Business Incubator in Poland

Business Incubator in Poland

Freelancers who have moved to Poland and are not yet ready to open their own sole proprietorship (SP) can try conducting their activities by registering in a business incubator. A business incubator is a Polish limited liability company (LLC) that, on paper, hires a freelancer as an employee.

How the Business Incubator Works

The freelancer signs a civil law contract with the business incubator (umowa zlecenia or umowa o dzieło). Then, an agreement (Business Cooperation Agreement) is signed between the freelancer's client and the business incubator for the provision of services. In this case, the freelancer works for themselves, legally receives payment for their services from their clients, all necessary taxes are paid from their activities, and they also pay for the services of the business incubator.

Advantages of Working with a Business Incubator:

• the ability to conduct business legally without registering a Polish SP;
• accounting services from the business incubator and no need to hire your own accountant or use their services on an outsourced basis;
• legal services;
• the ability to reduce taxation and payroll expenses (for the accountant);
• mentorship, training, courses;
• technical support;
• advertising support;
• the possibility of obtaining a Residence Card (residency) based on employment in Poland, thus legally staying in the country for the freelancer with the option of legalizing the stay of their family in it.

Disadvantages of Working with a Business Incubator:

• significant time spent on service delivery due to the need to coordinate a contract between the freelancer's client and the business incubator;
• not all clients want to work with or accept terms under a contract with the business incubator (it is necessary to consider the company's reputation);
• inability to develop your own business, hire employees, sell a business;
• purchase of goods, including for the provision of the working process (office equipment, tables, chairs, etc.), can only be done on an individual basis;
• no VAT refund, it is only returned to the business incubator;
• monthly payment of business incubator services is required;
• penalty sanctions for violations of contract terms with the business incubator;
• for payment connections, coordination with the business incubator is necessary, and all risks fall on the freelancer;
• not suitable for financial optimization with large turnovers;
• cannot apply for subsidies, leasing.

Process of Joining a Business Incubator

First, it is necessary to choose a suitable one for yourself — carefully study the cooperation conditions, the reputation of the business incubator, whether it helps to formalize documents for legalization in Poland.

Next, an application is submitted to the chosen business incubator. This can be done online without being in the country. In the case of agreement to cooperate and not having legal grounds for entry into Poland, it is necessary to obtain a visa and a work permit. The business incubator can act as an employer, help with obtaining a certificate, and cover all necessary expenses. At the same time, you immediately sign a contract with them and are considered an employee of that particular business incubator.

Professions Suitable for Working through a Business Incubator:

• handmade specialists;
• marketing specialists, including designers;
• journalists, announcers;
• IT specialists;
• photographers, videographers, video editors, etc;
• musicians;
• teachers (online education, tutoring);
• landscape designers, interior designers, architects.

Financing and Grants when Working through a Business Incubator

Many business incubators provide financial assistance in the form of grants, loans. This can help at the start of business development when a person has no initial capital. There is also mentor support, free training from experts.

Choosing a Business Incubator

When choosing a business incubator, it is necessary to understand for what kind of activity such cooperation is necessary, what business development plan, and to find out which one specifically suits your needs. Then, careful study of the contract, understanding of receiving all bonuses (free education, mentorship, financial assistance, help with documents and relocation) is required. Be sure to pay attention to reviews, as due to the bad reputation of the incubator, clients may refuse to enter into a cooperation agreement.

Legal Nuances when Working with a Business Incubator

Business incubators provide legal and accounting support, which means that the performer does not need to deal with these issues.

Money from activities goes to a sub-account in the incubator, from which incubator services, taxes are paid, and the entrepreneur receives net income. If it is necessary to terminate the contract, it should be understood that it will take time; it is better to plan for one month. At the same time, payment for the services of the business incubator is preserved during this time, but the activity may be prohibited for this period.

If all rules are followed upon arrival in Poland and contract terms with the business incubator, a foreigner can obtain a residence permit based on such work. Often, the incubator itself helps to formalize and submit the necessary documents for the Residence Card. Such a card is issued for up to 3 years. When terminating the contract, it will be necessary to replace the Residence Card itself, as the conditions for its issuance will change.