Why Invest in Poland?
Labor market
Despite global inflation, Poland's competitive salaries and skilled workforce attract SSC sector companies. Additionally, Poland's universities supply high-quality talent in financial, IT, and administrative fields, facilitating a rapid response to labor market challenges.
Despite the growing inflation, which currently affects not only Europe, but is a global phenomenon, the level of remuneration in Poland compared to the largest metropolises of Western and Northern Europe and the USA is still very competitive. Lower wages and, at the same time, access to highly qualified employees mean that Poland invariably remains among the leaders strongly attracting companies from the SSC sector, because foreign investors are still guided by these two factors when choosing a location.
Polish universities educating staff from the financial, IT and administrative sectors at the highest level are open to cooperation with business and become a breeding ground for talents for companies from the SSC area. It is worth creating prospects for candidates already at the stage of studies by organizing paid internship programs and cooperating with universities as part of practical classes organized at the university.
What's more, the number of students in Poland has slightly increased - according to Central Statistical Office data, more than 1.2 million people study at universities, this increase has been observed for the first time since 2006. The most frequently chosen majors from the subgroup are: business and administration whose graduates often find employment in the SSC sector, and engineering and technology, this group of students, in turn, is a young talent after which is more and more often used by companies from the IT and R&D industries. Access to such a pool of candidates enables the SSC/BPO sector to adapt faster and more efficiently to the challenges brought by the current dynamic labor market.
SSC sector
Currently, over 400,000 people are employed in the SSC sector. Taking into account the trends in the global economy, it is expected that employment in the business services sector in Poland in 2023 will increase by at least another 30,000 people.
The increase in investments in Poland in the SSC industry is particularly visible in the IT services sector. In 2020, many companies withheld investment decisions, waiting for a more stable situation on the market, but the IT industry quickly unfrozen its budgets. In addition, many companies with branches in Ukraine or Belarus have decided to move their employees to Poland and open branches in the largest cities in Poland.
Moreover, Poles are still very open to changing jobs. The increase in the number of employees in the SSC area reflects the opportunity for a better job, defined by earnings, professional development, better employment conditions and a better working environment. Poland is still at the forefront of European countries when it comes to new investments in the sector of modern business services. Recent events: the pandemic and the armed conflict in Ukraine have clearly shown that this sector is resistant to various types of turbulence and uncertainty on the labor market. A huge advantage is the size of the SSC, the maturity of the industry and the ability to adapt to new conditions.
R&D
Research and development centers in Poland can count on numerous exemptions from taxes (e.g. on real estate, agricultural or forestry), as well as a number of subsidies and the possibility of participating in other aid programs. An important advantage of conducting this type of activity in Poland is also the possibility of deducting up to 150% of tax deductible costs. This translates into significant savings resulting from tax liabilities.
Research units may also gain access to additional financial support, which enables research and development work. Although the unfavorable ratio of the value of the Polish zloty to foreign currencies is not the best prognosis for local entrepreneurs who operate and work mainly for Polish customers, the opposite is true for foreign companies. Technological development requires money, but above all people who have vision, skills and a constant hunger for knowledge.
That is why another reason why launching an R&D center in Poland is a good idea is human resources. Well, our country is an excellent source of qualified and committed Polish specialists.
It is worth remembering, however, that this is one of the easiest ways to acquire talents appreciated all over the world - such as those from Ukraine. Having such a status also opens the door to cooperation with numerous companies for R&D centers. These types of units enjoy respect and interest among others. industries such as medicine and pharmacy, engineering, energy, as well as the broadly understood production area.
Warehouse real estate market
Despite geopolitical and economic challenges, the forecasts for the near future are optimistic. The long-term development of the market should be supported by factors such as nearshoring and last-mile logistics. The further growth of the e-commerce industry will also be crucial for the Polish warehouse sector. 1/3 of the warehouse space in Poland is dedicated to online commerce. Already in 2023, Poland will join the group of the four largest warehouse markets in Europe, whose stock exceeds 30 million sq m, i.e. Great Britain, Germany, France and the Netherlands. In Poland, there is potential to create additional several million square meters in the next 10 years
Legal forms of conducting business in Poland
There are several ways to operate a business in Poland through a legal entity. The most common types for investors with foreign capital are:
- a limited liability company (Polish: spółka z ograniczoną odpowiedzialnością) and
- a branch office of foreign entrepreneur.
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