4 minute read
Ecovis Legal Poland: 15 Years of Legal Support for Finnish Businesses in Poland
Ecovis Legal Poland Multan, Pruś & Partners Law and Tax Firm is a well-established law firm with more than 20 years of history. We have assisted more than 60 Finnish companies starting to conduct business in Poland. Ecovis has 15 years of experience in serving Finnish companies investing in Poland and actively participates in the Finnish business community in Poland, supporting it and performing several functions at the Finnish Trade Guild (FTG) and the Scandinavian-Polish Chamber of Commerce (SPCC).
We provide comprehensive assistance for businesses in the following areas: company law and contracts; foreign companies entry support; investments, mergers and acquisitions; tax advice on domestic and international taxes; litigation; negotiations and mediation; legal due diligence on projects and companies; labor law.
What is Ecovis? Ecovis is a global consulting firm with its origins in Continental Europe. It has almost 11,100 people operating in more than 90 countries. Its consulting focus and core competencies lie in the areas of tax consultation, legal advice, accounting, auditing as well as M&A deals making.
How did you start working with Finnish businesses?
Our company has enjoyed more than 15 years of successful cooperation with dozens of companies from Finland that are now our clients in Poland. We serve a range of clients, mainly in the manufacturing and industrial sectors, but also IT and service companies. I think our success is due to the fact that we avoid excessive legal jargon, we are transparent and open – all aspects that are highly appreciated by our clients.
What are the basic differences in the main areas of law between Poland and Finland?
In our legal systems some key differences stand out. One notable distinction is the involvement of notaries in setting up limited liability companies in Poland, a step not required in Finland. Foreigners face a number of complexities and certain simplified procedures, such as establishing limited liability companies online, are not available to foreigners.
Tax and statutory reporting obligations require EIDAS e-signatures, but inconsistent standards across governmental portals complicate the process.
In addition, Poland doesn’t really have the position of CEO, with management boards handling company management. And in litigation, winning parties receive legal fees capped by the law, often falling short of actual expenses.
How about labor law? Is it stricter or more flexible in Poland than in Finland?
Polish labor regulations offer more flexibility, but also come with more bureaucratic hurdles in critical areas as well as more bureaucracy in basic compliance requirements. Employment can only be terminated for valid reasons in both countries, but Poland caps compensation for wrongful termination at three months' salary, whereas Finland often awards higher compensation. Polish law strictly outlines contract types, whereby a trial period lasts for three months and employees can’t have more than three consecutive fixed-term contracts lasting a total period longer than 33 months.
Compliance paperwork is comparable as both jurisdictions are subject to EU law.
If Finns wanted to open a new company in Poland, what would be the basic process?
Opening a company in Poland is straightforward, but foreign investors should certainly use a Polish lawyer. The foreign company can grant a power of attorney enabling remote setup without requiring a visit to Poland.
The lawyer drafts the documents and files for electronic registration and it should take just a few weeks. However, setting up a bank account is time-consuming due to strict AML rules. Very few banks allow remote signing, and certain Finnish banks, such as Nordea and Handelsbanken, do not operate in Poland.
What advice would you give to Finnish companies wanting to enter the market now?
Over the years, we have assisted in a number of Finnish investments in Poland, some of which have been successful, while others have faced challenges. Poland is a highly competitive market in many areas, so successful development in Poland requires trust and scale from the outset. It is essential to create a strong local organization with the right internal tools to ensure compliance and oversight of the local unit. Challenges arising from cultural differences can be overcome with effective solutions.
Would you recommend entering by acquisition?
Poland's mature market offers opportunities through acquisitions, especially as aging entrepreneurs are now thinking about exiting. Entering via acquisitions can be high risk and high reward. Investors must adhere to best practices, including proper documentation, exclusivity agreements, thorough due diligence, and be prepared for tough negotiations, particularly when dealing with family-owned businesses.
Ecovis Legal Poland Multan, Pruś & Partners Law and Tax Firm
+48 22 400 45 85
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