Why is it worth opening a crypto business in Poland?

Today, many crypto companies are thinking about which European country to start a business in. The fact is that obtaining a license in one country opens the door for other union members. Getting a crypto license in Poland is a good solution for everyone who wants to work legally and openly and attract more clients.

Why Poland?

If earlier it was easy to obtain a license only in Latvia and Estonia, today Poland has joined their number. It becomes a perfect solution for many since there is legislation regulating the crypto industry and no unnecessary bureaucracy and corruption.

In addition, there are bilateral agreements on the avoidance of double taxation with 84 countries of the world, making it possible to simplify all issues related to taxes as much as possible.

If you decide to open a crypto business in Poland, you can quickly scale, improve, and expand. You will be able to place ads on various sites, attract the attention of a large number of users, and therefore increase your income.

Getting a crypto license in Poland is also a good idea because it has the simplest tax rules:

• Tax on corporate income – 9% (if your income does not exceed 2 million euros per year) and 19% (if it exceeds);
• VAT – 23%;
• Tax on repatriation of income – 0% – 20% and some others.

In addition, when officially employed, the company must contribute to the pension fund and social and medical insurance. These payments will be approximately 64% of the net amount.

You also need to maintain accounting records and constantly submit reports to regulatory authorities. Usually, about 150 euros is spent on accounting services every month.

Taxation of transactions

In January 2019, a law was developed according to which virtual currencies in Poland are subject to corporate tax (capital gains tax) at 19%. Still, taxation at a preferential rate of 15% is possible. When exchanging virtual currency for virtual or fiat currency, income tax ranges from 17% to 32%, following the progressive taxation scale.

Primary requirements

There are straightforward and transparent rules for obtaining a license in Poland. Here we can distinguish 2 main criteria – the absence of a criminal record and competence.

People in key management positions must have an excellent reputation and no criminal record. They must provide relevant references. They mustn’t be involved in corruption schemes, fraud, and tax evasion.

The company should employ a specialist or a group of security specialists. Their responsibilities should include monitoring transactions and providing the necessary reports to regulatory authorities. The head of this department must have specialized higher education and experience in this industry, but this person’s reputation is of paramount importance. He must be a true professional in his field and also not have a criminal record in the past.

To obtain a license, you need to submit the following documents to the state authorities:

• statement;
• a notarized copy of the national and the international passport of the director/founder of the company certified with an apostille;
• registration documents.

Only a legal entity can apply. You first need to open your own company registered in Poland. The next step to obtaining a license is to get a PESEL tax number. Further, the entire tax system will identify your company by this number. The process of obtaining this document takes up to 30 days.

After collecting all the necessary documents, you can contact the regulatory authorities and apply for a license. Further, the state authorities take 2 weeks to consider the application. Then you can be active.

The obtained license is valid indefinitely. But, you must regularly provide reports on your activities. If you are suspected of fraud, your company may lose its work permit.

If you are afraid that you will not be able to collect and fill out all the necessary documents correctly, you can seek help from a specialized agency. You can agree with this and issue a power of attorney. In this case, specialists will not only check the correctness of filling out the paperwork in advance but will also represent your interests in regulatory bodies. They are well aware of how this system works and will tell you how to do everything correctly.

Conclusion

Poland is one of the few countries in Europe where you can quickly get a license to operate a crypto business. Here the main criterion is the absence of a criminal record and high professionalism. There is no excessive bureaucracy here, and you can get a license within a month and a half from the moment it was founded. It is a relatively short period because, for example, in Estonia, state authorities consider an application for a license not 14 days but 60.

source https://www.jbklutse.com/opening-a-crypto-business-in-poland/