The Pomorskie Voivodship OurOur PocketPocket 1. Basic Information ofof EuropeEurope 1.1 Introduction

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e Pomorskie is one of 16 voivodships in , a country in Central-Eastern Europe, which since 1st May 2004 has been a European Union member state. The Pomorskie S The Pomorskie Voivodship is situated in the northern part of the country on the Voivodship is 18.3 thou- Baltic Sea coast. Its present shape results from the administrative reforms of sand square kilometres large. The population totals 1st January 1999. The thus established Pomorskie is made up of the whole of North c 2.2 million, out of which the former Gdaƒskie Voivodship as well as significant parts of three other i 1.5 million live in 42 cities voivodships. Due to these changes, a strong centre has been established on 18 293 square km, i.e. 5.9 percent of Poland’s territory. Almost 60 percent of t and towns. Gdaƒsk, with its 461 thousand inhabitants, Poland’s coastline, i.e. 316 km is within Pomorskie. l Sea is the capital of the region. From the port of Ustka in west, through ¸eba, W∏adys∏awowo, the , a , Gdaƒsk, Krynica Morska on the Bar up to the border with the B Russian Federation, or more specifically, with the Kaliningrad Oblast. It borders on four other voivodships: Zachodnio-Pomorskie, Wielkopolskie, Kujawsko- The Pomorskie Pomorskie and Warmiƒsko-Mazurskie. From the voivodship’s capital city, Gdaƒsk, Voivodship is divided into it is 1893 km to Barcelona in Spain, 1403 km to Nice in France, 981 km to 20 poviats. Other major Rotterdam in the , 420 km to Helsingor in Denmark, 666 km to towns here, apart from Bremen in Germany, 295 km to Kalmar in Sweden, 127 km to Kaliningrad in the Tricity, are: S∏upsk, , Starogard Gdaƒski, Poland Russia, 433 km to Vilnius in Lithuania and 1223 km to Odessa in the Ukraine. , Rumia, However, the initiatives of the regional self-government bring the countries and Chojnice, Kwidzyn, , cities of Europe closer and make distances irrelevant. Last year the Regional L´bork, KoÊcierzyna, Pomorskie Office was opened in Brussels, in the Scottish House, located very Pruszcz Gdaƒski, , close to the European Commission building. Ustka, Kartuzy, Bytów. Population Pomorskie’s population is close to 2.2 million, which is about 5.7 percent of Gdaƒsk, , Gdynia – three Poland’s total. A significant majority – 1.5 million - lives in cities. Pomorskie is a towns on the Bay of Gdaƒsk form region of comparatively dense population. Statistics as of the end of 2003 the Tricity – a Polish metropolis indicated that there were 120 people per 1 square km. The average for Poland was 122 people. For every 100 people of working age there are 57.7 people of non-productive age. This is less than Poland’s average, which is 58.9 percent. This means that the population of is comparatively young. It is also on the positive side of the population growth curve. The country’s average is –0.4 per 1000 inhabitants. In Pomorskie the population growth in 2003 was 2.0 per 1000 inhabitants.

Cities There are 42 cities in the voivodship. The biggest are Gdaƒsk, Gdynia and Sopot, which, due to their proximity to each other, form the so-called Tricity conurbation,

Basic Information 1 Investor’s Guide The Pomorskie Voivodship

with a population of 755,700, and S∏upsk with 99,500 people. Wejherowo, Reda, 1.2 Administrative System Rumia, the so-called little Tricity, has a population of 106,200. Some other large cities are: Tczew (59,900), Starogard Gdaƒski (48,900), Chojnice (39,400), The Polish administrative system operates on three self-government tiers: Kwidzyn (37,400), Kartuzy (30,200), Bytów (23,300), KoÊcierzyna (23,200) and voivodship1, poviat2 and gmina3. The representatives are elected every four years. Pruszcz Gdaƒski (22,800). The Pomorskie voivodship is divided into 16 rural poviats, 4 urban poviats (poviat cities) and 123 (including 81 rural gminas, 25 urban gminas and 17 mixed Climate gminas). Within the voivodship there are 42 cities and 2993 villages. The climate in Poland is temperate, shifting between maritime and continental.This means that the weather can be very changeable and the seasons may also vary. Voivodship Pomerania is situated mainly in the maritime climate zone, which in comparison to This is the highest self-government tier. The law-making body is a regional parliament inland areas has smaller daily temperature ranges, lower temperatures during (sejmik) with 33 elected members, including one chairperson. The executive body, The summer, higher temperatures during winter, and a higher incidence of windy and Voivodship Board, is elected by the regional parliament. The Voivodship Marshall stormy weather, with local land and sea breezes. In addition, there are more heads the Board. The voivodship self-government’s remit is to create, co-ordinate cloudy days than in other regions, and there are fewer snowy or frosty days. and provide a good environment for regional development. Daily tasks are the co- In the warmest months (July, August) the average temperature is 19.6 °C (67 ordination of public transport, financing a part of the hospital system and the F), and in the coldest (January, February) –1.4 °C (30 F). The most extreme largest cultural facilities. One of the crucial challenges is co-ordinating activities temperatures are 31.7 °C (89 F) in summer and -16 °C (3.2 F) in winter. The connected with the absorption and implementation of the European Funds for total annual rainfall is between 490 mm (Gdaƒsk) and 746 mm (¸eba). The average regions. wind velocity is 4.4 m/s. The national government is also represented in the regional Voivodship Office. The Voivodship Office is a central government body headed by a Voivod who represents Location - the region’s advantages the national government in the region. The office is a legal watchdog and may veto Pomorskie’s basic advantage is its direct access to the sea. As a result the region the self-government’s decisions if they are in conflict with the law or the state’s has been and still is Poland’s window to the outside world. The location has had a interest. natural impact on development of the port environment; there are large maritime ports as well as smaller fishing and passenger ports. Due to its location in Europe Poviats the voivodship is criss-crossed by international transport routes and this transit Poviats are the second tier of local self-government. There are rural poviats and location ensures the region’s participation in international co-operation and trade. poviat cities. The decision making body is a poviat council and a starosta is an The above-mentioned aspects have had an impact on business diversity and have executive officer. It is a particular self-government tier as it performs some of positively transformed the economy. Yet another advantage is the strong potential its responsibilities on behalf of the state administration. The poviat is in charge for agriculture, mainly in the of construction supervision, veterinarian supervision, and it is at this level that ˚u∏awy area. With its wide local police and fire brigade operational activity is co-ordinated. geographical variety (rivers, 450 lakes, post-glacial hills, Gminas including Wie˝yca 329 m The gminas form the smallest, local self-government tier. Gminas may be rural, above sea level, 36 percent urban or mixed. The Council is a decision-making body. A gmina’s mayor, of the region being forested) who may be called a president, burmistrz or wójt – depending on the gmina’s size Pomorskie is also a region and character – is an executive officer. Gminas make decisions on how and where with high tourist attraction to invest and what kind of business may be developed at a particular site. Gminas potential. also have tools to create economic policy, such as the introduction of local tax zones.

1voivodship – in other sources also: province, region 2poviat – in other sources also: county 3gmina – in other sources also: commune, municipality

2 Basic Information Basic Information 3 Investor’s Guide The Pomorskie Voivodship

1.3 History 2. Economy With its good location the region became wealthy long ago from the sea, its fertile soil and the amber and trade routes. The gothic castle route is evidence of the presence of the Knight Orders of The and The Joannit Order, while 2.1 Infrastructure waterworks constructions are the legacy of Mennonite immigrants from the Netherlands. Sea ports Merchants from all over Europe used to come to the region. The thousand years The ports of Gdynia and Gdaƒsk are the biggest facilities of this type in the region. old city of Gdaƒsk has always been the most dynamic centre, and was once the They accommodate almost all types of cargoes and vessels. main Hanza Union port and one of the richest cities in Europe. It was famous for In 2003 the Port of Gdaƒsk exceeded an earlier record (20 million tons) for volume the August Fair organised to commemorate the patron of the Dominican Order, handled in one year thereby becoming (along with ports such as Ventspils, Tallinn, who arrived in Gdaƒsk in 1227. The August Fair used to be a festival of merchants Lubeck, St. Petersburg and Rostock) one of the biggest ports in the Baltic Sea in and craftsmen where some 400 ships would dock in port and deals were made in terms of volume handled. many languages. The fair tradition has survived to this day. The port's warehousing area is 106,300 sq. m. and it's open space storage area The sixteenth and seventeenth centuries were the period of Gdaƒsk’s greatest is 548,000 sq. m. Its handling capacity is over 50 million tons. The facility is well glory. During the the city provided shelter to religious dissidents and prepared for accommodating large vessels. The Inner Port can accommodate became a symbol of tolerance. Gdaƒsk attracted outstanding architects, vessels of up to 10.2 m draught, and the Northern Port can accommodate painters and sculptors who transformed the city into an important centre of vessels of up to 15 m draught. Practically all types of cargo can be handled, culture and art. The Hall was rebuilt and the building was from bulk cargoes, such as coal, coke, aggregates, fertilisers, metal ores and refurbished to provide a residence for Polish Kings during their visits to the city. grains to all general cargoes. A special service available at the port deals with The Renaissance High Gate was erected as part of the fortifications of the city new vehicles in the Duty Free Zone. This is soon to have a new quay equipped and the facade of Artus Court was transformed (the place where the richest with a special ramp for handling ro-ro vessels. citizens used to meet). The city’s decline occurred during the time of Poland’s partition, when Gdaƒsk The most important cargoes are liquid fuels. In 2003 9.9 million tons were handled became a Prussian city (in 1871 it became a German city). constituting 47 percent of all volume handled. In 2004, 35 thousand of 20’ In 1919, the established the Gdaƒsk Free City State. Gdaƒsk containers were handled, thereby breaking another record. was returned to Poland at the end of the Second World War. Today the city is part of a large conurbation called the Tricity consisting of Gdaƒsk, Containers are however the domain of the Port of Gdynia which is smaller than Sopot and Gdynia. the Port of Gdaƒsk and can accommodate vessels of up to 12,5 m draught. As early as the sixteenth century Sopot had became a popular summer resort 7,905,100 tons cargo (excluding containers) were handled between January and for Gdaƒsk’s richest citizens. Throughout the following years it developed into a September 2004. The main cargoes handled are general cargo, coal, coke, grains famous European spa and in 1901 it received city rights. and bulk cargo. The port’s main asset is Baltic Container Terminal (BTC), which Gdynia is a port city which developed between the First and Second World Wars. been privatised in 2003 now belongs to International Container Terminal It received city rights in 1926, and by 1938 it had become the premier port in Services INC of the Philippines. 83 percent of all the containers, which arrive in Europe. Poland, are handled by BTC. Between January and September 2004 alone almost At present the Tricity is one of major centres of national economic development. 275,000 20’ containers were handled by BTC. In line with its long tradition of openness it is also an important centre for the development of co-operation in and around the Baltic Sea area. It is in Gdaƒsk For the port of Gdynia privatisation is a top priority. Presently the Baltic Grain where the most important participants of Baltic co-operation have their offices: Terminal and the General Cargo Terminal are in the process of being privatised the Union of Baltic Cities Secretariat, VASAB 2010 Secretariat (Visions and whilst the Maritime General Cargo Terminal, the Baltic Bulk Terminal and the Shipping Strategies Around Baltic Sea 2010) and the Secretariat of Baltic Sea States & Port Services of Gdynia are being prepared for the process of privatisation. Sub Regional Co-operation. The geographical location of the ports of Gdaƒsk and Gdynia make them ideal as distribution and logistic centres in the Baltic Sea region and in Central and Eastern Europe. The ports are an important part of the transport chain linking Nordic countries with South Europe, particularly with the Adriatic and Black Sea regions.

4 Basic Information Economy 5 Investor’s Guide The Pomorskie Voivodship

In addition to these two large ports, the region has many smaller ones in Ustka, Railroads ¸eba, W∏adys∏awowo, Jastarnia, Hel, Puck, as well as two ports in Krynica The railroad connections in the voivodship provide a very convenient way for Morska. These are mainly fishery and passenger ferry ports. Last year a Local transportation of goods, which have arrived to or will leave Poland by sea. Centre For First Sale Fish Stock Market was established in Ustka. This is a fully Besides local railroad connections, there are four important international railroad computerised company and operates on-line. It is also the very first fish stock routes - from Gdaƒsk through to the border with Germany, from Gdaƒsk market in Poland and in the Baltic Sea region. The stock market will in future provide through Warszawa and Kraków to the border with the Czech Republic and services for fishermen from other countries, such as Latvia, Lithuania, Sweden and Slovakia, from Gdaƒsk through Bydgoszcz, ¸ódê and Katowice to Poland’s western Denmark. and south borders and from Gdaƒsk, through Olsztyn to Kaliningrad or through Bia∏ystok to Belarus. In total there are 1350 km of railroad in use in the Pomorskie Airports Voivodship. The Lech Walesa Airport in Gdaƒsk R´biechowo is Poland's second airport (after Warsaw Okecie International Airport) to receive the certificate necessary to accommodate even the biggest aircraft. The local governments in the Tricity are 2.2 Industry majority shareholder. In addition to scheduled flights, including so called budget airlines, it's main domain is cargo handling. From Gdansk Terminal cargoes go to Berlin, Frankfurt, Hamburg, Copenhagen, London, South Sweden and Warsaw. In In numbers 2003 2,686 tons of cargo passed through the airport. In Pomorskie there are There are 224,556 enterprises registered in Pomorskie (214,969 in the private also some former military airports, which local governments in the area wish to sector but only 9,587 in the public sector). The private sector constitutes 87.3 adapt to fit the civil aviation requirements necessary for passenger traffic. percent of the total number of enterprises in the region. As many as 27,010 companies are in the manufacturing business, including only 177 state owned Roads companies. Enterprise revenue for 2003 amounted to 7,635 million Euro and Pomorskie is located at a crossroads in European transport routes. The main for the first six months of 2004 the revenue was 4,390.9 million Euro. The revenues strategic objective of the regional government is to strengthen the position of profitability index in 2003 was 5.6 percent and for the period until June 2004 it the region as an international transport junction and they want to achieve this went up to 7.2 percent. In 2003 the manufacturing companies in the region made through investing in modernising the transport system. Construction of the A-1 a net profit of 295.4 million Euro. In 2003 69.7 percent of companies in the motorway will be crucial to meeting this ambition (the construction of the first sector were profitable and in mid-2004 75.1 percent of companies declared section is planned to begin in spring 2005). The motorway shall link together profits. Construction businesses (numerous in the region) are also doing well Poland’s South and North, thus improving the competitiveness of the ports of with revenues amounting to 592.3 million Euro in 2003, while for the first six Gdaƒsk and Gdynia and opening opportunities for local businesses. The route is a months of 2004 revenues amounted to 197 million Euro. Over 76 percent of part of the Corridor IV of the European Union’s Trans-European Transportation companies in the sector declared a net profit for 2003. Network (TEN -T). Another road of great importance for the development of Pomorskie is the Branches of Industry Via-Hanseatica which was designed as an express road going from northern The Pomeranian economy is greatly differentiated covering almost all branches of Germany, along the Baltic coastline to Kaliningrad and further on to other industry with food industry, mining, shipbuilding and the hi-tech sector. Baltic States. Modernisation is presently in progress. The route is known as The biggest enterprise in the region is Lotos Group Co. - Gdaƒsk Rafinery. After Corridor IA - a branch of Corridor I TEN-T. The region is cut with international roads mergers with three refineries from the south of Poland (Rafineria Jas∏o S.A., of key importance for the region – e.g. Poland’s national road no. 6 from Gdaƒsk Rafineria Czechowice S.A.1, Rafineria Nafty Glimar S.A.) and the mining company through S∏upsk to Szczecin and further on to Berlin (a part of Via-Hanseatica), Petrobaltic, Lotos Group S.A. shall become a very significant player in the Polish national road no. 7 which links Gdaƒsk with road no. 16 going East, and further market, second to the giant PKN Orlen. In 2005 Group privatisation is planned through Warszawa and Kraków to the border with the Czech Republic and through the stock exchange. At present the Group is running a broad investment Slovakia, and finally national road no. 1 which goes through Toruƒ, ¸ódê and program (760 million USD), which covers, amongst other things, installation Katowice to the Czech Republic, and leaves Bydgoszcz as road no. 5 traveling IGCC for the gasification of heavy oil residues. through Poznaƒ and Wroc∏aw to Germany. The regional authorities are modernising roads in Gdaƒsk and Gdynia and One important sector particular to the region is the maritime industry. Besides improving the road system at the crossroads of the most important roads (A1 the seaports described above, the shipyard industry is of great importance. The and Via-Hanseatica), in order to improve access to the ports. shipyards with the highest production are Gdynia Shipyard Group Co. and

1S.A. - Joint-stock Company (Co.)

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Northern Shipyard in Gdaƒsk. In total, in the period 2000 - 2004 the shipyards For many years the best Pomeranian exporters have been: Philips Consumer built ca.125 vessels and hulls. Gdynia Shipyard’s speciality is building container Electronics Industries Poland Ltd. Kwidzyn, Lotos Group Co., International Paper ships, ships for vehicle and bulk cargo transport, while Northern Shipyard builds Kwidzyn Co., Gdansk Renovation Shipyard Co. and china manufacturer Lubiana mainly small container ships, fishery ships and off shore facilities. The biggest S.A. For DGP per capita Pomorskie is rated fifth, and for par value of the domestic renovation shipyard is Gdansk Renovation Shipyard Co., a leading player in the product it is rated seventh (it constitutes 5.7 percent). It is in the sixth place on world market. In 2004 the Gdansk Renovation Shipyard Co. signed the biggest the sold industrial production indicator. single contract in its history for building three vessels with a total value amounting to 60 million Euro. The buyer is a British shipowner. Besides these large firms Pomeranian companies are well recognised on domestic and international there are many smaller shipyards operating in the region which build yachts and markets. Pomeranian companies are always among the award winners in the boats worth only several thousand Euro. The majority of these boats are exported. annual prestigious competition the Polish Presidents Award for Economics. In 2001 the Best Exporter Award went to Gdynia Shipyard Co. and in 2002 STU There are many construction companies operating from the region, which perform Ergo Hestia Co. in Sopot was awarded as the best financial institution. In 2003 a variety of jobs: they build roads, bridges, manufacturing halls, quays, office and the Best Polish Enterprise Award went to LPP S.A. in Gdaƒsk while the Best residential buildings. Many companies also work in other parts of Poland and Foreign Investor in Poland Award went to International Paper Kwidzyn Co. In abroad (such is the case of Polnord S.A., Skanska, Hydrobudowa S.A., Hossa). As 2004 Polpharma S.A. from Starogard Gdaƒski was awarded as the Best Polish far as revenues are concerned, this sector is ranked third in the voivodship, after Enterprise. the petrochemical and shipyard industry. Pomeranian companies, or rather their products were ranked as amongst the Another very strong sector is the food industry with confectionery (Cloetta most expensive Polish trademarks by the national daily newspaper Rzeczpospolita Fazer), pasta production (Malma S.A.), beverages (Nata), alcohol (Destylarnia and by Ernst & Young and AC Nielsen. 19 products from Lotos Group Co. were Sobieski S.A.) frozen food (Dr.Oetker), meat processing (Prime Food), potatoes rated amongst the 50 best and most expensive trademarks. The trademark’s processing (Farm Frites BV) and fish processing. Pomeranian companies are value was estimated at 51.25 million Euro. The trademark Reserved was ranked leaders in fish processing with many successful companies, such as Wilbo, Almar, 36, cloths from Gdaƒsk enterprise LPP (the trademark’s value was estimated at Big Fish, ¸osoÊ, Proryb, Rieber Foods and Seko. 29,1 million Euro).

One well-proven model in the voivodship is the establishing of centres of tech- nology transfer and technology parks with the support of regional authorities. The Gdaƒsk company DGT is a leader in electronics and telecommunication. It is a supplier of comprehensive telecommunication and IT solutions (the company 2.3 Tourism supplies telephone exchange units for the Polish army in Iraq). Another market leader is Vector, who manufacture communication systems and have customers Tourist facilities in the United Kingdom, the Netherlands, Switzerland and Russia. The biggest Pomorskie is one of the most popular Polish tourist destinations in Poland due Polish IT company is worth mentioning here, Prokom Software S.A., who have to its natural history, beautiful landscapes, historical monuments and modern computerised many Polish public institutions and Polish and foreign enterprises. facilities. There are also Young Digital Poland from Gdaƒsk whose education software is Pomorskie offers a growing number of hotels and spas with modern tourist much appreciated on the IT market. In the very heart of the voivodship, in Gdaƒsk, facilities such as tennis courts and golf courses. There are 793 hotels, lodges, there is a research centre for Central and Eastern Europe established by the B&B etc in the region (in total there are 88,043 beds). In addition, there are American firm Intel Technology Poland. hundreds of beds available in the growing agri-tourism sector. It is not surprising therefore that the number of visitors to the area increases each year. In 2003 Comparisons with the national average around 4 million tourists, including half a million foreign tourists visited the region. Pomorskie is rated very highly on national business rankings. On one indicator (value added per employee) the Pomorskie Voivodship is ranked second amongst That the region is attractive to tourists is well appreciated by foreign investors. 16 Voivodships. Pomeranian enterprises are rated third for dynamic revenue In 2000 in Gdynia the Gemini Centre for Culture and Entertainment was built growth. It is the fourth largest region in terms of earnings and is also fourth for with American money and in Gdaƒsk the American hotel network, Holiday Inn, export value (it contributes 10 percent of the total volume of Poland’s export). opened its first facility. There are also many others. In the very centre of Gdaƒsk The biggest export market is Germany (27.4 percent), UK (11.2 percent), Sweden (8.7 percent) and the Netherlands (8.4 percent). 1Sp. z o.o. - Limited-liability Company

8 Economy Economy 9 Investor’s Guide The Pomorskie Voivodship

there is one of 175 Mercure network hotels. However due to the growing 2.4 Labour Market attractiveness of the region the number of tourists visiting is growing. There is still much for future investors who want to make money in the sector to do. Employment Structure According to the most recent data from the State Statistic Office (GUS) there Landscape values are 662,000 people employed in the Pomorskie voivodship, including almost The area most visited is the coastal zone. Along the entire coastline there are 235,000 in enterprises. The public sector employs ca. 31,800 people and the holiday resorts with beautiful sandy beaches all the way from Ustka through private one 202,000. The majority of people - 127,500 - work in the manufacturing ¸eba, Rowy, Jastrz´bia Góra, W∏adys∏awowo and Jastarnia, Jurata, Hel to industry, 16,800 work in the construction business, 39,200 in trade and services, Krynica Morska. Sopot is a spa of international recognition having the longest 3,400 in restaurants and hotels and 18,900 provide direct services in real estate pier in Poland (512 m) and the "Forest Opera" where each August an international management. song festival is held. Two places of special interest for nature lovers are: The recent growth took place in service industries (hotels, restaurants, transport, S∏owiƒski National Park (UNESCO Biosphere Reserve) with the biggest migrating repairs), storage handling, communication, trade, science and direct services in sand dunes in Central Europe and "Bird Paradise” the biggest birds habitat. In real estate management. An employment reduction was observed in fishery (which the middle of the region there are large forests and 450 lakes ideal for recreation. is due to the European Union’s plan to reduce the fishery fleet), construction and One attractive recreational resort is the forest area Bory Tucholskie which has industrial processing. the clean lakes Wdzydze and Charzykowskie and interesting canoe routes on the and rivers. Agri-tourism is growing in popularity in the region, which Unemployment helps in mobilising local communities in rural areas. Small B&Bs and rooms for The unemployment rate in September 2004 was 21.4 percent in Pomorskie, rent are growing in number. They not only provide places to stay, but enable compared to the national average of 18.9 percent. However the unemployment visitors to indulge in such activities as fishing, horse riding, wicker basket making, rate within the region varies dramatically from area to area. In big cities such as clay pot making and bread baking. the Tricity unemployment is comparatively low. In September 2004 the unemployment rate in Gdynia was 9.9 percent, in Sopot 8.3 percent and in Culture values Gdaƒsk 12.2 percent. These figures are well below the national average. Pomorskie is famous for it's cultural heritage. The Old City in Gdaƒsk is a beautiful However in Nowodworski Poviat the rate was 40.8 percent, in Sztumski 39.2 place with St Mary’s Basilica, the biggest gothic brick church in Europe. 60 km percent, and in Bytowski it was 35.6 percent. from Gdaƒsk is Malbork with its famous Teutonic castle, which is the biggest European stronghold. There are also Teutonic castles in Gniew, Kwidzyn and Unfortunately, the areas with extremely high unemployment have had to pay a very Cz∏uchów. These are monumentally impressive strongholds with a marked high price for the transformation in Poland’s economy. During the communist presence in the region. They help in maintaining the tradition of Middle Age period industrial plants were not established in areas with good soil and the Knighthood. Knight Brotherhoods compete with each other in offering exciting focus was put on huge state owned farms which have not survived in the free tourist events. Pomerania is also famous for it's many historical churches and market economy. One hope for these areas is that local governments will get monasteries as well as hundreds of well-preserved mansion houses and small involved and make full use of the advantages available to them as a result of palaces. Poland’s accession to the EU. Local authorities, are improving, local infrastructure Why do so many tourists arrive in the Pomeranian region? There are a variety of with EU funds (roads, wastewater treatment plants) in order to attract new things to see and do. There is an enormous amber collection in the Museum of investors. Archaeology in Gdaƒsk and an annual Amber Finding World Competition organised in August at the Vistula Bar. One can also visit the biggest European open-air There is no one single group most affected by unemployment. Young people below fair event - St Dominic Fair or visit the National Museum in Gdaƒsk to see the 25 make up 23,8 percent of all unemployed, people between 25 and 34 constitute famous “Doomsday” painted by Hans Memling in the period 1467-1471. Another 28 percent, between 35 and 44 - 21,5 percent, and between 45 and 54 - 22,9 interesting thing to see is an old mound hill cemetery (1st - 3rd centuries) located percent. The group with the lowest unemployment is of people over 55 year olds in the village of W´siory. They can also catch cod on open sea fishing trips, watch a (3.8 percent). They enjoy special employment protection under Poland's Labour re-enactment of the siege of Malbork castle or take a walk in Warcino, where the Code and have the right to early retirement. Unemployment is highest amongst “Iron Chancellor”, Otto von Bismarck once used to live. the least educated people (with only elementary or basic vocational education - 70.1 percent). People with a university education constitute only 3.8 percent of all unemployed. Unemployment is highest amongst women at 54.2 percent.

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Education Though the list of investments is pretty long, some projects are worth mentioning The Pomeranian community is well educated and with such varied educational here: CC HBC (food industry), Michael Leier (non-metal products), Saint-Gobain institutions the area is educationally highly differentiated. The prospective (glass manufacturing), Hydro Central Europe (textile industry), General Electric investor will find here all required specialists - communication engineers, doctors, Corporation (financial sector), Kappa Packaging (paper industry), Cloetta Fazer lawyers, economists, maritime transport engineers, managers and also carpenters (food industry), Nestle (food industry), Farm Frites BV (food industry), Dr. Oetker and toolmakers. (food industry), Nordea Bank (financial sector), GE Capital Bank (financial sector), Auchan (retail trade), Geant (retail trade), International Container Terminal Services Pomorskie has the second highest number of people with a university diploma in INC (sea transport), Netia Telecom (telecommunication). Poland. The national census of 2002 registered 199,900 university diploma holders (11.3 percent of the population). Today this number is much higher as in the The Origin of Capital academic year 2003/2004 alone there were 17,800 new university graduates. American capital is involved in the largest investment projects. Two examples The biggest university is Gdansk University (27,000 students) followed by which have already been mentioned are Flextronics in Tczew which manufactures Gdansk Technological University (16,700 students), The Pomeranian Teacher’s electronics and the paper company International Paper Kwidzyn. Yet another is University in Slupsk (10,300 students) and The Maritime University in Gdynia Intel Technology in the IT sector, and another is Cargill who manufacture animal (8,000 students). There are 580,600 people with a secondary and college back- food. GE Group represents the financial sector. German capital is also visible in ground (33.9 percent of the population). the region, mainly in the food industry, furniture manufacturing, retail trade and in newspaper publishing. It is also involved in the insurance sector - Ergo Hestia. The recent national census shows that the Pomorskie community gives a high The French invest mainly in municipal water supply, heating, energy supply, and priority to education. Since the previous census of 1988 there has been a retail trade. In the region there is also a well-known Nordic Financial Group, significant growth in those with more than just an elementary education. In Nordea. Nordic capital has invested also in the food industry (Cloetta Fazer 1988 this group made up 59 percent of the population and in 2002 69.1 percent. manufacturing confectionery), the automobile industry (Skania Kapena manufacturing There are many schools which train students to become qualified workers in a buses) and the construction business (Skanska road renovation and building). variety of specialisation - fitters, electricians, butchers, mechanics, etc. Dutch investors are also well visible. Besides Philips CEI Poland in Kwidzyn, a packaging plant Expac has been established and another food industry plant - Foreign language learning is popular in the region. Pupils at both elementary and Farm Frites BV. A shoe manufacturer, Gino Rossi in S∏upsk, represents Italian secondary schools can learn two foreign languages. Furthermore in recent years capital. British capital has invested in Nasiennictwo Ba∏tyckie sp. z o.o. in a network of language schools has developed. In the Tricity there are some hundred L´borskie Poviat. such schools. As many as 205,000 people claim to speak German and 90,000 claim to speak English. Planned and in progress In recent years the port business was of great interest to foreign investors. In 2003 the Baltic Container Terminal (BTK) was purchased for 42 million USD by a 2.5 Foreign Investments Philippine company - International Container Terminal Services INC. The purchase was described by the “Jane’s Transport Finance Magazine” as the best port Comparisons with the rest of Poland transaction of the year. Now investors (mainly international consortia) are to buy Since the beginning of the transformation in Poland’s economy, foreign capital has terminals in the Port of Gdynia. In October last year the majority of shares in the invested more than 70 billion USD in Poland. This has paid for over 2,700 investment Cargo Terminal in Gdynia’s Duty Free Zone was bought by Hutchison International projects, including around 176 in Pomorskie with a total value of around 3 billion Port Holdings Limited, controlled by Li Ka-Shing - the richest man in Asia. The USD. We are ranked sixth for the number of direct foreign investments with a 5.4 company plans to increase employment and to implement multimillion-dollar percent share. There are also over 3,000 small and medium size enterprises with investment projects. HPH are counting on development in Eastern Europe and foreign share capital. There are well-known European and American companies intend to build a container terminal in Gdynia. The Chinese company manages operating in the Pomorskie voivodship. Two good examples of big "greenfield” ports all over the world. The main shareholder’s assets are estimated at 12 investments are Philips Consumer Electronics Industries Poland Ltd. (Philips CEI) in billion USD. In the port of Gdaƒsk a British company, Deepwater Container Kwidzyn and Flextronics in Tczew. However the undisputed leader for capital intends to build an enormous container terminal where by the year 2009 they involvement is American International Paper, who bought a paper mill plant in will be handling 500,000 TEU (20’ containers) annually. Kwidzyn for over 320 million USD. Lufthansa Systems have established here a The company plans to invest 175 million USD. centre for remote management, employing a team of 100 IT experts. The centre Energy seems to be another industry popular with foreign investors. The Danish provides services for the biggest airlines, such as Lufthansa and British Airways. capital wants to invest in a wind energy plant close to ˚arnowiec. Energa

12 Economy Economy 13 Investor’s Guide The Pomorskie Voivodship

Gdaƒska Kompania Energetyczna and MVV Eternegy Polska (a subsidiary of Two world famous and highly reputable financial institutions have established German MVV Energie AG Group in Mannheim) have signed a preliminary agreement their head offices in the region. These are the American GE Bank (GE Capital concerning co-operation in the field of wind energy. The agreement covers building Corporation) and Nordic Nordea Bank Polska S.A. (Nordea Group). (depending on demand) three to four wind energy plants in the next three years. Some of these shall be built in the Pomorskie Voivodship. The parties have not revealed the value of the planned investments, but we know that it takes investment of around 1 million Euro to produce 1 megawatt of wind energy. A typical wind farm 3.2 Real Estate Market generates annually 20 - 30 MW. The most modern office buildings are located in the Tricity. In Gdynia the New companies are coming to establish their businesses here and the companies biggest and most modern office buildings are: Alfa Plaza Business Centre that are already here are constantly expanding. Flextronics has been here since (8,500 sq. m) and Centrum Biurowe Hossa (10,600 sq. m), Prokom office 2000 and is developing all the time. Last year it decided to build yet another building (35,000 sq. m), Centrum Kwiatkowskiego (3,200 sq. m). Slightly older production hall. The Dutch Bometal, known previously as Forest International, is facilities are the Baltic Business Centre (10,200 sq. m) and Chipolbrok to build a manufacturing plant for LDF softboards, in Chojnice. Investment (4,500 sq. m).

Slupsk Special Economic Zone is another success story. November last year a The biggest office buildings in Gdaƒsk are Zieleniak Gdaƒsk Centrum (10,000 sq. m) contract was signed with a Chinese EIW Industrial Development (a part of and Organika Trade (13,000 sq. m). Smaller but more modern are Centromor Athletic Group). The investor is to build a manufacturing plant for bicycles and (5,500 sq. m) and Centrum Allcon (4,500 sq. m). motorbikes for 2.3 million Euro. The plant will be established in the neighbouring There are significantly fewer new office buildings in other parts of the region. Very Zachodnio-Pomorskie Voivodship (by the city of ), but the investor and often companies with their own facilities rent out parts of their space in order another Chinese company may get involved in other areas of the Special to save money. Economic Zone close to S∏upsk-W∏ynkówko, Redzikowo and Debrzno. The prices for rental space depend on quality and location. In modern office buildings the price may vary between 10 and 18 USD per square metre, in older facilities the price may vary from 6 to 12 USD per square metre.

There is no problem whatsoever with buying or renting an apartment. The purchase price depends on location and quality. It also depends if the apartment is new 3.Business Environment or on the secondary market. The price range is very wide. The average price is 302-814 Euro per square metre. Big, luxury apartments are significantly more expensive and the price may well go up to around 1395-1860 Euro per square metre. On the secondary market a square metre may cost 279-651 Euro. 3.1 Banks and Financial Institutions The price to rent an apartment depends on its quality. The average monthly rent amounts to 116-465 Euro. Banks provide a full range of banking services, from retail banking to corporate There are many real estate agencies that help with searching for available office banking. All banks have specialised units for corporate support. The banks operate and housing space as well as houses for sale and lots for development. The standard traditionally, but e-banking is also widely available. The ATM network is also well commission amounts to 2-3 percent of the transaction value. developed. The currency in Poland is the z∏oty (PLN), but companies may bank in any currency. The banks with the most developed branch networks are: PKO BP, Pekao S.A. (Italian capital, UniCredito Italiano S.A.), Bank Millennium S.A. (Portuguese capital, Banco Comercial Portugues) and BPH (Austrian capital, 3.3 Telecommunication and Postal Bank Austria Creditanstalt AG). The branch network of ING Bank Âlàski is also Services growing (ING Group from the Netherlands), AIG Bank Polska S.A. (American capital, American International Group, Inc.), Raiffeisen Bank Polska (Austrian The telecommunication network is well developed, with the main operators being capital, Raiffeisen Zentralbank Österreich AG), Bank Zachodni WBK (Irish capital, Telekomunikacja Polska S.A., Netia Telekom, and Tele 2. The telecommunication AIB European Investments Limited), BRE Bank (German capital, Commerzbank) companies offer comprehensive services for both individual and corporate customers. and Deutsche Bank Polska S.A. (German capital, Deutsche Bank Group). In the service package there are standard telephone services, data transfer using the ISDN system, Internet access and broadband.

14 Business Environment Business Environment 15 Investor’s Guide The Pomorskie Voivodship

Mobile telephone services are also well developed with many operators such as three years. After graduation from junior high school pupils may choose high PTK Centertel – Idea, Era GSM, Plus GSM, as well as virtual operators “Heyah” school. There are many possibilities: 3 years at college or 3 years at a profiled and “Sami Swoi.” college (arts, economics, etc.), 4-5 years at technical college (professional With the growing number of operators and thus growing competition prices are studies; in addition to final college exams graduates receive a technology diploma going down every year. In the period 2003-2004 prices went down by as much in their chosen subject) or 2-3 years at vocational schools. In the region there are as 50 percent. also many educational facilities where young people may continue education after these three basic levels, i.e. post-graduate schools. The post office offers a wide range of standard services as well as profiled services There are many universities to choose from – 25 in the Pomorskie Vioivodship targeted at companies, such as standing orders or direct mailing. Post office (including 8 state universities). The most popular subjects are management, working hours begin early in the morning (7-8 a.m.) and last until afternoon or finance and banking, law, social sciences and philology (English, German, Russian evening (4 – 8 p.m.). Post offices in big cities usually stay open until the late and Scandinavian). The most popular engineering subjects are electronics, hours. In Gdaƒsk, Gdynia and S∏upsk there are post offices open 24 hours a day. IT, telecommunications, chemistry, electro-technology and automatics, and Addresses see page: 42 architecture.

In the Pomorskie region, as well as all over Poland, courier services are provided There are educational facilities which provide bilingual teaching, including by many companies. In Pomorskie alone there are 20 big branches of courier kindergartens, primary schools and high schools. English primary schools and companies, including multinational companies such as: DHL Worldwide Express, kindergartens are private which means that there is a fee to be paid. The selection TNT Express Worldwide and UPS Worldwide. With the developed network you can of languages is wider in high schools. You can choose an English school (English send your mail from the Pomorskie region to any part of the world. Private High School in L´bork, No. 3 High School in Gdynia, No. 3 High School in Gdaƒsk), a French school (No. 2 High School in Gdynia), a German school (No. 2 High School in Gdaƒsk), a Spanish school (No.15 High School in Gdaƒsk) 3.4 Media Providers Addresses see page: 41

Electricity in the region is provided by the national system and local sources. The In Sopot there is also a school for foreigners where they can learn Polish (Sopot regional energy producers are a water pump energy storage plant in ˚arnowiec, School of Polish for Foreigners) in the region’s northern part, and an energy plant “Wybrze˝e” in Gdaƒsk (French Addresses see page: 41 capital), which generates electricity and heat. Within the region energy from renewable sources is also being developed (water, wind and bio-mass). In the near future two big wind energy plants are planned. Electricity is distributed by three 3.6 Transport regional operators: Energa Gdaƒsk Kampania Energetyczna S.A., Energy Plant S∏upsk Co. and Energy Plant Elblàg Co. Local transport Pomeranian Gas Company is a gas distributor with many smaller branches. Buses and commuter-trains are the fastest and easiest means of transport in In the region there is a well developed network of local companies supplying the Pomorskie region. There are buses routes between cities and villages in the central heating, water and treating waste water. They operate in every gmina region. The price is from around 2 PLN for travel up to 5 km to around 17 PLN and city. The majority of these companies belong to gminas; they are, however, for travel up to 150 km. Monthly and weekly tickets are also available. often privatised nowadays. City commuter-train (SKM) links the Tricity and the biggest cities in the region, The water-sewage company in Gdaƒsk, Saur Neptun Gdaƒsk, is owned by French from L´bork in the north to Sm´towo in the south. A ticket costs from 2 PLN investors while the heating supplier in Gdaƒsk and Tczew belongs to German for the shortest journey of 6 km to 20 PLN for a journey up to 200 km. Daily, owners. weekly, monthly and quarterly tickets are also available. The trains run every sixth minute on working days and every twentieth minute at weekends. Discounts are offered for students. 3.5 Education Trains also link the bigger cities in the region. Ticket prices are similar to SKM prices. Education in Poland is available publicly or privately at all possible levels. Journeys in the Tricity are easiest by city bus. In Gdaƒsk tramways and in Gdynia Compulsory education begins for 6 years old children with a so-called 0 grade, trolley-buses are also a good option. A full price ticket is between 2 and 3 PLN. which can be organised in schools or in kindergartens. Then children go to primary school for 6 years. The second level is junior high school where pupils attend for

16 Business Environment Business Environment 17 Investor’s Guide The Pomorskie Voivodship

International and domestic connections The Lech Walesa Airport in Gdaƒsk provides scheduled and charter flights to 4. Useful Information Frankfurt, Hamburg, Copenhagen, Munich, Dortmund, London and to Warsaw from where there are many flights to, among others, the USA and many European cities. 4.1 Polish Calendar Three times a week in winter and every second day in summer there is a ferry departure from Gdaƒsk ferry terminal to Nynäshamn in Sweden, while twice a In Poland there are ten non-working days each year due to national and religious week there is a ferry to Copenhagen in Denmark. The Gdynia port operates a ferry holidays. The most important holidays are: Christmas (25th, 26th December), line to Karlskrona in Sweden. There are also scheduled international connections New Year (1st January), Easter (two free days in March or April – a movable holiday), operated by excursion boats (catamarans, ferries, water-jets) - from Ustka to Labour Day (1st May), Constitution Day (3rd May), Corpus Christi (a movable Nexo on Bornholm, from Gdynia to Kaliningrad, and from Gdaƒsk to Baltijsk. holiday, one free day in June), All Saints Day (1st November), Independence Day Direct railway lines link the Tricity with Berlin, Prague and Kaliningrad. The train (11th November) . is the most popular domestic means of transport. You can easily and comfortably Daylight Saving Time begins in Poland on the last Sunday in March and lasts travel to the biggest Polish cities by Intercity trains which go to Kraków and until the last Sunday in October. On the last Sunday in March, East European Warszawa amongst others. wintertime ceases to be valid and Central European summer time comes into Scheduled bus routes are well developed with routes to almost all Polish cities force. The clocks are changed at night between 2 and 3 a.m. On the last Sunday and the biggest European cities, such as London, Paris, Amsterdam, Hamburg, in October, Central European summer time ceases to be valid. The clocks are Bremen and Bremenhaven. changed at night between 2 and 3 a.m.

3.7 Media 4.2 In Offices and in Shops

All bigger national television and radio stations as well as the press media have The working day in local, central and company offices is eight hours from 8-9 a.m. regional offices or correspondents in Pomorskie. In the region’s capital city there until 4 –5 p.m. In offices, especially ones providing customer service, there is is one of the biggest regional branches of Polish Public Television, TVP 3. There usually one day a week with longer working hours. are two national commercial television stations in Pomerania - Polsat and TVN, Service companies are usually open until 7 p.m. When the service is to be performed as well as national radio stations, i.e. Radio ZET and RMF FM. The national press at the customer’s home it can be done in the evening. These types of companies has correspondents and offices here, such as the national daily “Gazeta also work on Saturdays, usually until 2 – 3 p.m. Wyborcza”, which has a regional supplement, the national daily “Rzeczpospolita”, the Shop working hours vary; supermarkets and hypermarkets are open longest tabloids “Fakt” and “Super Ekspress”, and the national business daily “Puls (Real, Geant, Makro Cash and Carry, Auchan). They are located in the suburbs Biznesu”. The information agency Reuters and the Polish Press Agency PAP and in the city centre. Most often they are open until 9 – 10 p.m. on weekdays also have local offices here. and for 2 – 3 hours less at weekends. Basic shopping can be done in smaller In the region there are also strong local mass media. “Dziennik Ba∏tycki”, “G∏os grocery shops which close at 7 p.m. or later. In bigger cities there are also grocery Wybrze˝a” and “G∏os Pomorza” are popular daily newspapers. In addition there shops which are open 24 hours a day. are small local newspapers and weekly magazines distributed in specific city districts. The most important radio stations are Radio Gdaƒsk, Radio Plus, and Eska Nord with regional coverage. 4.3 Health Care Foreigners in Pomerania have easy access to the world media. In bigger cities the Empik shop network provides foreign and specialised press. World television People covered by social health insurance are entitled to free health care. channels are available through digital satellite television platforms: Polsat and European Union citizens holding an E-111 form are entitled to free health care. Cyfra+ as well as via cable television such as UPC. The form has to be issued in their home country on the basis of a European Health Insurance Card. Entitled persons who temporarily stay in Poland have access to the following health services: - primary health care, - ambulatory specialist care, - hospitalisation, - dental services, - rescue services and medical transport.

18 Business Environment Useful Information 19 Investor’s Guide The Pomorskie Voivodship

A list of free medical treatments and addresses of public health care centres is The preferred types of business operations in the Zone are: production of available from electrical machines, electronics, telecommunication equipment, development Pomeranian NFZ Voivodship Office, of software and data processing, production of medical equipment, as well as 69 Podwale Staromiejskie Str., pharmaceutical, chemical and biotechnology business. The level of state aid 80-844 Gdaƒsk for businesses in the Zone depends on the permitted level of regional aid and in phone: (+48 58) 321 85 18. Pomorskie it is up to 65 percent of eligible costs for SME and 50 percent of eligible costs for big enterprises. If you are not entitled to free medical treatment you will have to cover all the The zone is managed by: costs of any treatment yourself. Each public health centre has its price list as well Pomeranian Specjal Economic Zone, as private health centres and clinics. The standard price for a primary care visit is 12 9 W∏adys∏awa IV Str., - 25 Euro. Prices for surgery and longer treatments are settled individually per case. 81-703 Sopot The National emergency rescue telephone number is 999, and 112 from mobile phone: (+48 58) 555 97 00, phones. fax: (+48 58) 555 97 11 www.strefa.gda.pl e-mail: [email protected]

5. Incentives S∏upsk Special Economic Zone (SSEZ) for Investors The Zone operates on 167.9 ha and shall be maintained until 15th November 2017. Development in the Zone is focused on businesses in the production of electrical machines, electronics, food processing, including but not limited to fish 5.1 State Aid processing, plastic processing, timber processing and furniture manufacturing, as well as animal skin processing. The level of state aid for businesses in the Zone Entrepreneurs in Poland enjoy many instruments designed as state aid. Typical depends on the permitted level of regional aid and in Pomorskie it is up to 65 state aid instruments are investment releases, tax exemption and European percent for SME and 50 percent for big enterprises. Funds available for entrepreneurs investing in Pomorskie. State aid in Poland is S∏upsk Special Economic Zone is managed by: regulated by the Law of 20th March 2002 on financial aid for investment Pomeranian Regional Development Agency, projects. Aid may not exceed 50 percent of eligible expenses for investments 1a Poznaƒska Str., in the Pomorskie region, excluding the Tricity where the state aid may not 76-200 S∏upsk exceed 40 percent of eligible expenses. phone: (+48 59) 841 28 92 fax: (+48 59) 841 32 61 www.parr.slupsk.pl 5.2 Special Economic Zones (SEZ) www.sse.slupsk.pl e-mail: [email protected] Special Economic Zones are distinct parts of Poland under special administration where investors can start and run business on incentive conditions. SEZ constitute Earmarked Grants developed land with all technical facilities where investors may enjoy income tax Entrepreneurs who want to undertake new investment projects may apply for exemption (PIT or CIT). In addition to this, companies operating in SEZ have earmarked grants to the Ministry of the Economy. All financial support is totalled access to free advisory support for all the formalities required for the together with grants received from other sources and in other forms designed investment. for new projects or new job creation and the total value of support may not Tax exemptions in SEZ are granted with regard to investment value or to the exceed the level defined by law. number of newly created jobs. In Pomorskie the possible tax exemption for big Grants are available to businesses which fulfil at least one of the following enterprises is 50 percent and for small and medium enterprises (SME) it is 65 requirements: have an investment of value not less than 10 million Euro; invest percent. In Pomorskie there are two SEZ. at least 500,000 Euro provided that the investment involves development or modernization of the company and ensures at least 100 jobs for 5 years; create Pomeranian Special Economic Zone (PSEZ) at least 20 new jobs for a minimum period of 5 years; introduce technological It covers an area of 387.1 ha and it shall be maintained with all its privileges until innovation; make investments having a positive environmental effect; make 30th November 2017. investments within industrial and technology parks.

20 Incentives for Investors Incentives for Investors 21 Investor’s Guide The Pomorskie Voivodship

Self-financing of the enterprise should be at least 25 percent of the costs of the SME and 35 percent for big enterprises; general training – 80 percent for SME project. and 60 percent for big enterprises. Support for the creation of new jobs may not exceed 4,000 Euro per new job and may not exceed the equivalent of two years labour costs of new employees. PHARE The contract for investment co-financing is signed with the Minister of the Economy. Enterprises in Poland still have access to the pre-accession fund – Phare 2003. In the framework of programmes therein the funding is available for consulting Local level and investment projects. City Councils and Gmina Councils may decide on exemptions from real estate tax and tax on means of transport. Local government may provide help for investment More information on available EU funding on the websites: projects and co-finance technical infrastructure or improve transport and road Polish Agency for Enterprise Development facilities for the planned investment. In the case of real estate belonging to the – funding for Small and Medium Enterprises: www.parp.gov.pl local government any option is possible – the investor may purchase the real estate, sign a long-term lease with the gmina or even establish a joint company Ministry of the Economy, Labour and Social Affairs with the gmina. Very often, gmina and local employment offices offer help in the – information about all the available Structural Funds: form of recruitment, training or sponsorship of jobs for the unemployed. www.funduszestrukturalne.gov.pl In Pomorskie there is an Investor Assistance Centre which provides comprehensive help to investors at the voivodship level. The centre helps investors to operate in the Regional Financing Institution, which is in charge of implementation of the European voivodship – from searching for investment possibilities through organising visits funds for SME, is here in Pomorskie, at: and meetings with local authorities, to giving updated information on the economy Pomerania Development Agency S.A., in the region. The centre operates within the framework of: 36/39 Piwna Str., Pomerania Development Agency S.A., 80-831 Gdaƒsk 36/39 Piwna Str., phone: (+48 58) 323 31 00 80-831 Gdaƒsk fax. (+48 58) 301 13 41 phone: (+48 58) 323 32 56 www.arpg.gda.pl, [email protected] e-mail: [email protected]

5.3 European Union Funds 6. Business Legal Structural Funds Environment Structural Funds may support enterprises by financing their investment projects and consultations. Within the Sectoral Operational Programme – Growth of Enterprise Competitiveness (SOP-GEC) entrepreneurs may receive grants for consultations, 6.1 General Information with a minimum funding of 2500 PLN (around 581 Euro), and a maximum funding of 250 000 PLN (around 58,100 Euro). The programme also provides grants for Legal background investment projects with a minimum funding of 10 000 PLN (around 2,320 Euro), The most important acts of law regulating the business environment in Poland and a maximum funding of 1,250,000 PLN (around 290,000 Euro). are: Act of 15th September 2000 - Company Code, Civil Code and specifically Within the framework of the Integrated Regional Operational Programme funding the provisions of articles 860-875 and Economic Freedom Act of 2 July 2004. is available for those who want to start a business and for micro-enterprises. The act regulates all issues connected with running a business in Poland, i.e. Funding for consultations may not exceed 5,000 Euro and 65 percent of the project’s with starting up, running and closing a business. The law specifies the extent eligible costs. The investment project may receive funding up to 50,000 Euro and of the role and responsibilities of public administrative bodies. Having such a may not exceed 55 percent of eligible costs in the Tricity and 65 percent in the clear act is a real incentive for foreign investors who want to invest in Poland. rest of Pomorskie. The act has been well received by both Polish and foreign businessmen who The Sectoral Operational Programme – Human Resource Development may have been doing business in Poland for a long time now. The business community finance activities which develop skills and qualifications and promote education approved the new regulations on supervision of companies and relationships with for enterprises. The minimum value of a project is 15,000 Euro. Depending on the tax authorities. The general rule is that there are now fewer controls, they the type of education, the level of financing is – profiled training: 45 percent for are shorter and there is only one control at a time.

22 Incentives for Investors Business Legal Environment 23 Investor’s Guide The Pomorskie Voivodship

Who can start a business in Poland? Business subject to Company Act Citizens of European Union member states (EU), European Free Trade Agreement (EFTA) – parties of agreement to the European Economic Area (EEA) enjoy the 1. Registered partnership same treatment as Polish citizens. Business freedom covers both self-employment This form of business is intended for larger scale businesses. The registered and starting up companies. In Poland, businesses have to be registered in a partnership is quite similar to a civil-law partnership, and is usually established Register of Entrepreneurs. Companies can take a variety of forms and can generally by a few partners who trust each other. be of two main kinds: partnerships and companies. Partnerships are divided into: Founder: Minimum two legal entities or individuals. civil-law partnership, registered partnership, limited partnership, limited Procedure: A deed of partnership must be executed in writing. Entry in the joint-stock partnership, and professional partnership. Companies may act as National Court Register is also required. a limited liability company or a joint stock company. Capital requirements: None Citizens from other countries (non EU or EFTA) can only run a business in the form Legal form: A partnership and thus it is not a legal entity. of: limited partnership, limited joint-stock partnership, limited liability company or Liability: Each partner has joint and several liability for the partnership’s debts and joint stock company. The only exceptions are individuals who are permanently resident obligations, without limitation, to the extent of their entire personal property. in Poland, with a permit to stay or those who are recognised as refugees in Poland. Taxation: Each of the partners is taxed individually. PIT - individual income tax or They enjoy exactly the same rights for business operations as Polish citizens. CIT company income tax. An investor conducting business activity in Poland is called a foreign person. The act defines such a person as an individual with a permanent address abroad, without 2. Professional partnership Polish citizenship, or a company established in Poland and incorporated abroad, or Partners under a joint name establish this form of business for the purpose of an organisation which is not a company in Poland, but is incorporated abroad. operating a freelance occupational business. Founder: Minimum two individuals who are permitted a freelance occupation. Procedure: A deed of partnership must be executed in writing as a notary deed, 6.2 Forms of Business the partnership is subject to entry in the National Court Register. Capital requirements: None Business subject to the Act on Business Freedom 2004 and to the Civil Code Legal form: A partnership and as such it is not a legal entity. Liability: a partner is not liable for the partnership’s debts due to other partners’ 1. Entry in Commercial Register freelance operations, nor for the partnership’s obligations due to the consequences These are usually established by individuals for the purpose of a small-scale business. of actions or negligence of the partnership’s employees who were subordinates of It is also the simplest and cheapest form of business. other partners and who supported the provision of services normally provided by the Founder: One individual partnership. The partnership agreement may stipulate that one or more partners Procedure: Entry in Commercial Register run by gmina. shall agree to have liability as a partner in the registered partnership. Capital requirements: none Taxation: PIT - individual income tax. Legal form: an individual businessman and thus not a legal entity. Liability: personal, with entire personal property. 3. Limited partnership Taxation: PIT – individual income tax. This form is designed to run business under a joint name and at least one partner is liable, without limitation, for the partnership’s debts and obligations (general 2. Civil-law partnership partner), and liability of at least one partner (limited partner) is limited. This is a Designed for smaller businesses run by more than one person. A simple form good solution for co-operation between entities with different capital, it enables requiring, however, trust between the partners. flexible construction of liability and scope of operation of the partners. Founder: Minimum two partners Founder: Minimum two individuals or legal entities. Procedure: A partnership agreement in writing. Each partner is obliged to register Procedure: A deed of partnership must be executed in writing as a notary deed, the partnership in the gmina’s Commercial Register. the partnership is subject to entry in the National Court Register. Capital requirements: none Capital requirements: None Legal form: It is a civil law partnership with partners being individuals so as such Legal form: It is a partnership and as such it is not a legal entity. it is not a legal entity. Liability: At least one partner is liable, without limitation, for the partnership’s Liability: Each partner has joint and several liability, without limitation, to the debts and obligations (general partner), and liability of at least one partner extent of their entire property. (limited partner) is limited. Taxation: PIT – individual income tax. Taxation: Each of the partners is taxed individually. PIT - individual income tax or CIT company income tax.

24 Business Legal Environment Business Legal Environment 25 Investor’s Guide The Pomorskie Voivodship

4. Limited joint-stock partnership Liability: The company is liable only to the amount of the equity. The stockholders This form of business is usually established for the purpose of operating a business are not held personally liable for the company’s debts and obligations. on a larger scale. A Limited joint-stock partnership is a partnership enabling the Taxation: CIT – company income tax. running of a business under a joint name, where at least one partner is liable, Procedures required to establish a limited-stock partnership, limited liability without limitation, for the partnership’s debts and obligations (general partner), company and a joint-stock company are time-consuming and the most expensive and at least one partner is a shareholder. This is a good solution for businessmen of all the forms of business permitted in Poland. This type of business requires who want to increase equity participation in the partnership, but are afraid of a investment equity capital, the setting up of a Management Board, and the hostile take over. company is also required to meet all the rules of accounting and financial Founder: Minimum two individuals or legal entities. reporting laws. Registration is time-consuming because the company’s entry Procedure: A deed of partnership must be executed in writing as a notary deed, has to be made with the central authority, the National Court Register. All the the partnership is subject to entry in the National Court Register. procedures required for a joint-stock company are quite lengthy as all decisions Capital requirements: 50,000 PLN are subject to approval from the stockholders. Legal form: It is a partnership and as such it is not a legal entity. Liability: At least one partner is liable, without limitation, for the partnership’s 7. Branch Office and Representative debts (general partner), and at least one partner is a shareholder, not liable for the Yet another category is a foreign entrepreneur person i.e. a foreign person who is partnership’s debts and obligations. conducting business activity abroad. This group can operate in Poland in the form Taxation: Each of the partners is taxed individually. PIT - individual income tax or CIT of a branch office as well as setting up a representative office on Polish territory. company income tax. The business activity of a branch office must overlap with that of the foreign entrepreneur (it may constitute only a part of the entire business operations 5. Limited-liability company of the foreign entrepreneur). A branch office may engage in business activity This form of business is established for the purpose of operating a business or following its entry into the Register of Entrepreneurs. for any other legally permitted objective. This is a very popular way of conducting A branch office is obliged to use the name of the foreign entrepreneur in the business in Poland among medium-sized and large companies. language of the country in the territory of their registered office together with Founder: One or more individuals or legal entities. A limited-liability company may a Polish translation of the entrepreneur’s legal form of operation and with the not, however, be founded by another single-member limited-liability company. phrase “oddzia∏ w Polsce”. The branch office is required to keep separate books Procedure: A company’s Memorandum of Association must be executed in writing in Polish in accordance with the provisions of Polish laws on accountancy. as a notary deed, the partnership is subject to entry in the National Court The scope of activity permitted for a representative office is solely the promotion Register. and advertising of the represented foreign entrepreneur. A foreign person The minimum equity: 50,000 PLN whose task is to promote the economy of their country of origin may establish Legal form: A Limited-liability company is a legal entity. a representative office. In this case, however, the scope of activity permitted Liability: The company is liable only to the amount of the equity. The shareholders to the representative office is limited solely to promotion and advertising of this are not held personally liable for the company’s debts and obligations. country’s economy. The setting up of a representative office requires entry into Taxation: CIT – company income tax. the Register of the representative offices of foreign entrepreneurs, which is kept by the minister in charge of the economy (at present the Minister for Economy 6. Joint-stock company and Labour). The entry is made by the Minister pursuant to a submitted application This form of business is established for the purpose of operating a business and following consultation with the minister responsible for the subject areas or for any other legally permitted objective. This is the most complex form of pertaining to the foreign entrepreneur’s business activity. In legal terms, the equity company, designed for medium-sized and large enterprises. Requires representative office of the foreign entrepreneur is not independent. Any division significant equity investment. of property is of a purely technical or organisational nature. Founder: One or more persons. Exclusion – a joint-stock company may not be founded by a single-member limited-liability company. Procedure: A company’s Memorandum of Association must be executed in writing as a notary deed, the partnership is subject to entry in the National Court Register. The minimum equity: 500,000 PLN Legal form: It is a legal entity.

26 Business Legal Environment Business Legal Environment 27 Investor’s Guide The Pomorskie Voivodship

6.3 General Requirements 7.2 Short Description of Taxes

Every form of business requires entry into the Commercial Register in the respective Personal income tax (PIT) gmina or into the National Court Register. Entrepreneurs are required to register An individual pays tax on their income (PIT) progressively, in line with a three-tier with the tax authorities whereupon they obtain a Taxpayers’ Identification Number progressive tax rate - 19 percent, 30 percent, and 40 percent. In 2004 a 19 NIP. They are also required to hold a REGON statistical number from the local percent flat rate tax was introduced and is applicable to self-employed persons statistical office. Apart from registering with the Revenue Office, a taxpayer and capital gains. undertaking business activity is required to register with the Social Security If an individual is resident in Poland their whole income is taxed in Poland, Office (in charge of statutory social security). irrespective of location of the income. A foreign resident pays tax only on their income earned in Poland. Some businesses require a licence or consent from the relevant minister. This is done at the central level and applies to: Corporate income tax (CIT) - searching for, or identification of fossils, extracting fossils, container-free storage CIT is a flat rate tax calculated on income. Since 2004 the tax rate has been of substances and waste storage in rock mass, including in underground mine 19 percent and it does not change with the level of income. excavations, Taxpayers incorporated or having management of their companies in Poland pay - manufacturing and sale of explosives, arms and ammunition, products and taxes on their whole income, irrespective of where it was earned. Taxpayers technologies for military or police purposes, incorporated abroad or having their management abroad pay tax only on their - manufacturing, processing, storage, transfer, distribution and sale of fuels and income earned in Poland. energy, Advance tax payments for CIT are paid every month. The annual tax declaration - personal and property security, has to be submitted by the end of March the following year. - air transport, Polish CIT law provides for many exemptions from the general rules. - railroad lines management and railroad transport, - broadcasting radio and television programmes. Tax on Civil Law Transactions This tax relates to civil law transactions the purpose of which constitutes trading Separate licenses, e.g. for alcohol sales are issued by gmina authorities. in objects and property rights. Liability for tax on civil law transaction falls on Depending on the type of business operation, a variety of different controlling individuals, legal persons and organisations that are parties to the transaction. authorities might be involved, e.g. veterinary, sanitary authorities, fire or construction The civil law transactions are subject to the tax in Poland if the following constitutes supervision (at a local level). This, however, becomes required for further steps, the purpose thereof: (i) things located in Poland or property rights exercised in and is strictly connected with conducting the chosen business activity. Poland, and also (ii) things located abroad or property rights exercised abroad, provided that the purchaser is domiciled in or has a registered office in Poland and that the act has been concluded in Poland. There are exemptions for a com- pany’s articles of association and its amendments and marriage settlements. The tax rates are established specifically for each type of transaction and the rate 7. Tax System may be established as a percentage of the value or as a fixed rate. Taxpayers are obliged to file a tax declaration for a civil law transaction within 14 days of the transaction date. 7.1 General Rules Real Estate Tax Poland’s Constitution of 1997 stipulates that the imposition of taxes and any Applicable to land, buildings and their parts, or parts of buildings where a business other public tribute is subject entirely to acts of law. The Polish tax system is is established. The real estate tax is a self-government tax and as such remains in divided into direct taxes, i.e. taxes with liability that may not be transferred to the gmina’s budget and constitutes its income. The taxpayers are both individuals another person (e.g. personal income tax, corporate income tax, tax on civil law and legal persons. transactions, real estate tax, or tax on means of transport) and indirect taxes, The gmina council establishes the real estate tax rates. They may not, however, i.e. with liability that may be transferred to another person (e.g. value added tax, exceed in one fiscal year the amounts defined in law. excise tax). The Polish tax system is similar to EU rules on tax.

28 Tax System Tax System 29 Investor’s Guide The Pomorskie Voivodship

Tax on Means of Transport The tax is imposed on: 8. Purchase of Real - trucks with a total weight of 3.5 tons or greater, - a truck tractor and ballast tractor adapted for use with a semi-trailer or trailer Estate by Foreigners of total weight of 3.5 tons or greater, - trailers and semi-trailers which together with an engine vehicle are of a total Legal Basis weight of 7 tons or greater, excluding transport used for agricultural purposes by an agriculture tax payer The purchase of property by foreigners is governed by the provisions of the Act - buses. of 24th March 1920 on the Purchase of Real Estate by Foreigners with further The rates are decided by the gmina council within the limits established by the amendments. The law, adapting Polish legislation to EU legislation, has introduced Law on local taxes and duties (the Law defines maximum levels for all types of clear criteria for obtaining permits for the purchase of real estate, stocks and transport as well as minimum levels of tax for some categories of vehicles). shares by foreigners. Liability for the tax falls on individuals, legal persons and organisations. In cases After Poland’s accession to the European Union, there are no restrictions on the of co-ownership of a means of transport, the liability for the tax falls on all the purchase of real estate by citizens and entrepreneurs from the European Economic co-owners. Area (EU Member States, Iceland, Norway, and Liechtenstein). In practical terms this means that no permit from the Minister of Internal Affairs Value Added Tax (VAT) and Administration has been required since 1st May 2004 for foreigners who are A VAT taxpayer is an individual or legal person having business operations citizens or entrepreneurs residing or established in the territory of the European concerning the supply of goods or services. Economic Area. However the Act provides for a number of derogations in this VAT rates in Poland are 0, 3, 7 and 22 percent. The general VAT rate is 22 percent. respect: 1. agricultural and forestland, for twelve years after Poland’s accession to the Excise Tax European Union Under EU directives excise tax products are divided into so called harmonised 2. purchase of “a second home” for five years after Poland’s accession to the and non-harmonised products. Transactions involving harmonised products are European Union. governed by EU rules regarding excise taxation. These goods are: engine fuels, heating oils and gas, alcoholic beverages, and tobacco products. The rules The transition period established in the Accession Treaty concerning the purchase regarding taxation of non-harmonised products are set individually by each EU of agricultural land and forestland is a derogation from the general Community rule member. In Poland these include, for example, cars, firearms, perfumes and toilet on the freedom of capital. water. In addition, the Act has removed some administrative barriers in procedures for Excise tax declarations should be submitted to the customs office. obtaining permits by foreigners. Participation of central administrative authorities in the decision making process has been limited and the Minister of National Stamp Duty Defence and Minister of Agriculture and Rural Development no longer need to Stamp duty is charged on some measures taken by public administrative bodies grant their consent, they have only a statutory right of refusal – the so called and on some documents issued by public authorities, such as applications, "silent consent” rule. appendices thereto, certificates and licenses. Liability for stamp duty falls on individuals, legal persons and organisations that The purchase of real estate by foreigners who are not citizens of the European are not legal entities if they issue relevant documents or when official measures Economic Area requires a permit. subject to stamp duty are taken at their request. The permit is granted, in the form of an administrative decision, by the Minister of Internal Affairs and Administration, provided the Minister of National Defence does not refuse. In the case of rural real estate, the right of refusal resides with the Minister for Agriculture. The Minister of Internal Affairs and Administration should examine the application within two months.

Exceptions from the obligation to obtain a permit: - real estate purchase by a foreigner who has resided in Poland for at least 5 years from the issuance of a permanent residence permit

30 Tax System Purchase of Real Estate by Foreigners Legal Basis 31 Investor’s Guide The Pomorskie Voivodship

- purchase by a foreigner whose spouse is a Polish citizen and who has resided in Any employee may turn to such a court. The court then decides which party was Poland for at least 5 years from the issuance of a permanent residence permit, guilty. Whenever employment was governed by civil contractual arrangements, and the real estate to be purchased shall be the joint property of both spouses the relationships between the parties are subject to the Civil Code. - purchase by a “controlled legal entity”, for its statutory purposes, of undeveloped real estate, provided that the total area in the entire country does not exceed 0.4 ha in urban areas. 9.2 Types of Employment Contracts Procedure for the Issuance of a Permit The permit is issued by the Director of the Department of Permits and Licenses Trial period contract of employment of the Ministry of Internal Affairs and Administration after authorisation from the This type of contract enables an employer to check if a new employee is capable Minister of Internal Affairs and Administration. of performing the work. A trial period contract may be contracted for once only The permit is issued on basis of an application from the foreigner, which should and may last no more than 3 months. This contract has its advantages, such as include: a shorter notice of termination period which, depending on length of the trial - identification of an applicant and their legal status period, may vary from 3 days to 2 weeks. This type of contract is not recommended - identification of the real estate to be purchased if the new employee has qualifications which are important to the company and in - identification of the seller high demand on the labour market. - identification of the legal form of the real estate - information on the purpose for the purchase Fixed-term employment This type of employment is recommended only when the business is of a seasonal The application shall be filed in the ; a certified translator shall nature. It also enables flexible human resource planning. If an employee does not translate all annexes in a foreign language into Polish. The permit is only a pre- meet expectations, an employer may start looking for a replacement, knowing requisite for purchase and is not binding on the seller. exactly when the job will become vacant.

Permits are not refused for corporate entities which are able to demonstrate Permanent employment that the real estate to be purchased is required for their business purposes and This is the most popular form of employment but has certain limitations for an for planned investment, unless the purchase would be in conflict with the Polish employer. Having signed this type of contract an employee is entitled to many benefits state’s interest. financed by the employer. This type of employment is recommended when the employer The average time required for a decision is two months. intends to provide employment for a longer period of time, when it is important for a company to keep such a person or when the company has employed an employee More detailed information is available from the Ministry for Internal Affairs and with qualifications of key importance to the enterprise. Administration www.mswia.gov.pl and Polish Information and Foreign Both fixed-term and permanent contracts of employment may be for full or part Investment Agency www.paiz.gov.pl time employment.

Casual employment In this case the termination of employment is precisely defined as the time when 9. Labour Code the work has been performed. The contract of employment ends with each period of casual employment, usually when the specific task has been completed. This type of contract is often used in industry or construction, when workers are 9.1 Labour Code hired to do a specific job by a specific time. The contract does not provide an option for notice of termination – the consent of both parties is required for earlier The relationship between an employer and an employee is regulated in Poland by termination. the Polish Labour Code. The Code defines specifically all the issues connected with employment, from stipulating clauses which have to be covered in an Civil contractual arrangements employment contract, its termination, working hours, minimum pay, holidays and These are contracts which are subject to the Civil Code. They are: Contract for maternity leave. The Code covers an employer’s responsibilities and employee’s a Specified Task, Contracted Employment and an Agency Contract. rights, as well as an employee’s responsibilities. Any dispute concerning employment relations is submitted to the labour courts (common courts in all larger cities).

32 Labour Code Labour Code 33 Investor’s Guide The Pomorskie Voivodship

Contract for Specified Task A woman employee is entitled to maternity leave of 16 weeks for a first child, 18 On signing a Contract for a Specified Task one party takes on the responsibility weeks for subsequent children and, 26 weeks if she gives birth to more than one to perform a specific task for which the other party shall pay. With this type of child at a time. Mothers may return to work after 14 weeks, in which case, the contract the employer does not pay extra costs for social security contributions; father is granted the remaining weeks of un-used maternity leave on his application however, the result of the task should be a material effect, i.e. translation, web in writing. site or sculpture.

Contracted Employment 9.4 Remuneration Contract employment is an attractive form of employment due to its precise nature and specific length of employment. This employment does not impose so Labour costs many responsibilities on an employer for benefit payments. The contract may In Poland the law stipulates minimum pay which means that a person employed full be terminated at any moment, however if one party does so without justification, time (for a trial period, for fixed-term employment and permanent employment) they will have to cover all incurred damages. must not earn less than this amount. The minimum pay is defined centrally each year. In 2004 it was around 200 Euro. Minimum pay in the Netherlands exceeds Agency Contract 1200 Euro, in Belgium, France, the United Kingdom, Ireland - 1000 Euro, and in Having concluded an Agency Contract, the agent shall be responsible for permanent Spain 526 Euro. acts as an intermediary at concluding contracts between customers and the Apart from taxes, companies have to pay social contributions which amount to employer, or shall conclude such contracts on the employer’s behalf. The agent around 20% of the basic wage. The social security contribution consists of pension shall receive specified remuneration. insurance (9.76 percent) (an employee pays exactly the same amount into their Recently, the above-mentioned types of employment have been modified. We often pension fund), disability pension fund (6.5 percent), and accident insurance (0.97 have to deal with a typical forms of employment, such as tele-working, work-sharing, – 3.86 percent depending on the accident rate in the company). On top of this, job-sharing, work-on-call, subcontracting, periodical work etc. Depending on the there is a contribution to the Labour Fund (2.45 percent) and contribution to the nature, the provisions of the Labour Code and Civil Code respectively shall apply. Remuneration Guarantee Fund (0.15 percent). In any case, whenever entering an employment relationship, even if for only a couple of days, it is recommended that each party’s responsibilities be specifically outlined. Remuneration level earn on average five times less than citizens of so-called old EU member states. In Pomorskie in September 2004 the average wage in enterprises was 9.3 Working Hours 559.6 Euro before taxes and was higher by 5.8 percent than in September 2003. Pomorskie is ranked fourth among all Polish voivodships as far as earnings Working hours are concerned. In the public sector the average wage was 644.3 Euro, and in the The Labour Code stipulates that working hours must not exceed 8 hours a day private sector it was 536.7 Euro. and 40 hours per five-day week, on average, within a settlement period not exceeding four months. The weekly working time, including overtime, must not Significant growth of earnings was noted mainly in industrial processing (by 9.4 exceed 48 hours, on average, in the same settlement period. percent), trade and repairs (by 6.6 percent) and transport, storage management The extra remuneration for overtime in working days is 50 percent of the hourly and communication (by 5.1 percent). Higher than average were the earnings for rate. If the weekly limit has been exceeded, the extra overtime remuneration is employees in transport, storage management, and communication (by 20 percent). 100 percent of the normal rate. Additional remuneration for work at night is 100 The enterprise sector earning more than average has been the production of percent of the normal rate. Similarly, for work on Sundays and other red-letter transport equipment (by 32.4 percent). Earnings lower than the average went days, an employee is entitled to take leave in lieu or to receive 100 percent extra to people employed in furniture production (by 27.8 percent), timber products (by remuneration for each worked hour. Work on such days without extra pay is 25.6 percent) food (by 24.7 percent) and employees at hotels and restaurants allowed only at companies with continuous operations, such as shift work, or (by 30.9 percent). work of significant social usefulness. Dramatically above the average are the earnings of medium and higher level managers. A CEO makes on average 3.750 Euro a month, a manager makes Holidays and paid leaves 1511 Euro a month, while office staff earn only 348 - 534 Euro. Workers earn An employee with up to ten years seniority is entitled to 20 days of paid holiday. 232 - 813 Euro – their remuneration depends on sector and qualifications. Seniority above ten years gives the right to 26 days of holidays. With non-full time employment the number of days is calculated proportionally to the type of employment.

34 Labour Code Labour Code 35 Investor’s Guide The Pomorskie Voivodship

9.5 Trade Unions Malta and Cyprus, plus three countries from the “old EU”, Ireland, Sweden and the United Kingdom (i.e. countries which have opened their labour markets) have In Poland trade union activity is regulated by the Trade Union Act. Employees may freedom to be employed in Poland. establish a trade union organisation with a minimum membership level of ten There are no limitations for non-EU citizens wishing to work in Poland as a press members. The biggest trade union organisation is “SolidarnoÊç” and OPZZ. NSZZ correspondent, a university teacher or as the CEO of a Polish unit of a multi- “SolidarnoÊç” was one of the social movements which were a driving force behind national company. the changes in Poland at the end of the 80s. The representatives of the trade union organisation co-operate with employers’ organisations and with the state Procedure to obtain work permit authorities within a Tripartite Committee. The trade unions are most popular in The prospective employer has to apply for a work permit for a foreigner, and they state-owned companies and in privatised enterprises which once belonged to the have to submit their application to the Voivodship Office. The next step in the public sector. Trade unions in private companies which were established as such procedure is the issuance of a so-called work promise. This provides legal are very rare. grounds to apply for a work visa at a Polish consulate situated in the place of domicile of a future foreign employee. The next step is again to be taken by an employer who has to submit to the Voivodship Office an application for a work permit with all required documents, such as the company’s registration certificate, 10. Foreigners Working a copy of the foreigner’s travel document, and document(s) certifying professional qualifications. All the documents shall be translated by a sworn translator. The in Poland application should be accompanied by a payment receipt made for the benefit of the Labour Fund in an amount equal to the current minimum rate (at present it Legal basis is approx. 200 Euro). The payment relates to the work promise and the first work The law concerning foreigners working in Poland distinguishes two categories of permit. Both the work promise and work permit are issued for a specific period foreigners: EU citizens and non-EU citizens. Each category is treated differently of time – for a specific foreigner and a specific employer – for specific job or type concerning employment. Specific procedures shall apply to the employment of a of work. foreign press correspondent, to university teachers and to CEOs of a Polish The Voivod may refuse a work permit if they so decide, as the decision is a company which is part of multinational group. discretionary one and depends on the current labour market situation. The issue of employment of foreigners is regulated in Polish law by art. 87-90 The Pomeranian Voivod has delegated the issuing of promises and work permits Law of 20th April 2004 on employment and labour market institutions (Polish for foreigners to the Social Policy Department at the Voivodship Office in Gdaƒsk. Official Journal no 99, i. 1001); regulation of the Minister for the Economy and Application forms are available from the Voivodship Labour Office in Gdaƒsk, Labour of 26th May 2004 on the scope of limitation in foreigners’ employment 21/27 Okopowa str., room no. 622, 624, where the completed forms are to be in Poland (Polish Official Journal no 123, i. 1293). submitted. More detailed information is available on: Work permit (+48 58) 307 76 03 and (+48 58) 307 74 66. The criterion defining the scope of limitation concerning employment in Poland of foreigners coming from European Union member states is their citizenship. For Fines for working without a work permit foreigners from non-EU countries the generic criterion is applied. Employment An employer who employs a foreigner without a required work permit or allows policy differs, depending on the specific profession. the foreigner to work at a different job or under different conditions than those EU citizens and citizens from countries which have an agreement with the EU on stated in the work permit, shall pay a fine of not less than 3,000 PLN. A foreigner the free movement of labour do not need any work permit to be employed in who works without having a required work permit shall pay fine of not less than Poland. It is, however, a usual practice to impose the same range of requirements 1,000 PLN. as applied to Polish citizens in a given country. Thus citizens of certain EU countries and countries in the European Economic Area (EEA) need a work permit, because the same requirement applies to Polish citizens in these countries. This applies to citizens of Germany, Austria, Spain, Greece, Switzerland, Finland, Belgium, France, Liechtenstein, Luxembourg, Portugal and Iceland. Citizens from Denmark, the Netherlands, Norway and Italy are treated slightly differently – not all the rules and procedures apply to them. Citizens from new EU countries, such as Lithuania, Latvia, Estonia, Hungary, the Czech Republic, Slovakia, Slovenia,

36 Foreigners Working in Poland Foreigners Working in Poland 37 Investor’s Guide The Pomorskie Voivodship

Pomorskie Voivodship Office Gdaƒsk Employers Union 21/27 Okopowa Str., 1/2 Piwna Str., 11.Important Addresses 80-810 Gdaƒsk 80-831 Gdaƒsk phone: (+48 58) 307 76 95, www.uw.gda.pl phone:/fax: (+48 58) 301 33 21, Central fax: (+48 22) 334 99 99 www.gzp.gda.pl, e-mail: [email protected] www.paiz.gov.pl, e-mail: [email protected] The Customer Service Administration Offices in Pomorskie Voivodship Office Pomerania Chamber of Trade and Industry The Polish Chamber of Commerce 39/40 D∏ugi Targ, Ministry of Economy and Labour 21/27 Okopowa Str., Ist floor, room 22 4 Tr´backa Str., 80-830 Gdaƒsk 3/5 Trzech Krzy˝y Square, 80-810 Gdaƒsk 00-074 Warszawa phone: (+48 58) 301 13 25, 301 19 54, 00-507 Warszawa phone: (+48 58) 301 19 00, 307 76 95 phone: (+48 22) 630 96 00, fax: (+48 58) 301 02 16 phone: (+48 22) 693 50 00, fax: (+48 22) 827 46 73 Voivodship Labour Office www.piph.pl, e-mail: [email protected] fax: (+48 22) 693 40 48 www.kig.pl www.mgpips.gov.pl, 21/27 Okopowa Str., Pomeranian Chamber of Handicraft e-mail: [email protected] 80-810 Gdaƒsk Representatives phone: (+48 58) 301 80 19, www.wup.gdansk.pl for Small and Medium Enterprises 1/2 Piwna Str., Ministry of Social Policy of Central Offices 80-831 Gdaƒsk 1/3/5 Nowogrodzka Str., Local Administration phone: (+48 58) 301 31 16, 301 21 86, 00-513 Warszawa in Pomorskie Voivodship 305 75 41, phone: (+48 22) 661 11 00, Offices and Institutions fax: (+48 58) 301 79 31 fax: (+48 22) 661 11 01 Main Environmental Inspectorate. Helsinki Convention Secretary www.pomorskaizba.com.pl, Office of the Marshal of Pomorskie Voivodship e-mail: [email protected] Ministry of Infrastructure 1 Kossaka Str., 21/27 Okopowa Str., 4/6 Cha∏ubiƒskiego Str., 80-249 Gdaƒsk 80-810 Gdaƒsk 00-928 Warszawa phone: (+48 58) 341 94 44 phone: (+48 58) 301 14 12, 305 61 17, Consulates phone: (+48 22) 630 10 00, phone:/fax: (+48 58) 301 87 71 www.mi.gov.pl Ministry of Finance. Delegacy www.woj-pomorskie.pl Consular Agency of the Kingdom 6 Dyrekcyjna Str., of Sweden and Norway Ministry of Finance 80-852 Gdaƒsk Pomerania Development Agency Co. 25 Jana z Kolna Str., 12 Âwi´tokrzyska Str., phone: (+48 58) 301 33 06 36/39 Piwna Str., 81-354 Gdynia 00-916 Warszawa 80-831 Gdaƒsk phone: (+48 58) 621 62 16, phone: (+48 22) 694 55 55, Supreme Chamber of Control phone: (+48 58) 323 31 00, fax: (+48 58) 661 76 70 www.mf.gov.pl 36 Wa∏y Jagielloƒskie Str., fax: (+48 58) 301 13 41 80-853 Gdaƒsk www.arpg.gda.pl, Consular Agency of the Republic of Finland Office of the Committee for European phone: (+48 58) 301 82 11 e-mail: [email protected] 25 Jana z Kolna Str., Integration 81-354 Gdynia 9 Ujazdowskie Al., Custom Office Pomeranian Science and Technology Park phone: (+48 58) 621 68 52, 00-918 Warszawa 8 Polska Str., in Gdynia fax: (+48 58) 661 48 64 phone: (+48 22) 455 55 00 81-339 Gdynia 96/98 Zwyci´stwa Al., www.ukie.gov.pl, e-mail: [email protected] phone: (+48 58) 666 77 01, 666 77 02 81-451 Gdynia General Consulate of the Chinese People’s fax: (+48 58) 621 05 54 phone:/fax: (+48 58) 622 55 88, Republic Industrial Development Agency www.ppnt.org.pl, 1 Grunwaldzka Str., 41Domaniewska Str., Custom Information: e-mail: [email protected] 80-236 Gdaƒsk 02-672 Warszawa phone: (+48 58) 666 77 24, 621 64 14, phone: (+48 58) 341 79 11, phone: (+48 22) 460 36 00, 460 37 00, www.gdynia.uc.gov.pl Pomeranian Special Economic Zone fax: (+48 58) 341 56 00 fax: (+48 22) 460 37 01 9 W∏adys∏awa IV Str., www.arp.com.pl, Pomorski Tax Office in Gdaƒsk 81-703 Sopot General Consulate of the Kingdom of Sweden e-mail: [email protected] 4/6 ˚ytnia Str., phone: (+48 58) 555 97 00, 101/102 Chmielna Str., 80-749 Gdaƒsk fax: (+48 58) 555 97 11 80-890 Gdaƒsk Polish Agency for Enterprise Development phone: (+48 58) 326 19 38 www. strefa.gda.pl, phone: (+48 58) 300 95 00, 81/83 Paƒska Str., e-mail: [email protected] fax: (+48 58) 300 95 08 00-838 Warszawa Tax Chamber phone: (+48 22) 432 80 80, 75/76 D∏uga Str., S∏upsk Special Economic Zone General Consulate of the Republic of Belarus fax: (+48 22) 432 86 20 80-831 Gdaƒsk 1a Poznaƒska Str., 50 JaÊkowa Dolina Str., infoline 0 801 33 22 02, www.parp.gov.pl phone: (+48 58) 301 48 40, 76-200 S∏upsk 80-251 Gdaƒsk e-mail: [email protected], [email protected] www.izba-skarbowa.gdansk.pl phone: (+ 48 59) 841 28 92, phone: (+48 58) 341 00 26, fax: (+ 48 59) 841 32 61 fax: (+48 58) 341 62 00, 341 40 26 Polish Information and Foreign Investment Office for Competition and Consumer www.parr.slupsk.pl, www.sse.slupsk.pl Agency Protection. Delegacy e-mail: office @parr.slupsk.pl 12 Bagatela Str., 30 Podwale Przedmiejskie Str., 00-585 Warszawa 80-824 Gdaƒsk phone: (+48 22) 334 98 00, phone: (+48 58) 346 29 32

38 Important Addresses Important Addresses 39 Investor’s Guide The Pomorskie Voivodship

General Consulate of the Federal Republic phone: (+48 58) 308 14 10, 308 14 30, Bremen Commercial Office Emergency Telephones of Germany fax: (+48 58) 301 96 44 8/10 D∏ugi Targ Str., 23 Zwyci´stwa Al., 80-828 Gdaƒsk 80-219 Gdaƒsk Honorary Consul of the Republic of Austria phone: (+48 58) 301 58 05, Police Station 997 phone: (+48 58) 341 43 66, 341 49 80, 17 Âlàska Str., fax: (+48 58) 301 61 62 Emergency rescue 999, fax: (+48 58) 341 22 45 81-319 Gdynia (from mobile phones) 112 phone: (+48 58) 620 19 93, Polish – Swedish Chamber of Commerce Fire Brigade 998 Municipal Police 986 General Consulate of the Republic fax: (+48 58) 661 19 12 101/102 Chmielna Str., 80-748 Gdaƒsk Heating System Service 993 of Iceland Electricity Service 991 30 /17 S∏owackiego Str., Honorary Consul of the Republic of Chile phone: (+48 58) 763 14 69, 135/5 Âwi´tojaƒska Str., fax: (+48 58) 763 14 80 Gas Service 992 81-872 Sopot Water-Sewage System Service 994 phone: (+48 58) 551 58 40 81-401 Gdynia phone: (+48 58) 622 74 25 Handy Addresses Information Telephones General Consulate of the Russian Federation Honorary Consul of the Republic of Cyprus Bilingual schools 15 Batorego Str., 35 I Armii W.P. Al., Local and long-distance telephone directory 80-251 Gdaƒsk 81-383 Gdynia English Language Private Secondary School 118 913 phone: (+48 58) 341 10 88, 341 06 13, phone: (+48 58) 620 16 00, Turistic Information 301 91 51 fax: (+48 58) 341 40 92, 341 62 00 34 Malczewskiego Str., fax: (+48 58) 620 16 00 84-300 L´bork Polish Railway (PKP) Information 94 36 phone:/fax: (+48 59) 862 58 50 Polish Bus Communication (PKS) Information Honorary Consul of Romania Consular Agency of the Republic of France www.aslo.edu.pl 302 15 32 1 Druskiennicka Str., 16 KoÊciuszki Str., e-mail:[email protected] Polish Airlines LOT Information 81-533 Gdynia 81-704 Sopot 0801 30 09 52 phone: (+48 58) 664 64 64, phone: (+48 58) 550 32 49, “Stenaline” - Ferries to Sweden fax: (+48 58) 664 64 77 fax: (+48 58) 551 44 43 No. 2 High School in Gdynia (+48 58) 660 92 00, www.stenaline.pl 22b WolnoÊci Str., “Polferries” - Ferries to Scandinavia General Consulate of Ukraine Honorary Consul of the Republic of Lithuania 81-327 Gdynia (+48 58) 355 21 16, www.polferries.pl 44 JaÊkowa Dolina Str., 99/100 Ogarna Str., phone:/fax: (+48 58) 620 17 50 80-246 Gdaƒsk 80-826 Gdaƒsk http://lo2gdynia.republika.pl Mobile telephones operators phone: (+48 58) 346 06 90, 346 06 91, phone: (+48 58) 305 92 85, e-mail: [email protected] fax: (+48 58) 346 07 07 fax: (+48 58) 305 92 84 Era GSM No. 3 High School in Gdynia 5 Podwale Grodzkie Str., Honorary Consul of The Kingdom of Denmark Honorary Consul of the Republic of Latvia 27 Legionów Str., 80-895 Gdaƒsk 1-7 D∏ugi Targ Str., 99/100 Ogarna Str., 81-405 Gdynia phone: (+48 58) 300 83 00, 300 87 00 80-828 Gdaƒsk 80-826 Gdaƒsk phone: (+48 58) 622 18 33 phone: (+48 58) 320 34 04, phone: (+48 58) 305 33 23, www.lo3.gdynia.pl Plus GSM fax: (+48 58) 320 34 04 fax: (+48 58) 305 92 84 e-mail: [email protected] 7 Heweliusza Str., 80-890 Gdaƒsk Honorary Consul of The Kingdom of Spain Honorary Consul of the Republic of Peru No. 2 High School in Gdaƒsk phone: (+48 58) 301 11 40 27 PodleÊna Str., 3/1 Uphagena Str., 7/9 Pestalozziego Str., Sell and information: 0-801 100 601 80-255 Gdaƒsk 80-237 Gdaƒsk 80-445 Gdaƒsk phone: (+48 58) 341 48 33, phone: (+48 58) 341 25 21 phone:/fax: (+48 58) 341 46 56 IDEA fax: (+48 58) 345 13 36 99/101 Grunwaldzka Str., Honorary Consul of the Republic of Hungary No. 3 High School in Gdaƒsk 80-244 Gdaƒsk Honorary Consul of the Kingdom 12 Opacka Str., 7 Topolowa Str., phone: (+48 58) 341 16 11 of the Netherlands 80-338 Gdaƒsk 80-255 Gdaƒsk 20 Jana Paw∏a II Al., phone: (+48 58) 552 12 83, 552 12 07, phone:/fax: (+48 58) 341 06 71 Telecommunication operators 80-462 Gdaƒsk fax: (+48 58) 552 02 78 www.topolowka.pl phone: (+48 58) 346 98 78, e-mail: [email protected] Telekomunikacja Polska S.A. fax: (+48 58) 346 98 78 Honorary Consul of the Republic of Italy (Polish Telecommunication Co), 32 Âwi´tojaƒska Str., No. 15 High School in Gdaƒsk Information (Telepunkt): Honorary Consul of the People’s Republic 81-372 Gdynia 7 Pilotów Str,. Madison Shopping Centre, of Bangladesh phone: (+48 58) 620 15 61, 80-460 Gdaƒsk 10 Rajska Str., 116 Wzgórze Bernardowo, fax: (+48 58) 620 74 50 www. lo15.gdansk.ids.pl 80-850 Gdaƒsk 81-583 Gdynia e-mail: [email protected] phone: (+48 58) 30 00 111 phone: (+48 58) 664 70 21, Honorary Consul of the United Kingdom www.tp.pl fax: (+48 58) 664 70 14 of Great Britain and Northern Ireland Sopot School of Polish for Foreigners 102 Grunwaldzka Str., 763 Niepodleg∏oÊci Str., Netia, www.netia.pl Honorary Consul of the United States 80-244 Gdaƒsk 81-838 Sopot Information: infonetia 0-801 802 803, of Mexico phone: (+48 58) 341 43 65, 346 15 58, phone: (+48 58) 550 32 84, free of charge connections in Netia – 88 7 Okopowa Str., fax: (+48 58) 341 43 65 fax: (+48 58) 550 06 96 80-819 Gdaƒsk www.ssp.edu.pl e-mail: [email protected] 40 Important Addresses Important Addresses 41 Investor’s Guide The Pomorskie Voivodship

Sieç Telekomunikacyjna T2 Rent-a-car, see: (Telecommunication Network T2) Eniro “Panorama Firm” 2005 Information: pages: 388-389 Contents individual customers: 0-801 801 100, Taxi service, see: e-mail: [email protected] Eniro “Panorama Firm” 2005 companies: 0-801 801 200, pages: 426-427 1. Basic information...... 1 www.tele2.pl e-mail: [email protected] Pomeranian NFZ Voivodship Office 1.1 Introduction...... 1 69 Podwale Staromiejskie Str., 1.2 Administrative system...... 3 Telephone directories 80-844 Gdaƒsk Eniro “Panorama Firm” www.pf.pl phone: (+ 48 58) 321 85 18 1.3 History...... 4 Polskie Ksià˝ki Telefoniczne www.pkt.pl Ksià˝ka Telefoniczna TP www.ditel.pl Postal Services No. 2 Gdaƒsk Post Office 2. Economy...... 5 Road Service, see: (24 h service) Eniro “Panorama Firm” 2005 2 Podwale Grodzkie Str., 2.1 Infrastructure...... 5 pages: 331/332 80-895 Gdaƒsk 2.2 Industry...... 7 phone: (+48 58) 301 12 32 2.3 Tourism...... 9 Courier Companies, see: No. 2 Gdynia Post Office 2.4 Labour Market...... 11 Eniro “Panorama Firm” 2005 (24 h service) page: 221 2 Konstytucji Square, 2.5 Foreign Investment...... 12 81-354 Gdynia Translators, see: phone: (+48 58) 621 03 25 Eniro “Panorama Firm” 2005 3. Business Environment...... 14 pages: 432/434 No. 1 S∏upsk Post Office (24 h service) 3.1 Banks and Financial Institutions...... 14 Private Medical Service, see: 31 Ko∏∏àtaja Str., 3.2 Real Estate Market...... 15 Eniro “Panorama Firm” 2005 76-200 S∏upsk pages: 226-240 phone: (+ 48 59) 841 30 45 3.3 Telecommunication and Postal Services...... 15 3.4 Media Providers...... 16 3.5 Education...... 16 3.6 Transport...... 17 3.7 Media...... 18

4. Useful Information...... 19 4.1 Polish Calendar...... 19 4.2 In Offices and in Shops...... 19 4.3 Health Care...... 19

5. Incentives for Investors...... 20 5.1 State Aid...... 20 5.2 Special Economic Zones...... 20 5.3 European Union Funds...... 22

6. Business Legal Environment...... 23 6.1 General Information...... 23 6.2 Forms of Business...... 24 6.3 General Requirements...... 28

42 Important Addresses Contens 43 Investor’s Guide

7.Tax System...... 28 7.1 General Rules...... 28 7.2 Short Description of Taxes...... 29 Pomerania Development Agency Co. Started its operations in 1992 in initiative of the regional authorities actively supported 8.Purchase of Real Estate by business representing key-sectors of the regional economy such as: maritime, fuel and by Foreigners...... 31 power-generating, financial, constructing. PDA Co. is today important institution supporting regional development.

9. Labour Code...... 32 Areas of Activity: • Small and Medium Size Enterprises (SME) support 9.1 Labour Code...... 32 • regional and local authorities assistance 9.2 Types of Employment Contracts...... 33 • prepare the Pomorskie Voivodship to benefit from EU funds 9.3 Working Hours...... 34 • promotion of the Pomorskie Voivodship • international and interregional cooperation 9.4 Remuneration...... 35 • investment processes support 9.5 Trade Unions...... 36 PDA Co. provides information, training, advice and project assistance for SMEs, local authorities, foreign investors. We manage and administrate EU aid funds programmes. 10. Foreigners Working in Poland...... 36 Investor Assistance Centre (COI) Since 2004 investor assistance is provided by COI. It operates within PDA’s structures 11. Important Addresses...... 38 and is the regional partner of Polish Information and Foreign Investment Agency (PAIiIZ) – central institution servicing foreign investors.

Main objectives: • promotion of investment offers of Pomeranian gminas • assistance for foreign companies and entrepreneurs interested in investing in Pomorskie Voivodship

Services: • database of the Pomeranian investment offers • assistance in finding partners in business • information about economy and society of the region • organizing and hosting business missions

Partners: • Polish Information and Foreign Investment Agency (PAIiIZ) ISBN:83-916206-6-2 • international economic institutions (chambers of commerce and industry, economic Publisher: Pomerania Development Agency Co. associations, commercial attaches) Poland, 80-831 Gdaƒsk, Piwna 36/39 • gminas’ offices phone.: (+48 58) 32 33 100, 32 33 200, fax (+48 58) 30 11 341 • special economic zones (SEZ) e-mail:[email protected] • port authorities in Gdaƒsk and Gdynia consulting companies http://www.arpg.gda.pl • • real estate agencies • companies offering brownfields and greenfields Texts: Editorial Staff • private owners Pomerania Development Agency Co., Wioletta Kakowska Translation: Ma∏gorzata Grabarczyk For more information please contact: Designed and Printed by: Ireneusz Tybel - JT Transmedia Barbara Merchel – Czech Magdalena Charkin Marcin Dejna Promotion Dept. Director phone: (+48 58) 32 33 256 phone: (+48 58) 32 33 263 phone: (+48 58) 32 33 136 e-mail: e-mail: e-mail: [email protected] [email protected] [email protected] 44 Contents