exclusive right cannot, however, IV.5.1.1. Patent legislation be abused specifcally by applying prohibited monopolistic practices. In particular, patent rights will not apply where its exploitation by Poland is a member of the Stockholm Text of the a third party is necessary to satisfy a domestic Paris Convention on the Protection of Industrial market need. Also specifcally, when the public Property. Since 1990 Poland has also been a interest requires so and supply and/or quality of signatory to the Patent-Cooperation Treaty. The the product concerned is insuffcient, and/or its Industrial Property Law regulates the protection price is unduly inflated. This provision, however, of inventions by patents and utility models. does not apply in the frst three years following Applications are fled with the Polish Patent patent registration. Offce. Polish patent attorneys must represent foreign applicants. Abusing patent rights as well as preventing or eliminating a state of national emergency may Registered patents are valid for 20 years from be reason enough to apply for a compulsory the date of fling. The protection right of a utility license. There are no special terms on licenses model is valid for 10 years. To keep a patent or for this. The owner of a patent or exclusive

168 169 Securing Business

license has the right to sue for an injunction February 1994, which was substantially revised foreign investments making use of property the legal act of estimation systems from 30 on account of profts and/or damages. Criminal in June 2000. The new law meets contemporary rights. August 2002. It is important to notice that penalties are foreseen for false marking international standards and corresponds to the without a CE sign, the product cannot be used and infringement. Marking products with a principles of free trade in intellectual property. across the EU countries nor imported from patent number are commonly used but not IV.5.2. Product outside the EU. obligatory. The scope of copyright protection has been certification considerably broadened of late. The new law Products with this mark can be used throughout covers not only the protection of traditionally the European Union and in Norway. IV.5.1.2. Trademarks understood author’s rights, but also related Product Conformity Certifcation, to use its rights. The law provides for new rights and new full title, is a process by which manufactured owners of those rights. They are now able to products are assessed and verifed as conforming Poland is a member of the Madrid Agreement decide how the outcome of their work is to be to stated requirements. This results in the issue IV.5.3. Public on the registration of trademarks and the used and are able to derive fnancial benefts of a statement or certifcate of conformity and, Procurement Law prevention of false or deceptive indications of from this outcome. The new owners include normally, approval to apply a mark indicating a source of goods. Since 1991 Poland has also producers of sound and video recordings, TV the conformity of the product. Certifcation been a member of the Madrid Agreement on channels, radio stations and artist-performers. may be mandatory or voluntary. The Polish public procurement legislation the international registration of trademarks. The new law provides the protection of dates back to 1994 when the frst Act on It became a member of the Protocol for this intellectual property in the area of science, Mandatory certifcation applies when required Public Procurement was adopted. The Act was Agreement in the spring of 1997. The following technology and manufacturing, including by either national or international law. Voluntary amended several times over the following years, kinds of mark may be registered: computer programs and industrial designs systems are being implemented by specifying mainly with the aim of clarifying its rules and etc. The protection mechanism of computer organisations in order to improve the build defnitions, broadening the scope of application  trademark, software is similar to that used in EU countries. quality of components that form an integral and making the procurement process more  service mark, part of a larger product. In simple terms, a transparent. The adjustment of the Polish  collective mark, The law also provides for a general mark on a product is a form of assurance that procurement provisions to the EU requirements  mutual quality assurance trademark. compensation mechanism of losses incurred the product and system used to manufacture was a major factor in the preparation of the by authors, performers, and producers due to it all meet the regulatory requirements and the new legislation. The new Public Procurement A registered trademark is valid for 10 years uncontrolled mass reproduction for personal relevant specifcations. Marks in many different Law was adopted on 29 January 2004 to from the date of fling unless it is proved use (at home). Producers and importers of formats are used and some are mandatory. replace the Act of 1994. In April 2006 and April that the mark has not been used for fve VCRs, tape recorders, other audio and video Others are not. 2007 the Public Procurement Law was largely consecutive years. The registration may be equipment, as well as clean tapes, CDs etc., amended in order to implement the provisions renewed for the next 10-year period. In the must pay a surcharge to the artists, performers The underlying certifcation process may involve of the EU directives. Public procurement law case of infringement, the proprietor or licensee and manufacturers amounting to a maximum various tests and production quality assurance regulates the purchasing by public sector bodies can take legal steps. Protection is extended of 3% of the sales income generated by these procedures and will vary in value and cost. of contracts for goods, works or services. It to names of geographical places and regions, products. Product certifcation marks signal that a product concerns orders for construction work, supplies where the name refers to a specifc locality or conforms to a specifcation, so it is important or the rendering of services which are fnanced area associated with a particular product and The new law gives ground for more effcient to understand the content of the specifcation from the stage budget or from municipalities. where there is a particular characteristic of the procedures for enforcing copyright protection. to fully appreciate the value of the mark. The Public Procurement law is designed to product associated with the name. Foreign Illegally obtained benefts may be confscated open up the EU’s public procurement market applicants have to be represented by a local and returned to the true owner. The law In accordance with EU law, it is very important to competition, to prevent ‘buying national’ patent agent in Poland. also envisages penalties for infringement of to certify the product with the ‘CE sign’. policies and to promote the free movement of intellectual property rights by fnes and even This symbol is placed by the producer on his goods and services. The public procurement prison sentences for up to fve years. The product. The CE sign certifes that the product aspects are regulated in the Act on Public IV.5.1.3. Copyrights new legislation has considerably strengthened is consistent with all law requirements and Procurement Law of 29 January 2004. The copyright protection in Poland. It has also safety standards. These requirements are based abovementioned act stipulates the entities contributed to curtailing piracy. Meeting on over 20 European directives, each of which which are obliged to apply and fulfl all of its Copyrights in Poland are protected by the international standards in intellectual rights regulates a policy for another product. The requirements. Law on Copyrights and Rights in relation to 4 protection creates appropriate conditions for directives are implemented in Poland through

170 171 Securing Business

In accordance with the annual report of the been invited to submit offers. Furthermore, The public procurement law is an administrative In the case of orders exceeding the threshold Public Procurement Offce for the year 2008, Polish law provides procedures as follows: law. However, based on the contracts closed of EUR 130,000 or EUR 206,000, a bidder the market value of the Public procurement negotiations with advertisement, negotiations upon a tender application, the Civil Code and may apply against an unsatisfactory protest amounts to PLN 109.5 billion, a relatively without advertisement, competitive dialogue, Civil Procedure Code are used. resolution to the Chairman of the Procurement signifcant increase compared with the previous order with restrictions, price enquiry, electronic Offce. The contract cannot be closed so long year. The Public Procurement market constituted bidding. However, those procedures may be The information about proceedings is published as appeal proceedings are not fnalised. 8.6% of the national gross product. Therefore applied in exceptional situations. in the Public Procurement Bullet-in on the this part of Polish law has a signifcant role for website of the Public Procurement Offce and An agreement between the ordering party Polish and Foreign entrepreneurs conducting The contract or supplier which attends is basically the offcial Journal of the European Union. and the contract with the best offer must be business in Poland. obliged to pay a tender deposit of no greater executed in written form on pain of validity. than 3% of the value of the procurement. The contractors have the right to lodge a However, when Polish law requires a special protest against the tender procedure within 10 form e.g. a notary deed, such an agreement days. Contracts are considered by the ordering should be closed also in this form. The The value o of the Polish public procurement market in years 2000-2008 party, who should notify other contractors agreement should be concluded in this way participating in the proceedings of any protests that the scope does not exceed the obligation mdr PLN lodged. During protest proceedings, the under offer. 120 109,5 10,1 ordering party cannot enter into the agreement. 100 79,6 80 68,1 The object of public procurement proceedings

60 48 5 7 40 2 2,9 20 28% 0 year 200* 2000* 2001* 2002* 2004* 2005* 2006* 2007* 2008* 7% * Estimated value based on announcements published in Public Procurement Bulletin

The act does not apply to orders which do not The deposit may be paid in cash. However, the exceed EUR 14,000 in value. bank guarantee, insurance guarantee, bill of exchange confrmed by a bank and other fnancial 5% Polish law provides several procedures for guarantees are excepted from this rule. the granting of a public procurement order. However, two of these are applied in most The ordering party includes all of the essential cases, namely unlimited tender bidding and elements in the specifcation which are limited tender bidding. The unlimited tender necessary for the precise description of the bidding, apart from the limited tender, forms ordered products or for carrying out a delivery. Legend: the basis of procedure. In this procedure, all The best offer is chosen on the basis of criteria 7% supplies. the interested contractors may place their offer foreseen in the specifcation. The best price, 5% services in response to a public advertisement. The which is the most common indicator, in not the 28% construction work limited tender binding, in this procedure the only criterion used by Polish authorities. Very contractors send an application for admittance often, the quality, functionality, application of to participation in the bidding. The offers the best available technology and its impact on may be sent only by contractors which have environment may also be applied. Source: The Annual Report of the Public Procurement Offce for the year

172 173 Securing Business Harbour in Gdansk

case of a debtor being a legal person, the IV.5.4. Bankruptcy and aforementioned duty shall be attached to restructuring whoever is entitled to represent the company (individually or jointly with other people). These persons are liable for any damages that may The 2003 Bankruptcy and Restructuring Act arise through the failure to fle the petition established rules concerning the bankruptcy within the time limit indicated above (two of entrepreneurs as well as settlement and weeks). restructuring proceedings aimed at preventing bankruptcy. The debtor fles, together with the bankruptcy petition, a written statement as to the accuracy There are two types of bankruptcy that may be of the data contained therein. If this statement declared. Firstly, liquidation proceedings which is inaccurate, the debtor is liable for any result in the sale of all assets and the deletion of damage caused by inaccurate data having been the company from the National Court Register. furnished in the bankruptcy petition. Secondly, bankruptcy with the possibility of entering into an agreement with te creditors. Instead of liquidation, bankruptcy proceedings may be fnalised by an arrangement between According to the Polish Bankruptcy and the company and its creditors. Restructuring Law Act, a declaration of bankruptcy should be issued in respect of a Another legal institution provided by the Polish debtor who has become insolvent. A debtor Bankruptcy and Restructuring Law Act are is insolvent if they are in default of their rehabilitation proceedings occurring in the enforceable obligations. A debtor, which is a event of a threat of insolvency. An entrepreneur legal person, shall be deemed insolvent also will be threatened by insolvency if, despite when their obligations exceed the value of their performing their obligations, it is obvious that assets, even if they should be currently in the according to a reliable assessment of their discharge of these obligations. The court may economic situation they will soon become dismiss a bankruptcy petition when the delay in insolvent. Such entrepreneurs may initiate the discharge of obligations has not exceeded and conduct proceedings aimed at reducing three months and the sum of the outstanding debts or repaying them in instalments, as well obligations is no higher than 10% of the as securing the payment of their debts. The balance-sheet value of the debtor’s enterprise. procedure is supervised by a person indicated The court will also dismiss a bankruptcy petition by the court, but is conducted by the debtor. in which the assets of the insolvent debtor are Taking the above into consideration, one can not suffcient to cover the costs of the legal see that this procedure is not compulsory. proceedings.

A bankruptcy petition may be fled by the debtor or by any of their creditors. A petition may also be fled, in respect of legal people, by whoever is entitled to represent a company individually or jointly with others. The crucial thing is that a debtor shall, no later than within two weeks from the day on which grounds for the declaration of bankruptcy arose, fle a bankruptcy petition with the court. In the

174 V. Sources of Information

176 177 V.1. Polish Information and Foreign Investment Agency

The Polish Information and Foreign Investment  Finding the potential cooperation partners Agency (PAIiIZ) is a useful partner for foreign and suppliers, entrepreneurs entering the Polish market. The  Support concerning the investment incentives, Agency guides investors through all the essential  Assistance for the entrepreneurs during the administrative and legal procedures that involve whole investment process. a project. It also provides rapid access to complex information relating to legal and business matters In order to ensure the best quality of service, regarding investments. Moreover, it helps with the agency is divided into six departments with fnding the appropriate partners and suppliers defned responsibilities. together with new locations. This Agency was established in June 2003 to coordinate The Foreign Investment Department is the economic promotion of Poland, stimulate responsible for winning foreign investors the inflow of foreign direct investment, assist and ensuring the best quality of services. foreign companies in their investment processes The employees of this department advise the and promote Polish exports. It was created in a companies in scope of the best location and merger between the State Foreign Investment take part in the negotiations. The Foreign Agency (PAIZ) and the Polish Information Agency Investment Department assists the companies at (PAI). Both institutions were established in order the investment and also support the frms which to support the development of Polish economy have already invested in Poland. Organisational, by raising the inflow of foreign investments and administrative and IT tasks belong to the Internal promotion of Poland abroad. Service Department. The employees of this department are responsible for the organising The Polish Information and Foreign Investment of fnancial documents and monitoring of Agency provides professional advisory services for the fnancial condition of the agency. The new investors in Poland, including: second department supports the agency frst, considering the full scope of internal activities is  Assistance and support for fnding the best the Audit and Control Department. The Audit location for investment, and Control Department is responsible for the internal auditing of the agency and of other

178 179 Polish Information and Foreign Investment Agency Wawel Cathedral in Krakow

companies resulting from legal regulations. It by the agency, the centres provide complex also concerns the structural funds which are professional services for investors at voivodship implemented by the agency. level. Polish Information and Foreign Investment Agency is the best source of knowledge, not One of the most important departments is the only for foreign entrepreneurs but also for Regional Development Department, which is domestic companies. On the website www.paiz. responsible for preparing investment offers for gov.pl the investor can fnd all the necessary potential investors. The Regional Development information concerning key facts about Poland, Department manages and actualises the the Polish economy, legal regulations in Poland database of investment offers (Brownfeld and and all detailed information which could be Greenfeld). Therefore the RDD cooperates useful for any company wanting to set up a with Special Economic Zones, local authorities business in Poland. and Regional Investor Assistance Centres, which work on promotion and increasing the FDI inflow into regions. In order to encourage the foreign companies to invest in Poland there are many promoting activities necessary. These kinds of tasks belong to the Economic Promotion Department, which prepares conferences, workshops and various events promoting the Polish economy, technology and achievements. The Economic Information Department collects and analyses economical data, which can be used by the agency or interested companies. The scope of duties also includes monitoring foreign investment in Poland and Polish investment abroad, establishing cooperation with domestic and international business partners and research institutions. The Economic Information Department is also responsible for maintaining Poland’s OECD National Contact Point. Its main objective is promoting and disseminating the publications prepared for the investors in ‘The OECD Guidelines for Multinational Enterprises’. According to this publication, the companies should disseminate detailed information about their activities and planes in scope of employment, tax regulations, rules of fair competition, B&R activities, environmental protection, and consumer rights. Besides the National Contact Point, the agency also maintains an Information Point for companies which are interested in European Funds.

All of the agency activities are supported by the aforementioned Regional Investor Assistance Centres. Thanks to training and ongoing support

180 181 V.2. Regional Investor Assistance Centres

Greater Poland Voivodship Contact persons: Anna Gruszka Greater Poland Association of Gminas and Poviats E-mail: [email protected] Investor Assistance Centre Al. Niepodległości 16/18 Tel.: +48 (0) 61 656 35 07 61-713 Poznan Tel.: +48 (0) 61 656 35 06 Fax: +48 (0) 61 656 53 66 Contact persons: http://www.warp.org.pl

Łukasz Filipiak E-mail: [email protected] Kuyavian - Pomeranian-

Tomasz Telesiński Voivodship E-mail: [email protected] Kuyavian - Pomeranian Voivodship Marshal’s Offce Anna Łohunko Investor Assistance Centre E-mail: [email protected] pl. Teatralny 2 87-100 Torun Tel.: +48 (0) 61 854 19 73 Tel.: +48 (0) 61 854 14 72 Contact persons: Fax: +48 (0) 61 851 53 95 Cezar Buczyński E-mail: [email protected] E-mail: [email protected] http://www.sgipw.wlkp.pl Tel: +48 (0) 56 621 84 87 Fax: +48 (0) 56 621 83 02 Greater Poland Agency for Enterprise Development ul. Piekary 19 61-823 Poznan

182 183 Regional Investor Assistance Centres

Anna Kowalska Lodz Voivodship E-mail: [email protected] Lublin Voivodship E-mail: anna.kowalska@kujawsko- Tel.:+48 (0) 71 344 02 86 pomorskie.pl Tel.: +48 608 369 400 Tel: +48 (0) 56 621 83 97 Łódzkie Voivodship Marshal’s Offce Lublin Voivodship Marshal’s Offce Promotion and Foreign Cooperation Robert Śliwiński Investor Assistance Centre Joanna Wiśniewska Department E-mail: [email protected] ul. Graniczna 4 E-mail: joanna.wisniewska@kujawsko- Investor Assistance Centre Tel. +48 (0) 71 344 02 86 20-010 Lublin pomorskie.pl ul. Traugutta 25 Tel. +48 (0) 71 344 02 87 Tel: +48 (0) 56 621 83 97 90-113 Lodz Contact persons: Tel.: +48 (0) 608 621 200 www.kujawsko-pomorskie.pl/coi/ Contact persons: fax: +48 (0) 71 344 02 85 Kornelia Kania www.dawg.pl E-mail: [email protected] Janusz Baranowski Lesser Poland Voivodship E-mail: [email protected] Tadeusz Biskupski Tel: (+48 42) 291 98 50 Lubusz Voivodship E-mail: [email protected]

Lesser Poland Regional Development Agency Michał Tomczyk Grażyna Gilewicz Investor Assistance Centre E-mail: [email protected] Regional Development Agency in Zielona Gora E-mail: [email protected] ul. Kordylewskiego 11 Tel.: +48 (0) 42 291 98 51 Investor Assistance Centre Tel. +48 (0) 81 537 16 20 31-542 Krakow Tel.: +48 665 123 888 (within the Regional Development Agency.) ul. Chopina 14 Ireneusz Moleszyk Contact persons: Izabela Kozłowska 65-001 Zielona Gora E-mail: [email protected] E-mail: [email protected] Tel. +48 (0) 81 537 16 11 Jacek Adamczyk Tel: +48 (0) 42 291 98 49 Contact persons: E-mail: [email protected] E-mail: [email protected] Tel: +40 (0) 12 617 66 56 Marzena Kubiak Tel/fax: +48 (0) 81 537 16 21 Lower Silesian Voivodship E-mail: [email protected] www.partnercoi.lubelskie.pl Dawid Jarosz - director Tel: +48 (0) 68 329 78 38 E-mail: [email protected] Fax: +48 (068) 329 78 39 Tel: +48 (0) 12 617 66 53 Lower Silesian Agency of Economic Masovian Voivodship Fax: +48 (0) 12 617 66 66 Cooperation Investor Assistance Centre Daniel Chalecki ul. Kuźnicza 10 E-mail: [email protected] Anna Pawlik 50 - 138 Wroclaw Tel.: +48 (0) 68 329 78 38 Mazovian Development Agency [email protected] Fax: +48 (0) 68 329 78 39 Investor Assistance Centre +48 (0) 12 617 66 53 Contact persons: ul. Smolna 12 +48 (0) 602 675 496 Małgorzata Kalinowska 00-375 Warsaw Agnieszka Chmist Tel.: +48 (0) 68 329 78 38 Marek Martynowicz e-mail: [email protected] Fax: +48 (0) 68 329 78 39 Contact persons: E-mail: [email protected] Tel.: +48 (0) 71 344 02 86 e-mail [email protected] Tel.: +48 608 362 400 Joanna Jędrzejewska-Debortoli E-mail: [email protected] fax: +48 (0) 71 344 02 85 E-mail: [email protected] E-mail: [email protected] http://www.marr.pl http://www.coi-lubuskie.pl Tel.: +48 (0) 22 566 47 84 Katarzyna Nieradka Tel.: +48 607 407 430 E-mail: [email protected] Tel. +48 (0) 71 344 02 86 Tomasz Szczypiński Tel. +48 608 621 100 E-mail: [email protected] Paweł Kleszcz Tel.: +48 (0) 22 566 47 86

184 185 Regional Investor Assistance Centres

Magdalena Pasztaleniec Podlaskie Voivodship Marek Trocha Subcarpathian Voivodship E-mail: [email protected] +48 (0) 58 32 33 248 Tel.: +48 (0) 22 566 47 85 [email protected] Podlaskie Voivodship Marshal’s Offce Rzeszów Regional Development Agency Ewa Starkiewicz Investor Assistance Centre Łukasz Michalski Investor Assistance Centre E-mail: [email protected] ul. Kard. St. Wyszyńskiego 1 +48 (0) 58 32 33 242 ul. Szopena 51 Tel.: +48 (0) 22 566 47 83 15-888 Bialystok [email protected] 35-959 Rzeszow

www.armsa.pl Contact persons: Maria Przybylska Contact persons: [email protected] +48 (0) 58 32 33 248 Fax: +48 (0) 22 830 50 12 Borys Dąbrowski [email protected] Katarzyna Chlebek E-mail: [email protected] E-mail: [email protected] Fax +48 (0) 58 30 11 341 Adam Borawski www.arp.gda.pl Piotr Draus Opole Voivodship E-mail: [email protected] E-mail: [email protected]

Magdalena Kosobudzka Silesian Voivodship Małgorzata Patro-Zagaja Opole Centre Of Economy Development E-mail: magdalena.kosobudzka@ E-mail: [email protected] Investor Assistance Centre wrotapodlasia.pl ul. Spychalskiego 1A Silesian Voivodship Marshal’s Offce Jolanta Skrzypkowska 45-716 Opole Tel.: +48 (0) 85 749 74 95 Investor Assistance Centre E-mail: [email protected] Fax: +48 (0) 85 749 74 40 ul. Ligonia 46 Contact persons: www.wrotapodlasia.pl/coi 40-037 Katowice Małgorzata Zajchowska E-mail: [email protected] Arkadiusz Wiśniewski Contact persons: E-mail: [email protected] Pomeranian Voivodship Marcin Dojnik Aleksandra Samira - Gajny E-mail: [email protected] Magdalena Karońska E-mail: [email protected] E-mail: [email protected] Pomeranian Development Agency Tel/Fax: +48 (0) 17 852 43 76 Regional Investor Assistance Centre Bogusława Kruczek – Gębczyńska E-mail: [email protected] Piotr Regeńczuk ul. Piwna 36/39 E-mail: bkruczek-gebczynska@silesia- http://www.coi.rzeszow.pl E-mail: [email protected] 80-831 Gdansk region.pl

Adam Olbert Contact persons: Marek Franczak Swietokrzyskie Voivodship E-mail: [email protected] E-mail: [email protected] Marcin Piątkowski Ewa Dudik +48 (0) 58 32 33 256 Anna Korpała Świetokrzyskie Voivodship Marshal’s Offce E-mail: [email protected] [email protected] E-mail: [email protected] Investor Assistance Centre Al. IX Wieków Kielc 3 E-mail: [email protected] Marcin Faleńczyk Tel.: +48 (0) 32 20 78 477 25-516 Kielce Tel: +48 (0) 77 403 36 46 +48 (0) 58 32 33 122 Fax: +48 (0) 32 256 32 44 Tel: +48 (0) 77 403 36 47 [email protected] http://www.invest.visitsilesia.eu Contact persons: Tel: +48 (0) 77 403 36 48 Fax: +48 (0) 77 403 36 09 Anna Dąbrowska Anna Chlewicka – Zwierzyk www.ocrg.opolskie.pl +48 (0) 58 32 33 242 E-mail: [email protected] [email protected]

186 187 Regional Investor Assistance Centres View from Gladki Wierch on Rysy

Piotr Żołądek E-mail: [email protected] Małgorzata Saar-Urbańczyk Tel. +48 (0) 41 342 19 55, E-mail: [email protected] Fax: +48 (0) 41 342 10 38 Tel.: +48 (0) 91 446 71 02 E-mail: [email protected] Magdalena Woźniak E-mail: [email protected] Warmian - Masurian Tel.: +48 (0) 91 446 71 56 Voivodship E-mail: [email protected] Warmian - Masurian Regional Development Tel./Fax: +48 (0) 91 446 71 02 Agency Investor Assistance Centre www.coi.wzp.pl Plac Generała Józefa Bema 3, 10-516 Olsztyn

Contact persons:

Joanna Popiel E-mail: [email protected]

Aleksandra Gajewska E-mail: [email protected]

Tel.: +48 (0) 89 521 12 80 Fax: +48 (0) 89 521 12 60 http://www.wmarr.olsztyn.pl

West Pomeranian Voivodship

West Pomeranian Voivodship Marshal’s Offce Investor Assistance Centre ul. Piłsudskiego 40/42 70-421 Szczecin

Contact persons:

Paweł Bartoszewski E-mail: [email protected] Tel.: +48 (0) 91 446 71 78

Jolanta Kielmas E-mail: [email protected] Tel.: +48 (0) 91 446 71 03

188 VI. Appendices

190 191 VI.1. Selection of FDI in Poland

Country of No. Investor name Activities origin Manufacture of rubber and 1 Aluplast Austria GmbH Austria plastics;

Transport, storage and 2 Arlberger Bergbahnen AG Austria communication;

Construction; Hotels and 3 Bau Holding Strabag AG Austria restaurants;

Manufacture of metals and 4 Benda-Lutz GmbH Austria metal products; Real estate, renting and 5 Coface Central Europe Holding AG Austria business activities; Manufacture of machinery and 6 E. Hawle Armaturenwerke GmbH Austria equipment; 7 Erste Bank Austria Financial intermediation; 8 Intermarket Bank AG Austria Financial intermediation; 9 Warimpex Austria Construction; Manufacture of other non- 10 Wienerberger Ziegelindustrie AG Austria metal goods; 11 Wilkosz Austria Construction; Manufacture of chemicals and 12 ACP Europe Belgium chemical products;

192 193 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin

Manufacture of rubber and Manufacture of food, drinks 13 BELBAL Belgium 32 Materne-Conflux S.A. Belgium plastics; and tobacco products; Manufacture of rubber and Manufacture of metals and 33 Pregis NV Belgium 14 Betafence NV Belgium plastics; metal products; 34 Radson NV Belgium Wholesale and retail trade; Manufacture of transport 15 BOS Automotive Products Belgie NV Germany Manufacture of furniture and equipment; 35 Rom Heribert Belgium consumer goods; Manufacture of food, drinks 16 Brouwerij Palm NV Belgium Manufacture of chemicals and and tobacco products; 36 Solvay Belgium chemical products; 17 Cartamundi Group Belgium Wholesale and retail trade; Manufacture of transport Manufacture of other non- 37 Toyota Japa 18 Chaufourneries de Hergenrath Belgium equipment; metal goods; Real estate, renting and Real estate, renting and 38 TPF HOLDING SA Belgium 19 Democo Poland Sp. z o.o. Belgium business activities; business activities; Manufacture of chemicals and Manufacture of food, drinks 39 Apotex Inc. Canada 20 Dossche Belgium chemical products; and tobacco products; Czech Manufacture of leather and Manufacture of electrical 40 Bata Shoes 21 Elbicon Belgium Republic leather products; machinery and apparatus; Manufacture of transport Electricity, gas and water 41 Bombardier Transportation Canada 22 Electrabel S.A. Belgium equipment; supply; Manufacture of food, drinks Manufacture of metals and 42 Chapman Ice Cream Canada 23 FNE Belgium and tobacco products; metal products; Transport, storage and 43 Europort Grain Terminal Canada 24 GE Power Controls Belgium BV Belgium Wholesale and retail trade; communication; Manufacture of other non- Real estate, renting and 25 Gyproc Benelux S.A. Belgium 44 Gestion Max Canada metal goods; business activities; Manufacture of transport Manufacture of metals and 45 Goodrich Aerospace Canada LTD USA 26 Henschel Engineering N.V. Belgium equipment; metal products; GUEST TEK INTERNATIONAL GROUP Real estate, renting and Agriculture, hunting and 46 Canada 27 Holdes NV Belgium LTD business activities; forestry; 47 Pan Smak Pizza Inc. Canada Hotels and restaurants; 28 Józef Felix Nawrot Belgium Wholesale and retail trade; Manufacture of transport 48 Pratt & Whitney Canada Canada Other community, social and equipment; 29 Kinepolis Group Belgium personal service activities; Manufacture of other non- 49 Royal Group Technologies Canada Manufacture of other non- metal goods; 30 Koramic Building Products N.V. Belgium metal goods; 50 Sidney Braaksma Canada Construction; Manufacture of other non- Transport, storage and 31 Lhoist Belgium 51 Staight Crosing Canada metal goods; communication;

194 195 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Manufacture of rubber and Manufacture of food, drinks 52 Wentworth Technologies Co. Ltd. Canada 73 ARLA FOODS AmbA Denmark plastics; and tobacco products; Manufacture of electrical Manufacture of metals and 53 Digital View China 74 Broen A/S Denmark machinery and apparatus; metal products; Manufacture of metals and Manufacture of food, drinks 54 Dong Yun China 75 Carlsberg Breweries A/S Denmark metal products; and tobacco products; 55 Min Hoong Development Co. China Hotels and restaurants; Manufacture of fabrics and 76 Carly Gry Denmark 56 Sino Frontier Properties Ltd. China Construction; textiles; Suzhou Victory Precision Manufacture of rubber and 77 Chr. C. Grene A/S Denmark Wholesale and retail trade; 57 China Manufacture Co plastics; 78 Chr. Hansen AS Denmark Wholesale and retail trade; Manufacture of electrical 58 TPV Technology Ltd China Manufacture of food, drinks machinery and apparatus; 79 Dan Cake A/S Denmark and tobacco products; Manufacture of chemicals and 59 Pliva d.d. Croatia chemical products; Manufacture of metals and 80 Dan Engineering AS Denmark Manufacture of food, drinks metal products; 60 Podravka d.d. Croatia and tobacco products; Manufacture of electrical 81 Danfoss A/S Denmark 61 ASBISC Enterprises Ltd Cyprus Wholesale and retail trade; machinery and apparatus; Transport, storage and Manufacture of food, drinks 62 BEECH TREE INVESTMENTS LIMITED Cyprus 82 Danish Brewery Group A/S Denmark communication; and tobacco products; DELOITTE CENTRAL EUROPE Real estate, renting and Manufacture of food, drinks 63 Cyprus 83 Danish Fast Food Denmark HOLDINGS LIMITED business activities; and tobacco products; Manufacture of wood and Manufacture of fabrics and 64 Kronospan Holdings Ltd. Austria 84 Danish Partner A.p.S. Denmark wooden products; textiles; Transport, storage and 85 Dansk Supermarked A/S Denmark Wholesale and retail trade; 65 TOLLERTON INVESTMENTS LTD Cyprus communication; Manufacture of furniture and 86 DreamLand Denmark 66 TriGránit Holding Ltd. Hungary Construction; consumer goods; Czech Manufacture of other non- Manufacture of chemicals and 67 Glaverbel Czech a.s. 87 Dyrup Denmark Republic metal goods; chemical products; Czech Manufacture of rubber and 68 Interkontakt Group A.S. Wholesale and retail trade; 88 Elopak Denmark A.S. Denmark Republic plastics; Czech Manufacture of food, drinks Electricity, gas and water 69 Kofola a.s. 89 Elsam A/S Denmark Republic and tobacco products; supply; Czech Manufacture of metals and Real estate, renting and 70 Vitkovice Cylinders 90 Foras Holding A/S Denmark Republic metal products; business activities; Manufacture of food, drinks Transport, storage and 71 A.Espersen A/S Denmark 91 GN Great Nordic Denmark and tobacco products; communication; Manufacture of other non- Real estate, renting and 72 A/S Roulunds Fabriker Denmark 92 Group 4 Falck A/S Denmark metal goods; business activities;

196 197 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Electricity, gas and water Transport, storage and 93 Hedeselskabet Denmark 113 TDC Mobile International A/S Denmark supply; communication; 114 TK Holding Denmark Construction; Manufacture of food, drinks 94 House of Prince Denmark A/S Denmark Manufacture of machinery and and tobacco products; 115 Trepko A/S Denmark equipment; Manufacture of other non- 95 Icopal A/S Denmark Manufacture of other non- metal goods; 116 Unicon A/S Denmark metal goods; Manufacture of food, drinks 96 Investeringsfonden for Ostlandene Denmark Manufacture of other non- and tobacco products; 117 Unicon AS Denmark metal goods; Manufacture of machinery and 97 Kongskilde Industries A/S Denmark Manufacture of rubber and equipment; 118 Velux A/S Denmark plastics; Electricity, gas and water 98 LM Glasfber Denmark Real estate, renting and supply; 119 YellowTel A/S Denmark business activities; Manufacture of metals and 99 Logstor Ror A/S Denmark Real estate, renting and metal products; 120 BLStream Finland business activities; Transport, storage and 100 Maersk S/A Denmark Manufacture of other non- communication; 121 Consolis Oy Ab Finland metal goods; Manufacture of food, drinks 101 Merrild Cafe Denmark Manufacture of electrical and tobacco products; 122 ENSTO SEKKO OY Finland machinery and apparatus; Manufacture of electrical 102 NKT Cables A/S Denmark Electricity, gas and water machinery and apparatus; 123 Fortum Power and Heat OY Finland supply; The Manufacture of rubber and 103 Nordisk Wavin A/S Manufacture of rubber and Netherlands plastics; 124 Huhtamaki Van Leer Finland plastics; Manufacture of fabrics and 104 Pagh Morups Bornekonfektion A.P.S. Denmark Manufacture of pulp and textiles; 125 Itella Information Sweden paper, publishing and printing; Manufacture of food, drinks 105 Polen Invest A/S Denmark Manufacture of rubber and and tobacco products; 126 KWH Group Ltd. Finland plastics; Manufacture of other non- 106 Rockwool Denmark Manufacture of food, drinks metal goods; 127 Lannen Tehtaat OY Finland and tobacco products; 107 Scanpol International ApS Denmark Hotels and restaurants; 128 Martela OYJ Finland Wholesale and retail trade; Manufacture of food, drinks 108 Schulstad Brod A/S Denmark Manufacture of pulp and and tobacco products; 129 Metsa Tissue OYJ Finland paper, publishing and printing; Manufacture of furniture and 109 Shiptrans Holding A/S Denmark 130 Neste Oil Oyj Finland Wholesale and retail trade; consumer goods; Nordic Environment Finance Manufacture of pulp and Manufacture of electrical 131 Finland 110 Sonion Microtronic A/S Denmark Corporation (NEFCO) paper, publishing and printing; machinery and apparatus; 132 NORDKALK GROUP Finland Mining and quarrying; 111 Statoil Norway Wholesale and retail trade; Manufacture of metals and 133 ORAS OY Finland 112 TAEPPELAND HOLDING A/S Denmark Wholesale and retail trade; metal products;

198 199 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Manufacture of other non- 155 Colas S.A. France Construction; 134 Paroc Group Finland metal goods; 156 Conforama Holding France Wholesale and retail trade; Manufacture of pulp and 135 UPM Raflatac OY Finland 157 Coplan S.A.R.L. France Construction; paper, publishing and printing; 158 Credit Agricole France Financial intermediation; WERNER SODERSTROM Real estate, renting and 136 Finland Manufacture of electrical OSAKEYHTIO OY business activities; 159 Creuzet Aeronautique S.A. France machinery and apparatus; 137 Accor S.A. France Hotels and restaurants; Electricity, gas and water Manufacture of chemicals and 138 Air Liquide S.A. France 160 Dalkia Termika S.A. France supply; Electricity, gas and chemical products; water supply; Manufacture of electrical 139 Alcatel France 161 Decathlon S.A. France Wholesale and retail trade; machinery and apparatus; 162 Docks de France France Wholesale and retail trade; Manufacture of machinery and 140 Alstom Holdings France 163 E. Leclerc France Wholesale and retail trade; equipment; 164 Eiffage Construction France Construction; Manufacture of metals and 141 ALTRAD S.A. France Electricite de France Internationale Electricity, gas and water metal products; 165 France (EDF) supply; Real estate, renting and 142 Arval PHH France Manufacture of other non- business activities; 166 Essilor International France metal goods; Manufacture of chemicals and 143 Atofna S.A. France Manufacture of metals and chemical products; 167 Eurodec Industries France metal products; Real estate, renting and 144 Atos Origin France business activities; 168 Eurovia International France Financial intermediation; Transport, storage and 145 Auchan S.A. France Wholesale and retail trade; 169 Faure Machet (FM) Logistic S.A. France communication; Other community, social and 146 Canal Plus Group France Manufacture of transport personal service activities; 170 Faurecia Investments France equipment; Real estate, renting and 147 Capgemini S.A. France business activities; 171 Feu Vert S.A. France Wholesale and retail trade; Transport, storage and 148 Cardif S.A. France Financial intermediation; 172 France Telecom France communication; 149 Casino France Wholesale and retail trade; Manufacture of electrical Real estate, renting and 173 GEMPLUS S.A. France 150 Cegedim Dendrite Group France machinery and apparatus; business activities; 174 Go Sport France Wholesale and retail trade; 151 Cetelem S.A. France Financial intermediation; 175 Groupe Coplan S.A. France Construction; Manufacture of rubber and Manufacture of pulp and 152 CF Gomma Barre Thomas France 176 HACHETTE LIVRE S.A. France plastics; paper, publishing and printing; Manufacture of fabrics and Manufacture of furniture and 153 Chantelle S.A. France 177 Hamelin Group France textiles; consumer goods; Transport, storage and Real estate, renting and 154 Clement France 178 Havas Advertising International France communication; business activities;

200 201 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Manufacture of rubber and Manufacture of electrical 179 Hutchinson S.A. France 201 Aesculap AG Germany plastics; machinery and apparatus; Manufacture of rubber and Manufacture of fabrics and 180 Inergy Automotive Systems France 202 Ahlers AG Germany plastics; textiles; 181 Intermarche France Wholesale and retail trade; Other community, social and 203 ALBA International GmbH Germany Manufacture of fabrics and personal service activities; 182 International Ducatel Development France textiles; 204 Albert Schomburg Germany Wholesale and retail trade; Real estate, renting and Manufacture of rubber and 183 Klepierre S.A. France 205 Aligator Ventil Germany business activities; plastics; Manufacture of food, drinks Manufacture of transport 184 L.D.C. S.A. France 206 Al-KO KOBER AG Germany and tobacco products; equipment; Manufacture of leather and Manufacture of pulp and 185 La Fourmi France 207 Axel Springer AG Germany leather products; paper, publishing and printing; Manufacture of food, drinks Manufacture of food, drinks 186 LACTALIS France 208 Bahlsen Germany and tobacco products; and tobacco products; Manufacture of other non- Manufacture of metals and 187 Lafarge France 209 Ball Packaging Europe GmbH USA metal goods; metal products; Manufacture of electrical Manufacture of chemicals and 188 Thomson Tubes and Displays S.A. India 210 BASF AG Germany machinery and apparatus; chemical products; 189 Total Fina ElF S.A. France Wholesale and retail trade; Manufacture of food, drinks 211 Bauer Peter Germany Manufacture of transport and tobacco products; 190 United Technologies Holding S.A. USA equipment; Manufacture of chemicals and 212 Bayer AG Germany Manufacture of transport chemical products; 191 VALIN PARTICIPATIONS France equipment; Manufacture of chemicals and 213 Beiersdorf AG Germany Manufacture of chemicals and chemical products; 192 Vetoquinol France chemical products; Manufacture of chemicals and 214 Benckiser Germany 193 VINCI Construction France Construction; chemical products; Transport, storage and Berger Breitgewebe International Manufacture of fabrics and 194 Vivendi Universal France 215 Germany communication; GmbH textiles; Manufacture of pulp and 195 Aareal Bank AG Germany Financial intermediation; 216 Bertelsmann AG Germany paper, publishing and printing; 196 Actaris Measurement Systems Germany Wholesale and retail trade; Berthold Sichert GmbH, Adolf Otto 217 Germany Wholesale and retail trade; 197 Actebis Holding GmbH Germany Wholesale and retail trade; GmbH 198 Adidas AG Germany Wholesale and retail trade; Manufacture of fabrics and 218 Bianca Modern Germany textiles; ADO Gardinenwerke GmbH & Co. Manufacture of fabrics and 199 Germany KG textiles; 219 Bilfnger und Berger Bau AG Germany Construction; Manufacture of rubber and Manufacture of food, drinks 200 Adrenatio Germany 220 Binder International Germany plastics; and tobacco products;

202 203 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Real estate, renting and Manufacture of transport 221 BMP AG Germany 242 DÜRR GmbH Germany business activities; equipment; 222 BMW Group Germany Wholesale and retail trade; Manufacture of other non- 243 Dyckerhoff AG Germany Manufacture of fabrics and metal goods; 223 Brinkhaus GmbH &CO.KG Germany textiles; Electricity, gas and water 244 E.ON Ruhrgas A.G Germany United supply; Manufacture of food, drinks 224 British American Tobacco GmbH Kingdom/ Manufacture of pulp and and tobacco products; 245 East Pack GmbH Germany USA paper, publishing and printing; BSH Bosch und Siemens Hausgerate Manufacture of machinery and Manufacture of food, drinks 225 Germany 246 Eckes-Granini Int. Germany GmbH equipment; and tobacco products; 226 Buderus HT Germany Wholesale and retail trade; Manufacture of rubber and 247 ELAPLAST Technik GmbH Germany plastics; Manufacture of fabrics and 227 Budzinsky + Hor GmbH + Co Germany Energie Baden-Wurttemberg AG Electricity, gas and water textiles; 248 Germany (EnBW) supply; Manufacture of furniture and 228 C+P Mobelsysteme GmbH&Co KG Germany Manufacture of transport consumer goods; 249 EVO BUS GMBH Germany equipment; Wholesale and Manufacture of furniture and retail trade; 229 C+P Stahlmöbel GmbH&Co.KG Germany consumer goods; Federal Mogul Holding Deutschland Manufacture of transport 250 Germany GmbH equipment; 230 Castolin GmbH Germany Wholesale and retail trade; 251 FEGRO-Markt GmbH Germany Wholesale and retail trade; Real estate, renting and 231 CeWe Color Germany Manufacture of furniture and business activities; 252 FIAAG Germany consumer goods; Manufacture of rubber and 232 Coko Werk GmbH & Co. KG Germany Flair Polstermoebel GmbH and Co. Manufacture of furniture and plastics; 253 Germany KG consumer goods; Real estate, renting and 233 Combera GmbH Germany business activities; Manufacture of chemicals and 254 Fresenius Kabi AG Germany 234 Commerzbank AG Germany Financial intermediation; chemical products; Financial intermediation; Freshtex International Textile Serwis Other community, social and 235 Daimler AG Germany 255 Germany Wholesale and retail trade; GmbH personal service activities; 236 DBG Osteuropa Holding GmbH Germany printing; Friedrich Weissheimer Maltzfabrik Manufacture of food, drinks 256 Germany Manufacture of machinery and KG and tobacco products; 237 DBT GmbH Germany equipment; Manufacture of food, drinks 257 Frosta AG Germany 238 DNSint.com AG Germany Wholesale and retail trade; and tobacco products; Dr August Oetker Nahrunghittel K. Manufacture of food, drinks Manufacture of pulp and 239 Germany 258 Gruner +Jahr Germany G. and tobacco products; paper, publishing and printing; 240 Dresdner Bank Germany Financial intermediation; 259 Hafele Holding GmbH Germany Wholesale and retail trade; Manufacture of rubber and Manufacture of metals and 241 Dresdner Fensterbau Germany 260 Hans Grohe International Germany plastics; metal products;

204 205 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Hans Hoell Fleischwarenfabrik AG, Manufacture of food, drinks Manufacture of other non- 261 Germany 282 Knauf Verwaltungsgesellschaft KG Germany Co KG and tobacco products; metal goods; 262 HDI International Holding AG Germany Financial intermediation; 283 Kochloeffel GmbH Germany Hotels and restaurants; Heinrich Bauer Verlag Beteiligungs Manufacture of pulp and Manufacture of chemicals and 263 Germany 284 Kreisel GmbH Germany GmbH paper, publishing and printing; chemical products; Manufacture of food, drinks Manufacture of food, drinks 264 Hemelter Muhle GmbH Germany 285 Kruger GmbH Germany and tobacco products; and tobacco products; Manufacture of food, drinks Manufacture of metals and 265 Henkell&Sohnlein KG Germany 286 KTR Kupplungstechnik GmbH Germany and tobacco products; metal products; Manufacture of fabrics and Lignum Technologie Manufacture of machinery and 266 Henne County Mode GmbH Germany 287 Germany textiles; Aktiengesellschaft equipment; Manufacture of furniture and Manufacture of chemicals and 267 Herlitz AG Berlin Germany 288 Linde AG Germany consumer goods; chemical products; Manufacture of chemicals and Manufacture of transport 268 Hexal AG Germany 289 Lisa Draexlmaier GmbH Germany chemical products; equipment; Manufacture of other non- 269 Heye & Heinz Glas Germany Manufacture of food, drinks metal goods; 290 Lohmann AG Germany and tobacco products; Manufacture of machinery and 270 Heye International GmbH Germany Manufacture of machinery and equipment; 291 LOI THERMPROCESS GmbH Germany equipment; 271 Hobas Rohre GmbH Germany Wholesale and retail trade; Manufacture of food, drinks Real estate, renting and 272 Hochland AG Germany 292 Lowe GGK Holding AG Austria and tobacco products; business activities; 273 Hochtief AG Germany Construction; Manufacture of food, drinks 293 Ludwig Schockolade Germany Manufacture of pulp and and tobacco products; 274 Interprint GmbH & Co. KG Germany paper, publishing and printing; Manufacture of chemicals and 294 Petro Carbo Chem AG (PCC) Germany Intersnack Knabber Gebaeck GmbH Manufacture of food, drinks chemical products; 275 Germany & Co. K.G. and tobacco products; Manufacture of chemicals and 295 Petrofer Oil and Chemicals Germany Real estate, renting and chemical products; 276 ISTA AG Germany business activities; Manufacture of food, drinks 296 Pfeifer und Langen Germany Manufacture of furniture and and tobacco products; 277 Jockenhoefer Verwaltung GmbH Germany consumer goods; Manufacture of wood and 297 Pfleiderer AG Germany 278 Jungheinrich Beteiligungs GmbH Germany Wholesale and retail trade; wooden products; Karl Konecke Fleischwarenfabrik Manufacture of food, drinks Manufacture of metals and 279 Germany 298 Pipelife Deutschland GmbH Germany GmbH & Co. KG and tobacco products; metal products; Kirchhoff Automotive GmbH & Co. Manufacture of transport Pneuhage Management GmbH & 280 Germany 299 Germany Wholesale and retail trade; KG equipment; CO. KG Manufacture of other non- Manufacture of pulp and 281 Klingspor GmbH Germany 300 Pol Print Medien GmbH Germany metal goods; paper, publishing and printing;

206 207 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Polen Zement Beteiligungsgesellshaft Manufacture of other non- Real estate, renting and 301 Germany 321 SAP AG Germany GmbH metal goods; business activities; Manufacture of rubber and Real estate, renting and 302 Polychem Isolierhandel GmbH Germany 322 Saxon Steel Distribution Germany plastics; business activities; 303 Quarzwerke GmbH Germany Mining and quarrying; SCA Hygiene Products Holding Manufacture of chemicals and 323 Germany Manufacture of transport GmbH chemical products; 304 Quin GmbH Germany equipment; 324 Scandia Leben Holding GmbH Germany Financial intermediation; Manufacture of food, drinks 325 Scheidt International GmbH Germany Construction; 305 Raiffeisen HaGe Germany and tobacco products; 326 Siemens AG Germany Wholesale and retail trade;; Manufacture of electrical Manufacture of furniture and 306 Rauschert Germany 327 Sieper GmbH Germany machinery and apparatus; consumer goods; Manufacture of metals and Manufacture of fabrics and 307 Reflex Winkelmann GmbH Germany 328 SOPP GmbH Germany metal products; textiles; Other community, social and Transport, storage and 308 REMONDIS International GmbH Germany 329 Spedimpex Germany personal service activities; communication; REWE Grossflachengesellschaft 309 Germany Wholesale and retail trade; Manufacture of transport GmbH 330 Sprick-Fahrrader GmbH Germany equipment; Rheinish - Bergische Manufacture of pulp and 310 Germany Electricity, gas and water Verlagsgesellschaft mbH paper, publishing and printing; 331 Stadtwerke Leipzig GmbH Germany supply; Manufacture of metals and 311 Rial Aluguss Germany metal products; Manufacture of metals and 332 Stapelmann GmbH Germany Electricity, gas and water metal products; 312 RMG Regel + Messtechnik GmbH Germany supply; Manufacture of metals and 333 STIHL International GmbH Germany Manufacture of transport metal products; 313 Robert Bosch GmbH Germany equipment; Manufacture of chemicals and Manufacture of other non- 334 STO AG Germany 314 Roeben Tanbaustaffe GmbH Germany chemical products; metal goods; Real estate, renting and 335 Stroer Group Germany 315 Rogner GmbH Germany Hotels and restaurants; business activities; Manufacture of wood and Manufacture of food, drinks 316 ROTO FRANK AG Germany 336 Sudzucker AG Germany wooden products; and tobacco products; Transport, storage and Electricity, gas and water 337 TC Touristik GmbH Germany 317 RWE Plus AG Germany communication; supply; Manufacture of food, drinks 338 Tchibo Frisch Rost Kaffee GmbH Germany RWE Umwelt Services Deutschland Other community, social and and tobacco products; 318 Germany GmbH personal service activities; 339 TECE GmbH&Co. KG Germany Wholesale and retail trade; 319 SAG GmbH Germany Construction; 340 ThyssenKrupp Materials AG Germany Wholesale and retail trade; Salamander Industrie Produkte Manufacture of rubber and Tower Automotive Manufacture of transport 320 Germany 341 Germany GmbH plastics; Auslandsbeteiligungen GmbH equipment;

208 209 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin TPM Transforma Projekt Manufacture of rubber and 342 Germany Construction; 363 Nordenia Hungary Szada (NHS) Hungary Management GmbH plastics; Union Asset Management Holding Real estate, renting and 343 Germany Financial intermediation; 364 HCL India AG business activities; Manufacture of rubber and Manufacture of food, drinks 344 Union Knopf GmbH Germany 365 Herisson Ltd Canada plastics; and tobacco products; Walter-Heilit Verkehrswegebau Construction; Real estate, Manufacture of rubber and 345 Germany 366 JFC Manufacturing Ltd. Ireland GmbH renting and business activities; plastics; 346 WANZL Metallwarenfabrik GmbH Germany Wholesale and retail trade; 367 KBC Asset Management Ltd. Ireland Financial intermediation; Manufacture of transport M.C. Building Chemicals Manufacture of chemicals and 347 Was Wietmarscher Germany 368 Ireland equipment; Mueller&Partners chemical products; Manufacture of rubber and Manufacture of chemicals and 348 Weber GmbH & Co. KG Germany 369 Teva Israel plastics; chemical products; Manufacture of chemicals and 349 West Landesbank AG (WestLB AG) Germany Financial intermediation; 370 Alcea S.r.l. Group Italy chemical products; Manufacture of machinery and 350 Wirthwein Germany equipment; Other community, social and 371 Bioconsult SpA Italy Manufacture of other non- personal service activities; 351 Xella Porenbeton Holding GmbH Germany metal goods; Manufacture of rubber and Manufacture of food, drinks 372 BM Industria Bergamasca Mobili Italy 352 Zentis GmbH Co.KO Germany plastics; and tobacco products; Manufacture of food, drinks Manufacture of transport 353 Zott GmbH&Co KG Germany 373 Brembo S.p.A. Italy and tobacco products; equipment; Manufacture of food, drinks Agriculture, hunting and 354 Chipita Greece 374 C&M Italy and tobacco products; forestry; 355 EFG Eurobank Ergasias Greece Financial intermediation; Manufacture of pulp and 375 Cartotechniche Chierese e Tiferante Italy 356 Germanos Greece Wholesale and retail trade; paper, publishing and printing; Manufacture of rubber and Manufacture of leather and 357 M. J. Maillis Greece 376 Condor Italy plastics; leather products; Real estate, renting and 377 Cosmar S. r. l. Italy Hotels and restaurants; 358 Mellon Greece business activities; Manufacture of metals and 378 Delfo SpA Italy Manufacture of chemicals and metal products; 359 BorsodChem Rt. Hungary chemical products; Manufacture of metals and 379 Ferroli SpA Italy Manufacture of chemicals and metal products; 360 Egis Pharmaceuticas Ltd Hungary chemical products; Financial intermediation;; Manufacture of chemicals and 380 Fiat Italy Manufacture of transport 361 Gedeon Ritcher LTD Hungary chemical products; equipment; Manufacture of food, drinks Manufacture of fabrics and 362 Globus Hungary 381 Filatura e Tessitura di Tollegno SpA Italy and tobacco products; textiles;

210 211 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Real estate, renting and Societe Europeenne De Conserve Manufacture of food, drinks 382 Financial Holding FHF Italy 401 Italy business activities; S.A. and tobacco products; Finanziaria Mobiliare Immobiliare di Manufacture of fabrics and Manufacture of electrical 383 Italy 402 Sylea Italia Srl Italy Pollone textiles; machinery and apparatus; Manufacture of food, drinks Manufacture of leather and 403 Tessitura Bresciana Italy 384 Fortrade Financing SPA Italy and tobacco products; leather products; Financial intermediation; 404 UniCredito Italiano SpA Italy Financial intermediation; Manufacture of chemicals and chemical products; Manufacture of machinery and 385 Freudenberg Politex Srl Italy 405 Whirlpool Europe Srl USA Manufacture of fabrics and equipment; textiles; Manufacture of machinery and Manufacture of other non- 406 Amatsuji Kogyo Seisakusho Japan 386 General Beton Triveneta SpA Italy equipment; metal goods; Manufacture of rubber and Manufacture of machinery and 407 Bridgestone Corporation Japan 387 Indesit Company Italy plastics; equipment; Manufacture of transport Industrie Cartarie Tronchetti SpA Manufacture of pulp and 408 DAICEL CHEMICAL INDUSTRY LTD Japan 388 Italy equipment; (ICT) paper, publishing and printing; Manufacture of transport Real estate, renting and 409 DENSO Japan 389 Italiana Appalti Costruzioni Italy equipment; business activities; Manufacture of rubber and Manufacture of furniture and 410 Fuji Seal Japan 390 Italmatch Srl Italy plastics; consumer goods; Manufacture of machinery and Real estate, renting and 411 Hirata Corporation Japan 391 Italpol Servizi Fiduciari S.P.A. Italy equipment; business activities; 412 Itochu Corp. Japan Wholesale and retail trade; Real estate, renting and 392 Italtriest Group Italy Manufacture of metals and business activities; 413 Kotani Japan metal products; 393 King Cross Group SRL Italy Construction; Manufacture of chemicals and 414 Marubeni Co. Japan Wholesale and retail trade; 394 L. Molteni & C.dei F.lli Alitti SpA Italy chemical products; Transport, storage and 415 Mitsubishi Corp. Japan Manufacture of pulp and communication; 395 Seregni SpA Italy paper, publishing and printing; Manufacture of other non- Manufacture of machinery and 416 NGK Insulators Japan 396 Sest Luve Italy metal goods; equipment; 417 Orix Corporation Japan Financial intermediation; Manufacture of electrical 397 SEWS-CABIND SpA Italy Manufacture of transport machinery and apparatus; 418 Sanden Corporation Japan equipment; 398 Simest Italy Financial intermediation; Manufacture of electrical 419 Sharp Corporation Japan Other community, social and machinery and apparatus; 399 Simest SpA Italy personal service activities; SUMITOMO CHEMICAL COMPANY Manufacture of electrical 420 Japan 400 Sirti Italy Construction; LIMITED machinery and apparatus;

212 213 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Wholesale and retail trade; Manufacture of pulp and 440 Orkla Press Norway 421 SUMITOMO CORPORATION Japan Manufacture of chemicals and paper, publishing and printing; chemical products; Manufacture of electrical Manufacture of electrical 441 Heesung Electronics Co., Ltd. South Korea 422 Tensho Electric Industries Co Ltd Japan machinery and apparatus; machinery and apparatus; Manufacture of electrical Manufacture of machinery and 442 HUMAX CO LTD South Korea 423 Toho Industrial Co. Ltd. Japan machinery and apparatus; equipment; Manufacture of electrical Manufacture of rubber and 443 LG CHEM LTD South Korea 424 Tokai Rubber Industries Ltd. (TRI) Japan machinery and apparatus; plastics; Wholesale and retail trade; Manufacture of electrical 425 Toshiba Corporation Japan 444 LG Electronics Inc South Korea Manufacture of electrical machinery and apparatus; machinery and apparatus; Manufacture of rubber and Manufacture of electrical 426 Toyo Seal Industries Co. Ltd. Japan 445 LG INNOTEK CO LTD South Korea plastics; machinery and apparatus; Manufacture of transport Manufacture of chemicals and 427 Toyota Boshoku Japan 446 LG International South Korea equipment; chemical products; Manufacture of rubber and 428 U-Tec Corporation Japan Manufacture of electrical plastics; 447 Lucky SMT South Korea machinery and apparatus; Manufacture of machinery and 429 YAGI Industries Co. Ltd Japan equipment; 448 Samsung Electronics Co. LTD South Korea Wholesale and retail trade; Manufacture of fabrics and Manufacture of chemicals and 430 YKK Holding Europe Japan 449 SK Chemicals South Korea textiles; chemical products; Manufacture of other non- Manufacture of electrical 431 Cemex Mexico 450 SKC Chemicals South Korea metal goods; machinery and apparatus; Manufacture of transport 451 ACCIONA Inmobilaria Spain Construction; 432 MECAPLAST Monaco equipment; Transport, storage and 452 Banco Santander Central Hispano Spain Manufacture of other non- communication; 433 Borgestad Fabrikker A/S Norway metal goods; Manufacture of rubber and 453 CEFA Spain Manufacture of metals and plastics; 434 Hydro Central Europe B.V Norway metal products; Wholesale and Manufacture of transport 454 Cropu S. A. Spain retail trade; equipment; 435 Klif Holding A/S Norway Construction; Transport, storage and 455 EADS CASA Spain 436 NCC CONSTRUCTION AS Norway Construction; communication; Manufacture of other non- Manufacture of machinery and 437 Norgips Norway 456 Fagor Electrodomesticos Spain metal goods; equipment; Transport, storage and 457 Faurecia Automotive Espana S.A. Spain Wholesale and retail trade; 438 Odra Industries ASA Norway communication; 458 Ferrovial Spain Construction; Manufacture of food, drinks GONVARRI CORPORACION 439 Orkla Foods A.S. Norway 459 Spain Wholesale and retail trade; and tobacco products; FINANCIERA SL

214 215 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Industrial Quimica del Nalón Polonia Manufacture of machinery and 460 Spain Construction; 481 Electrolux AB Sweden S.A. equipment; Manufacture of metals and 482 Elfa AB Sweden Wholesale and retail trade; 461 Mecalux SA Spain metal products; Manufacture of electrical 483 Ericsson Sweden 462 Neinver Spain Wholesale and retail trade; machinery and apparatus; Manufacture of other non- Electricity, gas and water 463 ROCA Sanitario SA Spain metal goods; 484 Vattenfall AB Sweden supply; Electricity, gas and 464 TelePizza S.A. Spain Hotels and restaurants; water supply; Manufacture of food, drinks Manufacture of food, drinks 465 ABBA Seafood AB Sweden 485 Vin & Spirit AB Sweden and tobacco products; and tobacco products; Manufacture of chemicals and Manufacture of transport 466 AGA AB Sweden 486 Volvo AB Sweden chemical products; equipment; Ahlstromforetagen Svenska Manufacture of electrical CEREAL PARTNERS WORLWIDE ( Manufacture of food, drinks 467 Sweden 487 Switzerland Aktiebolg machinery and apparatus; CPW ) and tobacco products; Manufacture of machinery and 488 Crédit Suisse Group Switzerland Financial intermediation; 468 AxEast AB Sweden equipment; Manufacture of rubber and 489 Faserplast Switzerland 469 AxMeditec AB Sweden Wholesale and retail trade; plastics; Manufacture of metals and Finagrain Compagnie Commerciale Manufacture of food, drinks 470 BACKER BHV AB Sweden 490 Switzerland metal products; Agricole et Financiere and tobacco products; Manufacture of metals and 471 Bulten AG Sweden Manufacture of rubber and metal products; 491 Georg Utz Holding Switzerland plastics; Manufacture of chemicals and 472 Catzy Sweden Manufacture of metals and chemical products; 492 Innolink S.A. Switzerland metal products; Real estate, renting and 473 CEDERROTH INTERNATIONAL A B Sweden business activities; Manufacture of chemicals and 493 KARL BUBENHOFER AG Switzerland Manufacture of food, drinks chemical products; 474 Cloetta Fazer AB Sweden and tobacco products; Real estate, renting and 494 Kompass Holding Switzerland Manufacture of pulp and business activities; 475 Dagens Industri Holding AB Sweden paper, publishing and printing; Manufacture of food, drinks 495 Kraft Jacobs Suchard AG Switzerland 476 Dahl International AB Sweden Wholesale and retail trade; and tobacco products; Manufacture of machinery and Manufacture of wood and 477 DeLaval Holding AB Sweden 496 Krono-Holding AG Switzerland equipment; wooden products; Real estate, renting and Manufacture of rubber and 478 Dexcron AB Sweden 497 KS Holding Hergiswil AG Switzerland business activities; plastics; Manufacture of pulp and Manufacture of electrical 479 Duni AB Sweden 498 Landis + Gyr Switzerland paper, publishing and printing; machinery and apparatus; Manufacture of pulp and Manufacture of pulp and 480 Elanders Infoprint AB Sweden 499 Marquard Media AG Switzerland paper, publishing and printing; paper, publishing and printing;

216 217 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin Manufacture of pulp and The Manufacture of pulp and 500 Model Holding AG Switzerland 519 Kappa Packaging paper, publishing and printing; Netherlands paper, publishing and printing; The Real estate, renting and The Manufacture of other non- 501 Accounting Plaza B.V. 520 Kerakoll International B.V. Netherlands business activities; Netherlands metal goods; The Electricity, gas and water The Manufacture of food, drinks 502 AES Horizons Ltd 521 Nutreco International B.V. Netherlands supply; Netherlands and tobacco products; The Agriculture, hunting and The Manufacture of food, drinks 503 Agro East Europe BV 522 Philip Morris Holland B.V. Netherlands forestry; Netherlands and tobacco products; The Manufacture of chemicals and Pilkington International Holdings United Manufacture of other non- 504 Baxter Healthcare Corporation 523 Netherlands chemical products; B.V. Kingdom metal goods; The Manufacture of other non- The Manufacture of electrical 505 CBR Baltic BV 524 Polam Holding BV Netherlands metal goods; Netherlands machinery and apparatus; The The 506 Ceneu Pizza BV Hotels and restaurants; 525 Polaris Finance Financial intermediation; Netherlands Netherlands The Manufacture of food, drinks Central European Advanced The Manufacture of other non- 526 Polish Bakery Investment BV 507 Netherlands and tobacco products; Refractory Technology BV Netherlands metal goods; The The Manufacture of food, drinks 527 Repono Holding BV Financial intermediation; 508 CEPV Netherlands Netherlands and tobacco products; The Robert Bosch Investment Nederland The Manufacture of machinery and 509 CFE Netherland Construction; 528 Netherlands B.V. Netherlands equipment; The Manufacture of other non- The Real estate, renting and 510 Cookson Holdings BV 529 Rodamco Netherlands metal goods; Netherlands business activities; The Manufacture of food, drinks The 511 CSM NV 530 SCALA BUSINESS SOLUTIONS N V Wholesale and retail trade; Netherlands and tobacco products; Netherlands The Manufacture of pulp and The Manufacture of machinery and 512 David S Smith Netherlands B.V. 531 Schmidt Holland BV Netherlands paper, publishing and printing; Netherlands equipment; The Other community, social and Schoenfabriek Helioform Quality The Manufacture of leather and 513 ITI Film Studies Poland BV 532 Netherlands personal service activities; Shoes BV Netherlands leather products; The Other community, social and The 514 ITI Media Group NV 533 Shell Gas (LPG) Holdings Wholesale and retail trade; Netherlands personal service activities; Netherlands The The 515 IVECO N.V. Wholesale and retail trade; 534 SICES International B.V. Construction; Netherlands Netherlands The Manufacture of food, drinks The 516 Johan van Leendert B.V. 535 SINGSPIEL INVESTERINGEN B.V. Construction; Netherlands and tobacco products; Netherlands The Manufacture of chemicals and The Manufacture of pulp and 517 Johnson Diversey 536 Steijn Design BV Netherlands chemical products; Netherlands paper, publishing and printing; The Manufacture of chemicals and The Manufacture of wood and 518 Kalon Group BV 537 Veneer Design International Netherlands chemical products; Netherlands wooden products;

218 219 Selection of FDI in Poland

Country of Country of No. Investor name Activities No. Investor name Activities origin origin The Manufacture of rubber and United Transport, storage and 538 Wavin Trepak BV 557 Hays Netherlands plastics; Kingdom communication; Wincanton European Transport The Transport, storage and United Manufacture of fabrics and 539 558 Henri Lloyd Limited Services B.V. Netherlands communication; Kingdom textiles; The Manufacture of food, drinks United Real estate, renting and 540 Windjammer Investments B.V. 559 TG CONSULTANTS UK LTD 100.00% Netherlands and tobacco products; Kingdom business activities; The Manufacture of pulp and United Manufacture of metals and 541 Wolters Kluwer Int. Holding B.V. 560 The Aluminium Powder Co. Ltd. Netherlands paper, publishing and printing; Kingdom metal products; The Manufacture of food, drinks United Manufacture of transport 542 Zeelandia International Holding B.V. 561 TI Automotive Holding Ltd Netherlands and tobacco products; Kingdom equipment; Real estate, renting and United 543 BOGAZICI Investment Group Turkey 562 Trusthouse Forte Hotels and restaurants; business activities; Kingdom Real estate, renting and United Manufacture of food, drinks 544 CAN Group Turkey 563 Uniq plc business activities; Kingdom and tobacco products; Manufacture of fabrics and United Manufacture of food, drinks 545 Dallas International Turkey 564 United Biscuits Investments textiles; Kingdom and tobacco products; Real estate, renting and United 546 Mesa Mesken A.S. Turkey 565 Xerox Ltd. Wholesale and retail trade; business activities; Kingdom Real estate, renting and Real estate, renting and 547 Reform Company Turkey 566 ACNielsen Corporation USA business activities; business activities; Manufacture of other non- Financial intermediation; Real 548 Rumeli Group Turkey metal goods; 567 AIG USA estate, renting and business activities; United 549 Compass Group International B.V. Hotels and restaurants; Kingdom 568 American Axle Manufacturing USA Wholesale and retail trade; Manufacture of metals and United Manufacture of other non- 569 Amtech U.S. Inc. USA 550 Cookson Overseas Limited metal products; Kingdom metal goods; 570 Apache Corporation USA Mining and quarrying; Manufacture of metals and 551 Corus International metal products; 571 Apollo-Rida Poland Llc. USA Construction; United Manufacture of chemicals and Real estate, renting and 552 Cussons Group Ltd. 572 Apriso Corporation USA Kingdom chemical products; business activities; United Manufacture of transport Manufacture of transport 553 GKN Industries Limited 573 ArvinMeritor USA Kingdom equipment; equipment; United Manufacture of chemicals and 554 Glaxo SmithKline 574 AVON International Operations INC. USA Wholesale and retail trade; Kingdom chemical products; Real estate, renting and United 575 AXCIOM EUROPEAN HOLDINGS LTD USA 555 Gwarex Holdings Limited Mining and quarrying; business activities; Kingdom United Manufacture of other non- Manufacture of pulp and 556 Hanson AK i BV 576 Baring CEF Investment IV Ltd USA Kingdom metal goods; paper, publishing and printing;

220 221 Selection of FDI in Poland Cathedral Island in Wroclaw at night

Country of No. Investor name Activities origin Manufacture of machinery and 577 Beloit Corporation USA equipment; Other community, social and 578 Beverly Hills Vide L.L.C. USA personal service activities; Manufacture of machinery and 579 Braaten Companies LLD. USA equipment; 580 BRC Holding Developments USA Hotels and restaurants; Real estate, renting and 581 GTECH Corporation USA business activities; Manufacture of food, drinks 582 H.J Heinz Company USA and tobacco products; Real estate, renting and 583 HEWITT ASSOCIATES LLC USA business activities; 584 Hewlett Packard USA Wholesale and retail trade; 585 Hines USA Construction; Manufacture of machinery and 586 Hoover Precision Products, Inc. USA equipment; Manufacture of rubber and 587 Inline Plastics Corporation USA plastics; 588 Innova Capital USA Financial intermediation; Real estate, renting and 589 Intel Europe Inc. USA business activities; 590 International Fast Food Corporation USA Hotels and restaurants; 591 International Finance Corporation USA Financial intermediation; Manufacture of pulp and 592 IPC USA paper, publishing and printing; Kimball Electronics Manufacturing Manufacture of electrical 593 USA Inc machinery and apparatus; Manufacture of pulp and 594 Kimberly Clark Worldwide INC USA paper, publishing and printing; Real estate, renting and 595 Kroll Inc. USA business activities; Manufacture of transport 596 Lear Corporation USA equipment; Manufacture of fabrics and 597 Lee Bell Inc. USA textiles; 598 Legg Mason Inc. USA Financial intermediation;

222 223 VI.2. International schools in Poland

Warsaw The British School Primary, Secondary and IB Diploma Programme ul. Limanowskiego 15 American School of Warsaw 02-943 Warsaw ul. Warszawska 202 Tel.: +48 (0) 22 842-32-81 05-520 Konstancin-Jeziorna Fax.: +48 (0) 22 842-32-65 Tel.: +48 (0) 22 702-8500 E-mail: [email protected]

Meridian International School The British School ul. Wawelska 66/74 Early Years Centre 02-034 Warsaw ul. Jaroslawa Dabrowskiego 84 Tel.: +48 (0) 22 822 15 75 02-751 Warsaw, Poland Fax.: +48 (0) 22 822 20 13 Tel.: +48 (0) 22 646-77-77 Email: [email protected] Fax.: +48 (0) 22 646-46-66 E-mail: [email protected] International American School Ul. Dembego 18 Lycee Francais de Varsovie 02-796 Warsaw, Poland ul. Walecznych 4/6 Tel.: +48 (0) 22 649 14 40, 03-916 Warsaw Fax.: +48 (0) 22 649 14 45 Tel.: +48 (0) 22 616 54 00 Fax.: +48 (0) 22 616 53 99 Middle & High School E-mail : [email protected] ul. Radarowa 6, 02-137 Warsaw - Włochy Canadian School of Warsaw Tel.: +48 (0) 22 868 25 03 Bełska 7 Street Fax.: +48 (0) 22 868 25 09 02 - 638 Warsaw E-mail: [email protected] Tel.: +48 (0) 22 646 92 89 Fax.: +48 (0) 22 646 92 88 E-mail : [email protected]

224 225 International schools in Poland

International European School – Warsaw Happy Montessori House-International Wroclaw Tel.: +48 (0) 58 342-26-00 ul. Wiertnicza 75, Pre-school [email protected] 02-952 Warsaw ul. Rumiana 14, Tel.: +48 (0) 22 842 44 48 02-956 Warsaw Wroclaw International School High School no. 3 Fax.: +48 (0) 22 842 44 48 Tel: +48 697 06 05 04 ul. Zielińskiego 38 ul. Topolowa 7 E-mail: [email protected] E-mail: [email protected] 53-534 Wroclaw Gdansk Tel.: +48 (0) 71 782 26 26 Tel.: +48 (0) 58 341 06 71 European Bilingual Preschool Tęczowy Ogród Fax.: +48 (0) 71 782 26 20 Fax: +48 (0) 58 341 06 71 ul. Chłapowskiego 1, ul. Miłobędzka 2 E-mail: [email protected] E-mail: [email protected] 02-787 Warsaw 02-634 Warsaw Tel.: +48 (0) 22 644 15 14 Tel.: +48 (0) 22 848 04 35 International School EKOLA Fax: +48 (0) 22 644 15 14 E-mail: [email protected] Fundacji Oświatowej EKOLA Poznan E-mail: [email protected] ul. Tadeusza Zielińskiego 56 Francusko-Polska Szkoła Podstawowa 53 – 534 Wroclaw International Preschool “LA FONTAINE” Tel./Fax.: + 48 (0) 71 361 43 70 International School of Poznan ul. Okrężna 95, ul. Rolna 177, E-mail: [email protected] ul. Taczanowskiego 18 02-933 Warsaw 02-729 Warsaw (Mokotów, Metro Służew) 60-147 Poznan Tel.: +48 600 94 93 90 Tel.: +48 (0) 22 843 42 41 Polsko-Niemiecka Szkoła Podstawowa Tel.: +48 (0) 61 646 37 60 Fax: +48 (0) 22 842 22 62 Fax: +48 (0) 22 843 42 41 ul. Wejherowska 28 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] 54-239 Wroclaw Tel.: +48 (0) 71 798 26 00 Poznań British International School “W stumilowym lesie” day care centre Francusko-Polskie Przedszkole “LA FONTAINE” Fax.: +48 (0) 71 798 26 01 Ul. Darzyborska 1A ul. Naprzełaj 5a, ul. Rolna 177 E-mail: [email protected] 61 - 303 Poznan 03-092 Warsaw Choszczówka 02-729 Warsaw Tel.: +48 (0) 61 8709 730 Tel.: +48 609 80 43 20, Tel.: +48 (0) 22 843 42 41 Fax: +48 (0) 61 8768 799 Fax: +48 (0) 22 676 68 91 Fax: +48 (0) 22 843 42 41 Krakow [email protected] E-mail: [email protected] E-mail: [email protected] International School of Poznań: World Hill Academy - Szkoła Anglo- St Paul’s The British International school of British International School of Cracow ul. Dąbrowskiego 262/280, Amerykańska Warsaw ul. Smoleńsk 25, 60-406 Poznan ul. Okrężna 83 ul. Zielona 14, 31-108 Krakow Tel.: +48 (0) 61 847 74 35 02-933 Warsaw 05-500 Piaseczno Tel.: +48 (0) 12 292 64 80 E-mail: [email protected] Tel.: +48 (0) 22 858 31 91 Tel.: +48 (0) 22 756 77 97, Fax.: +48 (0) 12 292 64 81 E-mail: [email protected] Fax: +48 (0) 22 756 26 09 E-mail: [email protected] International School of Kraków Katowice American English School S.A. Lusina ul. sw. Floriana 57 Rogatkowa 50, Szkoła Japońska przy Ambasadzie Japonii w 30-698 Kraków, Poland 04-773 Warsaw Warszawie Tel.: +48 (0) 12 270-1409 Silesian International Business School Tel.: +48 (0) 22 615 76 49 ul. Kormoranów 7A, E-mail: [email protected] ul. Bogucicka 3, 02-836 Warsaw 40-226 Katowice Ecole Antoine de Saint-Exupéry Tel.: +48 (0) 22 643 54 74 Tel.: +48 (0) 32 257 73 37 ul. Nobla 16, Gdansk [email protected] 03-930 Warsaw Willy Brandt Deutsche Schule Tel.: +48 (0) 22 616 14 99 ul. Radosna 24, 02-956 Warsaw British International School Gdansk Tel.: +48 (0) 22 642 21 31 ul. Zielony Trójkąt 1 Fax: +48 (0) 22 642 21 31 80-869 Gdansk,

226 227 International schools in Poland Ksiaz Castle

Lodz

British International School ul. Sterlinga 26 90-212 Lodz Tel.: +48 (0) 42 631 59 23 [email protected]

Kindergarten and Primary School ul.Demokratyczna 85, 93-430 Lodz Tel.: +48 (0) 42 681 61 00, Fax: +48 (0) 681 61 01 E-mail: [email protected]

Gdynia

High School no. 3 ul. Legionów 27, 81-405 Gdynia Tel.: +48 (0) 58 622 18 33 Fax: +48 (0) 58 622 18 33 E-mail: [email protected]

The American Elementary and Middle School: ul. Lowicka 41, 81-504 Gdynia Tel.: +48 (0) 58 664 69 71 Fax: +48 (0) 58 664 74 14

228 229 JP Weber in Poland

We Support Decision Makers

■ JP Weber is a prestigious address for international investors wishing to directly invest within Poland.

■ With locations in Wroclaw, Warsaw and Berlin we guarantee our clients the necessary personal touch.

■ International standards, team work, and professional excellence are core values at JP Weber, priming our team for success.

■ With more than 100 investment projects at JP Weber Advisory, we represent proven market know- how and best practice.

Who our clientele is

We represent owners of medium enterprises, management boards of international trusts private investors and project managers. We seek clientele who desire a responsible and committed partner, whom they can trust. Partnership is not just an obligation; it is a responsibility we enliven.

230 231 JP Weber in Poland

Legal Advisory Direct Investments

We maintain an active presence within international markets, building upon our solid reputation with JP Weber Investments has established its professional roots via personally accompanying senior decision foreign investors and polish companies. Top international standards and highly specialized lawyers enable makers through the intricate and complex Polish investment process. Location planning, fnalization of our team to produce quality results for our clients. real estate transactions and an all-round permission management are standard services provided to our international customers.  Corporate law  Real estate law  Strategic advisory  Capital markets law  Location planning  Labor law  Project development  Contractual law  Greenfeld management  Public procurement law  Brownfeld redevelopment

Tax Advisory Mergers & Acquisitions

Tax advisory is a long term cooperation. We provide up to date and pragmatic solutions for speedy tax The focus of our M&A competence team is to overcome intercultural boundaries and to achieve optimal clarifcations. Our Tax professionals support our customers in Poland by incorporating local tax regulation matchmaking between international sellers and buyers. With more than ten years of experience in CEE, expertise, as well gaining international insight from our GMN partners worldwide. specifcally focusing on the polish market, we know how to maneuver within this intricate yet lucrative environment, successfully closing corporate transactions for our elite customers.  Tax planning  Value added tax and tariff law  Strategic advisory  Transfer price documentation  Corporate sale  International tax law  Corporate purchase

Financial Accounting Corporate Finance

External accounting by JP Weber connects two central elements – tax declarations for the fnancial au- Remotely fnancing projects from abroad contains inherent risks. We reduce this risk by helping to thorities and transparent reporting for the management. Each focus is flawlessly executed in order to diversify investments by utilizing local fnancing from within Poland, as well as backwards international satisfy the stringent requirements of the Polish fscal offces. Moreover, JP Weber offers the technical fnancial sources from elsewhere in the world. JP Weber are localized experts, able to turn complex feasibility of accounting with digital documents making it possible to provide services for clients all over multifaceted fnancing schemes, into seamless and successful go to market strategies. Our competent Poland. team works closely with local and international fnancial partners and provides the necessary business planning to support fnancial transactions.  Financial accounting  Payroll accounting  Equity Financing  Management reporting  Private Equity  IFRS  MBO / MBI  Accounting advisory

232 233 JP Weber in Poland

Why JP Weber…. Your personal contact

Our Values

 Trust  Partnership  Integrity  Independence  Discretion Our Approach

 Professional excellence  Multilingualism  Personal touch  Results oriented

Our Know-how Marcin Dudarski Gregor Piechowiak Mirco Weber Jedrzej Piechowiak Managing Partner Managing Partner Managing Partner Managing Partner  Longtime market experience Attorney at Law  Deep industry knowledge Legal Services Mergers & Acquisiton Corporate Finance Direct Investments  Competence Center Tax Advisory Financial Accounting Real Estate

Our Network  Marcin Dudarski: [email protected]  Gregor Piechowiak: [email protected]  Within GMN International we work with and for recognized accounting frms from over 35  Mirco Weber: [email protected] countries in the world  Jędrzej Piechowiak: [email protected]

 GMN International secures for our customers international professional competence at any time – Know-how is knowing Who

www.gmni.com

234 235 Partners

Warsaw: Wroclaw: Photographs:

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Central Desk Warsaw Central Desk Wroclaw Phone: +48 (0) 22 630 66 22 Phone +48 (0) 71 369 96 30 Fax +48 (0) 22 630 66 23 Fax: +48 (0) 71 369 96 39

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