POLAND

By: Valery, Melanie and Liz

MAIN FACTS

Central Europe

Surrounded by Germany, Czech Republic, Slovakia,

Ukraine, Belarus, Lithuania and the Baltic Sea

Area of 120,726 square miles

Flag: White and Red

Capital is Warsaw

President is Bronislaw Komorowski

Part of the European Union, NATO, WTO, and the UN

THE PEOPLE

Language is Polish

Population over 38 million people, but has been

decreasing due to emigration and a drop in birth

rate

98% literacy rate

Religions are Roman Catholic(94%), eastern

Orthodox, Uniate, Protestant, and Judaism

CONTINUED…

November 11: Polish Independence Day

During all festivals and on weekends the Polish are free

from work

Main Market Square is the heart of the southern cultural

capital

Soccer is the most popular sport

90% of Poles have completed at least secondary education

HISTORY

Was communist from 1945 to 1989

Shock therapy program, lead by Leszek Balcerowicz,

allowed the country to transform from socialist-style

planned economy into a market one

First free parliamentary elections were held in 1991

In the 1990s finally were able to make progress toward

becoming a fully democratic government and a market

economy

TRAVELING

Plane ticket to and from Poland is about $1,000.00

Currency is the zloty(PLN)

Prices for food are not high and are the cheapest at hyper

markets

To rent a 3 bedroom apartment in the city would cost

about $770.00

Night life is the most expensive part if you are in the

capital or in large cities

TRAVELING

Currency exchange points located in city centers,

railway stations, airports and hotels

Credit card is necessary in order to rent a car or

shop online

Can use taxis, railway stations, or trains for

transportation

MUST GO SEE

Salt Mine in Wieliczca

23 National parks

Masurian Lakes which include over 3,000 lakes

The capital, Warsaw

Krynica and Beskidy Mountains

Building called Spodek which is know for looking

like a flying saucer

CULTURE

POLISH CULTUREQ U I C K FA C T S

Important in today’s economy

Relationship-driven culture

Will judge you by your qualities

Family is their first priority – inner circle

Religions plays an important role

Never call a Pole Eastern European

BUSINESS ATTIRE

Conservative business attire• Suits, ties, etc.• Dresses, women suits, etc.

No overdressing

Needs to suit the weather conditions• Jacket, hat, gloves, scarf in the winter

GREETING

Firm handshake with good eye contact

When greeting a woman, wait for her to extend her

hand

When meeting and departing, shake hands with

each individual

Do not use first name, use Pan(Mr.) or Pani(Mrs.)

plus surname

Titles are commonly used, such as Mr. President,

Dr., etc.

BASIC POLISH PHRASES

English Polish PronunciationHi, Hello, Bye Czesc CheshtHow are you? Jak sie masz? Yac shye mash?Good Dobrze DobzhehSo, so Tak sobie Takh sobiehI don't understand Nie rozumiem Nyeh rozoomieahYes Tak TakhNo Nie NyehGood morning Dzien dobry Djane dobryhGood evening Dobry wieczor Dobryh veechoorhGood night Dobranoc DobrahnotsGoodbye Do widzenia Doh vitseneeahThanks Dziekuje DsjencooyahPlease Prosze ProshehExcuse me, I am sorry Przepraszam Psheprasham

COMMUNICATION

English is commonly used

Poles are direct communicators• The more direct they are, the more respect they

have for you

Nod of the head = understanding

MEETINGS

Arrive on time

Preparedness is important

Exchange business cards

Meetings start with small talk

Presentations should based on evidence and facts + experience

Meetings are formal

Poles show little or no reaction, body language is minimal

Meetings may be dominated by the most senior person

DINING

Business lunches/dinners are common

Part of the relationship-building process

Done at a restaurant, rather than home

Do not discuss business matters till the Pole brings

it up

Whoever invites – pays

Poles like to entertain and be entertained

MANAGEMENT STYLES

Decisions are made at the top of the hierarchy

Cultivate relationships at senior levels

Business deals may take longer and involve

more paper work

Managers need to be ready to answer hard

questions and know how to issue direct

instructions

POLISH EMPLOYEES

Relationship building among Polish employees

may take longer than usual due to• Uncertainties during the Soviet Era

It is not common among younger generations

LAWS&

REGULATIONS

DOING BUSINESS

Business climate is friendly

An important act to guide in starting, conducting and

closing business: Economic Freedom Act of 2004

Foreigners may establish:• A limited partnership • A limited joint-stock partnership• A limited liability company• Joint-stock company

Also, branch office or representative office

VISA

Temporary residence visa

Visa with a work permit

Permanent residence

STARTING UP YOUR BUSINESS

Certain types of business activities require permits

or licenses

Need a work permit

Acquire real estate or a lease agreement

Registration

Bank account

Pay up the share capital

OFFICE

Rent is paid in Zlotys

Rent rates depend on location, quality, size, etc.

Utilities and maintenance

22% tax rate on rent and service

Purchase of real estate requires permission

Handover of property requires a written, notarized contract

Building of real estate needs permission also

LABOR LAW

Contractual conditions

Every employer needs to have work regulations in

place• Work hours• Work days• Vacation• Duties regarding to OSHA• Salaries• Etc.

CONTRACTS

Temporary contract

Unlimited duration contract

Fixed-term contract

Expires at the end of the specified term

Salary should be negotiated with the employee

ACCOUNTING

Does not differ from the international standards

IFRS may be used

Should be prepared in Polish

Must comply with the Accounting Act

TAXES

Corporate income tax

Personal income tax

Value Added tax

Excise duty

Stamp tax on civil law transactions

Capital gains are taxed at 19%

ECONOMY

STRATEGIC TRANSPORTATION ROUTES

Main transport and trade routes of the continent

intersect in Poland

Crossed by 4 out of 10 constantly developed trans-

European roads • Continued development of the roads infrastructures is

a priority

Warsaw Frederic Chopin Airport is one of the most

important international airport in the continent

Baltic Sea access with 4 major ports and several

smaller ports that help in the freight reloading process

FDI POTENTIAL

Ernst & Young European Attractiveness Results• Top potential for FDI investment in 2009, placed in 8th position• Placed in 5th position between European countries for job

creation

In just 2009 it created 7,500 new jobs

Sustainable growth since 2008, with a 5% annual economic

growth

Maintained a 30% export level

European Union and NATO membership make it a credible

and worthy investment.

INVESTMENT INCENTIVES

Special Economic Zones (SEZ) located in 14 different

areas• Offer tax exemptions• Employment incentives• Well-prepared investment lots

Decreased labor costs, around 5 EUR (6.7 USD)

Reformed tax systems• 2011 corporate tax rate: 19%

• 32% corporate tax rate in 2000

FREEDOM OF ECONOMIC ACTIVITY ACT

Underlines the conditions that entrepreneurs should follow in order to

conduct business in Poland

Procedures for the registration of a company

Outlines the businesses that require an official license • Mining business • Manufacturing and trading of explosives• Manufacturing of energy or fuel• Protection of person and property• Radio and television programs • Air carriage

Other fields do not have license requirements simply the registration

of the company

INTELLECTUAL PROPERTY PROTECTION

Increased their policies since joining the EU

Proper registration of companies products to

prevent against infringement.

Registration of items leads to tax benefits • Amortized items reduce taxable profits• Licensing can decrease the inter-company

structuring cost

COPYRIGHT ACT & INDUSTRIAL PROPERTY

ACT

Copyright Act• Economic and Moral Rights of Author

• Economic: allow the author to their work on a exclusive basis and to paid for use of the work

• Moral: gives the author the right to be credited for his work and control how his work is used among other rights

Industrial Property Act• Patents granted for inventions• Registration: utility models , industrial designs,

trademarks, Geographical Indications• Combating unfair competition

COOPERATION

Well-established companies starting to expand

Starting multinational cooperation projects

Effective expansion of exports with help from foreign

investors

Increased private investment have allowed small and

medium sized firms to expand

Currently changing business laws in order to attract

outside investment with easier investment opportunities

THE END