Kancelaria Prawna Skarbiec

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Corporations in Poland

Under Polish Commercial Code there are two types of corporations: a limited liability company and joint-stock company.

 

Both these types of companies have legal personality which means that they can be subject and object of legal relationships. In addition, in capital companies shareholders are not liable for the obligations and debts of the companies and their main risk arises from the possibility of decree or increase of the value of shares.

Corporations act through their corporate bodies which are Management Board, Shareholders Meeting and Supervisory Board (or Audit Committee).

Among corporations, the joint-stock company is intended for large scale business, while the limited liability company can serve as a good form for either small or large scale of activity.

Since the requirements for incorporating and operating a joint stock company are very formal, it is typically advised to foreign entrepreneurs to select the limited liability company structure, if possible (for example, with joint stock companies, all shareholders' meetings must be held in the presence of a notary. This is not the case for limited liability companies, unless the company deed is being amended).

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