HOW TO DO BUSINESS IN POLAND
HOW TO DO BUSINESS IN POLAND For all who would like to know more about Poland Prepared by the Investment and Technology Promotion Office of the United Nations Industrial Development Organization in Warsaw, under the auspices of the Ministry of the Economy Warsaw, July 2006 UNIDO ITPO in Warsaw would like to thank the following institutions for their co-operation and involvement in the process of preparing the current edition of this guide: the Ministry of the Economy, the Ministry of Finance, the Ministry of Foreign Affairs – the Department of Foreign Economic Policy and the Department of Promotion, the Ministry of the Treasury, the National Bank of Poland, and PAIiIZ (the Polish Information and Foreign Investment Agency). We are especially grateful to the staff of the Inquiry Office at GUS (the Central Statistical Office) and for the contributions and co-operation of Cushman & Wakefield Advisory Services, Potworowski Kinast Grant Thornton Sp. z o.o., and Prof. Włodzimierz Karaszewski of Nicolaus Copernicus University in Toruń. This guide is not intended to be comprehensive – it has been prepared to provide a general overview of the current situation in Poland. The information contained herein should be treated as a guideline and the actual laws and regulations in force should be consulted whenever a business decision is to be made. Potential investors should conduct further analysis according to specific project requirements. The designations employed in the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of firms’ names or commercial products does not imply endorsement by UNIDO. Editor-in-chief: Grzegorz Bychawski English language version reviewed by Jean-Jacques Granas Copyright by UNIDO ITPO Warsaw 2006 All rights reserved Published by: UNIDO ITPO Warsaw Al. Niepodległości 186; 00-608 Warsaw, Poland tel.: (+48-22) 8259186, 8259467; fax: 8258970 e-mail: [email protected] web-site: http://www.unido.pl ISSN 1642-7823 How to Do Business in Poland 3 CONTENTS I. GENERAL INFORMATION ..................................................................................................... 7 Geography..............................................................................................................................9 Climate ...................................................................................................................................9 Natural Resources...................................................................................................................9 Energy and Fuels ..................................................................................................................10 Population and Language......................................................................................................11 Political System and Government .........................................................................................12 Government Administration..................................................................................................14 II. ECONOMIC ENVIRONMENT ............................................................................................. 17 GDP and Inflation.................................................................................................................19 Budgetary Policy ..................................................................................................................21 Foreign Exchange .................................................................................................................22 Foreign Debt.........................................................................................................................24 Employment and the Labour Market.....................................................................................25 Industry and Technology ......................................................................................................27 Agriculture ...........................................................................................................................35 Construction Industry............................................................................................................38 Banking Sector .....................................................................................................................40 Insurance Sector ...................................................................................................................45 Pension System.....................................................................................................................50 Telecommunications.............................................................................................................52 Power Industry......................................................................................................................55 Transportation Infrastructure and Highway Construction ......................................................58 Outlook for 2006 and Beyond..............................................................................................62 Co-operation with International Organisations ......................................................................64 UNIDO and its Activities in Poland ......................................................................................68 III. FOREIGN TRADE ................................................................................................................. 71 Customs Regulations and Duties...........................................................................................73 Autonomous Tariff Suspensions and Quotas .......................................................................75 Duty Free Zones and Free Warehouses .................................................................................76 Refinancing Interest on Export Credits ................................................................................78 Foreign Trade Results ...........................................................................................................78 IV. PRIVATISATION ................................................................................................................... 85 Legislative Framework .........................................................................................................87 Ministry of the Treasury........................................................................................................88 Privatisation Revenue ...........................................................................................................88 Privatisation Objectives and Plans for 2006 ..........................................................................89 The Multi-methods Approach ...............................................................................................91 Capital Privatisation..............................................................................................................93 Direct Privatisation ...............................................................................................................94 Agricultural Property Agency ...............................................................................................96 The Mass Privatisation Programme.......................................................................................98 Restitution ............................................................................................................................99 Capital Markets ..................................................................................................................100 V. FOREIGN INVESTMENT.................................................................................................... 107 Legal Considerations ..........................................................................................................109 State Aid for New Investments............................................................................................113 4 Contents R&D Support .....................................................................................................................115 Special Economic Zones.....................................................................................................116 Institutional Structure for Foreign Direct Investments .........................................................119 Why Invest in Poland? ........................................................................................................121 What the Investors Say .......................................................................................................122 Foreign Direct Investment...................................................................................................126 Polish Direct Investment Abroad ........................................................................................130 VI. POLAND IN THE EUROPEAN UNION........................................................................... 133 Integration Process Overview ............................................................................................135 The Accession Treaty.........................................................................................................136 Temporary Provisions........................................................................................................137 Current Economic Developments ......................................................................................140 VII. TAXATION SYSTEM ........................................................................................................ 143 Taxes ..................................................................................................................................145 Capital Allowances .............................................................................................................151 Double Taxation Treaties....................................................................................................152 VIII. REAL ESTATE .................................................................................................................. 153 Legislative Framework Governing Real Estate..................................................................155 Purchase of Real Estate by Foreigners ...............................................................................156 Permits Issued ....................................................................................................................158 Transaction Costs................................................................................................................159 Professional Services on the Real Estate Market ...............................................................160 Real Estate Market by Segments........................................................................................162 IX. INDUSTRIAL AND INTELLECTUAL PROPERTY ..................................................... 169 Patent Legislation ...............................................................................................................171 Trademarks.........................................................................................................................172 Copyrights ..........................................................................................................................173 X. OPERATING IN POLAND................................................................................................... 175 Forms of Business Entities..................................................................................................177 Establishing a Company......................................................................................................178 Subsidiaries of Foreign Companies .....................................................................................182 Competition and Consumer Protection................................................................................184 Accounting and Auditing ....................................................................................................187 Public Procurement.............................................................................................................189 Bankruptcy and Insolvency.................................................................................................190 Employees ..........................................................................................................................193 Employment of Foreigners..................................................................................................196 Living in Poland .................................................................................................................197 XI. TOURISM IN POLAND....................................................................................................... 201 Visiting Poland ...................................................................................................................204 Tourism Industry ................................................................................................................210 XII. HISTORY OF POLAND .................................................................................................... 215 XIII. SOURCES OF BUSINESS INFORMATION IN POLAND......................................... 235 Institutions..........................................................................................................................237 Newspapers, Magazines and Other Publications..................................................................240 Internet ...............................................................................................................................241 XIV. APPENDICES..................................................................................................................... 245 How to Do Business in Poland 5 GRAPHS AND MAPS: Map of Polish Communities Abroad ................................................................................................ 11 Structure of the Sejm in June 2006 ................................................................................................... 13 Administrative Map of Poland.......................................................................................................... 15 Inflation (1991-2005) ........................................................................................................................ 19 Gross Domestic Product (1991-2005) .............................................................................................. 20 Structure of State Budget Expenditure.............................................................................................. 22 Foreign Debt in 2005 in Comparison to Other Economic Indicators .............................................. 24 Total External Debt and Central and Local Government External Debt (1996-2005).................... 25 Unemployment and Unemployment Rate (1991-2005) ................................................................... 26 Number of Farms and Their Area by Farm Size Category .............................................................. 36 Ownership Structure of the Banking Sector ..................................................................................... 43 Share of Foreign-Controlled Banks in the Banking Sector’s Assets................................................ 43 Number of Insurance Companies (1993-2005) ................................................................................ 46 Structure of the Life Insurance Market ............................................................................................. 46 Structure of the Non-life Insurance Market ...................................................................................... 47 Relation of Insurance Premiums to GDP (1995-2005) .................................................................... 47 Foreign Investment Structure in the Insurance Sector...................................................................... 49 Assets of Pension Funds (1999-2005) .............................................................................................. 51 Telephone Subscribers per 100 Inhabitants (1997-2005)................................................................. 54 Structure of the Mobile Market......................................................................................................... 55 Share of Goods Delivered by Various Means of Transport ............................................................. 58 Roads Repaired (2001-2005) ............................................................................................................ 59 Highway and Motorway Construction Programme in Poland ......................................................... 61 Exports and Imports (1994-2005) ..................................................................................................... 80 Exports – Geographical Structure ..................................................................................................... 80 Imports – Geographical Structure ..................................................................................................... 80 Official Reserve Assets (1993-2005)................................................................................................ 84 Privatisation Revenue (1991-2005) .................................................................................................. 88 Privatisation Results by Method ....................................................................................................... 92 Direct Privatisation by Forms ........................................................................................................... 95 WSE – Number of Listed Companies and Capitalisation (1995-2005)......................................... 103 Foreign Direct Investment in Poland (1991-2005)......................................................................... 126 Share of Commercial Companies with Foreign Capital in the Number of Commercial Companies in Selected Sectors and Branches.................................................................................................... 129 Commercial Companies with Foreign Capital by Sector ............................................................... 129 Corporate Income Tax Rates (1997-2006) ..................................................................................... 145 Land Acquisition Permits Granted to Foreigners (1990-2005)...................................................... 158 Office Market – Cumulative Stock and Annual Supply................................................................. 162 Office Market – Warsaw Rents....................................................................................................... 163 Modern Retail Market – Cumulative Stock and Annual Supply ................................................... 164 Retail Market – Rents...................................................................................................................... 165 Industrial Market – Cumulative Stock and Annual Supply............................................................ 166 Industrial Market – Prime Rents and Vacancy ............................................................................... 167 Foreign Arrivals (1991-2005) ......................................................................................................... 210 Tourist Arrivals to Poland by Main Purpose .................................................................................. 211 Tourism – Foreign Currency Receipts (1995-2005)....................................................................... 212 Outbound Trips by Polish Residents (1991-2005) ......................................................................... 213 6 Contents Seasonal Breakdown of Domestic Tourist Travel .......................................................................... 213 TABLES: Production of Major Fuel and Energy Products ...........................................................................10 Functions of Major Government Institutions ...............................................................................16 Gross Domestic Product (1997-2005)..........................................................................................19 State Budget................................................................................................................................21 Poland’s Rating by International Credit Rating Agencies ............................................................22 Economic Entities by Sector and Form of Ownership..................................................................28 Structure of Industry by Branch...................................................................................................29 Agricultural Output ....................................................................................................................37 Construction Output Structure....................................................................................................39 Commercial Banks......................................................................................................................41 Ranking of Banks by Balance Sheet Total .................................................................................44 Financial Flows between Poland and the EU Budget.................................................................67 Foreign Trade (1997-2004) .........................................................................................................79 Exports – Major Partners.............................................................................................................81 Imports – Major Partners............................................................................................................81 Balance of Payments on the Current Account (1998-2005)..........................................................83 Land Taken over into APA Stock and its Redistribution (by Province).....................................97 Major WSE Indices ..................................................................................................................103 WSE Equity Market Trade.......................................................................................................103 WSE Futures Market Trade......................................................................................................103 WSE Main Market Sector Figures ...........................................................................................105 Results of Operations in SSEs ...................................................................................................118 Foreign Direct Investment Inflow (2004-2005) .........................................................................127 Commercial Companies with Foreign Capital (1991-2005).......................................................128 Polish FDI in 1995-2005 ..........................................................................................................131 FDI Outflow by type in 1995-2004 ..........................................................................................132 Personal Income Tax Scale .......................................................................................................149 Real Estate Tax Rates................................................................................................................150 Major Depreciation Rates..........................................................................................................151 Hotel Rooms (2003-2004).........................................................................................................214 General remarks • • • • The main sources of statistics cited in the Guide are the official publications of the Central Statistical Office (GUS). Unless stated otherwise, tables and graphs included in this publication are based on the information contained in the text. Unless stated otherwise, values in US dollars have been calculated in accordance with the average exchange rate for a given period set by the National Bank of Poland. When the text refers to industry, the term includes the mining and extracting industries, manufacturing, and the sectors supplying gas, power, and water. How to Do Business in Poland I. GENERAL INFORMATION One of the largest countries in Central Europe; 312.700 sq. km.; 38.2 million people EU and NATO member Urban population – 61 % 12 million Poles living abroad English is the most popular foreign language Moderate climate, with relatively cold winters and warm summers Large deposits of hard and brown coal, copper, sulphur, zinc, lead, silver, magnesium and rock salt Main agricultural crops are wheat and other cereals, potatoes, sugar beets, and fodder crops 29 % of the country covered by forests 7 How to Do Business in Poland 9 I. GENERAL INFORMATION Geography The Republic of Poland (Rzeczpospolita Polska) is one of the largest countries in Central Europe. It borders on Russia, Lithuania, Belarus, Ukraine, Slovakia, the Czech Republic, and Germany. Its northern frontier on the Baltic Sea gives it easy access to Scandinavian and North Sea ports. The capital of Poland, Warsaw, is situated in the centre of the country. Poland ranks ninth in Europe in terms of size, and 69th in the world, with a surface area of 312,677 sq. km. Poland is in the Central European time zone (GMT + 1 hour). In late March it switches to daylight saving time, which lasts till late October. The country lies almost wholly on the North European Plain and is a land of gentle slopes, rarely rising above 300 m, except along the southern border with the Sudety and Carpathian Mountain ranges. Rysy, Poland’s highest mountain peak, rises 2,499 m above sea level. Approximately one-fifth of Poland’s area is maintained as pasture and meadows. Forests cover over one-fourth of the total area. The longest rivers cross the country northwards: the Vistula (1,074 km in length) in the centre, and the Oder (854 km), which flows along Poland’s western border. Climate Poland has a moderate climate characterised by relatively cold winters and warm summers. Winters become increasingly severe inland from the Baltic coast, with January temperatures averaging -1 °C (30 °F) in the north and going as low as -5 °C (23 °F) in the south-east. July temperatures range from 16.5 °C (62 °F) near the coast to 19 °C (66 °F) in the south. Rainfall varies with the altitude, from less than 500 mm a year in the lowlands to as high as 1270 mm in the southern mountains. Natural Resources Poland has substantial agricultural and mineral resources. It has the world’s fifth-largest proven reserves of hard and brown coal, in addition to deposits of copper, sulphur, zinc, lead, silver, magnesium, and rock salt. There is natural gas and also potentially useful deposits of chalk, kaolin, clays, and potash. 10 I. General Information Poland’s main agricultural crops are wheat and other cereals, potatoes, sugar beets and fodder crops. Poland is a leading exporter of apple concentrate and is among the world’s leading producers of berries, cabbages, and carrots. Poland is ranked second in the world in rye and sixth in potato production. At the end of 2005, the livestock sector included 5.4 million beef and dairy cattle and approximately 18.7 million pigs. Due to Poland’s favourable geographical position and temperate climate utilised agricultural area amounts to more than half of Poland’s surface (15.9 million hectares). In addition, almost 9.2 million hectares are forested, making sawn timber an important resource. Energy and Fuels The overwhelming majority of Poland’s electricity is generated by coal- and lignite fuelled power stations, while the remainder derives from hydroelectric power stations and wind power plants. Hard coal remains the foundation of Polish industry. Thanks to coal, Poland’s total energy consumption and production have generally been in balance, with imports of oil offset by coal exports. In 2005, hard coal production reached over 98 million tons, slightly less than in the previous year, and that of brown coal and coke 61.6 and 8.5 million tons, respectively. Outputs of natural gas, basic fuels and electricity are presented in the table below. Production of Major Fuels and Energy Products in 2005 * Unit Hard coal Brown coal Coke Fuel oils Petrol (incl. aviation fuel) Diesel oil Natural gas Electricity * Companies employing over 49 persons Output million tons 98.3 million tons 61.6 million tons 8.5 million tons 3.4 million tons 4.2 million tons 6.1 cubic hectometres 5,703 TWh 153.3 Source: Central Statistical Office, 2006 About a third of Poland’s demand for natural gas is covered by domestic production and most imports come from Russia. How to Do Business in Poland 11 Population and Language In recent years (since 1999) the population of Poland, currently 38.2 million people, has been experiencing a very slow decline. In 2005 this trend continued and the population of Poland declined by 0.04 %. Approximately 61.4 % of Poles live in 887 towns, which are mostly small or medium-size, and almost half of the town population lives in 39 cities with a population of over 100,000 inhabitants. Warsaw, the capital and Poland’s largest city, has a population of 1.7 million people. Apart from the capital, the largest Polish cities are Łódź, Cracow, Wrocław, Poznań and the Gdańsk-Sopot-Gdynia conurbation, which together account for about 3.5 million people. With respect to size of population, Poland ranks 8th in Europe and 30th in the world, with an average population density of 122 persons per km2. The population of Polish communities abroad is estimated at 12 million, with the largest communities living in the USA (5.6 million), the Commonwealth of Independent States – CIS (2.5 million), France (1 million), Germany (0.8 million), Canada (0.4 million), Brazil (0.2 million), Australia (0.15), and the UK (0.14). Map of Polish Communities Abroad Source: Institute of Geodesy and Cartography Demographic trends in Poland indicate a further growth in the working-age population, standing at 64 % of the population at the end of 2005. In the last quarter of 2005 there were 14.4 million people employed, including almost 5.0 million by companies employing ten or more persons. On the other hand, the number of retired persons and pensioners reached 9.2 million. Even though the number of retired people is growing, Poland’s workforce is among the youngest in Europe. Its activity rate is 55.2 % (as of the last quarter of 2005). 12 I. General Information From the ethnic point of view, Poland is one of the most homogeneous countries in Europe, with over 98 % of the population being ethnically Polish. In the business community, as well as among young people, English is the most popular foreign language. In addition, German and Russian are frequently spoken, reflecting the geographical position of the country. Political System and Government Poland was the first country in Central and Eastern Europe to free itself from communist rule. This bold move was soon followed throughout the region. It all started early in 1989 when the communist-dominated authorities and the opposition embarked on discussions which became known as the ‘Round Table Negotiations’. As a result, major agreements were reached, including legalisation of the Solidarity trade union and an agreement to hold elections on 4 June 1989. The elections were won by the representatives of Solidarity, who then formed the first non-communist government in East-Central Europe since the Second World War. Poland is a republic reflecting a mixture of parliamentary and presidential models. In 1997, a new constitution was adopted by the national assembly and submitted for ratification in a national referendum. The new constitution contains some important guarantees for business. It states that the Republic of Poland assures freedom of economic activity and that any limitation of this freedom should be based on law. Similarly, fiscal charges may be imposed only by law. Another important safeguard clause concerning public finance says that an increase of expenditure by the government should not cause an increase of the budget deficit above the level set by the budgetary law, and that the budgetary law should not provide for the financing of the deficit through lending from the central bank. The president is elected to office by universal suffrage for a 5-year term. He appoints candidates for the post of prime minister and has the right to veto acts passed by parliament. His veto may be rejected by a three-fifths majority in the sejm, with at least a half of deputies present. The president is the head of state and the commander-in-chief of the armed forces. He has the right to dissolve parliament if it is unable to approve the budgetary law or to form a government. Lech Wałęsa, the historic leader of the Solidarity movement, was elected president in November 1990. However, in a heated presidential campaign in the autumn of 1995, he lost to Aleksander Kwaśniewski, leader of the Democratic Left Alliance, who also won the subsequent presidential elections held in 2000. October 2005 witnessed another very intense presidential campaign, finally won by Lech Kaczyński, President of Warsaw and a former Minister of Justice, who assumed the office at the end of the year. 13 How to Do Business in Poland Legislative authority is vested in the parliament, or National Assembly, composed of two chambers: the lower house, the sejm, with 460 seats, and the upper house, the senate, with 100 seats, both elected for a 4-year term. The sejm has 460 deputies elected through a proportional voting system. All 100 senators are elected in a majority voting system. The senate has the right to initiate legislation, and it reviews and proposes amendments to acts passed by the sejm. It is ultimately the sejm that decides on the final version of any legislative act. Apart from the sejm deputies and the senate, legislative initiative is also granted to the president, the Council of Ministers, and any group of at least one hundred thousand citizens coming up with a draft law. The last parliamentary elections were held on 25 September 2005. The Law and Justice Party (PiS) won with almost 27 % of votes, receiving 155 seats in the sejm. The Civic Platform Party (PO) came second, receiving 24.1 % of votes (133 seats), followed by the Self-Defence Party (Samoobrona), which received 11.4 % of votes (56 seats). The remaining seats were divided between the Democratic Left Alliance (SLD) – 55 seats, the League of Polish Families (LPR) – 34 seats, the Polish People’s Party (PSL) – 25 seats, and the German Minority – 2 seats. Since then several changes have taken place on the Polish political scene. The present structure of the sejm (as of June 2006) is presented in the following diagram. Structure of the Sejm in June 2006 (number of seats) 0 20 40 60 80 100 120 140 156 PiS 131 PO Samoobrona 55 SLD 55 27 LPR 25 PSL Independent deputies 160 11 Source: Sejm, 2006 14 I. General Information Executive power is vested in the prime minister and his cabinet, called the Council of Ministers, while judicial power is vested in independent courts. At the very outset of the political and economic transformation process Poland focused its efforts on two major goals: economic integration with the European Community (see Chapter VI) and NATO membership. The economic integration process aimed at re-establishing Poland as an integral part of the European economy. It led to Poland’s acquiring EU membership as of 1 May 2004. NATO membership, ensuring external security, has been achieved even earlier. The first step in the process of joining NATO had taken place in March 1991, when the military structures of the Warsaw Pact were dissolved. A mere three months later, in October 1991, in Cracow, the presidents of Poland, Czechoslovakia, and Hungary expressed the desire of their states to participate in NATO activities. At a 1997 NATO summit, Poland, the Czech Republic, and Hungary were invited to start negotiations on membership in the alliance. Finally, on 17 February 1999, the parliament passed a law allowing President Kwaśniewski to ratify the North Atlantic Treaty, which he did on 26 February 1999. On 12 March of the same year, Poland’s accession to NATO was sealed with the ceremony of depositing the ratification treaty with the Treaty’s Depository Office. Government Administration The government administration is composed of the central administration (ministries and other bodies) and the regional administration. The administrative division of the country is based on three levels of administration, i.e., provinces (województwo), which are divided into districts (powiat), which are further divided into communes (gmina). There are 16 provinces, 379 districts, and 2478 communes in Poland. The list of local authorities (Urząd Wojewódzki) is presented in Appendix 17. How to Do Business in Poland 15 Administrative Map of Poland Source: Institute of Geodesy and Cartography 16 I. General Information Some major ministries and their main functions, likely to be of interest to foreign investors and businessmen, are listed in the table below. Ministry Ministry of Agriculture and Rural Development Ministry of Construction Ministry of the Economy Main Functions Developing and implementing policies regarding agriculture, rural development and the development of agricultural markets. Directing government administration in the areas of architecture, construction, housing and land management. Initiating and co-ordinating policies regarding economic activity and development, including foreign trade and economic issues, energy policy, tourism, and co-operation with economic business organisations. Ministry of Education Directing state activities in the field of education, including developing curriculum and social assistance to pupils. Ministry of the Regulating all issues pertaining to environmental protection and water Environment resources, and particularly, developing and implementing policies concerning air and water protection, the avoidance of land degradation, water management and protection of the population and property against flood and drought. Ministry of Finance Responsibilities include activities in the area of public finance, state budget development and implementation and financial institutions. Ministry of Foreign Maintaining diplomatic relations with other countries and international Affairs organisations, representing and protecting the interests of Poland, its citizens and its entities abroad, promotion of Poland and the Polish language abroad, and co-operation with Poles living abroad. Ministry of Internal Overseeing internal safety, state administration, citizens’ affairs with Affairs and respect to public administration and all issues regarding foreigners in Administration Poland, directing state activities in the field of information technology. Ministry of Labour and Regulating all issues pertaining to the labour market and work Social Policy conditions, the social security system, social benefits, directing state activities aimed at reducing poverty and at social integration. Ministry of Regional Developing and implementing regional development policies aimed at Development the acceleration of social and economic development of all regions and at the prevention of a further differentiation between the most and the least developed regions of the country. Ministry of Transport Developing and implementing state activities in the field of transportation, including transport infrastructure and road safety. Ministry of the Treasury Supervising and managing the State Treasury, taking privatisation decisions concerning state-owned enterprises, initiating the privatisation of municipal property, keeping a register of the State Treasury’s assets, and the setting up, closing down and privatisation of State Treasury companies. Source: Various acts How to Do Business in Poland 17 II. ECONOMIC ENVIRONMENT GDP growth of 3.4 %, driven mostly by exports Annual inflation of 2.1 % Industrial output growth of 3.8 % Budget deficit: 2.9 % of GDP 2.8 million unemployed – official unemployment rate: 17.6 % Average gross monthly salary: PLN 2,380 (approx. EUR 600) Poland’s foreign debt amounts to USD 130.0 billion 53 commercial banks (mostly foreign-owned) and almost 600 co-operative banks 71 insurance companies, mostly foreign-owned Average telephone density (per 100 inh.): fixed-line – 32; mobile – 76 Electric energy production: 157 TWh Roads: 80 km per 100 km2, many in poor condition Railway network: 6 km per 100 km2 Standard & Poor’s country rating – foreign currency (long/outlook/short): BBB+ / Stable / A-2 19 How to Do Business in Poland II. ECONOMIC ENVIRONMENT GDP and Inflation Poland was the first country in Central and Eastern Europe to embark upon the breakthrough transition from a planned economy to a market system. Dismantling of all central economy planning mechanisms and the introduction of a market economy was quick to produce effects. Inflation, running at three digits in 1990, fell to double digits in 1991-1998, and declined steadily in the following years to fall to as little as 0.8 % in 2003. In 2005 it reached 2.1 %. % Inflation 80 70 70.3 60 50 43.0 35.3 40 32.2 30 27.8 19.9 20 14.9 11.8 10 7.3 10.1 5.5 1.9 0.8 2002 2003 3.5 2.1 2004 2005 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Central Statistical Office, 2006 Although successful, the radical reforms also plunged the country into a deep, but relatively short-lived recession. Still, Poland was the only country in the region to achieve GDP growth in 1992. The recovery gained momentum in 1993 with a GDP growth rate of 3.8 %, at that time the highest growth rate in Europe. In 2005, GDP grew by 3.4 % and exports continued to be an important driver of GDP growth, especially in the first half of the year. Gross Domestic Product Gross Domestic Product 1997 1998 1999 2000 2001 2002 2003 2004 GDP at current prices (PLN bn) 515.4 600.9 666.3 744.6 779.2 807.9 842.1 923.2 GDP real annual growth (%) 7.1 5.0 4.5 4.2 1.1 1.4 3.8 5.3 Average PLN/USD 3.28 3.49 3.97 4.35 4.09 4.08 3.89 3.65 exchange rate GDP at current prices (USD bn) 157.1 172.0 167.9 171.3 190.3 198.0 216.5 252.7 2005 980.9 3.4 3.23 303.2 Source: Central Statistical Office, NBP, 2006 20 II. Economic Environment To reflect the real degree of development in comparing Polish GDP per capita to that of other countries, overall price levels should be considered and appropriate adjustments made. In 2005, applying the OECD and Eurostat estimates of the PLN’s purchasing power, GDP per capita in Poland in PPP (Purchasing Power Parity) terms amounted to over USD 13,100. Gross Domestic Product Growth % 10 7.0 8 5.2 6 6.2 7.1 5.0 3.8 4 4.5 5.3 4.2 3.8 3.4 2.6 2 1.1 1.4 2001 2002 0 -2 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2003 2004 2005 -4 -6 -8 -7.0 -10 Source: Central Statistical Office, 2006 Since 1990, important changes in resource allocation have taken place with a dynamic expansion of trade and services, and a steep fall in construction, farm, and industrial output. This has moved Poland’s economic structure closer to that of countries at a medium level of development. The Polish economy entered the 1990s as the weakest in Central Europe. It emerged in the new millennium as one of the strongest. 21 How to Do Business in Poland Budgetary Policy Poland managed to go through a difficult period of transition without excessive relaxation of its budgetary policy. However, in 2001, the budget deficit doubled in comparison to the previous year and amounted to approximately 4.5 % of GDP. The next three years did not bring any improvement in this respect. In 2005, however, the budget deficit decreased to just 2.9 % of GDP. A breakdown of the state budget in the last two years is presented in the table below. State Budget 2004 and 2005 (PLN billion) Selected Items 2004 REVENUES Indirect taxation - thereof VAT - thereof excise tax Corporate income tax Personal income tax Dividends and income from profit Custom duties 156.28 100.99 62.26 37.96 13.07 21.51 1.81 2.28 179.77 115.67 75.40 39.48 15,76 24.42 3.16 1.27 EXPENDITURE Social security contributions Current expenditure of budgetary entities Domestic debt service Foreign debt service Subsidies for local government Investment expenditure 197.70 48.48 37.09 18.42 4.14 31.39 11.08 208.13 44.97 40.06 21.23 3.59 32.49 10.17 DEFICIT 2005 -41.42 -28.36 Source: Central Statistical Office, 2006 As a result of the economic growth and fairly good budget performance in recent years, the ratio of public debt to GDP declined substantially, from 70.4 % at the end of 1994, to some 55 % of GDP at the end of 1995, following an important reduction of foreign debt. At the end of 2005, it amounted to 47.7 % of GDP. Budgetary expenditure in 2005 is presented in the following diagram. It is worth noting that foreign debt service expenditure is rather insignificant, amounting to just 1.7 % of the budget. 22 II. Economic Environment Structure of State Budget Expenditure in 2005 Domestic debt service 10.2% Foreign debt service 1.7% Current expenditure of budgetary entities 19.2% Subsidies to local governments Investment 15.6% expnditure 4.9% Other expenditure 26.7% Social security contribution 21.6% Source: Central Statistical Office, 2006 A good budgetary performance, stable economic growth, the curbing of inflation, and other positive economic factors of the past decade, led first to constant improvement of Poland’s rating on international markets, and then to its stabilisation. Currently (June 2006), Poland’s rating by the major agencies is decidedly favourable, as reflected in the table below. Rating Agency Standard & Poor’s Moody’s Fitch Long-term Rating BBB+ A2 BBB+ Short-term Rating A-2 P-1 F2 Source: Rating Agencies, June 2006 Foreign Exchange The official currency in Poland is the złoty (zł or PLN), which is divided into 100 groszy. Foreign exchange operations are governed by Foreign Exchange Law of 27 July 2002. It came into force on 1 October 2002 and further liberalised capital exchange. In line with mandatory EU regulations concerning foreign exchange, the law removed all restrictions in the flow of capital payments between Poland and the EU member states, the European Economic Area, and OECD member states. Nonetheless, some limitations to capital exchange that are not contrary to the EU mandatory foreign exchange regulations are permitted. These are defined in art. 9 of the law and apply mostly to operations with non-residents from countries, that are not EU, How to Do Business in Poland 23 EEA, or OECD members. The limitations focus on capital flows relating to direct investments (including investments in real estate), the provision of financial services, and the introduction of securities to capital markets. The law also contains a provision stating that limitations resulting from other acts supersede the freedom of capital flow arising from the Foreign Exchange Law. The limitations pertaining to foreign exchange terms and conditions may be abolished through foreign exchange permits. There are two types of permits: general and individual. General foreign exchange permits are granted by the Minister of Finance, while individual foreign exchange permits are granted by the President of the National Bank of Poland. Both general and individual permits will be granted if there is no threat to state security, public order, the equilibrated balance of payments, and other basic interests of the state. An important safeguard mechanism is provided in art. 10 of the Law, which allows for the introduction of certain restrictions, if necessary, to: • implement decisions of international organisations, of which Poland is a member, • ensure public safety, or public order, • ensure the balance of payments’ equilibrium in case of its general disequilibrium, or sudden collapse, or a threat of either of these, • ensure the stability of Polish currency in case of a sudden fluctuation in its rate of exchange, or a threat of it. Currently, general exchange permits are granted on the grounds of a decree of the Minister of Finance of 3 September 2002 on General Exchange Permits, as amended. Generally, the decree provides for Polish currency and foreign exchange transfers, by both residents and non-residents exceeding the EUR 10,000 limit stipulated in the Foreign Exchange Law. It also lifts various foreign exchange restrictions regarding operations with countries that signed binding agreements with Poland on the reciprocal promotion and protection of investments. Moreover, Polish residents are allowed to conduct transactions and payments in Poland in euros and other convertible currencies, providing that a consumer is party to the transaction, or payment. This allows, for example, shops to accept payments in euro and there are already some that do. A recent amendment to this decree came into force on 1 January 2006. It allows Polish residents to conduct transactions and payments in euros with regards to funds coming from the European Union budget, as well as those earmarked for co-financing projects implemented using funds coming from the European Union budget. 24 II. Economic Environment Foreign Debt At the end of 2005, Poland’s overall foreign debt reached USD 130.0 billion (42.9 % of GDP), according to the National Bank of Poland. It increased by approximately just USD 1.3 billion during the year, much less than in the previous year. The NBP, central and local governments were mainly responsible for this slight increase, while the companies reduced their foreign debt by over USD 2 billion, from USD 56.4 billion at the end of 2004 to USD 54.2 billion at the end of 2005. However, it is not the absolute value of foreign debt, but its relation to other economic indicators that is important for the economy. These relations are presented on the following diagram. Foreign Debt in 2005 in Comparison to Other Economic Indicators (in USD billion) Import 98.5 Export 95.8 42.6 Official Reserve Assets 144.6 Public Debt 130.0 Foreign Debt 303.2 GDP 0 50 100 150 200 250 300 350 Source: Central Statistical Office, NBP, 2006 Until 2002, a characteristic feature of Poland’s foreign debt was the constant trend of change in the proportion between state and private debt, with the private share increasing in line with the liberalisation of foreign exchange policy and transformations in the economy. In 1996, the share of government foreign debt amounted to 76.3 %, and in only five years it had decreased to just over 40.6 % by the end of 2001. However, 2002 reversed this trend. In 2005, the share of government foreign debt further increased to 45.3 %. The following diagram presents Poland’s foreign debt in the past ten years. 25 How to Do Business in Poland Total External Debt and Central and Local Government External Debt in 1996-2005 (USD billion) 140 120 129.968 58.875 128.658 57.777 45.020 106.961 35.728 84.875 29.255 71.971 32.979 69.463 32.120 65.443 34.098 59.177 34.402 49.647 36.271 47.541 100 80 60 40 20 0 1996 1997 1998 1999 2000 2001 Central and Local Government External Debt 2002 2003 2004 2005 Total External Debt Source: NBP, 2006 Short-term debt accounted for less than 19.6 % of total debt by the end of 2005. The ratio of Poland’s overall short-term foreign debt (owed by the government, banks, and companies) to foreign currency reserves amounted to some 60.0 % at the end of the same year. Employment and the Labour Market Since 1998, the number of unemployed and unemployment rate has been growing, to peak in 2002, mainly as a result of industrial restructuring and structural changes in companies aimed at increasing productivity and competitiveness. However, one should note that the number of unemployed at the end of 2002 was only slightly higher – by approximately 100,000 – than at the end of 2001. The sharp increase in the unemployment rate resulted from a verification of the economically active population. Since then, the situation on the labour market has been gradually improving. At the end of 2005 the number of registered unemployed persons dropped to 2.77 million, or 17.6 % of the labour force. The unemployment rate varied significantly from one province to another. It was lowest in the provinces of Mazowieckie (13.8 %) and Małopolskie (13.8 %) and highest in Warmińsko-Mazurskie province (27.5 %). Of the 2.77 million unemployed, 1.39 million, more than half, have been without work for more than one year. Furthermore, almost 87 % of the unemployed are not eligible for benefits, and a considerable number of job-seekers are school graduates. Many of them have acquired good qualifications but cannot find work because the vocational education system has not kept up with the changes in demand for specific professional skills. 26 II. Economic Environment Number of unemployed (thousand) 3300 21 20 19 18 17 16 15 14 13 12 11 10 3100 2900 2700 2500 2300 2100 1900 1700 Unemployment rate (%) Unemployment and Unemployment Rate 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Central Statistical Office, 2006 Nonetheless, Poland’s labour force is generally well educated and highly qualified. The number of young people seeking better and/or higher education has been constantly increasing since the beginning of the transformations. In the 2004/2005 academic year, there were over 1.9 million students attending 427 universities, polytechnics, academies, and other higher education institutions. The proportion of students in the 16 - 18 age group reached 95.1 %, while in the 19 - 24 age group it climbed to 54.4 %. In 2005, the average gross monthly salary in Poland was PLN 2,380.29 (approx. USD 740), 4.7 % more than in 2004. Average gross monthly salary in the enterprise sector amounted to PLN 2,515.85, a 3.2 % increase in nominal terms in comparison to 2004. It was considerably higher (PLN 4,399.12) in mining and quarrying. On the other hand, average salaries in the manufacturing sector (PLN 2,290.57), and especially in the manufacturing of wearing apparel and furriery (PLN 1,310.59), as well as in the hotel and restaurant sector (PLN 1,847.00), were significantly lower than the national average. The relatively low labour costs and easy access to skilled workers are important assets for prospective foreign investors, particularly in regions with industrial traditions. According to Eurostat, the Statistical Office of the European Communities, the annual nominal compensation per employee amounted to EUR 8,740 in Poland in 2005. This is several times lower than in the ‘old’ European Union countries and lower than in the Czech Republic (EUR 10,870) and Hungary (EUR 12,550). How to Do Business in Poland 27 Trade unions play a relatively important role both in national politics and at the enterprise level. In addition to the Solidarity trade union there are also federations of branch trade unions (former communist unions). Trade unions are particularly strong in big, still state-owned enterprises, but they are also active on a regional level. Trade unions tend to present their demands directly to the government. Nonetheless, Poland was very peaceful socially in 2005. Industry and Technology With the trade and service sectors gradually gaining in importance, the share of industry in Poland’s gross domestic product has been more or less constant over the last couple of years. In 2005, industry accounted for some 24.9 % of the gross value added (a 4.0 % increase in real terms over 2004), while market services represented 49.3 % of the gross value added (a 3.2 % increase in real terms over the previous year). The economic transformations have brought progressive modernisation, which is reflected, for example, in growing productivity and exports. The structure of the Polish economy in 2005, in terms of the number of economic entities by sector, taking form of ownership into account, is presented in the following table. The figures encompass legal entities, entities with no legal personality, and single-person businesses, excluding branches. 28 II. Economic Environment Economic Entities by Sector and Form of Ownership as of 31 December 2005 Sector Total including: Agriculture, hunting & forestry Quarrying and mining Manufacturing Power, gas and water production and supply Construction Trade and repairs Hotels and restaurants Transport, storage & communications Financial mediation Real estate and business services Education Health & social welfare services Other community, social and personal service activities * Excluding farmers Total 3,615,621 Corporations State Enterprises 100 % Total State Treasury 1,029 230,588 629 Single-person 100 % With businesses* Private Foreign Domestic Capital 164,243 54,336 2,776,459 86,710 2,209 377,712 17 16 462 4,159 813 46,787 40 19 262 2,546 485 31,766 1,367 195 11,972 71,093 1060 288,755 3,666 9 1,586 45 510 249 928 358,018 1,185,282 114,842 177 105 9 23,761 82,136 5,049 30 35 10 18,623 58,791 3,109 3,761 21,467 1,679 309,784 975,353 93,045 261,520 119 10,908 81 7,424 2,728 236,601 129,366 583,777 91,967 156,612 1 105 - 4,779 39,834 1,694 3,744 5 44 1 25 3,816 28,959 1,303 3,235 683 8,624 302 318 118,808 385,679 40,612 136,924 236,143 7 5,120 27 3,511 957 116,271 Source: Central Statistical Office, 2006 The private sector of the economy has grown rapidly since the beginning of the transformations. In 2005, the private sector accounted for 83 % of industrial output and it is still expanding, due to the privatisation of state-owned enterprises and to the establishment and development of new private businesses. At the same time, the private sector, already dominant in foreign trade for several years, was responsible for 90.2 % of imports and 87.3 % of exports. Furthermore, nearly all of agriculture, retailing, wholesale trade, and construction (98 %), are in private hands. In 2005, the structure of industrial production saw a stagnation in the general trend, visible during the last decade, of steady increase in the processing industry’s share: It remained at the 2004 level of 84.7 %. Similarly, the share of the mining and quarrying sectors remained at 5.0 %, and the power, gas, and water production and supply sector’s share stayed at 10.3 %. The production of food and related products (beverages and tobacco articles) occupies the most important place in the Polish processing industry, accounting for over a fifth of total production. Other important manufacturing sectors are the automotive industry, the chemical industry, the coke and refined petroleum products sector, the electrical engineering industry, and the metalworking industry. How to Do Business in Poland 29 The year 2005 witnessed only a slight growth of industrial output, which increased by an estimated 3.8 %, as compared to a growth of 12.6 % the year before. The private sector accounted for 83.0 % of the output, up from 80.9 % in the previous year, and productivity (in terms of production sold per employee) rose by approximately 2.9 %. The following table presents the branch structure of Polish industry in 2005. Please note that these figures refer to companies employing more than 9 persons, as data covering the entire economy was not available at the time of printing. The total industrial production sold for the entire economy is expected to be roughly 6 % higher. Structure of Industry by Branch in 2005 Industrial Production Sold (PLN million) Food products and beverages 118,678 Tobacco products 3,487 Textiles 8,659 Wearing apparel and furriery 6,443 Leather and leather products 2,532 Wood and wood, straw, and wicker products 17,729 Pulp and paper 14,192 Publishing, printing, and reproduction of recorded media 16,445 Coke and refined petroleum products 37,944 Chemicals and chemical products 41,095 Rubber and plastic products 30,972 Other non-metallic mineral products 25,541 Basic metals 28,870 Metal products 35,510 Machinery and equipment 32,572 Electrical machinery and apparatus 20,906 Radio, television, and communications equipment and apparatus 12,737 Medical equipment, precision and optical instruments, watches and clocks 4,804 Motor vehicles, trailers and semi-trailers 60,776 Other transport equipment 10,826 Furniture and manufacturing not elsewhere classified 24,379 Total manufacturing 558,758 Mining and quarrying 33,865 Electricity, natural gas, and water production and supply 70,600 TOTAL 663,224 Source: Central Statistical Office, 2006 Sector 30 II. Economic Environment In 2005, a very dynamic growth in sales was noted in the following areas: machinery and equipment (17.8 %), metal products (10.9 %), rubber and plastic products (9.1 %), and in wood and wood, straw, and wicker products (8.9 %). On the other hand, a decrease in sales was noted in wearing apparel and furriery, and in leather and leather products, just as in the previous year. The output of companies with ten or more employees producing mainly investment goods experienced an 8 % growth in 2005. At the same time, the output of companies with ten or more employees manufacturing mainly consumer durables increased by 7 %, while the output of such companies manufacturing mainly consumer nondurable goods increased by 4 %. Several branches of Polish industry are still undergoing organisational, managerial, and technological transformations based on restructuring programmes. Most notably such programmes are being implemented in the coal-mining sector, fuel and energy, and defence industries. In this context, it is worth pointing out that Polish science and technological research, while suffering from under-investment, is still able to produce some very interesting results. A major problem is the lack of financing necessary to develop this research into commercially viable projects, and this presents yet another opportunity for foreign investors to enter the market and launch successful businesses. A large number of inventors, research and development companies, universities, and scientific institutions, are members of the Association of Polish Inventors. The Association supports research activities leading to inventions, promotes Polish inventions in Poland and abroad and protects the rights of inventors. Investment and co-operation opportunities based on Polish inventions and new technologies can be found in numerous industrial sectors in Poland. The ones outlined below are just a few. How to Do Business in Poland 31 Pharmaceutical Research Institute, Warsaw New Calcipotriol Manufacturing Technology Inventors: Michał Chodyński, Hanna Fitak, Jacek Martynow, Krzysztof Krajewski, Teresa Ryznar, Andrzej Kutner, Wiesław Szelejewski, Jerzy Winiarski, Małgorzata Krupa, Jadwiga Dzikowska, Regina Gutowska, Zofia Zaworska, Janusz śochowski, Bartłomiej Górecki, Katarzyna Kolasa, Agnieszka Burzyńska, Hanna Beczkowicz, Barbara Trzpil, and Ewa Chojecka-Koryn. The project consists of a new manufacturing technology for the synthesis of calcipotriol – a structural analog of vitamin D3. The technology has been developed on a pilot plant scale. The final product – calcipotriol – is manufactured by a convergent strategy from the advanced intermediate vitamin D synthon and from a separately obtained aliphatic side chain fragment. Calcipotriol is an active substance of a drug used in dermatology. Calcipotriol is an antiproliferative and cell differentiating agent for epidermal keratinocytes in some types of psoriasis and other skin disorders. Calcipotriol is also used in combination with other active substances in treating multiple sclerosis, hyperparathyroidism, osteoporosis, symptoms of rheumathitis, acne, skin atrophy, and inflammatory diseases. In comparison to the commonly used method for the synthesis of calcipotriol, this technology shortens the synthetic route and substantially improves a number of synthetic steps. An innovative synthesis of the side-chain fragment was also developed, resulting in a synthetic intermediate of high enantiomeric purity. The critical coupling step of both advanced intermediates, vitamin S synthon and a side-chain fragment was developed as a single step procedure, as a concomitant addition and desulfonylation due to the intramolecular rearrangement of the intermediate product. This way there was no need for sodium amalgam, a desulfonylating agent commonly used in such processes. A new method for the purification of a crude synthetic product to obtain calcipotriol as an anhydrous substance of high pharmaceutical quality has also been developed. The key synthetic transformations and methods are subject to four national patent applications: P-368012, P-353328, P-372013, and P353832. This technology won the 2005 edition of the Polish Product of the Future competition in the Technology of the Future category. ChemTech – ProSynTech InŜynieria i Technologia Chemiczna, Sławków Multi-Directional Recycling of Solid Leather Waste Inventors: Wojciech Lasek, on the basis of research contributed by the team: Mieczysław Gajewski, Maria Jesionek, Halina Kostrzewa, Wojciech Lasek, Ewa Magdziarz, Urszula Majewska, Lidia Mazur, Maria Pawłowa, Małgorzata Przybyłek, Jadwiga Rudecka, Włodzimierz Siepracki, Alicja Wydra, et al. The project provides an innovative method for recycling of all wastes from chrome leather production. Moreover, it enables the recycling of very complex tannery effluent sludge together with municipal sewage sludge. This innovative idea results in a thorough purification of effluent water originally bound tightly to the former sludge because of a high pH-value. All harmful impurities are removed selectively, step-by-step, and transformed into compounds of commercial value. Organic residue in both types of sludge serves as a base for a series of mixed organic/mineral fertilizers. Effluents can be purified to an extent that makes it possible to dump them directly into surface waters or to use them instead of tap water for the preparation of all solutions necessary to run the entire plant. 32 II. Economic Environment The installation has been designed as a combination of eight units, bound functionally one to another. Chromium(III) is leached from scraps, splits and shavings in the form of strong complexes, followed by precipitation to insoluble hydroxide, which is filtered off, while the complexing agent is recovered. Filter cake is used for the manufacturing of a tanning agent. Purified collagen, with its original fibrous structure preserved, serves as the starting material either for technical gelatine or for biopolymers, or even organic fertilizers. Tannery effluent sludge undergoes a different purification process. Cr(III) and Fe(III) ions, in the form of properly shaped anionic complexes, together with excess chlorides, are replaced by sulphates in liquid/liquid extraction mediated by a phase-transfer catalyst. Extracted species are, in turn, transferred from the organic phase into a concentrated aqueous bisulphate solution, where they are selectively separated due to large differences in solubility. The recovered catalyst in the organic solution may return to the process. Inorganic salts, either those selectively separated from the effluent water in successive units, or those gained in the bisulphate milieu, undergo a purification process and form valuable products. Project’s characteristics: - Chromium(III) compounds are removed from the tanned collagen tissue as complexes stronger than those formed during the tanning process between Cr(III) cations and functional groups of the protein fibres, - Cr(III) and Fe(III) present in sewage sludge are converted into anionic species of desired stability and electric charge, which in turn are transferred together with excess chlorides to the organic phase by means of a phase-transfer catalyst, - Both leaching solutions circulate in closed cycle mode, allowing for the extraction and regeneration of the extracting agent, - Collagen of purified leather wastes with intact original fibrous structure is a suitable raw material for further innovative products, - The process conditions are exceptionally mild, the plant’s operation does not generate neither wastes, nor extra effluents, nor any unpleasant odours. This technology won a distinction in the 2005 edition of the Polish Product of the Future competition in the Technology of the Future category. KOMAG Mining Mechanization Centre, Gliwice SKZ - 81 Haulage System With Dual Driving Inventors: Jerzy Chruszcz, Andrzej Drwięga, Leszek Golanka, Marek Majewski, Andrzej Meder, Krzysztof Nieśpiałowski, and Hubert Suffner. The SKZ-81 haulage system is designed for the transportation of heavy machines, equipment and materials, or men in underground mine workings. Its special feature is the option of operating on tracks already installed in the mines. In case of inclined track sections, the track is equipped with a rack bar mounted along its axis. Such a solution enables the transport of heavy loads with no need for reloading, which is less time-consuming and cheaper. It is possible to use the system in conditions of ‘a’, ‘b’ and ‘c’ degree of methane explosion hazard and ‘A’ and ‘B’ coal dust explosion hazard. The system consists of a diesel locomotive and of a transportation platform of a basic type, a transportation platform for men-riding, or a container platform for transportation of materials. A railway track includes curves in the horizontal plane (R = 8 m), curves in the vertical plane (R = 15 m), straight sections of the rack bar, special steel bolting sleepers and S30 or S42 rails. The straight sections mentioned above can be laid and fixed, using bolting sleepers. How to Do Business in Poland 33 Depending on the seam bedding, the SKZ-81 haulage system can operate both on the horizontal and inclined railway tracks, where the inclination can reach up to 30°. Rolling keeps mounted on the axles of braking cars protect the system against loss of stability on large inclinations. During operation on horizontal sections of the rails, the keeps, whose bottom edges are below the level of the rails heads, are slightly raised, and during operation on inclined sections they are lowered and work in tandem with the rack bar guides. Using an innovative transportation platform with articulated torsional cars it was possible to compensate for the tilting moment of the construction. Moreover, the design of articulations was simplified, so the cost of their manufacture was reduced. The new SKZ-81 haulage system eliminates the disadvantages of previous solutions, i.e., the separation of the emergency braking system, and parking brake system, as well as the dependence of the braking force on the condition of the track being a part of the frictional pair. This product won the 2005 edition of the Polish Product of the Future competition in the Product of the Future category. SMARTTECH Sp. z o.o., Łomianki ScanBrightTM Integrated 3D Measurement System Inventors: Anna Gębarska, Marcin Bączyk, Marcin Kowalski, Paweł Bolewicki, and Robert Sitnik. The ScanBright system is based on the innovative method of structure lighting measurement. This is a full-field, non-contact optical method in which white light fringes are projected on the measured object. Coordinates of the measured surface are calculated on the basis of images of the fringes deformed on the object. The method is characterized by quick measurement (10 sec) with a high sampling rate (100pt/mm2) and the option to adjust the measurement volume to different needs (<1.5m x 1.3m x 0.5m). The application of this method results in a measurement cloud of points, with each point described by six parameters: X,Y,Z - the object’s coordinates and R,G,B its colour components. ScanBright consists of a 3D scanner and a work-station with Mesh3D specialized software. Mesh3D enables the user to control the system as well as to carry out further processing such as advanced operations on clouds of points (filtering, merging, simplification), and creating and editing triangle meshes. The results can be exported to CAx systems or computer graphics programs (IGES, VRML+ texture, STL, OBJ, DXF, TXT). The system was designed in such a way as to provide failure-free operation both in a laboratory setting and in the field. The 3D scanner is equipped with a unique vibration damping mechanism and a backup power system that protects it from detrimental voltage fluctuations. The system has a comfortable grip and a professional-grade stand with a height range of 0.5 to 1.7 m, which facilitates work in field conditions. The ScanBright system is used in a wide range of applications, such as computer aided design and manufacturing, rapid prototyping, reverse engineering (production quality assessment), multimedia, cultural heritage archiving, and medical systems. Thanks to features like its userfriendly operation, mobility, high accuracy, reliable measurements, and high quality of texture reproduction, it has won wide recognition among engineers and artists. The ScanBright system is the first 3D measurement system that fully integrates accurate noncontact digitalisation of complex 3D objects and the processing of coordinate and texture data. This method, unlike tactile methods, allows measurement of delicate objects such as human faces or valuable museum exhibit items, while the software comfortably prepares the data for multiple 34 II. Economic Environment applications. Due to its unique structural solutions the ScanBright system is recognized as one of the few mobile optical 3D measurement systems delivering high accuracy data. This technology won a distinction in the 2005 edition of the Polish Product of the Future competition in the Product of the Future category. POLATOM Radioisotope Centre, Otwock/Świerk Ophthalmic Applicators with a Monolithic Radioactive Core for Brachytherapy of Eye Cancers Inventors: Andrzej Piasecki, Izabela Cieszykowska, Mieczysław Mielcarski, and Tadeusz Barcikowski. This is a novel technology for the production of ruthenium-106 and iodine-125 ophthalmic applicators. It consists of a method of uniform deposition and fixing of a layer of radioactive isotope on the sliver surface of a spherical plaque, which is then hermetically sealed in acryl. The shape and dimensions of the obtained acrylic insert are identical, regardless of the radionuclide used, hence allowing the multiple use of expensive and difficult to produce metallic capsules, which are used as holders of the applicators. The use of an acrylic insert with a uniformly distributed layer of radionuclide resulted in several advantages over products offered by other processes. Ophthalmic applicators are used for the conservative treatment of intraocular tumours. So far, cases of choroidal melanomas and retinoblastomas have qualified for radical surgery of the eye. The method based on the irradiation of tumour cells with an external source of ionising radiation results in a successful therapy and to a large extent, in the maintenance of the eye’s visual functions. However, the applicators offered on the market are expensive, which limits their therapeutic application. In addition, the other applicator design has some distinct drawbacks, such as a complicated technique of sealing of the radioactive core in the case of ruthenium-106, or the necessity of placing the miniature radioactive sources of iodine-125 in the spherical part of the acrylic insert, which in turn results in elevated radiation exposure to personnel during the mounting and handling of the applicator. The new technology was oriented towards eliminating the need to use iodine-125 seed sources and successfully led to the production of applicators with a monolithic radioactive core. Applicators of ruthenium-106 and iodine-125 with a monolithic radioactive core present a novel and improved construction of much higher quality then other applicators on the market. The design of a monolithic radioactive core of ruthenium-106 and iodine-125 simplifies the process of preparating and assembling the applicator’s radioactive core, and at the same time, retains all the technical parameters required for its use. In comparison with the technical solutions offered by the competition, the main advantages of the new technology consist in the lowering of production costs, the lowering of radiation exposure of the personnel handling the applicators, and the reduction of the amount of liquid waste during the production process. This technology won a distinction in the 2005 edition of the Polish Product of the Future competition in the Product of the Future category. For the list of other awarded technologies and contact details of the technology providers, please refer to Appendix 20. How to Do Business in Poland 35 The Polish Agency for Enterprise Development The Polish Agency for Enterprise Development (PARP) is a governmental body established as a result of the transformation, in 2001, of the Polish Foundation for the Promotion and Development of Small and Medium Enterprises. The Agency is subordinated to the Minister of the Economy. It focuses on: • the development of small and medium-size companies; • the growth of exports; • regional development; • the application of modern technologies; • human resource development; • creating new jobs and counteracting unemployment. The agency is involved in a number of assistance programmes and provides grants for the co-financing of initiatives supporting the development of entrepreneurship, as well as direct support to entrepreneurs. PARP offers consulting services, facilitates access to know-how, economic information, studies and analyses, and organises informational and promotional events. The activities of the agency are financed from the state budget and European Union funds. The agency co-operates with a number of local business advisory centres, which are grouped in the National SME Service Network. Agriculture In Poland, 38.6 % of the population lives in rural areas and approximately a quarter is engaged in farming. There are some regions where agriculture is still the major sector of the economy, even though its importance has been declining steadily. However, persons who work exclusively, or mainly in agriculture account for less than 6 % of Poland’s population. The Polish agricultural sector includes farms that vary considerably in terms of organisational structure, ownership, size, and output volume. In 2005 there were 2.73 million farms in Poland, including 1.79 million farms with over 1 ha. of farmland. The average size of a farm was just 6.7 ha. Only 13 % of farms in Poland have an area of more than 10 ha.; however, their total area amounts to over 62 % of the country’s farmland. The structure of Polish farms in terms of size and number is presented on the following graph. 36 II. Economic Environment Number of Farms and Their Area by Farm Size Category in 2005 4 000 000 1 000 000 3 500 000 900 000 in hectares 700 000 2 500 000 600 000 2 000 000 500 000 1 500 000 400 000 300 000 1 000 000 Number of farms 800 000 3 000 000 200 000 500 000 100 000 0 0 <0-1) <1-2) <2-5) Area <5-10) <10-15) <15-30) <30-100) 100 ha and over Number of farms Source: Central Statistical Office, 2006 Despite politically driven efforts to collectivise farms after the Second World War, private ownership has always prevailed in the agricultural sector. The political and economic transformations launched in 1989 led to even greater reduction of the public sector’s share in agriculture and to the introduction of new forms of ownership, e.g., various types of companies and foreign equity. In 1992, the Agricultural Property Agency of the State Treasury (AWRSP) started its operations, which focused on taking over and managing state-owned farms, primarily through selling or leasing their land (see Chapter IV, the section on the Agricultural Property Agency). In 2005, privately owned farmland accounted for approximately 95.8 % of utilised agricultural area. Unpredictable weather conditions and the constantly changing profitability of various crops and other produce have resulted in an instability of agricultural production, which is not regulated by quotas. It is the producer who bears the entire production risk, with only a few crop deliveries being based on supply contracts (concluded between producers and food processing plants), e.g., for sugar beets, rape seed, and flower and vegetable seeds. Mixed farming with both crop growing and some animal production prevails in most farms in Poland, as a majority lack clearly defined specialisation. Consequently, a characteristic feature of Polish agriculture is that marketable production accounts for only approximately 60 % of the total agricultural output, with the rest of output being used for self-supply. How to Do Business in Poland 37 In 2005, there were 15.9 million hectares of utilised agricultural area in Poland, approximately 51 % of the country’s surface. According to preliminary estimates, the agricultural output decreased by 2.1 % (in comparison to 7.5 % growth in 2004). The most important crops in Poland are cereals, especially wheat and rye. Next, there are potatoes, fodder crops, sugar beets, oilseeds and pulses. Pigs and cattle dominate the livestock sector, though poultry, and sheep in southern Poland, are also quite popular. The basic agricultural output in 2005 is presented in the table below. Agricultural Output in 2005 Item Cereals, total - wheat - rye Rape and oil-yielding rape Potatoes Sugar beets Vegetables Tree fruits Pigs (million) Cattle (million) Crop Yield (million tons) ql./ha 26.9 32.3 8.7 39.5 3.4 24.1 1.5 27.0 10.4 176 11.2 393 4.8 x 2.4 x x 18.7 x 5.4 Source: Central Statistical Office, 2006 Horticulture is a well-developed sector in Poland, offering a large range of fresh and processed fruit and vegetable products. Polish strawberries and excellent apple juice are very well known and popular both in Poland and abroad. It is important to note that Polish agriculture is characterised by a low use of chemicals. In 2005, the chemical fertilisers used to grow the crops harvested in that year amounted to 102.4 kg of NPK and 91.5 kg of CaO per one hectare of utilised agricultural area. 38 II. Economic Environment Construction Industry The construction sector is regulated by the Construction Law of 7 July 1994 (as amended) and accounts for 5.8 % of the economy (in terms of gross value added). The Construction Law regulates professional requirements, professional liability, rights and duties of parties involved in the construction process, the commissioning and maintenance of construction works, and pre-construction issues, including construction permits. Construction works may only be started upon obtaining a construction permit, which is granted in a form of an administrative decision authorizing the commencement and conducting of construction works. However, there are numerous exclusions from the permit requirement pertaining to, generally speaking, small-scale construction works. For example, no construction permit is required in the following cases: • repair and renovation works (unless the building is listed in the Register of Monuments); • detached, single-storey utility buildings, summerhouses and umbrella roofs with an area of up to 25 sq.m (no more than two per 500 sq.m of land); • car parking places (up to ten); • swimming pools of up to 30 sq.m area (attached to a homestead); • water supply, sewage disposal, gas, electricity, heating, and telecommunication connections to buildings; • fences. Assuming the land is zoned for an intended type of investment, the permit may be issued on the grounds of the local land management plan, though not many exist at present. If there is no local land management plan, a decision on the conditions for site development (warunki zabudowy) must be obtained first, which is a quite lengthy and challenging process. Furthermore, in some cases, issuing a decision on the conditions for site development is not possible, due to restrictions imposed by the Spatial Zoning Law of 27 March 2003. A construction permit expires, if the construction work has not started within two years from the date it became final. It also expires if construction work is halted for a period exceeding two years. The output of the construction industry has been increasing significantly since 1997, primarily as a result of foreign investment, and particularly in the industrial, retail and office sectors, although developments financed by Polish capital have also been on the increase. According to preliminary data released by GUS, there was an approximately 5 % increase in the output of the Polish construction industry in 2005. 39 How to Do Business in Poland The overall result was influenced by a 5 % increase in private construction and a 4 % decline in the output of state enterprises. In 2005, the private sector’s share in the construction industry remained unchanged, at approximately 98 %. As usual, new investments and modernisation projects dominated the sector’s output, with their share amounting to 71.8 %, as opposed to a 28.2 % share of repair and maintenance work. The following diagram presents the construction output structure (current prices) in 2005. Please note that it is based on data covering companies employing more than 9 persons, as data covering the entire economy was not available at the time of printing. Construction Output Structure in 2005 13,9% 53,6% Residential buildings 32,5% Non-residential buildings Civil engineering works Source: Central Statistical Office, 2006 In 2005, 114,391 new flats were put on the market (preliminary figure), 5.8 % more than during the previous year. An increasing average usable floor area since the early 1990s is yet another indicator of economic growth in Poland. In 2005 it amounted to 105.7 sq.m. 40 II. Economic Environment Banking Sector The operations of the Polish banking system are governed by the Law on the National Bank of Poland and by the Banking Law (both of 29 August 1997). The National Bank of Poland (NBP) performs the role of a central bank. Its main objective is to ensure the stability of prices. The NBP issues currency, holds Poland’s foreign exchange reserves, refinances the banking system, exercises some supervising functions, and provides monetary and banking statistics. Most banks in Poland operate as multipurpose institutions. They are involved in various types of deposit taking and financing activities, and offer a wide range of commercial and personal banking services. Some of them are also active on the capital market through their own brokerage houses. Some of the banks are involved in investment banking activities, such as underwriting issues of bonds and stocks, or advisory services. There are also some mortgage banks and other specialised credit institutions. As of 1 May 2004, branches of foreign banks which have their registered office in a member state of the European Union are considered to be branches of credit institutions, as defined in the Banking Law. The Commission for Banking Supervision exercises supervision over branches of credit institutions with respect to their maintenance of adequate liquidity. However, these branches are not subject to the regulations on capital adequacy. At the end of 2005, there were 642 banks operating in Poland. This number included 53 commercial banks in the form of joint-stock companies, one state bank, and 588 co-operative banks. Furthermore, there were 7 branches of credit institutions. The State Treasury directly owned two banks, with a further two being controlled indirectly. Head offices of banks (excluding co-operative banks) and branches of credit institutions operating in Poland are listed in Appendix 22. The co-operative sector, although very important for Polish farmers, does not play a significant role in Polish banking. However, the co-operative banking sector’s share in banking services continued to increase in 2005. By the end of the year co-operative banks granted 7.6 % of loans to the non-financial sector. Their total assets increased during the year by 18.1 % and amounted to PLN 33.9 billion, or 5.8 % of the total assets of the whole banking sector in 2005. The consolidation process in the co-operative banking sector also continued. In 2005 eight co-operative banks disappeared through mergers. By the end of the year, out of 588 co-operative banks, only one, Krakowski Bank Spółdzielczy w Krakowie, was independent. All other co-operative banks were associated in three bodies: 41 How to Do Business in Poland Mazowiecki Bank Regionalny S.A. (80 banks), Gospodarczy Bank Wielkopolski S.A. (153 banks), and Bank Polskiej Spółdzielczości S.A. (354 banks). The structure of commercial banks in Poland at the end of 2005 in terms of their ownership and their share in the banking sector’s assets is reflected by the following table. Commercial Banks in 2005 Number of Banks and Their Share in Total Banking Sector Assets (%) Banks controlled by the State Treasury: - directly - indirectly Banks controlled by the private sector: - with majority Polish equity - with majority foreign equity Number 4 2 2 50 7 43 % Share 20.3 18.6 1.7 73.0 4.0 69.0 Source: NBP, 2006 The banking network has been growing very fast during the past few years. In 2005, the domestic office network of commercial banks (excluding head offices and representative offices) comprised over 3,700 branch offices and over 4,600 other offices (sub-branches, customer service outlets, etc.). Moreover, co-operative banks operated almost 1,400 branch offices and over 1,600 other offices. Investments in ATMs (Automatic Teller Machines) are progressing at an even swifter rate. At the end of 2005 there were almost 8,800, or 230 per one million citizens, which was about a third of the ‘old’ EU average. The bankcard market is certainly one of the fastest growing segments of new services in Poland. In 2005, the number of bankcards in use reached almost 20.4 million. Polish banks offer all types of bankcards, although debit cards account for some 76.6 % of all cards in use. On the other hand, credit cards’ share is growing fast, amounting to 20.4 %, in comparison to 11.8 % at the end of 2004. In 2005, both the number of bankcard transactions and the total transactions’ value increased, while the average transaction’s value remained at just over PLN 240. There were 776.2 million bankcard transactions, with a total value of some PLN 187.2 billion. At the end of the year, there were some 140,000 shops and service outlets in Poland accepting credit and/or debit cards. To meet the challenges of competition, Polish banks have had to invest heavily in their networks, as well as in automation and information technology. Commercial banks, as well as some co-operative banks, offer bank services through the internet. Some banks allow their clients to carry out operations via phones, cellular phones using WAP technology, or via teletext. Moreover, there are some virtual banks operating on the 42 II. Economic Environment market. Their number did not change in the last year. By the end of 2005, there were three (mBank, Inteligo and Volkswagen Bank Direct), operated by BRE Bank S.A., PKO Bank Polski S.A. and Volkswagen Bank Polska S.A., respectively. The modernisation of banks is progressing rapidly. However, huge investments in IT are increasing the costs of their operations significantly. Even more costly is increasing the quality of consumer service and introducing new banking products. Nonetheless, the end result is decidedly positive, especially for the clients. In 2005, favourable economic conditions in Poland helped the banking sector to achieve even better financial results than in 2004. In fact, from the financial point of view, this was the best year for the banks since the beginning of transformations. Gross earnings reported by the banking sector grew by 40 %, amounting to PLN 11.1 billion, while net earnings reached PLN 9.2 billion. This led to ROE reaching 20.8 %. Other positive developments included: • The total assets of the banking sector grew by 9.0 %, amounting to PLN 587 billion at the end of the year. The ratio of banking sector assets to GDP amounted to 59.8 %, • A substantial increase in household lending; housing loans up by 41 %, consumer loans up by 26 %. At the end of 2005, of the 54 commercial banks operating in Poland, 13 were listed on the Warsaw Stock Exchange, and their share in the WSE capitalisation amounted to 29.9 %. It is important to note that competition in the Polish banking sector has been growing rapidly in the past few years. This is reflected in mergers, as well as in the ever growing involvement of foreign banks. Since the privatisation processes started, foreign shareholders have been steadily increasing their investments in the Polish banking sector. In 2005, banks controlled by foreign investors accounted for 69.0 % of the total assets of the banking sector. Foreign branches of credit institutions accounted for another 0.9 %. The following diagram presents the ownership structure of the banking sector in Poland as of 31 December 2005. 43 How to Do Business in Poland Ownership Structure of the Banking Sector as of 31 December 2005 12.7% 4.3% 12.1% 1.4% 8.1% 61.4% State Treasury Other domestic entities Disperse shareholders State legal persons Foreign Shareholders of co-operative banks Source: NBP, 2006 In 2005 the principal changes seen in the ownership structure of banks were the result of mergers and of foreign investors’ involvement in the sector, as well as further privatisation of PKO Bank Polski S.A. and Bank Gospodarki śywnościowej S.A. At the end of 2005, out of 54 commercial banks operating in Poland, foreign shareholders controlled 43. This number includes 23 joint-stock companies with 100 % foreign ownership, 16 with a majority of foreign capital, and 4 banks controlled indirectly. Moreover, foreign shareholders had minority stakes in a further 3 banks. According to the NBP, Italian, German, Dutch, American, and Belgian institutions have made the largest investments in the sector. Foreign involvement in the banking sector in Poland in terms of country of origin is further illustrated in the following diagram. Share of Foreign-Controlled Banks in the Banking Sector’s Assets as of 31 December 2005 21.1% Italy 8.7% 8.2% 7.9% Germany Netherlands USA Ireland Belgium Portugal France Austria Sweden Other Countries 4.8% 4.7% 3.9% 3.2% 1.9% 1.1% 4.5% Source: NBP, 2006 44 II. Economic Environment In 2005, the consolidation processes continued, resulting in the disappearance of two banks. These, however, were merely transformed to became a part of the newly opened branches of credit institutions. Two banks (Cetelem Bank Polska S.A. and RCI Bank Polska S.A.) and four branches of credit institutions (Banque PSA Finance S.A. Oddział w Polsce, Jyske Bank A/S S.A. Oddział w Polsce, Nykredit Realkredit A/S S.A. Oddział w Polsce, and Dresdner Bank AG S.A. Oddział w Polsce) started operations. The clients of banks operating in Poland are protected by a deposit insurance system – Bankowy Fundusz Gwarancyjny (The Bank Guarantee Fund) – established in November 1994. As of 1 May 2004 this protection refers to banks covered by the Polish deposit insurance system. The list of these banks is available at the BFG’s website http://www.bfg.pl. The BFG guarantees 100 % of deposits up to EUR 1000 and 90 % of deposits between EUR 1000 and EUR 22,500. Moreover, the NBP protects savings in those banks by strict supervision and by imposing receivership management in case of financial problems. Ranking of Banks by Balance Sheet Total as of 31.12.2005 (PLN billion) Bank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. PKO BP S.A. Bank Pekao S.A. Bank BPH S.A. ING Bank Śląski S.A. BRE Bank S.A. Bank Handlowy S.A. Bank Zachodni WBK S.A. Bank Millennium S.A. Kredyt Bank S.A. Bank Gospodarstwa Krajowego Total Assets Net Profit / Loss 90.33 1.68 61.97 1.53 56.56 1.01 42.08 0.51 32.82 0.25 32.67 0.59 29.60 0.52 23.07 0.54 20.91 0.41 18.41 0.12 Source: Rzeczpospolita, 14 June 2006 In June 2006, according to the National Bank of Poland, there were 19 representative offices of foreign banks and credit institutions operating in Poland. These are listed in Appendix 22. How to Do Business in Poland 45 Insurance Sector Presently, the legal framework for the insurance sector in Poland comprises the following laws, passed by the sejm on 22 May 2003: • The Insurance Law, • The Law on Compulsory Insurance, the Insurance Guarantee Fund and the Polish Bureau of Motor Vehicle Owners’ Insurers, • The Law on Insurance and Pension Supervision and on the Spokesman of the Insured, • The Law on Insurance Mediation, and • The Law on Supplementary Supervision of Credit Institutions, Insurance Companies and Investment Companies Forming a Part of a Financial Holding of 15 April 2005. The insurance sector in Poland is supervised by the Insurance and Pension Funds Supervisory Commission (KNUiFE), created on 1 April 2002. Insurance and reinsurance services may be provided only after the approval of the KNUiFE, which grants an insurance licence and also has the power to revoke it. Its scope of activity also includes supervision over insurance mediation, pension funds, and employee pension plans. The only legal forms permitted for conducting insurance activity are the joint-stock company and the mutual insurance company. Insurance companies are obliged to distinguish between life insurance and other types of insurance and can not engage in any other form of economic activity. Obligatory types of insurance include, but are not limited to, civil liability for damages for: • car owners, • farmers, • entities providing health services, • tax advisors, • insurance and reinsurance brokers, • registered auditors, • organisers of public events, • tourist agencies and brokers, • court executive officers. At the end of December 2005, according to KNUiFE, there were 71 insurance companies licensed to operate in Poland. Out of 68 operating insurance companies, 32 were insurers licensed to run life insurance businesses, including two mutual insurance societies. A further 36 were licensed to render non-life insurance services, the number including seven mutual insurance societies and one main branch of a foreign insurance company. In two companies, PZU S.A. and KUKE S.A., the State Treasury held the controlling package of shares. At the beginning of May 2006, there were two insurance companies listed on the Warsaw Stock Exchange: Warta S.A. and TU Europa S.A. 46 II. Economic Environment All insurance companies registered in Poland are members of the Polish Chamber of Insurance (PIU) established in 1990. Initially, membership was voluntary; however, since 1995, PIU membership has been obligatory. In 2005 there were over 35 thousand registered insurance agents in Poland. Number of companies Number of Insurance Companies 90 80 70 60 50 40 30 20 10 0 64 50 25 1993 38 41 1995 1996 72 74 78 69 2000 2001 2002 2003 72 71 2004 2005 54 30 1994 1997 1998 1999 Source: KNUiFE, 2006 In 2005, the market was still dominated by the PZU S.A. group, though its domination is less pronounced from one year to another. The industry remains heavily concentrated. In terms of gross written premium, two companies (PZU S.A. and TUiR Warta S.A.) control 60.2 % of the non-life insurance market, with PZU S.A. accounting for approximately 48.8 %. None of their competitors managed to secure more than 6.7 %. The situation is not much different in the life insurance market. Two companies (PZU śycie S.A., and Commercial Union Polska - TU na śycie S.A.) control 52.1 % of the market, with PZU śycie S.A. alone accounting for 39.7 %. Structure of the Life Insurance Market in 2005 Commercial Union 12.4% Amplico Life 8.0% ING Nationale Nederlanden 6.6% AEGON 6.6% Other 26.6% PZU-śycie 39.7% Source: KNUiFE, 2006 47 How to Do Business in Poland Structure of the Non-life Insurance Market in 2005 PZU 48.8% Other 26.9% Allianz 6.2% Ergo Hestia 6.7% Warta 11.4% Source: KNUiFE, 2006 As far as products are concerned, in the life insurance sector simple life insurance products predominate, whereas the non-life sector remains dominated by car insurance. The overall 2005 gross written premiums of the Polish insurance market amounted to approximately PLN 31.0 billion (USD 9.6 billion), a 12.2 % increase over the previous year. Life insurance premiums increased by an impressive 20.4 %, while non-life insurance premiums grew by 5.2 %. This means that the premium collected per capita in Poland still lags far behind European levels, even though the proportion of insurance premiums to the GDP has been increasing steadily, reaching 3.25 % in 2005 as compared to 1.66 % in 1995. However, the European Union average is twice as high. Relation of Insurance Premiums to GDP in 1995-2005 (%) 4% life insurance non-life insurance 3% 2% 1.60 1% 1.11 1.70 1.62 1.69 1.73 1.68 1.68 1.64 1.61 1.12 1.19 1.23 1.33 1.38 1.55 2000 2001 2002 2003 2004 2005 1.28 0.55 0.66 0.79 0.90 1.04 1995 1996 1997 1998 1999 0% Source: KNUiFE, Central Statistical Office, 2006 48 II. Economic Environment In 2005, the Polish insurance market recorded a joint net profit of over PLN 5.2 billion, of which PLN 2.28 billion was made by the life insurance sector and the remaining PLN 2.96 billion by the non-life insurance sector. In comparison to 2004, the net profit grew by 62.9 % in the life insurance sector and by a staggering 110.9 % in the non-life insurance sector. In order to protect the insured, the Insurance Guarantee Fund was established in 1990. The main task of the Fund is to pay compensation and benefits by virtue of the compulsory civil liability insurance of vehicle owners and farmers in case of: • personal injury, if the guilty vehicle owner was not identified, • personal injury and property damage, if the guilty party was not insured. In the case of foreigners the Insurance Guarantee Fund pays compensation on the principle of reciprocity. The Fund also satisfies claims if an insurance company declares insolvency, subject to certain limitations. The Export Credit Insurance Corporation (KUKE) is a Polish export credit insurance agency. It has the form of a joint-stock company with most of the shares being owned by the state. Since 1991, it has been insuring Polish companies, primarily against commercial risk, offering solutions that combine export and domestic contract insurance with credit information and credit portfolio management. Its services are available to all exporters, regardless of the scale of their operations and the countries to which they export, providing them with the opportunity to insure export receivables from over 190 countries worldwide. The activities of the corporation include: • insurance of short-term export credits, • insurance of short-term domestic credits, • insurance of medium- and long-term export credits, • insurance of direct investments abroad, • foreign market entry costs insurance, • financial leasing insurance, • guarantees. By the end of 2005 almost 290 insurance companies from the EU and the EEA declared their intention of starting operations in Poland, based on the freedom to provide services principle. Moreover, seven domestic insurers offer their services abroad. According to KNUiFE, foreign investments in the insurance sector further increased by almost 9 % (6 % in 2004), to reach over PLN 3.65 billion, accounting for approximately 76 % of the sector’s aggregate subscribed capital. The share of foreign investments in the life insurance sector and in the non-life sector was about the same. The following diagram presents the foreign investment structure in the Polish insurance sector as of 31 December 2005. 49 How to Do Business in Poland Foreign Investment Structure in the Insurance Sector (%) 36.04% Germany 24.68% Austria 11.72% Netherlands 6.67% Denmark United Kingdom 5.79% USA 5.48% Finland Switzerland France Sweden 4.03% 2.76% 1.34% 0.20% Source: KNUiFE, 2006 At the end of the year, foreign partners held majority stakes in 47 insurance companies operating on the Polish market, while Polish shareholders held majority stakes in 21 companies. Major investments in the Polish insurance sector have come from German companies, which have invested PLN 1.32 billion in 22 insurance companies in Poland, accounting for approximately 36 % of the foreign investment in the sector. Significant investments, amounting to some PLN 0.90 billion, have also come from Austrian investors, while entrepreneurs from the Netherlands have invested PLN 0.43 billion. Altogether, investments from the top five countries, which also include Denmark and the United Kingdom, as well as the countries already mentioned, account for almost 85 % of total foreign investment in the insurance sector in Poland. Presently there are only a few Polish insurance companies that do not have a foreign strategic partner. The development of the insurance sector in the next few years will be influenced substantially by new market players from the EU and the EEA entering the market on the freedom to provide services principle. At the same time, consolidation of the market will continue, encompassing an increase in the share capital of major insurance companies, merger and acquisition processes, and strengthening capital links between the banking and insurance sectors. 50 II. Economic Environment Pension System The Polish pension system embodies the idea of security through diversity, which is achieved by basing the system on three independent pillars. It links the future pension closely to the contributions paid. Out of the three pillars, two are mandatory and one is voluntary. The mandatory pension contribution amounts to 19.52 % of the contribution base (total salary/wages). The first pillar, operated by the Polish Social Security Institution (ZUS), accounts for 12.22 % of the contribution base. It is predominantly a notional defined contribution pay-as-you-go scheme, with the pension amount related to the amount of contributions made that are index-linked to the contribution base and the average life expectancy. Consequently, the later a person retires, the larger the pension paid. The second pillar, accounting for the remaining 7.3 %, is a defined contribution scheme serviced by open pension funds having the legal form of joint-stock companies. ZUS collects the whole contribution of 19.52 % and then transfers 7.3 % of the employee contribution base to the employee’s open pension fund. The pension funds are managed by pension societies that invest the funds’ resources on financial markets in keeping with provisions of the law. An employee can select a fund of his choice (only one fund) from the ones registered. It is also possible to change funds. Pension funds are supervised by the Insurance and Pension Funds Supervisory Commission (KNUiFE), which protects the interests of the pension funds’ members. As of 31 December 2005, there were 15 pension funds in Poland, managing assets of approximately PLN 86.32 billion. At the end of the year most of their portfolio was invested in bonds (63.1 %); however, the value of stock (including NIFs’ stock) in the investment portfolio amounted to 32.1 %. This means that the pension funds are very important players on the Polish capital market. In fact, their share in the WSE trade amounted to 6.4 % in 2005. It is also certain that their role will still be increasing, in proportion to the size of the assets under their management. The growth of pension funds’ assets in 1999-2005 is illustrated in the following graph. 51 How to Do Business in Poland Assets of Pension Funds in 1999-2005 billion PLN 100 86.32 80 63.04 60 45.44 40 20 0 2.26 1999 9.92 2000 19.41 2001 31.56 2002 2003 2004 2005 Source: KNUiFE, 2006 Both mandatory pillars are similar in many ways, having in common the same defined contribution principle, individual accounts, the same retirement age, benefits in the form of annuities, and a minimum guaranteed pension. On the other hand, the voluntary third pillar allows for diverse organisational principles and forms of participation, which means that it can be better adjusted to individual preferences. In this pillar contributions are paid into life insurance pension and investment funds, and employee funds. Companies are allowed to establish employee pension funds and mutual insurance funds on an entirely voluntary basis. Contributions are paid from after tax income, although, the benefits are tax-free. As of May 2006, there were 930 operational employee pension plans. 2004 brought another important development in the third pillar. As of 1 September 2004 it is possible to save for a future pension on individual pension accounts (IKE), managed by banks, insurance companies, investment fund societies, and brokerage houses. The most important benefit of this type of pension plan is that capital gains generated are taxfree. However, savings transferred to IKE during a year are limited to 150 % of an average monthly salary envisaged by the budgetary law for this year. The first four months since the introduction of individual pension accounts indicated that this form of pension saving would be quite popular. By the end of 2004 there were already over 175,000 IKEs. However, in 2005, only some 260,000 Poles decided to open an IKE, resulting in approximately 428,000 individual pension accounts held by the end of 2005. Almost two-thirds were managed by insurance companies, and almost a quarter by investment fund societies. Banks and brokerage houses together managed only about 13 % of individual pension accounts. 52 II. Economic Environment Each of the pillars may be characterised by the various types of risks to which it is exposed. For example, the first one is exposed to political pressure, the ageing of the population and increasing unemployment risks, while the other two are more vulnerable to persistent inflation as well as to disturbances on the financial markets. This is exactly how the new system diversifies the risks – each of the two mandatory pillars works in a different way, thus assuring that even in unfavourable circumstances the system as a whole will perform satisfactorily, at least. Telecommunications Telecommunications is one of Poland’s most dynamically developing sectors. It is governed by the Telecommunications Law of 16 July 2004, effective as of 3 September 2004. The sector is supervised by the Office of Electronic Communications (UKE). One of the key elements introduced by this law is a relaxation of the regulation of the telecommunications sector exercised by the Chairman of the Office of Electronic Communications. Now, the regulation is more focused on real market needs, i.e. on areas where competition alone is not enough to ensure fair and proper functioning of the market. The licensing system has been abolished, save for permits required in some cases to operate radio broadcasting equipment. Operation in the telecommunications sector requires only registering in the Register of Telecommunications Entrepreneurs kept by the UKE Chairman. As at the end of May 2006 there were some 5800 companies authorised to conduct telecommunications operations. The UKE Chairman is empowered to perform typical regulatory activities with regards to the telecommunications sector. These include resolving disputes between market players, ensuring the stimulation of competition in the sector, determining professional qualifications in the area of telecommunications, co-operating with the competent minister in drafting new laws and regulations, and co-operating with international telecommunications organisations. Moreover, the UKE Chairman manages the frequency allocations. Naturally, the Ministry of Transport continues its activities as the state authority supervising the sector’s development. The Ministry’s tasks include: • Formulating state policy guidelines and programmes pertaining to telecommunications, • Building favourable conditions for the construction, maintenance and operation of telecommunications networks, post installations and other telecommunication means, allowing for the state’s defence and security needs, • Providing conditions for the organisation of domestic and international telecommunications and postal services, How to Do Business in Poland • 53 Supervision of the technical conditions, operation and use of telecommunication means. It should be noted that the Ministry of Transport and the UKE are focusing their activities on de-monopolising the Polish telecommunications market, and this has included the introduction of the current telecommunications law and the privatisation of TPSA. The Polish telecommunications market is the largest in Central Europe. It is characterised by relatively low rates of penetration per capita, both in fixed-line and mobile segments. Low fixed-line penetration is due mainly to undeveloped infrastructure, as well as the fact that a significant part of the population lives in rural areas. The fixed-line telecommunication market in Poland is highly concentrated. In 2005, some 85 % of the Polish fixed-line telecommunications market, worth approximately PLN 12 billion (USD 4 billion), was held by the national operator – Telekomunikacja Polska S.A. (TPSA). Three other operators: Netia, Dialog and Tele 2 accounted for a further 11 %. The dominant fixed-line operator (TPSA), practically services the whole local fixed-line telecommunications market. According to the latest estimates, only approximately 10 % of this market (in terms of fixed lines) is controlled by a few dozen independent private operators, who provide local level services. The only notable competition comes from Dialog and Netia, which account for about 3 % of fixed lines each. As of December 2005, there were also 47 operators that have been assigned an NDS (Network Access Number), which enables them to provide long-distance and international calls. However, only a few of them have started operations. Nevertheless, TPSA has local competitors everywhere now and the pressure in the longdistance and international call segments is growing. Moreover, there are several companies offering VoIP services, which are very popular in Poland. Use of internet communicators, such as Skype, instead of a phone, is on the rise, as such communicators are much cheaper than traditional phone services. In the 1990s, the telecommunications network registered a steady growth rate of approximately 14 %. However, it has been slowing down ever since. In 2004, the fixedline telephone operators increased the number of main lines by just 2.8 %, bringing the total number to 12.6 million at the end of the year. It seems that 2005 marks an end to the era of fixed-line infrastructure development. Traditional telephone services are just not good enough to compete with mobile networks and other means of electronic communication. This is true especially in Poland, where phone calls are quite expensive. 54 II. Economic Environment The number of main lines decreased by 2.0 % in 2005, bringing the total number to 12.3 million at the end of the year. Approximately 9.5 million of these are in urban areas (a 1.9 % decrease) and only some 2.8 million in rural areas (a 2.4 % decrease). At the end of 2005, average telephone density, measured by the number of main lines per 100 inhabitants, was 32.2. For comparison, average telephone density in Sweden reached 77, in Germany 66, in France 56, and in Spain 43, as of 1 January 2005. Telephone Subscribers per 100 Inhabitants 80 70 76.4 Fixed-line 60 Mobile 60.5 50 40 45.5 30 20 10 24.7 22.0 19.0 2.1 5.5 29.4 26.5 10.2 31.1 36.0 32.0 32.9 32.2 24.9 17.5 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Central Statistical Office, 2006 The Polish mobile telecommunications market is worth some PLN 17 billion (USD 5 billion). At the end of 2005 there were three mobile operators in Poland, PTK Centertel (Orange, Orange Go, PoP), Polkomtel (Plus GSM, Simplus, Sami Swoi) and Polska Telefonia Cyfrowa (Era, Era TAK TAK, Era BIZNES, Heyah). In June 2006, the three mobile operators were still the only players in this market segment. This situation may change if new mobile virtual network operators (MVNO) enter the market. There are already well over 50 MVNOs authorised to provide services, although, by June 2006 none had begun offering services on a commercial basis. 55 How to Do Business in Poland Structure of the Mobile Market in 2005 (share in the number of mobile users) PTC 35% Polkomtel 31% PTK Centertel 34% Source: URTiP, 2006 In 2005, the number of mobile phone users shot up by 26.3 %, reaching 29.2 million by the end of the year. This pushed up the average mobile telephone density to 76.4, which means that the number of cell phones in Poland is more than twice the number of fixed lines. Still, mobile phone penetration in Poland does not yet compare very favourably with the European average. As of 1 January 2005, the mobile telephone density reached 105 in the Czech Republic, 103 in Sweden, 86 in Germany, and 74 in France. Power Industry The Polish fuels and energy sector, significantly reshaped by the transformation process started in the early 1990s, is still far from uniform in regard to ownership and market structure. The situation in individual sub-sectors varies widely, from dominance of a single company in the gas sector, to highly de-monopolised structures in the liquid fuels and electricity sectors. The legislative framework is based on the Energy Law of 10 April 1997, significantly amended in March 2005. The power generation sector in Poland consists of: • professional power plants (power plants and heat and power generating plants), which sell most of the electric energy produced through the power grids of power transmission companies; • independent professional power plants, encompassing: - heat and power generating plants, supplying most of the electric energy produced to one final consumer, - small hydro power plants and other small power plants using renewable resources, operating independently of the structures of generating and transmission companies; 56 • II. Economic Environment industry-based power plants, which form a part of industrial plants, with the industrial plant using most of the electric energy produced. Professional power plants generate approximately 94.5 % of the electricity in Poland. Approximately 58 % of their electric energy comes from hard coal and around 37 % from lignite. This situation is a result of the abundance of these natural resources in Poland. Approximately 3 % of total electric energy produced is generated from renewable resources, mainly in hydro power plants and wind power stations. In 2005, according to the Energy Market Agency, Poland’s total electric energy production amounted to 156.9 TWh, significantly exceeding domestic consumption (144.8 TWh). Poland exported 14.3 TWh of electric energy, while importing just 3.1 TWh. The Czech Republic and Slovakia remain the leading export markets for Polish energy. The energy law passed in April 1997 has created conditions for competition on the energy market and for improving the financial standing of companies in the energy sector. The essential component of the law is the liberalisation of prices of energy and fuels that will be allowed to respond to the demands of the market. The law provides for the gradual introduction of market mechanisms. The competitiveness of the market is achieved through de-monopolisation and by introducing the third party access principle, which means opening the electric energy market to the final consumers. The price of electrical energy is clearly divided into a production element and an energy transfer element. The electrical energy market can be divided into the wholesale market and retail market. In the wholesale market, providers, (both producers and trade companies), sell energy on a competitive basis. The energy trade is organised through direct contracts between the market participants, however, it is expected that in future most trade will take place on the already established Electrical Energy Exchange. The wholesale market includes both energy exports and imports. The dominant wholesale market player is Polskie Sieci Elektroenergetyczne S.A. (Polish Power Grid Joint-Stock Company). There are two segments of the retail market: • the competitive segment, where distribution companies provide transfer services to customers, while producers and electrical energy trade companies sell the energy to these customers who have acquired the right to purchase electricity at source and are willing to exercise this right; • the regulated segment, where distribution companies sell the energy to ‘tariff’ customers at prices approved by the president of the Energy Regulatory Office. How to Do Business in Poland 57 Presently the right to select an electric energy provider is granted to all institutional customers (all customers other than households). On the grounds of the Energy Law, as of 1 July 2007, all electric energy consumers in Poland will have the right to select their electrical energy provider. Similarly, as of 1 July 2007, all gas fuel consumers will have the right to select their provider. Currently, this right is granted to all institutional customers. It is worth noting that already as of 1 January 2003 all thermal energy consumers have the right to select a thermal energy provider. In January 2005 the government approved an “Energy Policy of Poland until 2025”, which sets out long-term strategy for the energy sector in Poland. The policy aims at ensuring the country’s energy security, increasing energy efficiency, and competitiveness in the economy, and environmental protection. It provides for diversification of supply, development of energy generation from renewable sources, further application of the third party access principle, and further restructuring and privatisation of the sector. With regards to restructuring and ownership transformations, the following activities are foreseen: • implementation of a restructuring program for long-term contracts for the purchase of power and electricity, concluded between Polish Power Grid Joint-Stock Company and electricity producers, • creating means of support the development of local energy markets and local power generation, • continuation of restructuring processes in companies with shares held by the State Treasury, • developing a program for the consolidation of companies in the fuels and energy sector, • continuing the privatisation of energy sector companies, • assuring state control over transmission system operators, • monitoring the implementation of investment obligations undertaken by investors participating in the privatisation of energy sector companies. Investment opportunities exist in all sub-sectors of the power industry in Poland and they continue to emerge along with industry’s privatisation. Foreign involvement in the energy sector is already quite substantial and other major projects are pending. 58 II. Economic Environment Transportation Infrastructure and Highway Construction Poland has an extensive transport infrastructure. There are over 240,000 kilometres of hard surface roads, i.e., approximately 80 km per 100 km2, and an extensive railway network of some 23,500 kilometres, linking all the major cities and towns. However, only some 19,000 kilometres of railway lines are in use, which gives a density of just over 6 km per 100 km2. In 2005, a total of 1.02 billion passengers* (June 2006 estimate) made use of public transport (not counting urban mass transit). This represents a very minor decrease in comparison to 2004 (1.08 billion). Of this number, 256 million passengers travelled by rail, 762 million by road, and some 4.5 million by air. The structure of the Polish transportation system is best reflected in the share of goods delivered in 2005. All in all, approximately 311 million tons were transported (4.5 % less than the year before). Please note that the data for the whole economy (including companies employing 9 persons or less) is roughly twice as high, with road transport accounting for approximately half of goods delivered. Share of Goods Delivered by Various Means of Transport in 2005* 30.1% Railway transport Motor transport 17.7% Pipeline transport 2.3% navigation Maritime 1.7% 48.2% * by companies employing more than 9 persons Inland navigation Source: Central Statistical Office, 2006 Altogether there are 379,455 km of public roads in Poland, divided into four categories: national, regional, district, and communal. Motor transport focuses on the first two categories, which total almost 47,000 km and include: • National roads, of a total length of 18,368 km; • Regional (provincial) roads, of a total length of 28,444 km. * The statistical data on the number of passengers and the volume of goods refers to companies employing more than 9 persons. 59 How to Do Business in Poland In spite of this, a detailed analysis of the Polish transport sector reveals a number of deficiencies, the main ones of which are: • changes in the structure of the transport sector in Poland, leading to the growth of road transport; • a tendency to overuse land-based transport in international freight transactions, with a parallel decline in the use of sea transport and stagnation in air transport; • the limited use of modern transport technologies, specifically in the area of multimodal transport and traffic management techniques; • the poor technical condition of the roads. The maximum axle load allowed in Poland amounts to 10 tonnes, as only some 8 % of roads in Poland conform to EU standards, which require international roads to withstand axle loads of 11.5 tonnes. The primary reason for the major problems with the quality of road transport infrastructure is the continuously low share of relevant outlays in the GDP. In developed OECD countries this share amounts to 1 - 2 % of GDP, while in Poland it is less than half of this, despite a huge investment back-log and the evident need to increase this share, at least for a limited period, above the level of more advanced economies. The result is the poor state of Polish roads. According to a recent report released in March 2006 by the General Directorate for National Roads and Motorways (GDDKiA) concerning the technical condition of national roads, only 49 % qualify as good in terms of pavement quality, 26 % qualify as unsatisfactory and the remaining 25 % as bad. However, one must note the positive trend, which has continued since 2002, to increase the amount of road repair work, as reflected in the following graph. Total length of sections repaired (km) Roads Repaired 1800 1600 1400 1200 1000 800 600 400 200 0 1740 1450 1100 1250 600 2001 2002 2003 2004 2005 Source: General Directorate for National Roads and Motorways, 2006 60 II. Economic Environment The adverse effect of poor road transportation infrastructure on the country’s development was recognised quite early in the process of economic transformation of the nineties. Thus the programme of building a network of highways in Poland was adopted by a decree of the Council of Ministers in September 1993. The experience of the first six years of the programme, during which not a single kilometre of toll highway had been put into operation, indicated that it needed larger support from public funds. At the beginning of 1999, in view of difficulties in implementing the Highway Construction Programme, the government decided to replace the BOT (Built-Operate-Transfer) system of highway construction with a PPP (PrivatePublic Partnership) system that would oblige the state to co-finance construction, or to cover up to 50 % of the operating costs. In return, the state would gain the right to participate in the profits. Since then the programme has been significantly modified. The present highway and motorway construction programme is defined in a Council of Ministers’ decree of 15 May 2004. It calls for the construction of a network of three highways, two running from east to west, and one from north to south, with a total length of some 2,000 km. It will be complemented by a network of motorways exceeding 5,000 km. The highways to be constructed are, as follows: • • • The A-1 between Gdańsk, Toruń, Łódź, Piotrków Trybunalski, Częstochowa and Gliwice, and on to the border with the Czech Republic, The A-2 from the Polish-German border crossing in Świecko, then running through Poznań, Łódź, Warsaw and Biała Podlaska, and on to the border crossing between Poland and Belarus, The A-4 running from the Polish-German border crossing in Jędrzychowice, through KrzyŜowa, Legnica, Wrocław, Opole, Gliwice, Katowice, Cracow, Tarnów, and Rzeszów to the Polish-Ukrainian border. These are to be supplemented by the following short highway sections: • • • The A-6 from the Polish-German border crossing in Kołbaskowo to Szczecin, The A-8, a part of the Wrocław ring road, The A-18 from the Polish-German border crossing in Olszyna to the A-4 at KrzyŜowa. How to Do Business in Poland 61 Highway and Motorway Construction Programme in Poland Source: General Directorate for National Roads and Motorways As of 2005 there were only 570 km of highways and 250 km of motorways in Poland. However, the highway and motorway construction is to accelerate, with less funds coming from the state budget and more from other sources, especially the EU. European Union financing is to increase from 22 % of the costs in 2005 to 50 % in 2010-2013. In light of recent developments, it seems that highway construction in Poland is finally taking off. Reaching the goal of 1,700 km of highways and 1,800 km of motorways by 2013 does not appear impossible. 62 II. Economic Environment The Outlook for 2006 and Beyond Current Developments So far, developments in the first months of 2006 indicate that the growth of Poland’s economy is picking up. The GDP is estimated to have grown by some 5.2 % in the first quarter of 2006 (in comparison to the same quarter in 2005). Internal demand appears to be the leading GDP growth factor. At the same time, inflation stayed at a very low level. Prices of consumer goods and services grew by just 0.6 % in the first four months of 2006 (in comparison to the same period in 2005). In January-April 2006, sold industrial production grew by 10.8 % in companies employing ten or more persons (as compared to the same period in the previous year). At the same time, registered unemployed persons, numbering 2.70 million, accounted for 17.2 % of the economically active population at the end of April 2006 (in comparison to 18.7 % in April 2005). With production and employment growing, a certain growth in salaries should be expected. In January-April 2006, gross average salaries and wages in the enterprise sector amounted to PLN 2,547 (a 4.5 % increase in nominal terms in comparison to the same period of 2005). In real terms gross average salaries and wages in the enterprise sector grew by 4.1 %. In the first quarter of 2006, according to customs statistics, exports and imports rose very substantially, with exports growing faster than imports. In USD terms exports grew by 11.3 % and imports by 10.0 %, in EUR terms the growth was 22.3 % and 20.8 % respectively, and in PLN terms exports grew by 15.5 %, while imports increased by 14.2 %. Exports in the period from January to March 2006 amounted to USD 23.81 billion, while imports came to USD 26.31 billion, producing a USD 2.49 billion deficit, about the same as in the corresponding period of 2005. Economic Forecasts The assumptions for the Budgetary Law for 2006 envisage a GDP growth of 4.0 % in 2006, to be powered mostly by domestic demand. It is expected that employment will continue to increase and that the unemployment rate will drop to 17.0 % in 2006. However, following positive developments in the first months of 2006, both the Ministry of Finance and the Ministry of the Economy forecast (in May 2006) 2006 GDP growth at approximately 5.0 %. How to Do Business in Poland 63 In May 2006, the Ministry of Finance released information about selected macroeconomic indices constituting the grounds for the drawing up of the 2007 Budgetary Law. According to this information, GDP growth, driven by domestic demand, is to reach 4.6 % in 2007. Annual inflation is projected at 1.9 %, influenced by an acceleration in domestic demand, the still high unemployment rate, and the appreciation of the Polish currency. Still, it is worth noting the prospects for Poland’s economy as seen from an outside perspective, such as that of the International Monetary Fund (IMF). The latest IMF forecasts for Poland are summarised in “Republic of Poland – Concluding Statement of the 2006 Article IV Consultation Mission”, released in late May 2006. According to the IMF, a cyclical recovery and the benefits of EU membership are coming together to produce promising opportunities for Poland. Therefore, Poland is likely to register a GDP growth of 4.8 % in 2006 and 4.5 % in 2007, driven by private consumption, private investment, and export growth. The IMF views the outlook for inflation as benign. Presently, low inflation reflects both one-off factors and subdued core inflation, which excludes direct effects from food and energy. Obviously, inflation will rise with the recovery and the lapsing of the one-off factors. Nevertheless, it should remain below the 2.5 % target by the end of 2007. Medium-term prospects largely depend on a commitment to strong policies and on the economic institutions to realize them. Possibilities for increasing growth are clear, as the opportunities of EU membership, the efficient use of EU funds, and the advantages resulting from euro adoption, could all contribute to higher growth over the next 5 to 10 years. According to the IMF, the most important macro-economic challenges are as follows: • stabilizing the ratio of public debt to GDP below the present level, while reducing the share of government spending in GDP, • protecting the strength of financial institutions, • removing impediments to entrepreneurs’ and workers’ responsiveness to economic opportunities. 64 II. Economic Environment Co-operation with International Organisations Poland’s successful transition to a market economy has been, to a significant degree, facilitated by the assistance of international economic organisations. Already in the late 1980s, Poland had established good relations with the International Monetary Fund, the World Bank, and the International Finance Corporation. Poland rejoined the World Bank in 1986 and began borrowing from it in 1990. Since then, the World Bank has supported the country’s economic transformation through lending, advice, and technical assistance. Since 1990, the Bank has lent USD 6.220 billion (USD 4.880 billion net of cancellations) for 44 operations. About USD 4.472 billion of this amount has been disbursed and USD 2.9 billion repaid (as of end-June 2005). Twelve ongoing projects are mainly focused on upgrading the infrastructure and energy sectors, protecting the environment, and promoting rural development. Since 1986, the World Bank has aimed at boosting the country’s economic growth by rebalancing its macroeconomic framework and improving the effectiveness of government expenditures and programs. It has also helped the country create employment through privatisation and reforms in the banking and financial sector. In 2005, the World Bank Board of Directors adopted the new Country Partnership Strategy that provides a framework for aligning the World Bank’s program both with the challenges that Poland faces, as a new EU member, and with the government’s decision-making process. The World Bank is currently assisting Poland in making the most of EU membership. It is helping to enhance the country’s transport infrastructure and the government’s capacity to use EU Structural Funds. In the fiscal year of 2006 (running from 1 July 2005 to 30 June 2006), the World Bank approved two loans to Poland – one for the amount of EUR 150 million, which will help to finance the Road Maintenance and Rehabilitation Project (RMRP III), and another for the amount of USD 88.8 million to increase social inclusion in rural underdeveloped communes and to support the reform of the agricultural insurance fund (KRUS). In June 2004, the position of Private Sector Liaison Officer (PSLO) was established with the Confederation of Polish Private Employers to facilitate contacts between the World Bank and the private sector. The PSLO, jointly with the World Bank’s Office in Poland, organized a number of events targeting the business community, including business seminars on India and on China. How to Do Business in Poland 65 The International Finance Corporation (IFC), a member of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilising capital in international financial markets, and providing technical assistance and advice to governments and businesses. The IFC’s mission is to promote sustainable private sector investment in developing countries to reduce poverty and improve people’s lives. In light of Poland’s accession to the European Union and the growing availability of long-term financing from private sources, the IFC, as a developmental institution, has reorganised its mission in Poland. On 1 July 2004, it reduced its representation in Poland and it now continues operations through its Special Regional Representative for Central and Eastern Europe, in the World Bank office in Warsaw. The IFC focuses its investment and advice selectively in a few areas where its value-added is highest, including: • Eastward investments by Polish companies; • Complex privatisation and post-privatisation cases where the IFC’s participation may help to strengthen the transparency and credibility of the privatisation process, and assist with structuring the post-privatisation investment program. Possible areas include chemical plants, oil and gas, and infrastructure sectors; • Promoting public-private partnerships in health and education; • Supporting further institutional development in the financial sector (e.g., supporting the expansion of access to housing finance, facilitating the sale of non-performing loans, developing the securitisation market); and • Promoting renewable energy sources and energy efficiency. The European Bank for Reconstruction and Development (EBRD) was established in 1991 to finance development projects that foster the transition to a market economy in Eastern and Central European countries. As of 31 December 2005, the Bank had committed EUR 3,424.million to 147 projects, which attracted a further EUR 9,235 million from sponsors and co-financiers. The new business volume in 2005 remained robust with EUR 339.6 million committed in Poland, and the Bank will continue to play an important role by focusing selectively on areas where there is transition impact potential and where the Bank’s involvement would most beneficial. Given the above, the Bank’s activities in Poland will be based on the following operational objectives: • Stimulate development of revenue backed financing and private sector involvement to minimise reliance on sovereign guarantees and increase the supply of long-term finance for infrastructure and environmental projects. • Further the scope for financing projects through public-private partnerships, mainly in the municipal and transport sectors, in close concert with the national/local authorities and EU Cohesion and Structural Funds. • Support restructuring, modernisation and private sector participation in the road sector, railways and airports. 66 II. Economic Environment • Support energy saving projects and renewable energy projects designed in keeping with market principles and which encourage private investment. • Support enterprise restructuring, modernisation and privatisation, by sharing risk with local or foreign investors, particularly in the more challenging sectors such as the chemical industry, energy, heavy industry or mining. • Provide necessary risk capital (equity and/or structured debt) to local companies to fund their growth and/or expansion in the region; sometimes alongside private equity funds. • Continue to work with local financial intermediaries and non-banks to provide finance to micro, small and medium-size enterprises, particularly in the rural areas, in conjunction with EU or other donor support. • Contribute to the broadening of the local capital market through promotion and development of new financial structures such as asset-backed securities, securitisation of assets portfolios, convertible instruments, mortgage bonds, and revenue bonds. The Bank will continue to ensure that all EBRD operations in Poland meet sound banking principles, have a transition impact, are additional and are subject to the Bank’s Environmental Procedures and incorporate, where appropriate, Environmental Action Plans. Poland also had benefited for many years before its accession from the financial support of the European Union. Poland has been receiving non-returnable aid from the European Union since 1990 as part of the PHARE Fund. In line with decisions taken during the EU summit in Berlin in March 1999 (Agenda 2000), there was a considerable increase in financial aid to EU candidate states in 2000-2006. Since 2000, Poland and other associated states have been able to benefit not only from PHARE funds, but also from two new funds: ISPA (the Instrument for Structural Policies for Pre-Accession) and SAPARD (the Special Accession Programme for Agriculture and Rural Development). PHARE (Poland and Hungary: Assistance for Restructuring their Economy) was initially meant to help Poland and Hungary in their political and economic transformations. It was later expanded to include other countries of Central and Eastern Europe. Right now it has ten beneficiaries: the ten countries of Central and Eastern Europe that are former and present EU candidate states, i.e., Bulgaria, the Czech Republic, Hungary, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. In the EU candidate states, the programme supported actions preparing the countries for accession. In 1990-1999 PHARE aid funds for all the aforementioned countries amounted to EUR 10.31 billion, with Poland receiving over EUR 2 billion. In the EU budget for 2000-2006, PHARE aid was set at EUR 1.56 billion per year. In line with the New Orientation of PHARE, 70 % of the resources was intended for investment projects and 30 % for projects related to institutional development. In 2000 Poland How to Do Business in Poland 67 was granted a record sum of EUR 484 million within the PHARE programme, in 2001 – EUR 468.5 million, in 2002 – EUR 451.7 million, and EUR 459.5 million in 2003. There is no new 2004 PHARE programme, however the funds allocated in 2003, are to be contracted within a 2 year period and realised within one year. It means that PHARE will be present until 2006, when projects of 2003 should be concluded. After joining the EU on 1 May 2004, Poland can benefit from various EU funds earmarked for EU members. At the Copenhagen 2002 summit, it was decided that Poland will benefit from nearly EUR 13.5 billion over the period 2004-2006, which encompasses structural funds, direct payments, and other programmes. In 2005, according to the Ministry of Finance, the net benefits to Poland from settlements with the EU budget reached EUR 1.54 billion. From 1 May 2004 (the accession date) transfers from the EU budget increased and diversified. Apart from transfers within the pre-accession programmes, Poland gained access to other funds, transferred within the framework of individual EU policies. All in all, Poland received EUR 3.95 billion from the EU budget in 2005. Financial flows between Poland and the EU budget in 2005 are presented in the following table. Financial Flows between Poland and the EU Budget in 2005 Financial Flows Transfers from the EU, including - PHARE - SAPARD - ISPA / Cohesion Fund - Structural Funds - Market Measures - Rural Development - Direct Payments - Other transfers related to CAP - Transition Facility - Cash Flow Facility Instrument - Schengen Facility Poland’s cumulated contribution Reimbursement of unused resources Balance EUR (million) 3,945 333 339 229 775 167 662 703 11 10 612 104 2,379 22 1,544 Source: Ministry of Finance, 2006 From the first day of Poland’s accession to the EU to the end of March 2006, Poland received EUR 7.18 billion, while contributing EUR 4.47 billion to the EU budget. Taking into account reimbursements of unused resources to the EU budget (some EUR 22 million), the resulting positive balance of financial flows between Poland and the EU reached EUR 2.69 billion. For information on Poland’s integration with the European Union, please refer to Chapter VI. 68 II. Economic Environment UNIDO and its Activities in Poland The United Nations Industrial Development Organization (UNIDO) is a specialised UN agency established in 1967 with the aim of reducing the traditional gap between the industrialised countries, developing countries, and, more recently, economies in transition. The UNIDO headquarters is in Vienna and its membership numbers 171 countries. UNIDO harnesses the joint forces of governments and the private sector, acting as a neutral adviser to foster competitive industrial production, develop international partnership, and promote socially equitable and environmentally friendly industrial development. It is the only worldwide organisation dealing exclusively with industry from a development perspective and rendering non-profit, neutral and specialised services. UNIDO activities focus on promoting investments and related technologies, and assuring clean and sustainable industrial development. Maintaining its universal character and vocation, UNIDO pursues a geographical, sectoral, and thematic division of services directed at the least developed countries and economies in transition and its services are offered first of all to small and medium-size enterprises. Investment and technology are proving to be essential keys to success in the global marketplace. However, many countries face enormous difficulties in attracting investors, as well as in gaining access to technology and markets. UNIDO is giving significant impetus to its services in this direction by launching a unique business intelligence unit – the UNIDO Exchange – that optimises, through an electronic platform, the use of information technology to provide information and knowledge to its members. The organisation holds promotion offices and units in 18 countries: Bahrain, Belgium, Brazil, China, Egypt, France, Greece, Italy, Japan, Jordan, Republic of Korea, Morocco, Poland, Russian Federation, Tunisia, Turkey, Uganda, United Kingdom. They facilitate contacts between business communities in their host countries and in other countries. The Warsaw UNIDO Investment and Technology Promotion Office (ITPO), was set up in 1983 as a part of UNIDO’s investment and technology promotion network. By drawing on the linkages of the UNIDO Exchange electronic platform, ITPO Warsaw redresses the industrial development imbalance by bringing investment and the latest technology on offer in Poland and abroad to those countries in Central and East Europe and Mid-Asia which are most in need of a promotional hand. At the same time ITPO Warsaw opens up new opportunities for investors and technology suppliers from Poland to find potential partners in countries with economies in transition. Its tasks also include supporting the development of Polish small and medium-size enterprises entering the markets of countries in Central and East Europe and Mid-Asia. How to Do Business in Poland 69 The main tasks of the Office are: • the promotion of industrial investments and technologies in developing countries, in Poland and in other transition economies, • the support of Polish industry through managers’ training. In its operations, the UNIDO Warsaw Office implements the methodology, practices, and promotional tools developed by the UNIDO Secretariat. The most important are the Country Presentation Meetings, which provide information on the economies and legal frameworks for foreign investment in the developing and reforming countries. Further, individual industrial investment projects are promoted in Poland and in developing countries. ITPO supports the development processes of Polish industry through various management training courses (teaching the evaluation of the profitability of export products, modern techniques for preparing an offer, marketing and negotiations related to, for example, technology transfer). The promotion of COMFAR, a software developed by UNIDO to enable the appraisal of industrial investment projects, business performance, financial analysis, and the diagnosis of enterprises, is another example of training-related activities. Moreover, ITPO services encompass the gathering and promotion of information via UNIDO Exchange on: • Polish export offers, • Polish technologies, • Polish companies interested in investment and/or technical co-operation with foreign partners. Other kinds of assistance include editing and disseminating business manuals and related publications. In this area the most important publications are: Manual for Preparation of Industrial Feasibility Studies, annually updated foreign investors’ guide How to Do Business in Poland and country-focused manuals for Polish entrepreneurs containing business information and guidelines on particular markets in Central and Eastern Europe and in Mid-Asia. The services of the Warsaw UNIDO Office are offered to entrepreneurs in the developing and reforming countries, foreign investors and Polish institutions, businesses and business organisations. The ITPO assists companies from developing and reforming countries in their search for potential Polish partners interested in technical co-operation, subcontracting, the transfer of technology, establishing a joint venture, or in the acquisition of a company in a respective developing or reforming country. 70 II. Economic Environment The ITPO services offered to Polish firms, organisations, and institutions include the identification of potential partners and strategic investors, and the upgrading of managerial capabilities and skills through training courses on the preparation of business plans and feasibility studies, marketing techniques, and the implementation of ISO standards. In view of Poland’s membership in the European Union, it is necessary to bridge the developmental and structural gap between Poland and the “old” member states of the European Union. Therefore, the activities of the ITPO Warsaw are focused on this strategic goal, providing Polish enterprises and institutions with benefits stemming from UNIDO’s expertise and experience in industrial development. In this context, the office is concentrating its activities on the following strategic areas: • promoting of Polish exports, particularly to countries with economies in transition and to developing countries, using promotional tools such as economic forums, country presentation meetings, country delegate programmes, and servicing Polish and foreign economic missions, as well as establishing a data base of Polish export offers in order to promote them through UNIDO channels; • promoting technology (outward and inward), including the promotion of clean industrial technologies, i.e., by establishing a portfolio of selected Polish industrial technologies to be promoted via UNIDO Exchange and other channels; • capacity building and facilitating private sector development with special reference to SMEs, including the promotion of UNIDO standards in the preparation of feasibility studies, business plans, financial analyses, and BOT projects, the organisation of training courses based on UNIDO methodology (i.e., on technology management and technology transfer negotiations), as well as supporting the introduction of quality management systems in small- and medium-size companies; • supporting the creation and implementation of the Polish development assistance policy, i.e., by encouraging Polish authorities to participate in UNIDO assistance programmes addressed to developing countries (UNIDO Integrated Programmes). It should be noted that some of the publications mentioned above are also available on-line and on CD-ROM. While promoting modern technology solutions for industry, ITPO itself also takes advantage of IT tools to the benefit of its clients and offers various services through the website http://www.unido.pl. How to Do Business in Poland 71 III. FOREIGN TRADE EU membership – Common Customs Tariff applies 7 duty-free zones, located in: Gdańsk, Gliwice, Małaszewicze, Mszczonów, Szczecin, Świnoujście, and Warsaw Dynamic development of foreign trade USD 95.8 billion of exports and USD 98.5 billion of imports Germany accounts for approximately one quarter of Polish imports and a third of exports Imports dominated by raw materials and components Diminishing trade deficit and current balance deficit Official reserve assets of USD 42.6 billion How to Do Business in Poland 73 III. FOREIGN TRADE There is a continuously increasing demand for various goods in Poland, as reflected in the foreign trade statistics. It creates great opportunities for a broad range of exports to Poland, including for medium-size and small foreign producers. However, more and more companies are starting up new manufacturing operations each year and foreign exporters face strong and constantly increasing competition. At the same time, a large number of modern and innovative enterprises based in Poland are ready to expand into foreign markets. These companies offer a wide range of high quality products, often at very competitive prices. Considering Poland’s geographic location, its EU membership and readiness to develop economic co-operation, foreign companies increasingly discover that in many cases it is more profitable to waive short-term profits for long-term gains, and to invest in establishing more advanced forms of co-operation, including setting-up production facilities in Poland – the opportunities are plentiful. For more information on the investment incentives and on how to establish a company in Poland, please refer to Chapters V and X, respectively. The following sub-chapters concerning customs regulations and tariff suspensions and quotas have been compiled based on information published and distributed by the European Union. Customs Regulations and Duties Poland is a member of the European Union, therefore the common EU trade and customs regulations apply. Generally, all goods and services can be traded without restriction. There are, however, some usual exceptions. For example, a licence is required for the import and export of products and technologies for the police and military sector, such as explosives or weapons, and ammunition, in keeping with the Law on Economic Freedom of 2 July 2004. Please refer to Chapter V, the Legal Considerations section, for a complete list of areas, enumerated in the Law on Economic Freedom, in which economic activity may be undertaken only if an appropriate license (koncesja) is granted. Moreover, separate legislation covers the export and/or import of other goods, such as, for example, hazardous substances. As of the day of Poland’s accession to the EU, the legal framework of the Polish customs system encompasses directly applicable EU customs regulations and the supplementary national legislation. The national legislation part consists of The Customs Law of 19 March 2004 and the decrees issued on its grounds. 74 III. Foreign Trade Poland applies directly the EU customs regulations as of 1 May 2004. The fundamental one is the Common Customs Tariff (CCT). Since on the EU internal market goods can circulate freely between member states, the CCT applies to the import of goods across the external borders of the EU. The tariff is common to all EU members, but the rates of duty differ from one kind of import to another, depending on what they are and where they come from. The rates depend on the economic sensitivity of products. The tariff is a concept, a collection of laws as opposed to a single codified law in itself. It is a combination of classification of goods and the duty rates which apply to each class of goods. In addition, the tariff contains all other Community legislation that has an effect on the level of customs duty payable on a particular import, for example country of origin. Through the tariff, the Community applies the principle that domestic producers should be able to compete fairly and equally on the internal market with manufacturers exporting from other countries. There is however a kind of working tariff, called TARIC. The TARIC represents the Community legislation published in the Official Journal of the European Union. It is an instrument for practical use and information, but does not have legal status itself. At importation, the use of the TARIC Code for the customs declaration for release for free circulation and for statistical purposes is obligatory. The structure of the TARIC is based on the 8 digit code of the CN and two additional digits. In particular cases one or two additional 4 digit codes are added (e.g. antidumping duties). The TARIC includes all applicable customs duties and all customs trade policy measures for all goods applicable at any time, set out in various legal measures and it changes constantly. The TARIC is not itself law and is not a legal base for the application of duties and other trade policy measures, however, it is an essential instrument for the customs administrations and companies because it is updated daily to take account of new legislation, the using up of quotas etc. The TARIC presents all third-country and preferential duty rates actually applicable, as well as all commercial policy measures. The TARIC includes information on tariff suspensions, tariff quotas, preferential treatment, anti-dumping and countervailing duties, import prohibitions and restrictions, quantitative limits, export surveillance, licenses and certificates. The bulk of the rules governing EU customs are in the frequently amended Community Customs Code (Council Regulation (EEC) No 2913/92, as amended). This regulation differentiates five customs-approved treatments or use of goods, such as: the placing of goods under a customs procedure; their entry into a free zone or free warehouse; their reexportation from the customs territory of the Community; their destruction; their How to Do Business in Poland 75 abandonment to the State Treasury. Customs procedures envisaged in the Code include: • release for free circulation; • transit; • customs warehousing; • inward-processing; • processing under customs control; • temporary admission; • outward-processing; • exportation. The European Commission Taxation and Customs Union Directorate General’s website (http://ec.europa.eu/taxation_customs/index_en.htm) provides an overview of specific aspects of the customs code, including rules on origin, valuation, transit and the tariff. The annual publication of the tariff schedule (current edition: Official Journal L 286 of October 28, 2005) contains the most-favoured-nation (MFN) duty rates applied to each class of goods, as well as the nomenclature of goods (classification of goods). The annual tariff schedule applies for a calendar year. Autonomous Tariff Suspensions and Quotas Autonomous tariff suspensions and quotas permit the total or partial waiver of the normal duties applicable to imported goods for an unlimited quantity (suspensions) or a limited quantity (quota), normally for an unlimited period of validity. They are exceptions to the general rule represented by the Common Customs Tariff. The role of suspensions and quotas is to stimulate economic activity, improving competitive capacity, creating employment, modernising structures etc. by allowing companies to obtain particular supplies at a lower cost. The supplies concerned are raw materials, semi-finished goods or components not available in the EU (suspensions) or which are available but in insufficient quantities (quotas). No suspensions or quotas are granted for finished products or where identical, equivalent or substitute products are manufactured in sufficient quantities within the EU or by producers in a third country with preferential tariff arrangements. The same applies where the measure could result in a distortion of competition in respect of the final products. 76 III. Foreign Trade Once a suspension or a quota is granted, any operator in any Member State is eligible to benefit from it. Both suspensions and quotas are reviewed regularly to take account of technical or economic trends in products and markets, with the possibility of addition, modification or deletion. Requests are submitted by the Member States on behalf of EU processing or manufacturing companies. Requests are not considered where the amount of uncollected customs duty in question is estimated to be less than EUR 20,000 per year. However, small and medium-size enterprises may group together to reach this threshold. In the framework of several agreements that the European Community has concluded with third countries, as well as in the framework of autonomous preferential arrangements for some beneficiary countries, tariff concessions are provided for a predetermined volume of goods (preferential tariff quotas). Within preferential tariff quotas, a predetermined volume of goods originating in a specified country can benefit at import into the Community from a more favourable rate of duty than the normal third countries duty mentioned in the combined nomenclature. Entitlement to benefit from preferential tariff quotas is of course subject to presentation of the necessary evidence of origin. Most tariff quotas are managed by DG Taxation and Customs Union on a ‘first-come first-served’ basis irrespective of where the goods are imported into the EU. The other tariff quotas are managed by DG Agriculture through a system of import licences. Various Council and Commission Regulations contain the specific provisions for the management of these tariff quotas. Duty-Free Zones and Free Warehouses Duty-free zones and bonded warehouses are also governed by the Community Customs Code (Council Regulation (EEC) No 2913/92, as amended), which defines a duty free zone or a bonded warehouse as parts of the customs territory of the Community or premises situated in that territory and separated from the rest of it in which: • Non-Community goods are considered, for the purpose of import duties and commercial policy import measures, as not being on Community customs territory, provided they are not released for free circulation or placed under another customs procedure or used or consumed under conditions other than those provided for in customs regulations; • Community goods for which such provision is made under Community legislation governing specific fields qualify, by virtue of being placed in a free zone or free warehouse, for measures normally applying to the export of goods. How to Do Business in Poland 77 Both Community and non-Community goods may be placed in a free zone or free warehouse. Goods entering a free zone or free warehouse need not be presented to the customs authorities, nor need a customs declaration be lodged. However, the customs authorities may check goods entering, leaving or remaining in a free zone or free warehouse. There is no limit to the length of time goods may remain in free zones or free warehouses, except for certain goods covered by the common agricultural policy, with regards to which specific time limits may be imposed. Companies operating in dutyfree zones may undertake any industrial, service, or commercial activity, under the conditions envisaged by the code. Non-Community goods placed in a free zone or free warehouse may, while they remain in a free zone or free warehouse: • be released for free circulation; • undergo the usual forms of handling; • be placed under the inward-processing procedure; • be placed under the procedure for processing under customs control; • be placed under the temporary importation procedure; • be abandoned; • be destroyed. As of June 2006, Poland had seven duty-free zones, located in: Gdańsk, Gliwice, Małaszewicze (Terespol commune), Mszczonów, Szczecin, Świnoujście, and at Warsaw Okęcie International Airport. One of them (in Warsaw) operates simply as a group of duty-free shops, however, the remaining six are ready to accommodate companies undertaking economic activity. There were also seven free warehouses, located in Braniewo, Cracow, Gdańsk, Gdynia, Katowice, Poznań, and Wrocław. The above mentioned duty-free zones are linked with the main transport routes or are located in ports (which allows them to influence the volume of goods in transit through Poland, and the amount of goods that are re-exported). Trade between the duty-free zone and a foreign country is subject to neither import quotas nor customs permits and payments. Duty-free zones and bonded warehouses are set up by the Minister of Finance in co-operation with the Minister of the Economy, through a decree of the Minister of Finance which also appoints the manager and defines the area. Free zones and free warehouses are to be managed by EU entities that own the zone’s land or hold it in perpetual usufruct. Duty-free zones are expected to attract capital, create new jobs, and facilitate exports, however, they do not play any significant role in the Polish economy at present. 78 III. Foreign Trade Refinancing Interest on Export Credits To facilitate Polish exports, the Program of Refinancing Interest of Export Credit (DOKE) was introduced in Poland in keeping with the Law of 8 June 2001 on Refinancing the Interest on Fixed Interest Rate Export Credits. The program is regulated in detail by several decrees of the Minister of Finance. The program is modelled on the solutions contained in the OECD Arrangement on Guidelines for Officially Supported Export Credits (OECD Consensus) incorporated into European Law. The DOKE program introduces a mechanism for the stabilisation of interest rates, allowing Polish exporters, commercial banks, and IFIs to offer medium and long term export credit (with a repayment period of at least 2 years) with a fixed interest rate for financing Polish exports. It eliminates the risk of incurring losses arising from fluctuating market interest rates. The mechanism is based on periodic settlements between Bank Gospodarstwa Krajowego (BGK), a state-owned bank administering the DOKE program on behalf of the State Treasury, and commercial banks granting fixed interest rate export credits through long term agreements. If, during the settlement period, the fixed export credit interest rate (CIRR rate) is lower than the costs of financing (market short term interest rate for a given currency plus a spread of 80 to 170 points), then BGK effects an appropriate payment to the commercial bank. If the opposite is found, then the commercial bank is obliged to transfer the surplus to BGK. CIRR rates for currencies of the countries that are members of the OECD Consensus are announced each month by the OECD Secretariat. Foreign Trade Results This section contains information on Polish foreign trade in 2004. Comprehensive data on 2005 foreign trade will be released by the Polish Central Statistical Office in August 2006, and it will be incorporated as soon as it is available. The preliminary foreign trade results released by the NBP (transactional basis) indicate that exports reached USD 95.85 billion and imports amounted to USD 98.54 in 2005. The liberalisation of the economy and fast economic growth have led to an ever growing internal demand for products and services. In order to maintain its trade balance Poland is faced with the challenge of ensuring a greater market share for Polish goods and services on foreign markets. The following table illustrates the structure of Polish exports and imports in the last eight years, reflecting the very dynamic developments that have taken place in Poland’s foreign trade. In the period presented, exports have almost tripled and imports have more than doubled, a great achievement, no doubt, 79 How to Do Business in Poland although still somewhat inadequate in comparison to the per capita exports and imports of ‘old’ EU member states. Exports have been an important driving force behind the quickening pace of economic growth in recent years. In 2004, exports saw spectacular growth, increasing by 37.7 % (in USD terms), to USD 73.8 billion, with imports growing more slowly, though still very substantially, by 29.6 %, to almost USD 88.2 billion, according to the Central Statistical Office (GUS). Despite the higher growth rate of exports – due to the very large increase in total foreign trade operations – the trade deficit in 2004 remained at the 2003 level of USD 14.4 billion. However, it must be noted that such spectacular foreign trade results in USD terms were due, to some extent, to the comparative weakness of the USD against the Polish currency in 2004. Nonetheless, export growth in PLN terms was still very impressive at 30.2 % (with imports growing by 22.8 %). Foreign Trade in 1997-2004 (USD million) 1997 EXPORTS Food and live animals Beverages and tobacco Crude materials, inedible, except fuels Mineral fuels, lubricants Oil, fats, and waxes Chemicals and related products Manuf. goods class. by raw materials Machinery and transport equipment Misc. manufactured articles IMPORTS Food and live animals Beverages and tobacco Crude materials, inedible, except fuels Mineral fuels, lubricants Oils, fats, and waxes Chemicals and related products Manuf. goods class. by raw materials Machinery and transport equipment Misc. manufactured articles 1998 1999 2000 25,751 28,229 27,407 31,651 3,026 2,839 2,328 2,367 104 96 102 120 820 803 839 894 1,719 1,547 1,377 1,610 43 38 46 23 2,027 1,898 1,696 2,151 6,830 7,116 6,986 7,856 5,560 8,019 8,278 10,820 5,611 5,865 5,750 5,805 42,308 47,054 45,911 48,940 2,894 2,993 2,537 2,558 299 305 368 198 1,762 1,669 1,419 1,643 3,710 2,989 3,281 5,297 239 284 190 164 5,839 6,462 6,584 6,881 8,283 9,801 9,526 9,788 15,228 18,014 17,544 18,114 3,950 4,452 4,380 4,218 2001 2002 2003 2004 36,092 2,669 140 915 2,043 18 2,278 8,614 13,056 6,355 50,275 2,724 233 1,578 5,082 174 7,337 10,333 18,324 4,416 41,010 2,968 126 1,011 2,041 14 2,608 9,753 15,411 7,071 55,113 2,754 313 1,636 5,040 206 8,184 11,362 20,699 4,868 53,577 4,069 177 1,383 2,312 18 3,493 12,719 20,240 9,157 68,004 3,148 219 2,038 6,203 259 10,029 14,297 25,860 5,899 73,781 5,717 347 1,909 4,030 50 4,754 17,217 28,611 11,131 88,156 4,233 377 2,982 8,126 336 12,475 18,288 34,057 7,262 Source: Central Statistical Office, 2005 Still, the above figures do not include cross border trade with neighbouring countries. It is estimated that this trade amounts to several USD billion a year. When this ‘invisible’ trade is included, the overall trade deficit is much less pronounced, as reflected in the NBP balance of payments statistics (see the table at the end of this Chapter). 80 III. Foreign Trade USD billion Exports and Imports 100 90 80 70 60 50 40 30 20 10 0 exports imports 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Central Statistical Office, 2006 Developed countries dominate in both Polish exports and imports and their share of Poland’s foreign trade amounts to 85.3 % and 75.9 % respectively. Poland’s main trading partner is Germany, which alone accounts for just under one quarter of Poland’s imports and almost a third of its exports. The EU as a whole has a 79.2 % share in Poland’s exports and 68.3 % in its imports. Exports in 2004 - Geographical Structure Developing Countries 5.7% Central & Eastern Europe 9.0% Germany 30.1% Other Countries 6.1% Other EU Countries 49.1% Source: Central Statistical Office, 2005 The share of Central and Eastern European countries in Poland’s foreign trade amounts to 9.0 % of exports and 9.9 % of imports and that of developing countries to 5.7 % of exports and 14.2 % of imports. Russia remains Poland’s major trading partner in the East. Its share of Poland’s foreign trade increased in comparison to 2003 and amounted to 3.8 % of Poland’s exports and to 7.2 % of its imports. 81 How to Do Business in Poland Imports in 2004 - Geographical Structure Germany 24.4% Developing Countries 14.2% Central & Eastern Europe 9.9% Other Countries 7.6% Other EU Countries 43.9% Source: Central Statistical Office, 2005 Exports in 2004 – Major Partners Germany Italy France United Kingdom Czech Republic Netherlands Russia Sweden Belgium Ukraine Total exports Value (USD million) 22,134 4,508 4,454 3,987 3,189 3,166 2,843 2,577 2,358 2,023 53,577 Share % 30.1 6.1 6.0 5.4 4.3 4.3 3.8 3.5 3.2 2.7 100.0 Source: Central Statistical Office, 2005 Imports in 2004 – Major Partners Germany Italy Russia France China Czech Republic Netherlands United Kingdom Sweden Spain Total imports Value (USD million) 21,481 6,934 6,391 5,924 4,065 3,188 3,072 2,922 2,381 2,352 88,156 Share % 24.4 7.9 7.2 6.7 4.6 3.6 3.5 3.3 2.7 2.7 100.0 Source: Central Statistical Office, 2005 82 III. Foreign Trade The expansion of Polish exports since the beginning of transformations was accompanied by the modernisation of its commodity structure. This resulted in the growing importance of highly processed products (especially from the engineering and automotive sectors). On the other hand, the importance of raw materials and semifinished products (mineral products, metallurgical products) decreased substantially. Restructuring of the economy, powered by the inflow of foreign direct investments, was the leading factor behind this change. In 2004, machinery and transport equipment dominated both exports (38.8 %) and imports (38.6 %). Manufactured goods classified by raw materials were in second place, accounting for 23.3 % of exports and 20.7 % of imports. Even though the overall foreign trade balance is negative, there are several commodity groups generating substantial surpluses. In 2004, the most notable of these included: • engines, with exports of USD 2.86 billion and imports of USD 0.19 billion, generating a USD 2.67 billion surplus; • furniture (chairs, seats and couches), with exports reaching USD 2.73 billion and imports of USD 0.42 billion, generating a USD 2.32 billion surplus; • other furniture, excluding the above types and medical furniture, with exports of USD 1.94 billion and imports of USD 0.29 billion, generating a USD 1.65 billion surplus; • coke, semi-coke and coke-oven gas with exports of USD 1.34 billion and imports of USD 0.03 billion, generating a USD 1.30 billion surplus; • hard coal and solid hard coal fuels, with exports of USD 1.38 billion and imports of USD 0.15 billion, generating a USD 1.23 billion surplus; Further examples of highly processed export items include TV sets, monitors, ships, passenger cars and other passenger motor vehicles, trucks, etc. As far as imports are concerned, it is important to note that the trade deficit mainly results from the import of raw materials required by the economy, as well as of investment goods and articles bought for co-operation and supply purposes, indispensable for industrial restructuring and development. In 2004, the import of raw materials and components accounted for 62 % of total imports, while the import of investment goods reached 19 %. Consequently, petroleum oils are the main imported commodity, generating a USD 4.19 billion deficit with imports amounting to USD 4.22 billion. Other very important import products include passenger cars (imports of USD 3.50 billion, with a USD 0.74 billion trade surplus), car parts and accessories (imports of USD 2.63 billion and USD 0.44 billion trade surplus), ships (imports of USD 2.41 billion, with a USD 0.16 billion trade surplus), pharmaceuticals (imports of USD 2.40 billion, with a USD 2.12 billion trade 83 How to Do Business in Poland deficit), and natural gas (imports of USD 2.09 billion, with a USD 2.08 billion trade deficit). The private sector plays a dominant role in foreign trade. In 2004, the private sector accounted for 88.1 % of exports (compared with 42 % in 1993) and for 91.7 % of imports (compared with 60 % in 1993). The impressive expansion of foreign trade in the past decade was no doubt greatly facilitated by Poland’s political and economic integration with the world and especially with the European Union (see Chapter VI). Nonetheless, very positive developments, as well as the overall picture, should be viewed in a wider, international context. In terms of value, current Polish exports are similar to those of some much smaller countries of the region. The share of exports in the Polish GDP amounts to 30.5 %, while in the Czech Republic and Hungary it is two to three times higher. In 2004, exports per capita reached 1,900 USD, between half and one-third of the Czech, Slovak, or Hungarian level, while in a majority of OECD countries this ratio is several times higher. The current account balance of payments has been negative for several years, as shown in the following table. It is worth noting though, that a favourable trend consisting in diminishing the current account deficit from one year to another (interrupted only in 2004) has been visible since 2000. Balance of Payments on the Current Account 1998-2005 (USD million) Current Account Exports FOB Imports FOB Trade balance Services balance Income balance Current transfers balance 1998 1999 2000 -6,901 -12,487 -9,981 32,467 30,060 35,902 45,303 45,132 48,209 -12,836 -15,072 -12,307 4,216 1,381 1,405 -1,178 -1,010 -1,459 2,897 2,214 2,380 2001 -5,376 41,663 49,324 -7,661 786 -1,390 2,889 2002 -5,009 46,742 53,991 -7,249 851 -1,889 3,278 2003 2004 2005 -4,599 -10,522 -4,364 61,007 81,862 95,846 66,732 87,484 98,540 -5,725 -5,622 -2,694 527 1,005 1,930 -3,637 -11,539 -10,543 4,236 5,634 6,943 Source: NBP, 2006 This deficit is balanced, however, by a strong position on the capital and financial accounts. Consequently, foreign exchange reserves have been rising steadily. In 1993, Polish official reserve assets amounted to USD 4.3 billion. Since then they have been rising steadily, to stabilise in the late 90’s at a level of USD 27 - 29 billion. By the end of 2005, official reserve assets amounted to USD 42.6 billion (increasing by 15.7 % during the year), corresponding to 5 months of Poland’s import payments. 84 III. Foreign Trade Official Reserve Assets 50 42.6 USD billion 40 28.3 27.3 27.5 26.6 29.8 30 15.0 20 10 4.3 18.2 34.2 36.8 21.4 6.0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: NBP, 2006 How to Do Business in Poland 85 IV. PRIVATISATION Privatisation policy aimed at completing core ownership transformation, with the resulting public ownership at 10 to 20 % Most of the assets remaining to be privatised are in the electric energy, gas, fuel & oil, steel, defence, hard coal mining, transportation, shipbuilding, pharmaceutical, and publishing sectors Various privatisation methods: direct, indirect, and based on article 19 of the Law on State Enterprises The Agricultural Property Agency of the State Treasury took over land from liquidated state farms Restitution legislation still pending Privatisation processes have been started in 5,715 state-owned enterprises Privatisation revenue reached USD 25.5 billion 255 companies listed on the Warsaw Stock Exchange, capitalisation of USD 130 billion How to Do Business in Poland 87 IV. PRIVATISATION Legislative Framework The current framework for privatisation in Poland is contained in the Law on the Commercialisation and Privatisation of State Enterprises, passed on 30 August 1996. This legislation came into force in April 1997. The law governs two basic privatisation methods: indirect privatisation, also known as capital privatisation, and direct privatisation, sometimes referred to as privatisation through liquidation. The Mass Privatisation Programme, which aimed at spreading the benefits of ownership changes across the whole nation is based on the Law on National Investment Funds and their Privatisation of 30 April 1993. The Programme was launched in 1995. Other legal regulations pertaining to this matter include the Law on the Financial Restructuring of Banks and Enterprises of 3 February 1993, the Law on State Enterprises of 25 September 1981, and the Law on the Formation of the Agricultural System of 11 April, 2003. The privatisation of the Polish economy is supervised by the Ministry of the Treasury. There are, however, some exceptions: • • • • • • • • The Ministry of Finance, privatising KUKE S.A. and Kopalnia Węgla Kamiennego BUDRYK S.A., The Ministry of the Economy (seven coal industry companies), The Ministry of Transport (Polish Railways and four other companies), The Ministry of Defence, privatising Stocznia Marynarki Wojennej S.A., The Agricultural Property Agency, privatising state agricultural property, The State Forests (five companies), The Military Property Agency (ten companies), The Military Housing Agency (three companies). Finally, provincial governors (voivodes) supervise the privatisation of companies for which they have been the founding body. 88 IV. Privatisation Ministry of the Treasury The Ministry of the Treasury was created on 1 October 1996 as the successor to the Ministry of Privatisation, which had operated for a period of 5 years – from 1 October 1991. The main functions and responsibilities of the Ministry of the Treasury include: • the initiation of legislation, • the keeping a record of State Treasury property, • the exercise of ownership rights resulting from shares and stakes belonging to the State Treasury, • the maintenance of funding supervision, • the registration of State Treasury representatives, • the legal representation of the State Treasury, • the realisation of the ownership transformation policy. In 2002, the Minister of the Treasury authorised directors of Regional Offices of the Ministry of the Treasury (see Appendix 15 for contact information) to grant permissions, on his behalf, for direct privatisations of state enterprises supervised by provincial governors. Privatisation Revenue Total privatisation revenues in 1991-2005 amounted to approximately USD 25.5 billion. Half of privatisation revenue has been generated by foreign investors. The annual revenues, showing direct privatisation and indirect privatisation components are presented on the following graph. Privatisation Revenue 1991-2005 in USD million 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 indirect privatisation direct privatisation Source: Ministry of the Treasury, 2006 How to Do Business in Poland 89 In 2005, privatisation revenue (taking into account only the effected payments) amounted to USD 1.19 billion, just 68 % of the envisaged figure. In 2006, the government plans project privatisation revenue at some USD 1.7 billion (PLN 5.5 billion). In order to ensure proper fulfilment of the annual statutory obligations (which are: compensations, support of the social security system reform, support of defence industry restructuring and modernisation of the Polish Army, the restitution reserve, restructuring costs, costs of privatisation, science and technology related expenditure) privatisation revenues should remain at the level of approximately 1 % of GDP. Privatisation Objectives and Plans for 2006 The current national privatisation policy aims at completing core ownership transformation processes in Poland. The resulting ownership structure of the Polish economy should be similar to that of ‘old’ EU member states, with public ownership at a level of 10 to 20 %. Primary privatisation objectives are to ensure: • development of privatised companies through the new owners and investments, • generation of budgetary revenue, • a balanced social development and securing employees’ interests, • public support for privatisation operations. The privatisation efforts of the state will focus in particular on: • the further implementation of privatisation processes in strategic and infrastructure sectors, • supporting restructuring processes in the so-called ‘sensitive’ sectors, specifically in the context of adaptation to competitive conditions of the EU market, • supporting capital market development. Most of the state assets earmarked for privatisation are encompassed by the following sectors: electric energy, gas, fuel & oil, steel, defence, hard coal mining, pharmaceuticals, transportation, shipbuilding, publishing, and health resorts. In 2006, in the electric energy generation sector, both the continuation and the launch of privatisation processes in the remaining power plants and thermal power plants is envisaged. After the consolidation of BOT Górnictwo i Energetyka S.A. generation group is completed, the privatisation process will follow. Privatisation of Elektrociepłownia Zabrze SA, Elektrociepłownia Bytom SA, Elektrociepłownia Tychy S.A., and Zespół Elektrowni Dolna Odra will continue. 90 IV. Privatisation With regards to energy distribution, the government is considering a public offer of shares of Grupa Energetyczna ENEA S.A., comprising five electric energy distribution companies (EDCs) from western Poland. Further consolidation and restructuring of the sector will continue, including establishing Energetyka Podkarpacka S.A., which will take in Rzeszowski Zakład Energetyczny S.A. and Elektrownia Stalowa Wola S.A. In the pharmaceutical sector, a new restructuring program for Polski Holding Farmaceutyczny S.A. is to be developed in 2006. Its privatisation is to take place in two stages. First, a minority block of shares will be offered through the Warsaw Stock Exchange. Upon completion of the first stage, analyses are to be conducted, including evaluation of the impact of the above activities on the government’s policy concerning pharmaceuticals. Subsequently, further decisions will be made in regard to offering additional blocks of shares, and/or issuing new shares, should there be such a need. However, the Treasury is to remain in control of the production assets. Moreover, the sale of 85 % of shares in Centrala Farmaceutyczna Cefarm S.A. w Warszawie and Cefarm Białystok S.A. (pharmaceutical distribution companies) is to take place in 2006. In the defence sector, the consolidation of companies will continue within two capital groups (Bumar Sp. z o.o. and ARP S.A.), along with their restructuring and privatisation. In 2006, privatisation through offering blocks of shares will take place in thirteen companies. The privatisation strategy for health resorts divides them into three core groups: • health resorts excluded from privatisation, • health resorts requiring an individual privatisation approach, with the State Treasury retaining ownership of medicinal mineral deposits, • health resorts which should be privatised through the offering of shares. In 2006, the Ministry of the Treasury envisages the commencement of privatisations in the third of the above groups of health resorts, including “Uzdrowisko Przerzeczyn” Sp. z o.o., “Uzdrowisko Kamień Pomorski” Sp. z o.o., and Zespół Uzdrowisk Krakowskich S.A. Furthermore, the government’s Privatisation Lines for Treasury Assets in 2006 envisage the sale of shares in Zakłady Chemiczne Police S.A., and Zakłady Azotowe Puławy S.A., as well as privatisation of Ruch S.A., the largest press distribution company. How to Do Business in Poland 91 The Multi-methods Approach From the very beginning privatisation was considered to be one of the three most important components of the economic transformation, together with the economy’s stabilisation and liberalisation. There were 8,453 state-owned companies registered at the end of 1990. According to the Ministry of the Treasury, since the beginning of the privatisation of state-owned enterprises till the end of 2005, privatisation processes have been started in 5,715 state-owned companies. Moreover, assets of 1,654 liquidated state farms have been transferred to the Agricultural Property Stock of the State Treasury, bringing the total number of state enterprises involved in privatisation to 7,369. Of these, 21.4 % have been commercialised (the first stage of indirect privatisation), 30.6 % have started direct privatisation, 25.6 % have had liquidation procedures initiated due to their poor financial condition and the remaining 22.4 % is accounted for by liquidated state farms. The most characteristic feature of privatisation processes in Poland is the variety of privatisation methods used. The idea behind this diversity is to offer methods best suited to the size, financial situation, and importance of a given entity to be privatised. Poland’s original contribution to privatisation is the sectoral approach. Whole sectors or branches of industry have been analysed and strategies for their privatisation have been devised, first by the Ministry of Privatisation and later by the Ministry of the Treasury, once it was established. The Ministry decides which methods are best suited for individual enterprises, what role can be played by foreign capital in the privatisation of a given sector, and which enterprises can be offered to foreign investors. The legislation provides for two fundamental alternative methods of privatisation of state-owned enterprises. The first method, indirect or capital privatisation, consists of the ‘commercialisation’ of a state-owned enterprise or its transformation into a State Treasury corporation, either as a joint-stock company or as a limited liability company. The shares of the commercialised company are then offered to a third party. This method is usually applied to large and medium-size state enterprises. 92 IV. Privatisation Privatisation Results by Method at the end of 2005 (%) 21.4% 22.4% 30.6% 25.6% Commercialised Liquidation procedures initiated Direct privatisation started Liquidated State Farms Source: Ministry of the Treasury, 2006 The other method is direct privatisation (‘through liquidation’), which is applied mostly to small and medium-size state enterprises. Such liquidation is followed by the offer of the assets (which could include the whole business) directly to third parties, either for purchase or to lease. The assets of a company being liquidated may also be transferred to an existing company. The government also makes use of article 19 of the Law on State Enterprises of 25 September 1981 to put companies into private hands. This usually entails the liquidation of a state-owned enterprise in poor financial condition, followed by the sale of its assets to satisfy creditors. By the end of 2005, the liquidation procedure had been started in 1,884 enterprises and by the same date the process had been completed in 1,031 enterprises (54.7 %). Privatisation through debt – equity swaps was a form of capital privatisation, where state-owned enterprises were transformed into limited liability companies in which creditors were granted shares amounting to the enterprise’s debt. By 1 May 2004, only 17 state enterprises had been privatised this way. Since a lot of debt was retired during privatisations of this type, privatisation through debt-equity swaps had a public aid character. Therefore, as of the date of Polish accession to the EU, this form of indirect privatisation was abandoned. Finally, a remarkable achievement should be noted in the field of so-called ‘small privatisation’. Hundreds of thousands of small and medium-size retail and wholesale shops, restaurants, etc., which were previously owned by local authorities, were fairly rapidly sold. How to Do Business in Poland 93 Capital Privatisation A traditional form of capital privatisation is applied to large enterprises. The first stage in the capital privatisation is conversion of the enterprise into a company with all shares held by the State Treasury (commercialisation). Conversion into a joint-stock or limited liability company with all shares held by the State Treasury provides a clear management structure appropriate to the company’s size. Enterprises are valued independently, prospectuses are drawn up, a subscription is held and then a final allotment of shares is made. Accelerated privatisation may be applied to medium-size and small enterprises, where the whole or substantial parts of an enterprise could be sold to a single buyer. The initiative for such a transformation may come from: • the Minister of the Treasury, who takes the relevant decision on his own and notifies the director of the company, its Employee Council and its founding body; • the enterprise’s director and Employee Council; • the enterprise’s founding body, • the Regional Council, • the manager running the enterprise on the basis of a management contract. The newly created company assumes all the rights and liabilities of the transformed state enterprise and, subject to certain exceptions, takes on most of the employees of the transformed enterprise. Its opening balance sheet is the closing balance sheet of the state enterprise and its capital is the sum of the enterprise’s original capital and retained earnings. The charter of the company specifies how the capital is to be divided into share capital and reserve capital. On the conclusion of the charter, the management applies for registration of the new company, and the state enterprise is removed from the registry of state companies. The next step is to offer the company’s shares to private investors. Before this is done, the Ministry of the Treasury may order a financial review of the company in order to value its assets and to determine whether the company first requires restructuring, particularly when there has been a time lapse between incorporation and the presentation of the offer. The Ministry may also order an analysis of the legal status of the company’s assets to determine if there are any conflicting claims. There are four general methods for offering shares: public offer, negotiations initiated by public invitation, public tender, and accepting an offer made by a shareholder inviting other shareholders to sell their shares. Employees are eligible for up to 15 % of the shares of their companies free of charge. These shares cannot be traded on the Stock Exchange for a period of 2 to 3 years. 94 IV. Privatisation Under certain circumstances farmers and fishermen may acquire shares on the same basis as employees in the companies with which they have long-term contracts. State enterprises require permission from the Minister of Finance to acquire shares in other companies. By the end of 2005, according to the Ministry of the Treasury, 1,578 state enterprises had been commercialised, out of which 1,561 had been transformed into single-holder State Treasury joint-stock or limited liability companies. Out of this number, investors acquired shares in 1,020 companies, including 512 encompassed by the Mass Privatisation Programme. The Ministry of the Treasury has prepared a transfer list of companies being privatised individually and offered to foreign investors. This list provides potential investors with some basic information on the companies that are currently being privatised by trade sales or public offering. Initial contact by a potential investor should be with the sector/company adviser and if none has been appointed, then with an appropriate department of the ministry. The list is also available at the ministry’s website. The basic criteria for selecting the investor remain as follows: • the price for shares and terms of payment, • investment commitments, • the pro-export nature of the investment, • social commitments towards employees and sub-contractors (in the case of the food processing industry), • environmental protection investment plans, • accordance with Poland’s obligations towards the European Union and the OECD. The pricing, sale and distribution of shares is subject to thorough control and supervision. Fixing the price for each enterprise is carried out in strict compliance with market techniques. An active anti-monopoly policy supports the competitive process and counteracts any attempt to acquire capital control over any branch by a single investor. Direct Privatisation An enterprise may be privatised directly (‘through liquidation’), which is the fastest and most popular way of privatisation. It entails the direct sale or leasing of the assets of the liquidated enterprise. The characteristic feature of direct privatisation is that it is conducted by the founding bodies of state enterprises by consent of the Minister of the Treasury. The direct privatisation is decentralised. The founding bodies – 16 province governors – play the main role in the decision-making. However, the whole process of direct privatisation is controlled and supervised by the Ministry of the Treasury by granting its approval for implementation of individual projects. 95 How to Do Business in Poland By the end of 2005, privatisation through liquidation had been started in 2253 and completed in 2157 enterprises. This method is devised for smaller companies. In most cases, the privatised enterprises were sold or leased to employees and management of the enterprise. Direct privatisation is not only popular but also very effective. Almost 96 % of state-owned enterprises being privatised in this way have completed the process. Direct Privatisation by Forms at the end of 2005 11.0% 24.4% 3.0% Sale of assets - 24.4% Lease of the enterprise - 61,6% 61.6% Contribution of assets - 11.0% Mixed - 3.0% Source: Ministry of the Treasury, 2006 Direct privatisation can take several forms: Sale of assets. All or part of the assets may be acquired using the same methods as with the offering of shares by private local or foreign investors without any special permit. When an enterprise is sold as a whole and the legal ownership of land and other fixed assets under its control has been established, ‘fast-track’ privatisation may be implemented. In such cases the pricing of the enterprise is simplified by making use, within certain pre-set limits, of a valuation based on the book value of the enterprise and on the annual profits. This accelerates the process leading to a sale and also considerably reduces the cost of privatisation. An enterprise may be sold by instalments. In this case the first instalment amounts to at least 20 % of the agreed price and the outstanding amount plus interest must be paid within 5 years. Contribution of assets. Assets may be contributed to an already existing company or a company specially incorporated to receive these assets in exchange for shares. As the State Treasury becomes a partner, it is easier to mobilise a strategic investor. The shares acquired by the Treasury would eventually be sold in a public offer. Employee buyout (lease of the enterprise). The enterprise is liquidated and the new company leases the assets under a contract negotiated on behalf of the State Treasury by the founding body of the liquidated enterprise. This contract may give the lessee an 96 IV. Privatisation option to purchase. When only part of the assets is leased, the remainder may be sold or contributed to another company. Liquidation by means of a lease is considered appropriate for small companies and has proved to be the most popular method of direct privatisation, accounting for approximately 62 % of direct privatisations. Agricultural Property Agency The Agricultural Property Agency of the State Treasury (APA) was established under the Law on the Management of Agricultural Real Estate of the State Treasury dated 19 October 1991. APA was a trust organisation, authorised by the State Treasury to exercise ownership rights regarding state property in agriculture and obliged to take over all the property of liquidated state-owned farms, other agricultural real estate of the State Treasury, as well as realty from the National Land Fund. Furthermore, by virtue of the provisions of the Farmers’ Social Insurance Law of 20 November 1990 the Agency had been obliged to acquire agricultural real estate for the State Treasury stock at the request of farm owners having the right to social security pension, or disability pensions. On July 16, 2003 the Law on the Formation of Agricultural System of 11 April 2003 came into force, transforming the Agricultural Property Agency of the State Treasury into Agricultural Property Agency (APA). Other significant provisions of the Law stipulate, as follows: • • • APA has pre-emption or priority rights for buying agricultural real estate on the land market, subject to certain limitations, A family farm must be managed by an individual farmer and its total area can not exceed 300 ha, The individual farmer is defined as an owner or lessee of the family farm, managing farm personally, having appropriate qualifications or agricultural experience, living in the area of commune where at least one real property consisting his/her farm is located. Basically, the new APA took over the Agricultural Property Agency of the State Treasury’s tasks and its strategic objective to privatise the state’s agricultural property. The property entrusted to the Agency forms Agricultural Property Stock of the State Treasury (APS). Almost 80 % of APS land comes from liquidated state farms. APA can sell the property to one purchaser if the transaction does not result in the total area of agricultural land owned by the purchaser exceeding 500 ha. Moreover, a separate authorisation from the APA president is required for the conclusion of sale contract concerning real estate larger than 50 ha, as well as real estate with value exceeding the equivalent of 2000 tons of rye, defined pursuant to provisions on agricultural tax. 97 How to Do Business in Poland In accordance with existing regulations the APA may sell or lease agricultural property to foreigners who have obtained the required permit. By the end of 2005, the APA had sold 1,177 ha and leased 202,525 ha of land to foreigners. During the same period, Polish companies with a minority foreign stake purchased 41,333 ha and leased 126,688 ha of land from the Agency. The APA performs its tasks as a state legal person in accordance with the principle of self-financing. After the assets of a liquidated state agricultural enterprise have been taken over, restructuring programmes determine their use or disposal. These include: • sale; • lease or rent; • contribution in kind into other companies (including companies established by the APA); • transfer for management to the state entities without legal personality; • transfer of management administration; • conversion of stock. The following table summarises APA activities up to date. Land Taken over into APA Stock and its Redistribution by Province as at the End of 2005 (thousand hectares) Province Land taken over into APS Sold Transferred free of charge Land remaining in APS Total Dolnośląskie Kujawsko-Pomorskie Lubelskie Lubuskie Łódzkie Małopolskie Mazowieckie Opolskie Podkarpackie Podlaskie Pomorskie Śląskie Świętokrzyskie Warmińsko-Mazurskie Wielkopolskie Zachodniopomorskie Total 495 271 190 361 79 39 117 185 152 128 434 83 50 816 498 814 4,711 146 75 86 107 38 13 50 48 72 39 180 22 20 310 143 237 1,586 25 28 10 23 1 3 5 4 18 11 21 4 1 37 36 50 277 319 165 92 228 38 22 59 131 61 72 229 57 27 462 310 523 2,795 Leased 258 147 63 174 24 13 34 119 34 59 184 38 15 366 268 412 2,208 of which In perpetual usufruct 11 4 3 1 3 3 6 2 2 2 5 3 0 11 13 7 74 Awaiting for disposal 41 8 24 50 11 5 17 8 22 10 37 13 12 77 25 87 446 Source: APA, 2006 98 IV. Privatisation Real estate belonging to the Agricultural Property Stock of the State Treasury may also be transferred free of charge to territorial self-governments, the Polish Academy of Sciences, the chambers of agriculture or the National Board of Chambers of Agriculture, state universities, polytechnics and academies, as well as state R&D institutions. Farmland of low quality may be transferred free of charge to the State Forests, or lie fallow. Apart from those assets that are agriculturally productive, the State Treasury Stock contains assets of historical or national importance, acknowledged as being part of the cultural heritage. Assets of historical and national importance include land together with buildings, facilities, trees, etc. These assets are often offered for sale at discounted prices in order to facilitate their renovation. The Agency is headed by its president. In order to perform its tasks efficiently, the APA has set up 11 regional branches and 5 subsidiary offices. Some regional branches have set up smaller field units. The Agency sells or leases assets following a public open tender (auctions or bidding by written offer). The list of APA assets offered for sale or lease, as well as announcements regarding tenders, are posted in the relevant commune’s (gmina) office, and in the appropriate APA regional branch, or other organisational unit. An advertisement of the intended sale of property whose estimated value exceeds the equivalent of 10,000 quintals of rye – fixed according to the regulations on agricultural tax – must be published in newspapers having at least region-wide circulation. The list of assets for sale or lease is announced at least 14 days before the invitation for tender. The Agency may also organise closed tenders addressed to a defined groups of tenderers and may sell real estate at a price determined by law to certain categories of purchasers, who have the right of first purchase of given pieces of real estate. The Mass Privatisation Programme The MPP was devised as the most appropriate and expedient way of privatising and restructuring a large number of Poland’s state-owned enterprises, thereby accelerating the transformation of Polish industry. Each adult Polish citizen was eligible to take part in the MPP, which was approved by Parliament on 30 April 1993 under the Law on National Investment Funds and was finally launched at the end of 1994. The MPP encompassed 512 mostly medium-size companies (some 10 % of Polish industry). As a first step, 15 National Investment Funds (NIFs) were established to hold shares in those enterprises. Shares in each NIF were initially represented by Universal Share Certificates (USC), which were bearer securities. Each NIF is controlled by a How to Do Business in Poland 99 Supervisory Board charged with representing the interests of shareholders, who were initially all Polish citizens holding USCs. The law requires that two-thirds of the Supervisory Board members, including its chairman, are Polish citizens. The distribution of the USCs started in November 1995 and by end of the distribution period 25.8 million out of 28.3 million eligible adult Poles had picked them up. The conversion of the USCs into NIF shares (one USC for 1 share of each of the 15 NIFs) took place in 1997 and 1998. Since June 1997, NIF stocks are traded on the WSE. Market consolidation processes have led to a decrease in the number of NIFs. Currently (May 2006) there are 13 National Investment Funds. By the end of 2005, according to the Ministry of the Treasury, out of 512 companies participating in the NIF programme, 273 were completely privatised and the State Treasury still supervised 173 companies. Out of these, proceedings in bankruptcy were initiated in 83 companies and a further 7 were put into liquidation. An institutional, strategic and private investor from abroad can participate in the MPP in a variety of ways, for example: • Investors can purchase and trade in NIFs’ shares. • Financial and strategic investors may actively participate in the restructuring of individual participating companies by purchasing their shares when they are offered by NIFs, by providing equity or non-equity finance, by acquiring companies entirely, or by forming joint ventures. • Institutional investors may choose to purchase shares in individual participating companies. Restitution The nationalisation that took place in Poland shortly after World War II was based on a series of nationalisation decrees, which empowered the State Treasury to take over real estate from private owners. Since the beginning of the political and economic transformations in Poland it has been clear that it is the country’s obligation to compensate the owners, whose interests were violated. This need results from the basic principles and values contained in the Polish constitution, such as the principles of a democracy under the rule of law, of social justice, and of respect for private property. However, the problem of re-privatisation, i.e., the restitution of nationalised property to its original owners, has not yet been resolved, as there are no restitution regulations in force (as of May 2006). Parliamentary work on restitution has taken many years. There has been universal agreement to the principle that not all nationalised property could be returned to its original owners, either in kind or in the form of compensation. Unfortunately, that was 100 IV. Privatisation where the consensus ended. Presently, there is a draft restitution law, developed by the Ministry of the Treasury and approved by the Council of Ministers in February, 2005. It envisages compensation amounting to 15 % of the value of the real estate lost. Real estate located in Warsaw and abroad is to be covered by separate legislation. Nonetheless, nationalisation decisions that were issued with no legal basis or with infringement of the law can still be challenged on the grounds of constitutional legality. This process started in the 1990s along with the political and economic reforms. On the grounds of the Code of Administrative Procedure thousands of former owners have had their property returned or have been paid compensation. Thousands of others are still awaiting a court decision. Therefore, despite the lack of general legalisation, a process comprising some elements of property restitution to the former owners or a payment of compensation is in force. Passing restitution regulations is not only a moral obligation, but also has significant practical value, as in some cases unresolved restitution claims have been hampering the privatisation process. The government has been retaining 5 % of the stock of privatised companies as a ‘reserve’ to satisfy re-privatisation claims. Capital Markets The first Stock Exchange in Warsaw was opened on 12 May 1817. In the nineteenth century, it was mostly bonds and other debt instruments that were traded on the Warsaw bourse. Before the Second World War, there were seven Stock Exchanges operating in Poland, with Warsaw accounting for more than 90 % of the total trading. In 1989, along with the political changes, the new non-communist government began creating a capital market structure. The new legal framework, the Act on Public Trading in Securities and Trust Funds was adopted in March 1991, and the State Treasury established the Warsaw Stock Exchange joint-stock company in April 1991. At the same time, the Polish Securities Commission, with its chairman appointed by the prime minister, was created. Both the structure and the legal regulations of the Polish capital market were modelled on the most modern and efficient systems used elsewhere in the world that were relevant to Poland’s situation. Following a thorough review of several contemporary markets, a system based on French experience was adopted and implemented. The Securities Act of 21 August 1997, effective from 4 January 1998, facilitated the further development of Polish capital markets. Among the changes were further reconciliation of the Act with the regulations of the OECD and the European Union, the How to Do Business in Poland 101 introduction of securities lending and borrowing mechanisms, and the definition of the rules of underwriting. On 21 February 1998, the Act on Investment Funds was adopted, making the creation of new kinds of investment vehicles possible. The pension reform (see Chapter II, Pension System) resulted in the establishment of pension funds, thus increasing the institutional investors’ base. Presently, the legislative framework for Stock Exchange operations is formed by the following: • The Law on Public Offerings, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies of 29 July 2005, • The Code of Commercial Companies of 15 September 2000, • The Law on Trading in Financial Instruments of 29 July 2005, • The Law on Capital Market Supervision of 29 July 2005, • The Warsaw Stock Exchange Statutes, • The Rules and Regulations of the Warsaw Stock Exchange, • The Rules and Regulations of the Stock Exchange Court. The Warsaw Stock Exchange, the only securities exchange in Poland, is a non-profit joint-stock company. Its share capital stands at PLN 42 million, divided into 60 thousand registered shares. The shares of the WSE may be purchased by banks, brokerage houses, the State Treasury, trust fund companies, insurance companies, and the issuers of securities approved for public trading and listed on the WSE. The structure of the Warsaw Stock Exchange is as follows: The General Meeting The General Meeting is the WSE’s highest decision-making body. Its role is to put changes to the Statutes and Rules into effect and to elect members of the Supervisory Board. It consists of all WSE shareholders. The Supervisory Board The Supervisory Board controls the operation of the exchange, admits securities for trading, and grants and recalls stock exchange membership. It consists of 12 members appointed by the General Meeting, representing the shareholders. The Management Board The Management Board co-ordinates the day-to-day operations of the WSE and introduces securities to exchange trading. The Management Board consists of five members. The President, elected by the General Meeting for a three-year term, directs Management Board activities. 102 IV. Privatisation The high standard of the regulations and operations of the Warsaw Stock Exchange has been recognised by the international community. In October 1994, the Warsaw Stock Exchange was admitted as a full member to the International Federation of Stock Exchanges, presently the World Federation of Exchanges (WFE). In June 2004 the WSE became a full member of the Federation of European Securities Exchanges (FESE). WSE trading takes place on two separate markets, governed by separate rules: • the main (regulated official) market; • the parallel (regulated unofficial) market. Moreover, a Plus segment has been established on the main market. The conditions for inclusion of companies in this segment comprise not only measurable requirements, but also certain qualitative features, such as the adoption of all corporate governance best practices. Similarly, a Prim segment has been created within the parallel market, with membership requirements containing appropriate issuer-investor communication standards, as well as the obligation to publish a wider range of financial data in consolidated quarterly reports. 2005 was the most successful year in WSE history. As a result of the bull market, several all-time highs were set. Equity session trading on the Polish bourse increased substantially, reaching over PLN 175 billion, up from PLN 110 billion in 2004. This translates roughly into USD 215 million a session, in comparison to approximately USD 120 million a session in the previous year. Taking into account off-session trading, the total annual turnover value for equities amounted to almost PLN 197 billion. The trade in futures almost doubled in 2005, reaching PLN 238 billion, up from PLN 125 billion in 2004. However, stock exchange trading in bonds reached just over PLN 5 billion, a third less than the year before. In 2005 all the major WSE indices reached their new highest values. In the course of the year, the WIG index set its new all-time high 45 times, while the WIG20 outperformed itself 11 times and the MIDWIG index 36 times. End of the year values of the main WSE indices are presented in the following table. 103 How to Do Business in Poland Major WSE Indices End of the Year Index Value 2005 2004 WIG20 WIG MIDWIG TechWIG WIRR NIF WIG-PL 2,654.95 35,600.79 2,207.74 844.41 5,461.94 104.3 35,228.72 1,960.57 26,636.19 1,730.10 666.26 4,742.96 97.96 26,566.94 Rate of Return YTD in EUR 43.11 % 41.25 % 34.85 % 33.94 % 22.02 % 12.52 % 40.47 % Source: WSE, 2006 The basic statistics of WSE turnover during the last year are presented in the following two tables, which contain information on the equity and futures markets’ performance. WSE Equity Market Trade in 2005 (PLN billion) 2005 2004 Change (%) Number of listed companies 255 230 10.9 Number of newly-listed companies 35 36 -2.8 Domestic companies’ market capitalisation (PLN billion) 308.4 214.3 43.9 Total market capitalisation (PLN billion) 424.9 291.7 45.7 Annual session trading (PLN billion) 175.4 109.8 59.8 Average trading per session (PLN million) 699 430 62.5 * 21.3 17.5 21.6 Annual off-session trading (PLN billion) * Includes block trades, invitations to sell shares, and public offerings carried through the WSE Source: WSE, 2006 WSE Futures Market Trade in 2005 (PLN billion) 2005 Number of series Total turnover volume - number of contracts (thousand) Annual trading (PLN billion) Average trading per session (PLN million) Open interest at the end of the year (thousand) 54 5,379 238.0 948 33.4 2004 49 3,609 125.5 492 30.3 Change (%) 10.2 49.0 89.7 92.7 10.4 Source: WSE, 2006 The impressive dynamics of the WSE’s development are best reflected in the growing number of companies listed and in its booming capitalisation, which has more than quadrupled over the past four years, to reach PLN 425 billion (approximately USD 130 billion) at the end of 2005. Domestic companies accounted for PLN 308 billion. By the end of 2005, there were 255 companies listed on the WSE, including 7 foreign ones. This number encompassed 240 quoted in continuous trading, and the remaining 15 in the single-price auction system. 104 IV. Privatisation 400 350 0 230 424.900 291.697 203 167.717 83 130.085 65 123.411 50 72.422 100 143 43.766 150 198 24.000 200 216 110.565 250 230 221 225 103.370 255 300 11.271 Capitalisation at year-end (PLN billion) 450 300 275 250 225 200 175 150 125 100 75 50 Number of listed companies Warsaw Stock Exchange - Number of Listed Companies and Capitalisation at Year-end 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: WSE, 2006 More information on trading in shares and bonds on the WSE in 2005 is contained in Appendices 12 and 13, respectively. No restrictions are placed on foreign investors. Rules on taxation for foreign investors are regulated by inter-governmental treaties on the avoidance of double taxation, or agreements on reciprocity treatment. Such treaties have been signed with a vast majority of OECD countries (see Appendix 6). The rule of free entry and exit exists in Poland in terms of foreign investment. Capital gains can be repatriated without obtaining any permission. In 2005, based on a survey of WSE members, foreign investors’ share in the trading of Polish companies’ stock on the WSE was estimated at 41 %. Polish individual investors accounted for 26 % of this trade and Polish institutional investors for the remaining 33 %. Polish individual investors dominated trade on the futures market (75 %) with Polish institutional investors accounting for 20 % of futures trading and foreign investors accounting for just 5 %. The sectoral structure of companies listed on the Warsaw Stock Exchange as of May 2006 is presented in the following table. 105 How to Do Business in Poland WSE Main Market Sector Figures as of 11 May 2006 No. of Share in Total companies Market Value (%) INDUSTRY 130 40 Food 20 3.2 Light Industry 11 0.3 Wood & Paper 7 1.8 Chemicals 18 4.6 Oil & Gas 3 14.9 Building Materials 12 1.3 Construction 26 3.9 Electrical Engineering 15 1 Metals 16 9 Other 2 0.1 FINANCE 20 41.9 Banking 14 41.1 Insurance 2 0.6 Other 4 0.2 SERVICES 83 18.1 Wholesale & Retail 27 2.3 IT 25 2.2 Telecom 6 9.2 Media 9 3 Other 16 1.3 TOTAL 233 100 Sector name * indicator for companies with earnings Market Book Value Value (PLN mil) (PLN mil) 154,344 75,169 12,467 3,919 1,158 407 7,025 2,148 17,588 6,642 57,362 44,941 4,977 1,706 15,219 4,336 3,708 1,426 34,511 9,398 329 245 161,442 46,629 158,372 45,420 2,252 1,063 819 146 69,656 31,641 9,008 2,448 8,402 2,945 35,485 20,751 11,565 2,085 5,196 3,412 385,443 153,439 P/BV 2.05 3.18 2.84 3.27 2.65 1.28 2.92 3.51 2.60 3.67 1.34 3.46 3.49 2.12 5.61 2.20 3.68 2.85 1.71 5.55 1.52 2.51 P/E 13.3 19.1 14.5 23.3 26.5 8.8 22.6 23.2 30.2 14.7 46.5 20.7 20.7 17.6 68.6 21.3 24.4 25.3 17.1 32.7 35.8 17 (*) 12.7 18.5 10.7 23.1 26.4 8.8 17.4 17.1 24.6 13.8 24.8 20.7 20.7 17.6 41.8 17 22 23.1 12.9 32.7 23.4 16 Dividend Yield (%) 2 3 0.5 4.8 1.1 2.5 3.7 0.1 0.4 1.5 3.2 3.3 0.6 0.3 0.9 0.5 0.3 1.4 0.1 1 2.3 Source: WSE, 2006 The Polish Securities Commission (PSC) is the only administrative body authorised to bring securities into public trading. An entity that wants its shares or bonds to be publicly traded is obliged to prepare an issue prospectus. The PSC ensures that the prospectus fulfils detailed conditions specified by law and grants permission for public trading. The issuance of GDRs and ADRs also requires the approval of the PSC. The PSC also exercises administrative supervision over the activities of brokerage houses and grants permits for each specific area of a brokerage house’s activities. At the end of 2005, there were 43 brokerage houses operating in Poland, of which 9 were bankowned and 34 independent. All securities brokers are licensed by the Polish Securities Commission. At the end of 2005 their number reached almost 1,800. As of 31 December 2005, there were 23 Investment Fund Corporations operating on the Polish market, managing 190 funds. As of May 2006 there were 97 entities authorised to distribute funds’ participation certificates, and 6 transfer agents. 106 IV. Privatisation One great achievement of the WSE was to attract millions of ordinary Poles, as well as a large number of foreign investors. This was possible in part due to a long-lasting bull market on the bourse, but most of all it was due to fast economic growth, political stability, and to the market’s efficiency and transparency and to the clear and comprehensive rules which govern it. The challenge is to complete the development of the WSE into a fully-fledged capital market, playing an important part in the economy. Following European trends, the WSE is preparing for some important, strategic changes, including privatisation, and transformation from a non-profit to a profit organisation. Finally, one should mention that there were 103 securities, including 18 stocks, 35 corporate bonds and 41 treasury bonds, listed on the regulated off-exchange market (MTS-CeTO S.A.) in May 2006. How to Do Business in Poland 107 V. FOREIGN INVESTMENT Companies and individuals from EU and EFTA countries – members of the European Economic Area operate in accordance with the principles applicable to domestic entrepreneurs State aid for new investments compatible with the EU public aid standards Investment incentives in 14 Special Economic Zones Assistance from the Polish Information and Foreign Investment Agency and from other entities The most important reasons for investing in Poland: economic growth prospects, size of the market, low labour costs Foreign direct investment of USD 75.8 billion Over 54 thousand companies with foreign participation The most popular sectors: insurance, the car industry, and the hotel and restaurant business Minor Polish investments abroad How to Do Business in Poland 109 V. FOREIGN INVESTMENT Legal Considerations As of 21 August 2004, business activities conducted by Polish residents, as well as nonresidents in Poland, are subject to the Law on Economic Freedom of 2 July 2004 and the Code of Commercial Companies of 15 September 2000. However, some provisions of the previous Law on Commercial Activity of 19 November 1999 (art. 7 - 7i, concerning registration) still apply, until 31 December 2006. The Law on Economic Freedom defines non-residents and foreign entities (foreign persons) as well as foreign entrepreneurs: a foreign person is a natural person residing abroad, without Polish citizenship, a legal person with its seat (registered office) abroad, or an organisational unit not being a legal entity but having legal capacity, with its seat abroad; a foreign entrepreneur is defined as a foreign person running a business abroad. Foreign persons from the EU and EFTA states – members of the European Economic Area – may operate in Poland in accordance with the principles applicable to domestic entrepreneurs. The same applies to citizens of other countries, who: • received a permit for settlement in Poland, or • received residence permit for a specified period (only certain, specified cases), or • obtained an EC long-term residence permit for the territory of Poland, or • obtained consent for a tolerated stay, or • obtained refugee status in the Republic of Poland, or • enjoy temporary protection within the territory of Poland. Other foreign persons may conduct their operations solely (unless stated otherwise in international agreements) in the following legal forms: • a limited partnership (Spółka komandytowa); • a limited joint-stock partnership (Spółka komandytowo-akcyjna); • a limited liability company (Spółka z ograniczoną odpowiedzialnością – Sp. z o.o.); • a joint-stock company (Spółka Akcyjna – S.A.). They may also enter into such partnerships or companies and acquire their shares. Furthermore, foreign entrepreneurs may establish branches and representative offices. A company registered in Poland acquires legal personality upon being entered in the Register of Companies at the National Court Register of the Economic Court having jurisdiction over the seat of the company that is being formed. The obligation to be registered rests on companies operating under commercial law, state-owned enterprises, co-operatives, and other entities, as specified in the Law on the National Court Register 110 V. Foreign Investment of 20 August 1997. This also applies to natural persons undertaking business activities in Poland. Setting up a company is one way of doing business, buying an already operating one is another. Foreign investors may receive or acquire shares in companies already existing in Poland. Shares may be acquired in public sales, through the Stock Exchange or, if the company is not listed on the Stock Exchange, through individual negotiations with the existing owners. The Law on Economic Freedom enumerates six areas in which economic activity may be undertaken only if an appropriate license (koncesja) is granted. These are: • prospecting, identifying, and extracting of mineral deposits, tankless storage and waste disposal in formations, including unused underground mining excavations; • manufacturing and trading in arms, ammunition, or explosives as well as in military and/or police products and technologies; • manufacturing, processing, storing, transmitting, distributing, or trade in energy and fuels; • personal and property protection; • radio and TV broadcasting; • air transportation. The licenses are granted for a period of no less than five and no more than fifty years, unless the entrepreneur applies for a shorter period. Another type of license (licencja), which is easier to obtain, is required in order to provide road or rail transportation services. Furthermore, operating in some other areas requires a permit (zezwolenie) on the grounds of other legislation. The Law on Economic Freedom enumerates almost thirty such areas through direct reference to the respective laws. These include the production of alcohol and tobacco, toxic, or poisonous substances, pharmaceuticals, intoxicants, and radioactive materials, as well as the operation of banks, insurance companies, brokerage houses, and casinos. A positive decision concerning the granting of a permit depends solely on the applicant’s compliance with the appropriate statutory conditions. This eliminates the arbitrariness of decisions concerning the granting of permits for commercial activity. Applying the same rules to domestic and foreign investors means that there is no minimum value set on the contribution to be made by a foreign party (subject to overall minimum share capital requirements for companies) and no provisions either for the minimum or maximum percentage share of foreign participation in the equity of a company. Nevertheless, just as in other EU countries, in rare cases a company may be excluded from a specific field of activity when the share of foreign parties in its total equity exceeds a certain proportion (e.g., broadcasting). How to Do Business in Poland 111 According to the Polish Code of Commercial Companies, the minimum founding capital of: • A limited liability company amounts to PLN 50,000 (approx. USD 15,000) and must be fully paid up on incorporation. The minimum value of each share is PLN 50 and the minimum number of founders is one person; • A joint-stock company amounts to PLN 500,000 (approx. USD 150,000). At least 25 % of the founding capital must be contributed on incorporation (and at least 25 % of the cash capital). The minimum nominal value of each share is PLN 0.01 and the minimum number of founders is one person. However, a joint-stock company can not be established exclusively by a limited liability company. For more information on how to establish the above-mentioned types of companies please refer to Chapter X. Contributions by a foreign investor to the company’s capital may be made in-kind, in cash (in PLN obtained from documented sources), or in foreign currency transferred by the foreign investor through a foreign bank. Contribution in-kind to a joint-stock company is reviewed by court-appointed experts. After the annual balance sheet has been approved by the shareholders (and audited if the company is subject to a statutory audit) a foreign shareholder is entitled to transfer abroad the whole of his share of the after tax profit. Foreign investors are also allowed to transfer abroad proceeds from the sale of stocks and shares, and other assets or compensations received. Companies are free to employ whomever they may choose, including a foreign national (subject to work permit requirements), with pay terms at the discretion of the company (subject to minimum wage legislation). Foreign employees are allowed to buy foreign currency for the PLN they earn in Poland and transfer the currency abroad. Alternatively, the employer may transfer the net pay directly to the employees’ foreign bank account. The interests and rights of foreign investors, as well as their property, are protected by law. Poland has signed bilateral agreements on the protection and promotion of foreign investment with a number of countries (see Appendix 7). Foreign investors are guaranteed compensation in the case of the nationalisation or expropriation of their property. Poland is an EU country and a member of MIGA and OECD. Following EU regulations, special (more favourable) treatment is granted to small and medium-size enterprises. This applies in particular to public aid measures described in the next sub-chapters. As of 1 January 2005, pursuant to Commission Recommendation 2003/361/EC of 6 May 2003, the category of micro, small, and medium-size enterprises (SMEs) is defined as follows: 112 V. Foreign Investment • employ fewer than 250 persons, and • have an annual turnover not exceeding EUR 50 million, and/or • an annual balance sheet total not exceeding EUR 43 million. It is worth noting that in comparison to the previous definition, the financial ceilings have been raised, thus encompassing more companies in this category. The data to apply to the headcount of staff and the financial amounts are those relating to the latest approved accounting period and calculated on an annual basis. They are taken into account from the date of closure of the accounts. The amount selected for the turnover is calculated excluding value added tax (VAT) and other indirect taxes. Where, at the date of closure of the accounts, an enterprise finds that, on an annual basis, it has exceeded or fallen below the above headcount or financial ceilings, this will not result in the loss or acquisition of the status of medium-size, small or microenterprise unless those ceilings are exceeded over two consecutive accounting periods. The headcount corresponds to the number of annual work units (AWU), i.e. the number of persons who worked full-time within the enterprise in question or on its behalf during the entire reference year under consideration. The work of persons who have not worked the full year, the work of those who have worked part-time, regardless of duration, and the work of seasonal workers are counted as fractions of AWU. The staff consists of: • employees; • persons working for the enterprise being subordinated to it and deemed to be employees under national law; • owner-managers; • partners engaging in regular activity in the enterprise and receiving financial advantages from the enterprise. Apprentices or students engaged in vocational training pursuant to an apprenticeship or a vocational training contract are not included as staff. The duration of maternity or parental leaves is not counted. How to Do Business in Poland 113 State Aid for New Investments It is important to note that financial investment incentives, fully compatible with the EU legislation besides the exceptions granted to Poland within the framework of transition periods (e.g. regulations concerning Special Economic Zones in the following sub-chapter) come from many sources and that there is no specific single act which regulates granting aid to investors. As of the date of Poland’s accession to the European Union (1 May 2004) the grounds for allowing public aid in Poland are the same as in other EU countries. These grounds are laid out in art. 36, art. 73, art. 86-89 and art. 296 of the European Treaty. The local legal framework is formed by the Law on Public Aid Procedure of 30 April 2004 and the Law on Financial Assistance for Investments, passed by the Parliament on 20 March 2002. This law was substantially changed by the aforementioned Law on Public Aid Procedure, due to Poland’s EU membership requiring conformity with the EU public aid policy. The public aid is monitored by the president of the Office for Competition and Consumer Protection. Basically, investors in Poland can benefit from regional aid, sectoral aid for investments in sensitive sectors, excluded from the regulations of the Law on Financial Assistance for Investments, and horizontal aid. Horizontal aid schemes provide for further assistance, over the limits of regional aid, in case of specific projects, such as projects in R&D, or environmental protection. The Law on Financial Assistance for Investments defines the basis for, forms of, and particular conditions for granting regional aid to companies operating in Poland. It does not apply to financial assistance for entrepreneurs operating in the following sectors: • synthetic fibres; • coal mining; • the iron and steel industry; • shipbuilding; • fishing; • production, processing and trade in agricultural products listed in Enclosure 1 to the European Treaty. According to the above mentioned law, financial assistance for new investments may be granted to an entrepreneur in the following cases: • the value of the new investment equals at least EUR 10 million; • the value of the new investment equals at least EUR 500 thousand and the investment pertains to the development or modernisation of an existing company and is connected with maintaining at least 100 jobs for at least 5 years; • the new investment results in the creation of at least 20 jobs for at least 5 years; 114 • • • V. Foreign Investment the new investment introduces a technological innovation; the new investment has a favourable environmental impact; the new investment is located in an industrial, or technology park. Financial assistance for a projected investment may be granted to an entrepreneur if, in addition to one of the above, the investment meets all of the following criteria: • the entrepreneur’s own financing equals at least 25 % of the investment outlay; • economic activity resulting from the assisted investment will be carried out for at least five years from the investment’s completion; • if financial assistance is earmarked for creating new jobs, the newly created jobs are to be maintained for at least five years from the investment’s completion; • application for financial assistance of a new investment is submitted before the investment begins. Financial assistance to entrepreneurs embarking on new investments can be granted in various forms and amounts, defined in art. 5 and 6 of the law. It is granted by the Minister of the Economy, upon reviewing the following general criteria: • location of the new investment; • value of the new investment; • employment; • impact of the new investment on the environment; • impact of the new investment on the regional economic development; • innovativeness of technology applied in the new investment to produce goods and/or provide services; • the new investment’s conformity with directions acknowledged as priorities. The maximum amount of financial assistance granted to entrepreneurs basically depends on the sector, location of the investment, and size of the company applying for assistance. The state assistance is limited to 50 % of either eligible investment outlays, or the twoyear labour costs of newly hired employees (whichever is higher), except in: • Warsaw and Poznań (30 % limit), and • Gdańsk-Sopot-Gdynia, Cracow and Wrocław (40 %). A higher ratio (+15 %) applies to small and medium-size enterprises (SMEs), bringing the public aid ceiling up to 65 % of the investment. However, this higher ratio does not apply to companies operating in the transportation sector. On the other hand, the assistance limits for the car industry and for large investments (over EUR 50 million) are lower. It is also worth mentioning that there are about one hundred assistance programs of diverse scopes and amounts offered by various authorities. The up to date list of these programs is available at the website of the Office for Competition and Consumer Protection, http://www.uokik.gov.pl/pl/pomoc_publiczna/2_programy_pomocowe/. How to Do Business in Poland 115 R&D Support Industrial research projects and pre-competitive developments conducted by companies and groups of companies may benefit from public aid (subsidies) on the grounds of the Law on the Principles for Financing Science of 8 October 2004 and Commission Regulation (EC) No 364/2004 of 25 February 2004 amending Regulation (EC) No 70/2001 as regards the extension of its scope to include aid for research and development. The latter regulation defines industrial research and pre-competitive development, as follows: • industrial research means planned research or critical investigation aimed at the acquisition of new knowledge, the objective being that such knowledge may be useful in developing new products, processes or services or in bringing about a significant improvement in existing products, processes or services; • pre-competitive development means the shaping of the results of industrial research into a plan, arrangement or design for new, altered or improved products, processes or services, whether they are intended to be sold or used, including the creation of an initial prototype which could not be used commercially. This may also include the conceptual formulation and design of other products, processes or services and initial demonstration projects or pilot projects, provided that such projects cannot be converted or used for industrial applications or commercial exploitation. However, pre-competitive development does not include the routine or periodic changes made to products, production lines, manufacturing processes, existing services and other operations in progress, even if such changes may represent improvements. Maximum public aid, as percentage of eligible costs, amounts to: • 50 % for industrial research, 60 % in the case of SMEs, and 70 % in the case of SMEs applying jointly with a R&D institution; • 25 % for pre-competitive development, 35 % in case of SMEs, and 45 % in case of SMEs applying jointly with a R&D institution. Eligible costs are defined as follows: • personnel costs (researchers, technicians and other supporting staff to the extent they are employed on the research project); • costs of instruments and equipment to the extent and for the duration they are used for the research project. If such instruments and equipment are not used for their full life for the research project, only the depreciation costs corresponding to the life of the research project, as calculated on the basis of good accounting practice, are considered eligible; • costs for buildings and land, to the extent and for the duration they are used for the research project. With regard to buildings, only the depreciation costs corresponding to the life of the research project, as calculated on the basis of good 116 V. Foreign Investment accounting practice, are considered as eligible. For land, costs of commercial transfer or actually incurred capital costs are eligible; • costs of consultancy and equivalent services used exclusively for the research activity, including research, technical knowledge and patents bought or licensed from outside sources at market prices, where the transaction has been carried out at arm's length and there is no element of collusion involved. These costs are only considered eligible up to 70 % of total eligible project costs; • additional overheads incurred directly as a result of the research project; • other operating expenses, including costs of materials, supplies and similar products incurred directly as a result of the research activity. Applications for co-financing industrial research projects and pre-competitive developments are to be submitted to the Ministry of Science and Higher Education. The application form and more specific information (in Polish), including selection criteria, can be found at the ministry’s website. Special Economic Zones The Law on Special Economic Zones of 20 October 1994 created the grounds for establishing and operating Special Economic Zones (SSE). It provided the investors operating in the zones with various incentives and tax breaks. The most important ones included a partial or a complete exemption from corporate income tax on revenue coming from business operations carried out in a given zone, and counting some part of investment expenses as an income-generating cost. The law specifies the aims of Special Economic Zones and how to establish them, the rules and conditions applying to investments within the zones, and the benefits for investors. All investors who started business operations in SSEs before the end of 2000 are subject to the provisions applicable till then. Those who started business operations in 2001 or later are subject to the provisions of the amended Law of 16 November 2000 and the Public Aid Law of 30 June 2000, the latter having been replaced by the Law on Public Aid Procedure of 30 April 2004. An investor, in order to take advantage of regional assistance has to obtain a permit for conducting business operations in a zone and must first meet its terms and conditions. The permit is granted by the zone’s management (see Appendix 21 for the list of Special Economic Zones) through a tender or through negotiations undertaken on the basis of a public invitation. Such a permit specifies a field of activity, the size of the investment, and future employment. How to Do Business in Poland 117 Procedures for obtaining a permit vary from one zone to another, however a typical procedure involves the following steps: • the investor contacts the SSE’s management, gathering information on investment terms and conditions and available locations; • the investor visits the SSE, defining possible locations, submitting a formal letter of intent and/or preliminary application/offer; • the SSE’s management analyses and evaluates the preliminary offer, the land plot is specified; • further negotiations are carried out; • the SSE’s management announces a tender concerning the permit and finalises its terms of reference; • the tender procedure takes place, investors purchase the terms of reference, pay the tender deposit and submit their tenders, which are subsequently opened and evaluated by the tender commission and the winning bidder is selected; • the SSE’s management grants the permit to the winning bidder. Permits are not granted and public assistance is not offered for some types of business activity. These include: manufacturing of explosives, production of tobacco products, bottling and processing of spirits and other alcoholic beverages, processing of engine fuels, running game centres, offering services connected with the installation, repair, or maintenance of machinery and equipment used to carry out business operations in the zone, certain types of construction services, services connected with retail and wholesale trade, repair of motor vehicles and household and personal-use articles, hotel and catering services, financial mediation services, services connected with real estate, renting, education and business operations, services in the area of public administration, national defence, obligatory social insurance, education, health care and social welfare, municipal services, and some licensed business activities. The exclusions are defined for each SSE separately in the decree of the Council of Ministers concerning particular SSE. Regional assistance in SSEs is offered in the form of income tax exemptions. The amount of state aid available is calculated either on the basis of eligible expenditure, or on the basis of two-year employment costs of the newly employed personnel, multiplied by the maximum intensity of the aid. However, in the latter case it can not exceed EUR 4000 per job created. Maximum assistance is offered in all the zones, except for the Cracow Technological Park. Generally speaking, the value of assistance may not exceed 50 % of the initial investment outlays, or 50 % of two years’ labour costs. To qualify for assistance based on the amount of initial investment outlays, these outlays must equal at least EUR 100,000. More advantageous treatment is offered to small and medium-size companies. In this case, the maximum value of public assistance is increased to 65 %. In the above 118 V. Foreign Investment mentioned Cracow SSE, the maximum value of assistance amounts to 40 % in the case of large companies, and 55 % in the case of small and medium-size companies. Euro-Park Mielec was the first Special Economic Zone established. By the end of 1998 there were 17 Special Economic Zones in Poland. Since two of them did not manage to attract any investors, they were shut down in 2001. Moreover, two SSEs (SSE Tczew and SSE śarnowiec) merged to form the Pomorska SSE in 2001. Currently there are 14 SSEs encompassing an area of 7,558 hectares (as of 31 December 2005), with an additional 442 hectares available for large investments (over EUR 40 million, or over 500 jobs). The zones will be in operation till 2015-2017. The following table summarises the effects of the operations of the 14 SSEs in Poland in terms of investment, employment, and the number of permits as of 31 December 2005. Results of Operations in SSEs Zone 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Kamiennogórska SSE Katowicka SSE Kostrzyńsko-Słubicka SSE Krakowska SSE Legnicka SSE Łódzka SSE Mielecka SSE Pomorska SSE Słupska SSE Starachowicka SSE Suwalska SSE Tarnobrzeska SSE Wałbrzyska SSE Warmińsko-Mazurska SSE Total Valid permits 26 118 70 21 41 59 73 42 27 45 62 81 59 43 767 Permits issued in 2005 10 24 25 5 9 14 9 4 8 10 8 18 22 9 175 Actual investments (PLN million) 606.0 7,713.9 1,039.3 463.1 2,780.5 2,061.8 2,363.2 1,428.8 135.6 372.5 478.1 1,070.5 4,596.5 597.2 25,707.0 % of total investments Employment in SSEs 2.4 2,329 30.0 21,690 4.0 7,241 1.8 3,823 10.8 5,385 8.0 5,380 9.2 11,003 5.6 10,152 0.5 1,541 1.4 4,830 1.9 3,739 4.2 10,306 17.9 18,789 2.3 5,960 100.0 112,168 Source: Ministry of the Economy, 2006 Considering both the legislation and the practical results up to date, it must be noted that conducting business in special economic zones in Poland has proven to be very advantageous for investors. Poland’s accession to the European Union significantly accelerated foreign direct investments in SSEs, which attracted 34 large projects in 2005. The most important of these included investments by LG Electronics Mława, which created 2,150 new jobs, Johnson Controls (909 jobs), and MAN Trucks (650 jobs). In terms of investment value, the largest project of 2005 came from Michelin Polska (523 jobs and PLN 982.2 million invested). How to Do Business in Poland 119 By the end of 2005, companies operating in Polish SSEs invested almost PLN 26 billion and employed over 112,000 persons. In 2005, 175 permits were issued (in comparison to 98 in 2004), indicating a growing interest in starting up activities in Polish SSEs. Some incentives may differ from zone to zone, especially those regarding local taxes and services offered to investors by the zones’ managing companies. Therefore, a detailed knowledge of the regulations regarding the particular zone is essential in order to make the most of the incentives offered. Generally, apart from tax exemptions (corporate income tax, local taxes) investors benefit from free assistance with the red tape, as well as from acquiring developed land for investment purposes at competitive prices. Special Economic Zones represented one of the toughest issues in Poland’s accession negotiations with the European Union. The European Commission accepted the state aid measures applied as of 1 January 2001, but could not accept the extensive investment privileges granted to companies investing in the zones on the grounds of the old regulations (i.e., those from before 2001), which the SSEs’ investors were naturally reluctant to give up. Finally, in December 2002, at the end of the accession negotiations the following compromise was negotiated: • a transition period (i.e., respecting the acquired rights) for small enterprises, till the end of 2011, and for medium-size enterprises till the end of 2010; • for big enterprises that had obtained their permits by the end of 1999, the maximum state aid amounts to 75 % of investment costs, and for permits issued in 2000, 50 % of investment costs; • for enterprises in the automotive industry the maximum state aid amounts to 30 % of investment costs. The above provisions are part of the Accession Treaty. Institutional Structure for Foreign Direct Investments Polish Information and Foreign Investment Agency (PAIiIZ) was established in June 2003 through a merger of Polish Agency for Foreign Investment (PAIZ S.A.) and Polish Information Agency (PAI S.A.). It took over the responsibilities of both institutions. The Agency’s role is to stimulate the inflow of foreign direct investment into Poland, to provide comprehensive services to foreign investors in Poland, to offer individually-tailored information about the Polish economy and to support exports by promoting a positive image of Polish goods and services. PAIiIZ is also responsible for general economic promotion of Poland abroad. 120 V. Foreign Investment The agency acts as an intermediary, serving individual and corporate foreign investors. PAIiIZ offers foreign companies its know-how and helps them to establish contacts with government institutions and the business community. The range of services includes: • quick and tailored information on the economic and legal environment in Poland; • help in identifying reliable Polish partners and the most convenient locations for business activities; • facilitating the initial stages of the investment process; • guidance through all the formal procedures by handling contacts with authorities on both central and local levels; • updated publications, including papers regarding foreign investments, in-depth analyses of particular sectors of the Polish economy, and others. PAIiIZ offers a wide range of information, advice, and guidance services to prospective foreign investors free of charge. There are several state entities responsible for the privatisation of the Polish economy, and thus dealing with foreign investors taking part in it. Naturally, the most important of these entities is the Ministry of the Treasury; another, dealing with agricultural property, is the Agricultural Property Agency (APA). Both of these are described in Chapter IV. In addition, the Ministry of Transport is in charge of the privatisation of Polish Railways, and Nafta Polska S.A. (a state corporation) leads the privatisation of the oil and heavy chemistry sectors. Quite often potential foreign investors abroad first contact the Polish commercial counsellor’s offices and the economic divisions of Polish embassies. These can facilitate initial contacts with Polish counterparts, as well as provide some very useful economic data and information. To some extent, the promotion of foreign investment in Poland is also carried out by the Polish Chamber of Commerce and other sectoral and bilateral chambers. The Warsaw Office of the United Nations Industrial Development Organization (UNIDO), which offers its assistance to individual potential foreign investors, also plays an important role in the promotion of foreign direct investment. By opening its Investment and Technology Promotion Office in Warsaw in 1983, UNIDO became one of the first international organisations to establish close relations with Poland. The UNIDO Office in Warsaw has been very active in attracting foreign investors to Poland. Already in the late 1980s it was organising International Investors’ Forums, which enabled the international business and financial community to get acquainted with the investment environment and opportunities in Poland. How to Do Business in Poland 121 For further information on UNIDO’s current activities, and especially on UNIDO’s Warsaw Office, please refer to Chapter II, the sub-chapter on UNIDO and its activities in Poland. Why Invest in Poland? The high inflow of foreign direct investments is a clear proof of the country’s investment rating in the eyes of foreign entrepreneurs. Sixteen years after the introduction of successful economic reforms, Poland remains the leader in Central and Eastern Europe in terms of attracting FDI. Furthermore, a global awareness and recognition of foreign direct investment opportunities in Poland is growing. This is visibly reflected in various rankings of the most attractive investment target countries. According to the latest FDI Confidence Index, an annual survey of executives from the world's largest companies conducted by global management consulting firm A.T. Kearney, Poland is ranked as the fifth most favoured investment location (second in Europe). Poland enjoys the attention of foreign investors for various reasons. The features that particularly appeal to foreign entrepreneurs include: • • • • • • • • • • • continued, stable, and fast economic growth, the size of the Polish market of 38.2 million inhabitants, 40 % more than the Czech Republic, Slovakia, and Hungary put together, EU membership as of 1 May 2004, providing a market of 460 million consumers, as well as assuring a more transparent and predictable business environment, ease of entry and of doing business, a productive, well motivated, highly skilled, and relatively cheap labour force, competitive operational costs, such as land and construction and utility costs, already established industrial clusters in the automotive and home appliance sectors, with others taking shape, Poland’s location in the heart of Europe, a very good ‘bridging position’ assuring easy access of goods manufactured in Poland both to other EU countries and to Eastern markets, the success of foreign companies that have already entered the market since the early 1990s, thus encouraging others, specific investment incentives, the support of and positive appraisals from international institutions, such as the IMF and the World Bank. 122 V. Foreign Investment For more information on various kinds of tax and non-tax incentives, available to foreign and domestic entities alike, please refer to the sub-chapter “Special Economic Zones” and “State Aid for New Investments”. Economic development perspectives are further described in Chapter II, sub-chapter “Outlook for 2006 and Beyond”. What the Investors Say The areas of foreign investment in Poland are just as diversified as the Polish economy, although investors’ opinions tend to be quite similar, regardless of the sector or their country of origin. Let’s take a look at a few examples, collected by PAIiIZ. General Motors decided to make one of the largest ever foreign investments in Poland. The new Opel Polska factory located in Gliwice was opened in October 1998. It is to produce 150,000 cars a year. With an investment of USD 360 million at the end of 1998, it is in the ‘top twenty’ in PAIZ ranking of the largest foreign investors in Poland. At the end of 1998 the factory employed approximately 1200 people. After reaching full production capacity, employment will grow to almost 3000. General Motors’ representatives say that the plant will make it possible to enhance Opel’s presence on Central and Eastern European markets. They revealed that the decision to invest in Poland had been a result of a comprehensive site selection study, which had reviewed different locations in Central Europe, including Hungary and the Czech Republic and others and 75 different locations in Poland. As a result of this comprehensive study, they decided to locate the new facility in Gliwice, based mainly on the excellent support they had received from the government, the infrastructure that would be available, the benefits of locating in the Special Economic Zone, and, very importantly, the large component suppliers’ base that was available in the Gliwice area. “Motorola Global Software Group selected Kraków, Poland as the site for its first European software development centre after reviewing numerous sites on the continent. It based its selection on the availability of highly qualified talent, excellent universities, as well as the positive attitude and assistance of national and local authorities. Since its establishment the Kraków software centre has become one of Motorola’s premier software development facilities and has achieved a best-in-class rating, SEI Level 5, from the Software Engineering Institute of the United States, an authority on software quality. With Poland’s entrance into the EU, Motorola believes the Kraków centre will play an even more important role in the company’s software”. (Ryszard Łada, Chairman of the Board, Motorola Polska Sp. z o.o.) How to Do Business in Poland 123 “As a leading provider of petrol and lubricants, naturally, BP Amoco wants to be where our customers are. Poland is definitely such a place. With almost forty million people, Poland offers a major domestic market, and excellent opportunities to expand the sales of our products. Moreover, the relatively young Polish population means a growing customer base. And they are buying more cars every year! Beyond that, the country is located at a very centre of Europe, on the crossroads between East and West, North and South. This is especially important for a company that serves transportation. Another thing that drew us to Poland was the labour force. Not only is the Polish workforce large, young and competitive in terms of labour costs, but potential employees also boast high levels of technical skills, good work habits and an uncommon degree of flexibility, and the best of them work for firms like BP Amoco. Then there is the new Poland itself. Many people refer to Poland as Europe’s tiger economy, because of its extremely rapid and sustained economic development. This is a unique business opportunity. After the long years of neglect, the infrastructure is developing rapidly, telecommunication gets better by the day. Old roads are being upgraded and new roads built at a rapid rate. Investing in Poland exemplifies a classic ground floor opportunity”. (W. Heydel, Business Development Director, BP Poland). “The decision of IKEA to invest in Poland was influenced by a few factors: • Our long-term co-operation, • Well-educated workforce and long traditions in furniture production, • Low labour costs, • The market size and its considerable potential, • The entrepreneurial spirit of the Poles and their willingness to learn, develop and raise their qualifications. Poland has other advantages, significant for IKEA: • Geographical location, facilitating both export of products and import of raw materials, • Large internal market. Poland ’s accession to the EU can bring even more benefits for the development of IKEA operations in Poland, with regard to: • An increased dynamics of economic growth, • The easier and more efficient flow of goods and accurate supplies thanks to lack of border controls, • The opportunity to implement long-awaited infrastructure investments, which in turn can create new jobs and improve Poland ’s economic efficiency”. (Jan Musiolik, Director General, IKEA Polska Group.) “Eurocash entered the Polish market in 1995. Then, as now, the main drivers to our investment were the size of the market and the excellent growth prospects. The political stability and the economic growth generate an excellent investment climate. We currently employ 1,200 people directly in this country. Overall, the human resources meet our requirements: people have no 124 V. Foreign Investment problem with learning a foreign language and are proud to work for a foreign company. Moreover, personally, I was very much surprised with the quality of life Poland offers”. This is an opinion of Luis Amaral, Country Manager for Eurocash JMB Poland. „Poland - as one of the fastest growing markets in Europe - represents a crucial geographic location for Whirlpool’s European strategy, offering significant potential for the development of our regional operations and growth of our business. From the European business perspective Poland is a very convenient place for investment. It is situated between the highly developed Western European countries and Eastern Europe with such growing markets as Russia, Ukraine. This geographic location creates a number of opportunities, attracts investment from the Western Europe as well as from the US and Asia. It facilitates also the logistics activities related to the export of goods to all locations in Europe and to countries outside of Europe. Whirlpool Corporation took over Polar, the Wrocław home appliance producer, in 2002. In 2005 Whirlpool invested again in this city opening a new Cooking Factory and a logistics centre. This new cooking production line is a symbol of our ongoing commitment in the Wrocław area, it further strengthens Whirlpool’s position in Poland and provides new opportunities to serve consumers in a variety of markets throughout Europe. Whirlpool also further develops its technology centre of excellence and prototyping shop in Wrocław. Their significance continuously grows and engineers who work here design products not only for the Wrocław site but also for the needs of the whole Corporation. Employees' high educational level, the internationally regarded university base in Wrocław, central location of the city in Europe, investment incentives offered by the Polish government and strong support of local authorities, were all convincing reasons to invest in Wrocław. Our investment in Wrocław is another milestone in the Whirlpool’s long-standing presence in Poland stretching back to 1993. Whirlpool was one of the first companies that decided to invest in Poland. In the past years many foreign companies established their seats and production facilities in Poland. However, with a growing number of investors, their needs are changing. The positive effect of investing is followed by the necessity to cope with higher demands which result from the increasing competitiveness”. (Artur Wojciechowski, Chairman of the Management Board, Polar S.A. / Whirlpool Wrocław). “Toyota Motor Manufacturing Poland is proud to be a company which is involved in building the new Polish economy. Toyota will invest EUR 400 million in Wałbrzych by 2005 and employ 1,700 people. Our goal is to create an efficient and environmentally friendly factory producing transmissions and engines, capable of competing with other units of our company. We are on the right track to achieve this goal thanks to our employees’ involvement and good cooperation with the local authorities and Polish government. We appreciate the positive approach to Toyota's investments in Poland. In return TMMP would like to be a good member of the local community”. (Yutaka Miyamoto, President, Toyota Motor Manufacturing Poland Sp. z o.o.). How to Do Business in Poland 125 “The following factors decided about Matsushita taking the decision to invest in Poland: • The socio-economic transformations after 1989, • The resources of good quality zinc – the key raw material for our production, • The potential of qualified local staff, • The favourable geographical location – access to the markets of all the sides of Europe, the facility of logistics solutions, • The perspectives of a future potential of the Central Eastern Europe markets, • The ethnic and religious homogeneity of the Polish nation, Poland ’s advantages relevant with regard to the type of the company ’s activity are: • The zinc deposits, • The geographical location in the centre of Europe, • The level of personnel: the education of experts, engineers and managers, the experience and good qualifications of mechanics, • The constantly improving quality of local (Polish) suppliers, • The large and developing domestic market, • The country’s constant development (changes in regulations, infrastructure, society’s wealth and education, technological progress). The company’s development perspectives, in the context of Poland’s EU accession are good, with regard to the following: • The free movement of goods (no custom barriers for purchase and sale within the EU), • Legal regulations fully harmonised with the community law (less legal barriers), • No need to commit resources for VAT (which used to be deducted after payment and no longer exists since 1 May 2004), • Lower tariff rates for raw materials and components for battery production after the accession, • Poland, as one of the 25 EU members, will be able to influence the regulations concerning the market at which Matsushita Battery operates”. (Toshiaki Kimura, President, Matsushita Battery Poland S.A.). 126 V. Foreign Investment Foreign Direct Investment Foreign direct investment (FDI) is one of the key factors contributing to the long-term economic development. It increases employment, raises productivity, assists in the transfer of skills and technology and boosts foreign trade operations. It is important to note that one-third of global trade is already intra-firm trade and that its share continues to increase. Therefore, countries at all levels of economic development strive to leverage FDI for its benefits. Poland is arguably the most successful at this in Central and Eastern Europe. According to the OECD, Poland’s foreign direct investment stock amounted to USD 109 million in 1990. The National Bank of Poland (NBP) estimates that from the beginning of 1991 to the end of 2005, foreign businesses invested directly a total of over USD 75.7 billion in Poland, bringing the total foreign direct investment stock to USD 75.8 billion at the end of 2005. Foreign Direct Investment in Poland in million USD (1991-2005) 80000 progression 70000 annually 60000 50000 40000 7724 12873 4589 4131 5714 9343 6365 4908 4498 3659 1875 1715 678 10000 359 20000 7270 30000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: NBP, OECD 2006 The year 2004 witnessed a record-breaking amount of USD 12.87 billion of FDI inflow to Poland and once again proved that Poland remains a very attractive target country for foreign investors. In 2005 the inflow of foreign direct investments to Poland reached USD 7.72 billion, still a respectable amount, but 40 % less in comparison to the previous year. 127 How to Do Business in Poland An important feature of the foreign investment process in Poland is that companies already well established in Poland usually reinvest most of the profits generated in this country to support and develop local operations. Increasingly, more foreign companies are choosing a green-field investment instead of buying into existing Polish companies. Green-field investment often takes the modified form of buying or leasing land and buildings and just installing machinery and equipment. This is sometimes called ‘brownfield’ investment. This approach is due to the abundance of land with unused buildings in Poland. The following table presents the FDI inflow to Poland during the last two years, with an indication of investment components. Foreign Direct Investment Inflow in 2004-2005 2004 2005 FDI inflow components (USD million) Stock / Shares Reinvested earnings Other capital 7,463 6,340 -930 2,341 3,898 1,485 Total 12,873 7,724 Source: NBP, 2006 It is worth to note that reinvested earnings accounted for some 50 % of annual values in both years. In 2005, a positive balance of inter-company loans increased the FDI inflow by almost USD 1.5 billion, while in 2004 this balance was negative and amounted to USD 0.9 billion. In terms of foreign direct investment stock, Poland remains the regional leader. On the other hand, when considering the size of the population, with under USD 2,000 of foreign direct investment per capita, Poland lags behind. By comparison, foreign direct investment per capita in the Czech Republic and Hungary is approximately twice as high. The dynamic development of foreign investment in Poland is well reflected by an increase in the number of commercial companies with foreign capital (CCFC), as presented in the following table. 128 V. Foreign Investment Commercial Companies with Foreign Capital Year * Commercial Companies with Foreign Capital Share of Commercial Companies with Foreign Capital in the Total Number of Companies in Poland* (%) 4.1 1991 5,583 1992 10,817 6.9 1993 15,814 8.6 1994 20,324 10.4 1995 24,635 11.7 1996 29,157 12.2 1997 33,459 12.8 1998 37,355 12.6 1999 40,910 12.3 2000 44,229 11.6 2001 46,258 10.6 2002 47,352 10.0 2003 48,973 9.7 2004 51,503 9.6 2005 54,336 9.7 excluding enterprises run by natural persons and civil partnerships Source: Central Statistical Office, 2006 As of the end of 2005, the number of commercial companies with foreign capital set up in the country surpassed 54,300, increasing by 5.5 % during the year. The total number of commercial companies in Poland reached 230,588, a 4.7 % increase over 2004. The share of CCFC in the number of commercial companies in the insurance business (49.3 % – including pension insurance, excluding social security), automotive industry (46.5 %), and hotel and restaurant business (33.3 %) was especially high, as illustrated on the following graph. 129 How to Do Business in Poland Share of Commercial Companies with Foreign Capital in the Number of Commercial Companies in Selected Sectors and Branches 49.3% Insurance 46.5% Automotive industry Hotels and restaurants 33.3% Agriculture, hunting & forestry 32.9% Rubber & plastic products 29.7% Chemical products 29.4% Trade and repairs 26.1% Transport, storage & communications 25.0% Quarrying and mining 24.0% Education Construction 17.8% 15.8% Source: Central Statistical Office, 2006 Data concerning 2005 FDI values by country and by industrial sector has not been available at the time of publishing. It is to be released by the NBP in its annual report Zagraniczne inwestycje bezpośrednie w Polsce w 2005 roku (Foreign Direct Investments in Poland in 2005) to be published in December 2006. However, the sector breakdowns of the number of CCFC and of their share in the number of commercial companies also reflect, to some extent, the relative attractiveness of individual sectors. Furthermore, foreign investments in banking and in insurance are described in respective sub-chapters of Chapter II. Commercial Companies with Foreign Capital by Sector 2.1% 24.5% 4.1% 2.6% 18.2% 13.2% 5.7% 29.7% Agriculture, hunting & forestry Real estate and business services Trade and repairs Transport, storage & communications Manufacturing Construction Hotels and restaurants Other Source: Central Statistical Office, 2006 130 V. Foreign Investment The importance of foreign companies for the Polish economy arises from the fact that these companies not only create new jobs, but through the introduction of modern technologies and management techniques, they achieve much higher operational efficiency. This is reflected, for example, in their labour productivity. The Polish economy has a high capacity for the absorption of foreign capital and it is hoped that over the next few years, foreign investment in Poland will continue to grow. In particular, an increase in the USA’s direct investments is anticipated, due to the offset agreement concluded for the purchase of fighter planes for the Polish Army. Moreover, as Poland joined the EU in 2004, more direct investments from these countries are expected as well. However, even though Poland remains the regional leader in terms of foreign direct investment stock, 2004 and 2005 indicated that foreign investors often prefer other countries in the region, especially the Czech Republic and Hungary. In the opinion of some foreign managers, these countries, albeit with smaller internal markets, offer better incentives, including a more efficient legal and institutional framework. Finally, it is worth noting that Polish companies are also investing abroad, although on a very small scale so far. Nevertheless, their foreign direct investments have been increasing during the past few years. According to NBP estimates, Polish FDI amounted to approximately USD 1.5 billion in 2005, as compared to USD 0.8 billion in 2004. For more information on Polish foreign direct investments, please refer to the next section. Polish Direct Investment Abroad The export of capital has been the fastest growing segment of international economic co-operation in recent years. The growth in importance of international capital flows has been particularly pronounced in the last decade, when the annual growth of foreign direct investments in the world was greater than the growth of world trade. The value of the foreign production of transnational corporations grew considerably faster than the value of their exports. The growing internationalisation of production and services is a way of fighting against ever-tougher competitors to secure markets for one’s own products and services. More and more often it turns out that an effective way to compete on foreign markets is to locate one’s production or service-related activities there. In order to face the growing competition, Polish companies, even if their means are limited, embark on the conquest of those markets where they enjoy a competitive advantage over their How to Do Business in Poland 131 rivals.* These are the markets of East-Central European countries, Poland's closest neighbours. Unfortunately, it is only to a very limited extent that the Polish economy is engaged in the global internationalisation process. This is indicated both by Poland’s small share in the world’s trade and by its limited foreign direct investments, in comparison to other countries. Polish FDI in 1995-2005 (USD million) 1995-1999 2000 2001 2002 2003 2004 2005 (average) World total 600,658 1,186,838 721,501 652,181 616,923 730,257 Poland 17 -90 230 196 806* 1,455 97 Share (%) 0.016 0.001 -0.012 0.035 0.032 0.11 * In 2004, according to NBP, the outflow of the Polish FDI amounted to USD 778 million. Data contained in the WIR 2006 will most certainly be revised in the report for the following year. Source: World Investment Report, United Nations, 2001; 2002; 2003; 2004; and 2005. NBP, Poland: Balance of Payments 2006. Poland is a traditional net recipient of foreign direct investment. Polish foreign direct investment in 1995-2004 amounted to a mere 1.4 % of the FDI flowing into Poland during the same period. In 2001, for the first time, the value of Polish FDI abroad decreased, which means that the value of investments withdrawn was greater than the value of investments newly made. The withdrawal of Polish foreign direct investments was related to the sale of USD 70 million worth of stock and shares held in foreign companies by Polish direct investors, and to the repayment of loans by foreign firms to Polish direct investors, in the amount of USD 50 million. Both the sale of stock and the repayment of loans arose mainly from the reduction of direct investments abroad by Polish banks. * For further information concerning Polish companies and their business activity abroad, see: K. Studzińska, ‘Konkurencyjność polskich przedsiębiorstw w warunkach globalizacji (na przykładzie Toruńskich Zakładów Materiałów Opatrunkowych S.A.),’ in: Bezpośrednie inwestycje zagraniczne w podnoszeniu konkurencyjności polskiej gospodarki, W. Karaszewski, Ed., Wydawnictwo Uniwersytetu Mikołaja Kopernika, Toruń, 2005. 132 V. Foreign Investment FDI Outflow by type in 1995-2004 (USD million) 1995-1999 (average) 2000 2001 FDI outflow, 97 17 -90 of which: - acquisition of stock and shares and 56 111 -53 non-cash contributions - conversion of loans and dividends n. a. 0 4 into shares - re-invested profits (net)* -8 -12 9 - investor loans 49 -82 -50 * Until 1996, reinvested profits did not include balance sheet losses. 2002 2003 2004 230 194 778 270 98 431 3 5 7 -72 29 -10 101 -24 363 Source: "Balance of payments on the basis of transactions in the years 1998-2002", NBP; "Polskie inwestycje bezpośrednie za granicą w 2003roku”, NBP, 2004. In 2004, the outflow of Polish FDI abroad was estimated at USD 778 million, USD 584 million more than in 2003. The countries with the largest amount of Polish investments were: Switzerland (USD 238 million), Netherlands (USD 180 million), and Germany (USD 106 million). According to the National Bank of Poland, in 2005 the largest outflow of Polish capital in the form of FDI was reached. The cause of such a high level of capital outflow was the increase of purchases of stock and shares in companies whose headquarters were located abroad and the growth of loans granted by Polish entrepreneurs to companies in which they had invested directly. At the end of 2004, the total value of Polish FDI abroad amounted to USD 3,221 million, which included foreign shares held by Polish banking, non-governmental, and non-banking sector institutions – USD 2,978 million, and by the Polish government – USD 243 million. Of the capital invested abroad by Polish companies (direct investment in enterprises), not counting investments made by the government, 66 % was own capital, and 34 % was loans and liabilities on drawn credits. As far as the own capital of Polish FDI investors in the banking, non-governmental and nonbanking sectors is concerned, the share of the capital invested in the Netherlands amounted to 21 %, Germany – 13 %, France – 12 %, and Switzerland – 12 %. At the end of 2004 FDI of the Polish government was made up of shares of the International Economic Cooperation Bank and of the International Investment Bank. Out of the total Polish FDI, the largest part was invested in: manufacturing – 18.4 %; financial mediation – 17.4 %; trade and repairs – 13.5 %; and real estate services, IT, science, machinery rental and other business services – 13.4 %. How to Do Business in Poland 133 VI. POLAND IN THE EUROPEAN UNION Overview of the integration process Temporary provisions for Poland include: investor compensation scheme capital requirement concerning co-operative credit institutions acquisition of secondary residences purchase of agricultural land and forests state aid for environmental protection reduced VAT rate on restaurant services, construction, foodstuffs, and agricultural inputs recovery and recycling targets for certain packaging materials Current economic developments in Poland as compared to the European Union average: twice as high GDP growth and unemployment rate, with inflation much lower than average How to Do Business in Poland 135 VI. POLAND IN THE EUROPEAN UNION Integration Process Overview Since the political and economic transformations started in 1989, the single most important objective of Polish policy has been political and economic integration with the European Union, meaning both joining the Common Market and NATO. On 12 March 1999, the Polish Minister of Foreign Affairs, Bronisław Geremek, submitted the ratification treaty to the North Atlantic Treaty’s Depository Office and Poland became a NATO member. Integration with the EU was completed five years later. On 1 May 2004 Poland, along with nine other countries, joined the European Union. For Poland, the EU membership means, most of all, an opportunity to accelerate the country’s economic and social development. The most important benefits include: • better access for Polish goods and services to the EU market, not only through the abolition of tariff barriers, but also due to the removal of the requirement for additional testing and product certification, • increasing the investment attractiveness of Poland, • improving Poland’s ratings on international financial markets, • the import of modern technologies, thus improving quality and cost-effectiveness, • more possibilities for business co-operation and contacts with EU partners. For the Poles, it means equal opportunities with other European nations, opportunities to work, to travel and to enjoy a similar economic status. Poland started negotiations on economic integration with the European Union right after its economic liberalisation in 1990. In March 1992, a transition agreement concerning trade between Poland and the European Union became effective. On 1 February 1994, the transition agreement with the EU was replaced by the Association Treaty and on 8 April of the same year, Poland formally applied for EU membership. The objective of the Association Agreement was to establish a free trade zone between the EU and Poland. Initially, quota restrictions on Polish industrial exports into the Community were abolished, except for sensitive products, that is, five categories of textile and agricultural products, which were not subject to general liberalisation under the Association Agreement. As of 1 January 1998, all Polish industrial exports benefit from completely unrestricted access to the EU market. As of 1 January 2002, Poland lifted all the remaining customs’ barriers for EU member states’ industrial exports to Poland. The lowest degree of liberalisation and the smallest concessions applied to agricultural products such as milk, meat, and livestock. 136 VI. Poland in the European Union One of the major tasks involved in joining the European Union was the obligation to harmonise Polish laws with those of the EU. The process of screening Polish laws from the point of view of their compatibility with those of the EU started in 1994 and finished by 1 May 2004. In July 1996, Poland became the 28th OECD member, joining the most developed countries in the world. The accession of Poland to this organisation was an important milestone in its integration with the EU. It strengthened Poland’s credibility and improved its quotations on financial markets, stimulating the inflow of foreign capital. In the same year, in order to accelerate the pace of adjustment and integration of the Polish economy with the European Union, the Committee for European Integration was created as an office of central state administration headed by the prime minister. The tasks of the Committee included the preparation and co-ordination of the adjustment to EU requirements, as well as the co-ordination of central administration activities in the area of foreign assistance. The formal negotiations on Poland’s full membership started on 31 March 1998. The negotiations were based on the position papers prepared by task teams of the InterMinisterial Team for Preparing the Accession Negotiations with the EU. The negotiations have been divided into 31 negotiation areas, or chapters. Poland successfully concluded accession negotiations on 13 December 2002 and on 16 April 2003 signed the Accession Treaty in Athens, along with nine other countries joining the EU in 2004. Finally, on 7 and 8 June 2003, a nationwide referendum was held on Poland’s accession to the European Union. 59 % of Poles participated in this historical event, with 77 % voting Yes to the integration. This clear outcome once again confirmed the consistency and commitment with which Poland went through the years of transformation to become a modern democracy, a functioning market economy, and, at last, a member of the European Union as of 1 May 2004. The Accession Treaty The Accession Treaty is the most complex international agreement ever concluded. It consists of many parts, such as the proper Accession Treaty, Accession Act, and a number of protocols and enclosures, which are all binding. Moreover, there are also some declarations attached, which are unilateral and even though they do not have force of law, they serve for the Treaty’s interpretation. The proper Accession Treaty is common for all ten countries joining the EU in 2004, while other documents of the Treaty have parts that are common for all countries, as well as parts referring to individual countries. Declarations refer to individual countries only. How to Do Business in Poland 137 It is worth noting that the Accession Treaty itself contains just three Articles. The first one states that the ten countries accede to the EU and the two others define the languages of the Treaty and the date it comes into force. The Accession Act is the core document of the Treaty, specifying all the particulars pertaining to accession, such as transitional arrangements and changes in EU legislation resulting from accession. The Treaty of Accession 2003 of the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia, and Slovakia, signed in Athens on 16 April 2003, as well as the Accession Act, its annexes, protocols and enclosures can be consulted and downloaded in the EU languages from the European Parliament website at http://www.europarl.europa.eu/enlargement_new/treaty/default_en.htm. Temporary Provisions Annex XII to the Accession Act contains temporary provisions and transitional measures regarding Poland. Among these, it is worth noting the following: ♦ Freedom to provide services: • With reference to the investor compensation scheme, Poland has been granted transitional arrangements until the end of 2007 to reach the minimum level of compensation. In this period the Polish investor-compensation scheme will provide for cover of not less than EUR 7,000 until 31 December 2004, of not less than EUR 11,000 from 1 January 2005 until 31 December 2005, of not less than EUR 15,000 from 1 January 2006 until 31 December 2006 and of not less than EUR 19,000 from 1 January 2007 until 31 December 2007. • With reference to the initial capital requirement concerning co-operative credit institutions, the EU regulations will not apply until 31 December 2007 to co-operative credit institutions already established in Poland at the date of accession. However, the initial capital requirement for these co-operative credit institutions in Poland are to be not less than EUR 300,000 until 31 December 2005, and not less than EUR 500,000 from 1 January 2006 until 31 December 2007. ♦ Free movement of capital: • Poland is granted a five-year transitional arrangement during which it can maintain the national legislation regarding the acquisition of secondary residences. However, nationals of the Member States and nationals of the States which are a party to the European Economic Area Agreement and who have been legally resident in Poland for four years on a continuous basis are not included in the above arrangement and can not be subjected to any procedures other than those to which nationals of Poland are subject. 138 VI. Poland in the European Union • Moreover, there is a twelve-year transitional arrangement during which Poland can maintain its national legislation regarding the purchase of agricultural land and forests. Nationals of the Member States, who are self-employed farmers in Poland are excluded from the transitional period regulations, in accordance with specific provisions. For more information please refer to Chapter VIII. ♦ Competition Policy: • Transitional arrangements are agreed with Poland with regard to state aid for environmental protection, along the following lines: For investments that relate to standards for which a transitional arrangement has been granted under the Environment Chapter and for the duration of that transitional arrangement, the aid intensity is limited to the regional aid ceiling with a 15 % supplement for SMEs. For existing IPPC installations covered by a transitional arrangement under the Environment Chapter, an aid level of 30 % is agreed upon until the end of 2010. For IPPC-related investment not covered by a transitional arrangement under the Environment Chapter, an aid level of 30 % is agreed upon until 31 October 2007. For large combustion plants, an aid level of 50 % was agreed upon for investments that relate to a transitional arrangement granted under the Environment Chapter. • Poland may apply corporate tax exemptions granted before 1 January 2001 on the basis of the Law on Special Economic Zones of 1994, under the following conditions: a. for small enterprises, as defined in accordance with the Community definition of such enterprises and in conformity with Commission practice, up to and including 31 December 2011; b. for medium-size enterprises, as defined in accordance with the Community definition of such enterprises and in conformity with Commission practice, up to and including 31 December 2010. In the event of a merger, acquisition or any similar event which involves the beneficiary of a tax exemption granted under the aforementioned legislation, the exemption from corporate tax shall be discontinued. For more information on investment incentives and Special Economic Zones please refer to Chapter V. • Moreover, a transitional arrangement is agreed upon whereby the restructuring of the steel industry is to be completed by 31 December 2006. ♦ Agriculture: • Poland is granted a three-year transitional period from the date of accession during which the minimum requirements for the preliminary recognition of producer organisations shall be set at five producers and at EUR 100,000. The duration of the preliminary recognition may not exceed a period of five years starting from the date of acceptance by the competent national authority. How to Do Business in Poland • 139 The requirements relating to fat content shall not apply to drinking milk produced in Poland for a period of five years from the date of accession. Drinking milk which does not comply with the requirements relating to fat content may be marketed only in Poland, or exported to a third country. ♦ Transportation: By way of derogation from Article 1 of Regulation (EEC) No 3118/93 and until the end of the third year following the date of accession, carriers established in Poland are excluded from the operation of national road haulage services in the other Member States, and carriers established in the other Member States are excluded from the operation of national road haulage services in Poland. Before the end of the third year following the date of accession, Member States will notify the Commission whether they will prolong this period for a maximum of two years, or whether they will fully apply Article 1 of the Regulation henceforth. In the absence of such notification, Article 1 of the Regulation shall apply. Only carriers established in those Member States in which Article 1 of the Regulation applies may perform national road haulage services in those other Member States in which Article 1 also applies. As long as Article 1 of the Regulation is not applied, Member States may regulate access to their national road haulage services by progressively exchanging cabotage authorisations on the basis of bilateral agreements. This may include the possibility of full liberalisation. ♦ Taxation: Poland is allowed to maintain the reduced VAT rate on restaurant services and construction until the end of 2007. Poland is also allowed to maintain the VAT zero rate on books, and a super-reduced VAT rate on foodstuffs and agricultural inputs, excluding machinery, until 31 December 2007, and until 30 April 2008, respectively. All countries joining can maintain a higher turnover threshold than the level provided for in the acquis to exempt SMEs from VAT, and can exempt international passenger transport from VAT. ♦ Environment: Poland is granted a transitional period till 31 December 2007 for attaining the EU recovery and recycling targets for the following packaging materials, with the following intermediate targets: a) recycling of plastics: 10 % by weight by the date of accession, 14 % for 2004 and a minimum of 15 % for 2005; b) recycling of metals: 11 % by weight by the date of accession, 14 % for 2004 and a minimum of 15 % for 2005; c) overall recovery rate: 32 % by weight by the date of accession, 32 % for 2004, 37 % for 2005 and 43 % for 2006. 140 VI. Poland in the European Union Current Economic Developments This section aims at a brief description of some major economic developments and trends in the enlarged European Union and the euro-zone, i.e., the twelve EU member states that use the euro as a common currency. It also indicates the performance of Poland, so it can be viewed against the wider economic background. For information on financial flows between Poland and the European Union, please refer to Chapter II, the sub-chapter on co-operation with international organisations. The following information is based on the latest publications and data provided by Eurostat, the Statistical Office of the European Communities. Some figures for the year 2005 and the first months of 2006 are partly estimated and might be revised by Eurostat at a later date. Please note that some figures for Poland contained in this section may differ slightly from those presented elsewhere in the guide. The different statistical definitions and methodology employed by Eurostat and some data providers in Poland required the adjustment of these figures in order to ensure their comparability. On 1 January 2005, the population of the European Union was 459.5 million and that of the euro-zone 310.9 million, according to Eurostat estimations. The population of Poland (38.2 million) accounts for 8.3 % of the EU population. The population of the European Union increased by 2.3 million in 2004, an annual rate of 0.5 %, mainly due to a net migration of 1.9 million, while the natural increase was 0.4 million. The European Union accounts for some 7.1 % of the world’s population. In 2005, GDP grew by 1.3 % in the euro-zone and by 1.6 % in the European Union, compared to 2.0 % and 2.4 % respectively for 2004. In Poland, GDP grew more than twice as fast (3.4 % in 2005 and 5.3 % in 2004). GDP grew by 0.6 % in the euro-zone and by 0.7 % in the European Union during the first quarter of 2005, compared to the previous quarter. This growth was accompanied by accelerating private consumption and external trade. In Poland it grew by 1.2 % in the corresponding period. In the fourth quarter of 2005, growth rates were 0.3 % in the euro-zone and 0.4 % in the European Union. In the first quarter of 2006, compared to the same quarter of the previous year, GDP grew by 1.9 % in the euro-zone, by 2.2 % in the European Union, and by 4.6 % in Poland, following the increase of 1.7 %, 1.9 %, and 4.7 % respectively in the previous quarter. In 2005, the general government deficit of the euro-zone and the European Union improved compared to 2004, while the general government gross debt increased. In the euro-zone, the government deficit decreased from 2.8 % of GDP in 2004 to 2.4 % How to Do Business in Poland 141 in 2005, and in the European Union it fell from 2.6 % in 2004 to 2.3 % in 2005. In the euro-zone the government debt to GDP ratio rose from 69.8 % in 2004 to 70.8 % in 2005, and in the European Union from 62.4 % to 63.4 %. In 2005 the largest general government deficits in percentage of GDP were recorded by Hungary (6.1 %), Portugal (6.0 %), and Greece (4.5 %). Poland registered 2.5 % deficit, only slightly higher than the EU average. Eight Member States registered a government surplus in 2005. In all, eighteen Member States recorded an improved public balance relative to GDP, while seven Member States registered a worsening. In 2005 the lowest ratios of general government gross debt to GDP were recorded in Estonia (4.8 %), Luxembourg (6.2 %), Latvia (11.9 %), and Lithuania (18.7 %). In Poland the government debt equalled 42.5 % of GDP. Nine Member States had a government debt ratio higher than 60 % of GDP in 2005, the same number as in 2004. First Eurostat estimates indicate that the euro-zone trade recorded a surplus of EUR 23.4 billion in 2005, compared to EUR 71.5 billion in 2004. The European Union recorded a trade deficit of EUR 106.4 billion in 2005, increasing from the EUR 62.9 billion deficit in 2004. Taking into consideration the total trade of Member States, the largest trade surplus was noted in Germany (EUR 149.0 billion in January-November 2005), while the United Kingdom registered the largest deficit, EUR 93.4 billion, in the same period. Poland also noted a trade deficit, amounting to EUR 8.4 billion in January-November 2005. In March 2006 compared to March 2005, seasonally adjusted industrial production rose by 3.8 % in the euro-zone and by 3.7 % in the European Union. In Poland it grew substantially more, by 14.1 %. Euro-zone seasonally adjusted unemployment rate stood at 8.0 % in April 2006, just as in the previous month, compared to 8.7 % in April 2005. The European Union unemployment rate was 8.3 % in April 2006, unchanged compared to March, down from 8.9 % in April 2005. Poland’s unemployment rate was twice as high, as it equalled 16.5 % in April 2006. Euro-zone annual inflation rose from 2.2 % in March to 2.4 % in April 2006. A year earlier the rate was 2.1 %. European Union annual inflation was 2.3 % in April 2006, up from 2.1 % in March. A year earlier the rate was 2.1 %. Annual inflation in Poland was much lower, reaching 1.2 % in April 2006, up from 0.9 % in March. How to Do Business in Poland 143 VII. TAXATION SYSTEM 19 % Corporate income tax, losses carried forward for up to 5 years 22 % VAT with reduced rates at 7 %, 3 %, and 0 % Excise duty; harmonized excise goods in line with EU directives and generally 65 % on non-harmonised excise goods Progressive personal income tax (19 - 40 %) Individuals conducting business activity have the option to choose a flat 19 % rate 19 % tax on dividends, subject to international agreements Local real estate taxes subject to the maximum rates set by the government Expenditures up to PLN 3,500 are treated as costs Transfer pricing definitions follow OECD guidelines Agreements on the avoidance of double taxation signed with 81 countries How to Do Business in Poland 145 VII. TAXATION SYSTEM Taxes All taxes in Poland are approved by Parliament. The Polish taxation system has in recent years been undergoing substantial changes aimed at creating a more transparent system and at conforming to taxation standards existing in the European Union. Although Polish tax legislation itself is relatively straightforward, its application in practice can be difficult. In particular, the law leaves some areas open to interpretation and it may happen that officials within the same tax district will come to two different conclusions as to the tax consequences of a particular set of circumstances. Moreover, some areas of tax legislation refer to concepts that either lack a legal definition or have a different meaning from that adopted in other legislation. However, it is important to note that on the grounds of art. 260 of the Tax Ordinance Law of 29 August 1997 taxpayers are entitled to a full compensation for damages incurred due to unlawful decisions of the tax authorities. Moreover, the compensation may encompass the value of lost benefits. Taxpayers should note that all taxes are payable monthly on account and that interest penalties of 11.0 % per annum (June 2006) apply to the late payment of tax. The main taxes in Poland are: • Corporate Income Tax (CIT), regulated by the Act on Income Tax on Legal Persons of 15 February 1992: With the exception of partnerships having no legal personality, all legal persons and organisational units having a legal personality are subject to corporate income tax. The base of taxation is profit taken as surplus of income over the cost of acquiring it. Starting from 2004, the rate of this tax equals 19 %. Poland has been constantly improving conditions for entrepreneurs, in order to stimulate competition and the creation of new jobs in the economy. This is also clearly reflected in the reduction of the tax burden. The following graph illustrates reductions in the CIT rate in the period of 1997-2006. 146 VII. Taxation System Corporate Income Tax Rates (%) 40 35 38 30 36 34 30 25 28 28 27 19 19 19 2001 2002 2003 2004 2005 2006 20 15 1997 1998 1999 2000 Source: Act on Income Tax on Legal Persons of 15 February 1992, with subsequent amendments Corporate income tax does not apply to: - revenues earned on agricultural activity, with the exception of income from special branches of agricultural production, - revenue earned on forestry activities within the limits of the Forestry Act, - revenue earned on activities, which cannot constitute the subject of a legally effective contract. Corporate taxpayers having their seat or the location of their board of directors, within the territory of the Republic of Poland are liable to tax on the whole of their income, irrespective of the place where it was earned. Taxpayers having neither a seat nor a board of directors within the territory of Poland are liable to tax only on income earned within the territory of the Republic of Poland. Losses can be carried forward for up to five years, though no more than 50 % of the loss can be written off in any year. There is no concept of the carry back of losses. The Act very precisely enumerates expenditures that are not treated as costs. Furthermore, the last major revision of the CIT Act of November 1999 incorporated depreciation and amortisation issues, previously regulated in a decree. Transfer pricing: Companies and individuals entering into transactions with related entities or individuals (both domestic and foreign), as well as with entities or individuals located in tax havens, have to possess full transfer pricing documentation. Such documentation has to be made available within 7 days of request by a tax inspector. Profits assessed under a transfer pricing investigation are subject to a penalty tax at 50 % plus interest (currently 11.0 % per annum). Related entities and persons are defined as having 5 % or more direct or indirect ownership as well as direct or indirect participation in management or control. Transfer pricing definitions follow the OECD guidelines. How to Do Business in Poland 147 • VAT (Tax on Goods and Services), regulated by the Act on Value Added Tax of 11 March 2004: The new act on VAT came into force on 1 May 2004, following Poland’s accession to the EU. The basic rate amounts to 22 %. Apart from the basic rate there is a preferential rate of 7 % applicable to sales of certain agricultural goods, foodstuffs, books, newspapers, some goods for children, goods connected with health protection, etc. A complete list forms Annex 3 to the act. There is also a zero rate applicable to exports. Moreover, some services are VATexempt. Examples include education and health services, as well as postal services. A complete list is found in Annex 4 to the act. Intra-Community transactions are zero rated, provided that the required EU VAT number has been allocated to the recipient of the goods or services. The VAT rate on unprocessed products is 3 %. Normally, the principle of VAT liability on sales of agricultural products is that a farmer who is a non-VAT payer (who is subject to lump-sum payments), selling his products, beside the sales price will receive a lumpsum VAT refund from the buyer of these products. This refund will amount to 3 % of the sum due for the sold products less the lump-sum tax return. See Annex 6 to the act for a complete list of products. Companies and individuals must register for and charge VAT if their annual turnover exceeds EUR 10,000. VAT is chargeable on supplies of goods and services unless they are specifically relieved by way of exemption or zero rating. Just like in most European countries, VAT is refundable to foreign tourists leaving Poland and exporting products from Poland. Foreign tourists are eligible for VAT reimbursement for purchases exceeding PLN 200 (incl. VAT) only if the customs authorities confirm that the goods have left the Polish territory intact and no later than on the last day of the third month following the month the goods were purchased in. VAT legislation causes the most problems to taxpayers, particularly where goods and services are involved that are not adequately classified in the official register. • Excise Duty, regulated by the Act on Excise Duty of 23 January 2004: In addition to VAT some commodities are subject to excise duty. This applies to over 60 commodity groups, encompassing goods such as passenger cars, fire-arms used for hunting, fuels and lubricants, alcoholic beverages, tobacco products, furriery, perfumes, etc. The Act groups excise goods into two categories; harmonised excise goods, and nonharmonised excise goods. Harmonised excise goods are subject to excise duty following specific rules, based on the regulations contained in related EU directives and incorporated into the Act. This group contains fuels and lubricants, tobacco products, alcoholic beverages, and some other products containing alcohol. Harmonised excise goods are listed in Annex 2 to the Act. 148 VII. Taxation System Generally, non-harmonised excise goods are taxed at 65 % of the taxable base, except for electric energy, taxed at PLN 0.02 per kWh. However, the Minister of Finance is empowered to set lower rates by decree. All excise goods are listed in Annex 1 to the Act. There are also some exemptions from excise duty provided for in the legislation, such as the exemption of exported excise goods, or of electric energy generated from renewable resources. • Tax on Dividends, regulated by the Act on Income Tax on Legal Persons of 15 February 1992: This tax applies to legal and natural persons, who are shareholders in companies. Income of holding companies coming from other Polish registered companies of the holding is taxed at 19 % with the withholding tax borne being deductible from the total amount of corporation tax due. Thus under current tax rates dividends received will not suffer any further taxation in the hands of the recipient. The tax rate is equal to 19 % unless agreements on avoiding double taxation state otherwise. Please note that any double taxation agreement relief at lower rates of withholding tax may not be available on the ‘pass-through’ of a dividend abroad from a Polish trading company via an intermediate Polish holding company if the Polish holding company does not have sufficient taxable income in its own right to offset the tax on dividend received. Dividends received by a resident corporation from a non-resident corporation are subject to the full rate of corporate income tax. Allowance will be made for withholding tax borne subject to the provisions of any double taxation treaties in force. The amount of foreign tax deductible cannot, however, exceed the amount of Polish corporate income tax due on the foreign dividend income (on a due proportion basis). Polish corporations holding at least: - 75 % of the share capital in a foreign company not registered in the EU for more than two years; - 20 % of the share capital in a foreign company registered in the EU for more than two years; may also deduct from due Polish corporate income tax any underlying tax incurred. In order for a Polish payer to withhold tax at the reduced rates set by the relevant agreement for the avoidance of double taxation, the dividend transferring entity will have to provide the tax payer with a certificate of tax residence issued by the tax authorities of the transferee. The certificate confirms that the taxpayer’s headquarters, for tax purposes, are located in the country where the dividend is paid. Revenues from dividends and those related to share from profits by corporate entities, paid by a Polish company to an entity being a resident of any EU country other than Poland, are exempt from withholding tax, if the taxpayer’s direct holdings in the basic share capital of the dividend payer are: How to Do Business in Poland - 149 from 1 January 2005 to 31.12.2006 – not less than 20 %; from 1 January 2007 to 31.12.2008 – not less than 15 %; after 1 January 2009 – not less than 10 %. The minimum number of shares must have been held for at least 2 years. • Personal Income Tax (PIT), regulated by the Act on Income Tax on Natural Persons of 26 July 1991 and the Act on Lump-sum Income Tax on Some Income Derived by Natural Persons of 20 November 1998: The tax is assessed on the income of natural persons, independently of the source of origin. The income tax scale is progressive. In 2006, the following tax scale was applied. Tax Base (PLN) up to 37,024 Income Tax (PLN) 19 % less 530.08 from 37,024 to 74,048 6,504.48 + 30 % of income exceeding 37,024 from 74,048 17,611.68 + 40 % of income exceeding 74,048 Source: Act on Income Tax on Natural Persons of 26 July 1991, as amended However, enterprises run by a natural person (individuals conducting business activities) have the option to chose a flat tax rate of 19 %. In such a case though they can not benefit from some of the mechanisms allowing for a reduction of the tax burden that are available to natural persons. The Law on Personal Income Tax specifies altogether more than one hundred types of income exempt from personal income tax, as well as several deductions from the tax base and from the tax. A husband and wife may be taxed separately or together, dividing their combined income by two. A similar regulation applies to single parents and their children. Among the tax deductibles the most important are interest payments on loans financing housing needs, internet expenses, certain types of gifts, and social security contributions. The above are deducted from the tax base. Further, health insurance contributions (only up to 7.75 % of its calculation base) are deducted from the tax. • Inheritance and Gifts Tax, regulated by the Act on Inheritance and Gifts Tax of 28 July 1983: The base of taxation is the market value of goods and property rights acquired through inheritance, donation and prescription. The rate is progressive and its level depends on the relation between the donor and the recipient. • Tax on Civil and Legal Proceedings, regulated by the Act on Tax on Civil and Legal Proceedings of 9 September 2000: A taxpayer who must pay this tax, is obliged, without being called to do so by the tax authorities, to submit the appropriate 150 VII. Taxation System declaration, calculate and pay the tax to the tax office, or transfer it to its bank account, within 14 days from the date of the commencement of tax obligation. • Stamp Duty, regulated by the Act on Stamp Duty of 9 September 2000: A taxpayer who must pay this stamp duty, is obliged, without being called to do so by the tax authorities, to submit the relevant declaration, calculate and pay the stamp duty to the tax office or transfer it to its bank account, within 14 days from the date of the commencement of tax obligation. • Local Taxes, regulated by the Act on Local Taxes and Charges of 12 January 1991: Local authorities are empowered to set the level of rates and the scope of relief in local taxes. Their rates, however, cannot exceed the maximum levels determined by the government. Local taxes and fees include: real estate tax, vehicle tax, dog tax, and fair tax. • Real Estate Tax, regulated by the Act on Local Taxes and Charges of 12 January 1991: All real estate is subject to real estate tax within the limits defined in the official announcement of the Minister of Finance published every year in Monitor Polski. As specified, annual tax rates are determined by resolutions of the local communal level government (gmina) and may be different in each administrative area. The 2006 maximum real estate tax rates for selected types of real property are listed in the following table: Type of Real Estate Annual Tax Rate per Square Meter Residential buildings 0.56 PLN Commercial buildings 18.43 PLN Other buildings 6.17 PLN Commercial land 0.68 PLN Other land 0.33 PLN Source: Official Announcement of the Minister of Finance of 27 October 2005 There have been plans to replace this tax, which is related to the size of property, with a cadaster tax, related to the property’s value. Although certain preparatory measures have already been taken in this respect, these plans have now been halted. How to Do Business in Poland 151 Capital Allowances As of 1 January 2000, depreciation and amortisation rates as well as their application are governed by the Act on Corporate Income Tax of 15 February 1992 (with later amendments). Taxpayers are free to treat as costs any expenditure up to PLN 3,500. Current depreciation and amortisation rates are specified in Annex 1 to the Act on Corporate Income Tax. There are eight groups of depreciation and amortisation rates. For certain categories of real estate and plant and machinery the reducing-balance method of depreciation may be applied, in such a way that depreciation can be charged at a higher rate. These rates are calculated by multiplying the normal rate by a certain factor. The factors provided by the Act generally vary between 1.2 and 2.0. On the other hand, it is also possible to reduce the listed depreciation and amortisation rates. The major depreciation rates applied in 2006 are as follows: Buildings Constructions Machinery and equipment (general) Other machinery and equipment Office equipment Cars Computer systems Depreciation Rate 2.5 % 4.5 % 10 % 7 % - 25 % 14 % 20 % 30 % Source: Annex 1 to the Act on Income Tax on Legal Persons of 15 February 1992, as amended The act regulates in detail the amortisation of intangible fixed assets, such as licenses, copyright, goodwill, etc. It is also possible to amortise productive R&D costs (i.e., R&D ending with a positive result that may be used in the taxpayer’s business operations), providing that: • a product (or a manufacturing technology) is precisely defined and the related R&D costs reliably determined, and • the taxpayer has appropriately documented the technical usability of the product/technology and on this basis the taxpayer has decided to manufacture the products or make use of the technology, and • it results from the R&D documentation that the R&D costs will be recovered from the expected sales of the products / use of the technology. 152 VII. Taxation System Double Taxation Treaties Poland follows the model of the OECD convention in negotiating its tax treaties. As of June 2006, Poland has signed agreements on avoiding double taxation with 81 countries. These treaties are based on a reciprocity principle; they may actually reduce or eliminate various taxes. The list of countries with which Poland has signed such agreements is presented in Appendix 6. How to Do Business in Poland 153 VIII. REAL ESTATE Two forms of property ownership; ownership equivalent to freehold and perpetual usufruct – both can be used as loan guarantees Purchase of real estate by EU / EEA citizens does not require any permits, except for temporary provisions Real estate transaction costs depend on the real estate’s type and value and include notary fees, the tax on civil and legal proceedings, VAT, agent’s fees, permit fees, and court registration fees, though not all of these apply to each transaction Office market rents for prime office space in Warsaw stand at EUR 10 - 18 / sq.m /month Retail market rents for the best shopping centre locations are EUR 30 - 90 / sq.m / month Warehouse space rents average EUR 3 - 4 / sq.m / month How to Do Business in Poland 155 VIII. REAL ESTATE Legislative Framework Governing Real Estate The basic regulations governing foreigners’ usage and ownership of real estate in Poland are as follows: • • • The Law on the Acquisition of Real Estate by Foreigners of 24 March 1920 The Law on the Management of Real Estate of 21 August 1997 The Law on the Formation of the Agricultural System of 11 April 2003 Appropriate regulations of the Polish Civil Code, administrative laws, and decisions of the Supreme Court, apply to all issues not regulated by the above laws. Various aspects of spatial zoning system are regulated by the law on Spatial Zoning of 27 March 2003. The construction sector is regulated by The Construction Law of 7 July 1994, as amended. Forms of Real Estate Ownership The Polish legal system differentiates between three groups of rights pertaining to holding of real estate: ‘real rights’, ‘limited real rights’, and ‘contractual rights’. The grounds for this differentiation is the scope of rights and obligations to which entities holding and using real estate are entitled. There are two forms of property ownership in Poland similar to those existing in other countries: • Ownership – equivalent to ‘freehold’, absolute right in rem, • Perpetual usufruct (minimum 40 years – maximum 99 years, renewable) – a type of in rem right, which corresponds to ‘leasehold’. The holder of this type of right is charged with perpetual-usufruct fees, paid to an owner (the commune or the State Treasury) on an annual basis. Buildings and structures constructed on the land in perpetual usufruct become the property of the perpetual usufruct holder. Both forms of property ownership can be used as loan guarantees (mortgage) under Polish law. Ownership of real estate is freely transferable, although the transfer must be executed in the form of a notarial deed. The deed must be entered in the Land and Mortgage Register. The Polish Civil Code provides for a number of limited rights in rem, for instance: usufruct rights over the property of another, mortgages, ownership rights to cooperative flats, co-operative commercial premises, and co-operative single family houses. 156 VIII. Real Estate Contractual property rights (leases) include: • Najem – The landlord grants the tenant the use of premises for a fixed period of time (not longer than 10 years) or for an unspecified period, in exchange for rent, • DzierŜawa – The landlord agrees to grant the tenant the use of the land and the right to collect the profits (raw resources are excluded) of property for a fixed period (not longer than 30 years) or for an unspecified period, in exchange for rent. Purchase of Real Estate by Foreigners Ownership rights on land and real estate concerning foreigners are governed by the act of 1920 (The Law on the Acquisition of Real Estate by Foreigners), as amended. The most recent amendments stemmed from Poland’s accession to the EU on 1 May 2004. Therefore, the law provides for a favourable treatment of EU and other European Economic Area (EEA) citizens. For the purposes of this act a foreign person is defined as: 1. a natural person who is not a Polish citizen, 2. a legal entity with its registered seat abroad, 3. a partnership with no legal personality between the above mentioned persons, or entities with their registered seat abroad, established on the grounds of a foreign law, 4. a legal entity or a commercial partnership that has no legal personality and a registered seat in Poland, controlled directly, or indirectly, by any of the above. Purchase by Foreigners, EU / Other EEA Citizens Purchase of real estate by EU/EEA citizens does not require any permits. Still, there are some noteworthy exceptions during the transition periods. These are: • Purchase of agricultural and/or forest real estate, during the first 12 years of Poland’s membership in the EU; • Purchase of ‘second houses’, during the first 5 years of Poland’s membership in the EU. However, even in the above mentioned periods it is not necessary to obtain a permit in the following cases: • For the acquisition of agricultural real estate located in the Dolnośląskie, KujawskoPomorskie, Lubuskie, Opolskie, Pomorskie, Warmińsko-Mazurskie, Wielkopolskie, Zachodnio-Pomorskie provinces, upon 7 years of concluding a lease agreement with stated date, if during this period the foreigner conducted agricultural activities in person and lived legally on the territory of the Republic of Poland; • For the acquisition of agricultural real estate located in the Lubelskie, Łódzkie, Małopolskie, Mazowieckie, Podkarpackie, Podlaskie, Śląskie, Świętokrzyskie How to Do Business in Poland • 157 provinces, upon 3 years of concluding a lease agreement with stated date, if during this period the foreigner conducted agricultural activities in person and lived legally on the territory of the Republic of Poland; For the acquisition of ‘second houses’: - if the buyer has legally, continuously been residing for at least 4 years on the territory of the Republic of Poland, or - in order to engage in economic activity involving the provision of tourist services. Purchase by Foreigners, Who Are Not EU / Other EEA Citizens Generally, a purchase of real estate, or taking it over in perpetual usufruct, as well as a purchase or taking over shares in a company having its registered seat in the territory of Poland and holding title to, or the right of perpetual usufruct to real estate (if such an action results in the company becoming controlled by a foreign person), requires a permit from the Minister of Internal Affairs and Administration. However, acquiring stock in publicly traded companies does not require a permit. Permits are issued by the director of the Department of Permits and Licences (Departament Zezwoleń i Koncesji) in the Ministry of Internal Affairs and Administration, acting on the authorisation from the Minister of Internal Affairs and Administration. A permit is issued in the form of an administrative decision, pursuant to an application having been filed by a foreigner. The permit is valid for two years from the date of issue. Provisions of the Code of Administrative Procedure apply to the purchase of real estate. Currently, a foreigner does not have to apply for a permit in the following cases: • The purchase of an independent residential property, as defined in the Law on Ownership of Premises of 24 June 1994, including purchase of separate premises destined for garages, or of shares in such premises; • The purchase of real estate by a foreigner who has lived in Poland for at least five consecutive years from the date of issuance of a permanent residency card, or EC long-term residence permit for the territory of Poland; • The purchase of real estate by a foreigner who is the spouse of a Polish citizen and who has lived in Poland for at least two consecutive years from the date of issuance of a permanent residency card, or EC long-term residence permit for the territory of Poland when the real estate will become part of the matrimonial estate; • The purchase of real estate by a foreigner, if legally entitled to inherit from the property title holder on the day of the purchase, when the property title holder had been the owner or perpetual user of the property for at least five years; • The purchase by a legal entity or a commercial partnership that has no legal personality and a registered seat in Poland, controlled directly, or indirectly by any 158 • • VIII. Real Estate entity mentioned in 1, 2, or 3 above, in accordance with its statutory objectives, when the total area of undeveloped land does not exceed 0.4 ha within city zones; The purchase of real estate by a foreign entity that is simultaneously a bank and a mortgage debtor, as a result of an unsuccessful auction being a part of an execution process; The purchase or acquisition by a bank being a legal person defined in art. 1 paragraph 2 item 4 of the law, of shares in a company, as mentioned in art. 3e of the law, in connection with that bank’s pursuance of claims arising from banking activities performed. The above listed exemptions from the permit requirement do not apply to property located in the border zone, or when the total area of land zoned for agricultural use exceeds 1 ha. A permit may be refused only if such a refusal is justified by national security, public order, social policy, or public health concerns. Permits Issued In 2005, the Minister of Internal Affairs and Administration issued 592 permits for foreigners to buy land or real estate. Most of these (419 permits) were issued to natural persons. Furthermore, 33 permits for acquiring shares or stakes in Polish companies that own real property in Poland were issued. The number of permits issued for purchase of land and real estate as well as the total amount of land covered by the permits is presented on the following graph. Land Acquisition Permits Granted to Foreigners 2500 5000 1000 0 Number of permits 1580 1595 1536 1478 1342 1500 1065 967 2000 592 10000 604 15000 876 20000 1291 25000 1454 30000 2187 2001 35000 565 Total area of land in ha 40000 2304 45000 500 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Ministry of Internal Affairs and Administration, 2006 How to Do Business in Poland 159 In 2005, one hundred and seventy three foreign companies received permits for the purchase of approximately 1,500 ha, while foreign natural persons received permits encompassing just 290 ha. The permits were issued primarily for lands in northern and central Poland. In 2005, the largest amount of land was bought by companies and individuals from Germany, France and the Netherlands. According to the Ministry of Internal Affairs and Administration, the permits allowed foreigners to purchase 43,360 ha in Poland in 1990-2005. As of 1 May 2004 foreign companies and individuals from the European Economic Area do not require permits to purchase real estate in Poland, save for the aforementioned exceptions. There are also numerous exclusions from the permit requirement for non-EEA foreigners, listed in the previous sub-chapter. Consequently, foreign persons purchased 2,457 landed properties, encompassing 2,792 ha, without the need for permits in 2005. Transaction Costs • • • Purchasing a company: tax on civil and legal proceedings on company shares: 1 % Purchasing a property - Land not zoned for development: no VAT payable, tax on civil and legal proceedings: 2 % - Buildings with land or a vacant development site: Sale by VAT Payer: 22 % VAT, no other taxes Sale by non-VAT Payer: tax on civil and legal proceedings 2 %, no VAT Leasing a property: 22 % VAT Additional Transaction Costs • • • • Permit fee: PLN 1,400, if applicable Notary fees: varies, based on the value of the real estate, maximum rates are as follows: - Over PLN 10,000 to PLN 30,000: PLN 310 + 2 % of an amount in excess of PLN 10,000 - Over PLN 30,000 to PLN 60,000: PLN 710 + 1 % of an amount in excess of PLN 30,000 - Over PLN 60,000 to PLN 1,000,000: PLN 1,010 + 0.5 % of an amount in excess of PLN 60,000 - Over PLN 1,000,000: PLN 5,710 + 0.25 % of an amount in excess of PLN 1,000,000 Notarial Application for registering in the Land and Mortgage Register: PLN 200 Registering in the Land and Mortgage Register: PLN 200 160 • VIII. Real Estate Agent’s fees: - Purchase: 1 - 3 % of transaction value + 22 % VAT, usually paid by the owner - Lease: 10 - 15 % of the annual rent + 22 % VAT, usually paid by the owner Please note that notary fees are subject to 22 % VAT and that the maximum notarial fee for a single notarial transaction is PLN 14,282. Property Tax • • • Real estate tax – the rate is determined by the local authority, subject to maximum rates set by the Minister of Finance every year. For more information please refer to Chapter VII. Annual perpetual usufruct tax is assessed as 3 % of the value of perpetual usufruct land for commercial premises and 1 % for residential land. Owners of certain types of property, including owners of land zoned for agricultural use, must pay an agricultural tax. Its amount depends on the size of the property, the type, the class of the agricultural land and the tax district within which it is situated. Professional Services on the Real Estate Market The Law on Management of Real Estate (passed on 21 August 1997) and the executive acts issued by the Council of Ministers regulate professional activity on the real estate market. Licensed Valuer As of 1 January 1998, only licensed valuers are allowed to perform property valuations in Poland. To qualify for this profession, a person must: • be able to conduct legal activity, • have not been convicted of an offence that could undermine the profession, • possess a university degree, • pass a postgraduate course in property valuation, • have relevant work experience, • pass the qualification proceedings conducted by the State Designation Committee, • obtain a licence from the Minister of Construction. The law requires licensed valuers to maintain a high level of knowledge through continuing education and makes them responsible and accountable to the Professional Ethics Committee. There are about four thousand real estate valuers in Poland. They are accredited by the local offices of the Polish Federation of Valuers’ Associations. The How to Do Business in Poland 161 Polish Federation is a member of The European Group of Valuers’ Associations (TEGoVA) and of the International Valuation Standard Committee (IVSC). Real Estate Agent / Broker The Law on Management of Real Estate mandates that only licensed professionals may conduct real estate transactions. The following set of criteria must be fulfilled in order to become a real estate agent: • be able to conduct legal activity, • have not been convicted of an offence that could undermine the profession, • possess a university degree, • completion of an applicable college or speciality course, • practical experience gained while employed by a real estate agency, • passing qualification proceedings conducted by the State Designation Committee, • obtaining a licence from the Minister of Construction. A real estate agent is obliged to conduct business in accordance with the applicable laws and regulations, adhere to professional standards and professional conduct, and maintain an adequate level of knowledge. Real estate agents are accountable for their business conduct to the Professional Ethics Committee. The Polish Real Estate Federation is the organisation of real estate agents. It establishes standards for the profession, including ethical business practices. The federation co-operates closely with a number of similar societies throughout the world. Real Estate Manager The law defines a real estate manager as a person who possesses the required qualifications and is licensed to manage properties on behalf of the owner. Owners managing their own properties do not require a licence. The criteria for licensing professional managers are similar to those for real estate agents. The Polish Federation of Property Managers represents this profession. 162 VIII. Real Estate Real Estate Market by Segments Office Market Supply The office market is focused on Warsaw; other cities are still characterised by a limited supply of high quality modern office space. In 2005, the office market was very strong, with the annual transaction volume exceeding EUR 1 billion. The cumulative volume of office investment transactions is just under EUR 2.49 billion, for the period 1998 - 2005. Non-central locations (NCL) hold 60 % of the total supply of modern offices in Warsaw, as compared to 40 % in the central business district (CBD). The supply of new modern offices in Warsaw decreased by 17 % in 2005, to approximately 120,000 sq.m, the lowest amount since 1997, with only 29,000 sq.m in the CBD. With a large number of buildings under construction it is expected that completions in NCL will exceed 113,000 sq.m, in comparison to 112,000 sq.m in the CBD, in 2006. The most significant developments in Warsaw, e.g., Rondo 1 and Złote Tarasy (together over 100,000 sq.m), are bound to reverse the falling trend in new supply and to cause a transitory increase in CBD vacancy. Office Market – Cumulative Stock and Annual Supply 300 Stock (thousand sq.m) 1400 250 1200 200 1000 800 150 600 100 400 50 200 0 0 1995 1996 1997 1998 1999 2000 CBD Cumulative Annual Supply CBD * Forecast Annual supply (thousand sq.m) 1600 2001 2002 2003 2004 2005 2006* NCL Cumulative Annual Supply NCL Source: Cushman & Wakefield Advisory Services, 2006 163 How to Do Business in Poland Demand 2005 was strong in terms of occupational demand for office space, as annual gross take-up reached over 373,000 sq.m in Warsaw. More importantly, net absorption has also grown in comparison with the previous year, reaching the level of just under 190,000 sq.m. Demand in 2005 was driven not only by relocations and renegotiations of existing leases, but also by expansion requirements. Growing absorption has lowered vacancy rates to about 5.5 % in NCL and about 12.2 % in CBD. This helped to stabilise rental levels in NCL and to reduce the incentives offered by landlords, whereas in the CBD this stabilisation is yet to be seen, especially given the competition of large projects to be delivered in 2006. Rents The convergence of rents between the CBD and NCL is making central locations more competitive, which should help boost the demand for central locations and effectively reduce vacancy. In 2006, rents in Warsaw are expected to remain at the 2005 level, as presented on the following graph. Office Market – Warsaw Rents EUR/sq.m per month 35 30 25 20 15 10 5 0 1999 2000 NCL Average * Forecast 2001 2002 NCL Prime 2003 2004 CBD Average 2005 2006* CBD Prime Source: Cushman & Wakefield Advisory Services, 2006 164 VIII. Real Estate Retail Market Supply Retail development has continued in all the main cities across Poland as well as in Warsaw. Polish high street facilities are still at an early stage of development and supply is limited to old stock (mainly in existing residential buildings). In 2005 the total volume of modern retail stock in Poland exceeded 5.8 million sq.m, with only 30,000 sq.m of new space delivered to the Warsaw market (extensions of Centrum Okęcie and M1 Marki). Over 900,000 sq.m of retail space is currently under construction across the country. Most of the projects are located in out of the city centres and around large supermarkets and retail warehouse units from DIY (do-it-yourself) and home ware sectors. Following the dynamic development of stand-alone retail warehouses from the DIY sector, a process of concentration into retail warehouse parks, led by IKEA, is taking place all over Poland. However, since the year 2000 the growth of new generation city centre projects has been observed in most Polish cities, with the top project being Złote Tarasy in Warsaw, presently under construction. Poland has more shopping centre space in the pipeline than almost any other country in Europe, exceeding 1.2 million sq.m in 2006-2007, with most developments being located outside Warsaw. It is worth noting that development activity is also growing in smaller cities (of between 100,000 to 400,000 inhabitants), creating more investment opportunities across Poland. The total stock and annual supply of modern retail space is presented on the following graph. Modern Retail Market – Cumulative Stock and Annual Supply 700 Total stock (thousand sq.m) 4 000 600 3 500 500 3 000 2 500 400 2 000 300 1 500 200 1 000 100 500 0 0 2001 2002 T o ta l sto c k in W a rsa w A n n u a l su p p ly in W a rsa w * Forecast Annual supply (thousand sq.m) 4 500 2003 2004 2005 2 0 0 6 /7 * T o ta l sto c k in 7 o th er m a jo r c ities A n n u a l s u p p ly in 7 o th er m a jo r c ities Source: Cushman & Wakefield Advisory Services, 2006 165 How to Do Business in Poland Demand Third generation shopping centres are still prevalent in terms of supply and demand, and there is a growing interest in new retail concepts such as retail warehouse parks and factory outlet centres. Older schemes are refreshing their tenant mix and repositioning in their markets in order to respond to growing competition. Demand for retail space remains at a healthy level and the activity of foreign retailers has increased, with new players looking to enter the market as Poland joined the EU. The most common requirements are for high-standard units located close to strong natural pedestrian flows. The demand is caused mainly by established retailers looking to speed up their expansion while limiting their overall capital investment and by new retailers requiring faster market entry opportunities. Most of the existing shopping centres are leased at 100 %, with just a few instances of vacant space. Rents Developers compete aggressively to secure anchor tenants, offering incentives such as rent-free periods, fit-out contributions, and turnover rents. The difference between effective and headline rent is becoming substantial, especially on the more competitive submarkets. Rental levels in the majority of centres have remained stable, although the arrival of third generation shopping centres has pushed them slightly up. Rents for the best locations in shopping centres have diversified, and depending on the centres’ quality and location are at the level of EUR 30-90/sq.m/month. Such growth in prime rents in some markets (Warsaw, Cracow) was caused by the development of a new generation of shopping centres in city centre locations. At the same time a drop in rents for older properties was recorded. EUR/sq.m per month Retail Market – Rents 100 80 60 40 20 0 2001 * Forecast 2002 2003 High Street Average Shoping Centres Average 2004 2005 High Street Prime Shoping Centres Prime 2006* Source: Cushman & Wakefield Advisory Services, 2006 166 VIII. Real Estate Industrial Market Supply The year 2005 saw continued growth of interest in industrial space outside Warsaw, with increased supply and demand in emerging regional industrial markets. Poland is benefiting from the continuing move of European production from Western Europe, helped by the country’s low costs, the expansion of the region’s logistics markets, the growth of the retail sector, and improving transport networks. Still, the Polish industrial market remains the least mature in comparison with the other two commercial sectors, with a limited number of modern industrial parks in Poland being the main barrier. Nevertheless, investment activity has grown and almost doubled in terms of the number of transactions and volume of investments in 2005. By the end of 2005, the volume of modern industrial stock in Poland exceeded 2 million sq.m. This included approximately 574,000 sq.m in regional cities, accounting for 28 % of total modern stock in Poland. The most active markets outside Warsaw are Central Poland, Poznań and the Silesia region, whose development has been triggered by the improvement to the motorway infrastructure. In 2006, new supply may exceed 300,000 sq.m, subject to demand. Industrial Market – Cumulative Stock and Annual Supply 2 5 00 00 0 350 000 300 000 250 000 1 5 00 00 0 200 000 1 0 00 00 0 150 000 100 000 Annual supply sq.m Total stock sq.m 2 0 00 00 0 5 00 00 0 50 0 00 0 0 200 1 2002 2 003 Total stock in W arsaw A nnual supply in W arsaw * Forecast 2 004 20 05 2 006* Total stock in other cities A nnual supply in other cities Source: Cushman & Wakefield Advisory Services, 2006 167 How to Do Business in Poland Demand As some regional projects were developed speculatively, the overall vacancy has grown to about 14 % at the end of 2005, keeping rents at a low level. Demand is anticipated to remain healthy in 2006, both for industrial built-to-suit space (relocation from older stock) and for logistic space. An increase of activity in the production space market is expected, strongly fuelled by EU accession. Rents During the last two years rents have remained at around EUR 4/sq.m/month for prime industrial warehouses in Warsaw (smaller units) and approximately EUR 3/sq.m/month for logistic space. Growing competition among landlords has resulted in offering more incentives to attract tenants, which has put pressure on effective rental levels. Rental growth is unlikely to be seen through 2006, especially given the builtto-suit capacity in Poland and the growing number of lease renegotiations. Industrial Market – Prime Rents and Vacancy 0,20 5,0 0,15 4,0 3,0 0,10 2,0 0,05 1,0 0,0 0,00 2002 2003 2004 Prime rents * Forecast Vacancy (%) EUR / sq.m per month 6,0 2005 2006* Vacancy rate Source: Cushman & Wakefield Advisory Services, 2006 How to Do Business in Poland 169 IX. INDUSTRIAL AND INTELLECTUAL PROPERTY Member of the Stockholm Text of the Paris Convention on the Protection of Industrial Property Member of the Madrid Agreement Concerning the International Registration of Marks Industrial and intellectual property is protected by the Industrial Property Law of 30 June 2000 Copyright is protected by the Law on Copyright and Related Rights of 4 February 1994 The rights to any manifestation of creative activity of an individual character in any form, regardless of its value, purpose, and manner of expression are protected Registered patents are valid for 20 years from the date of filing The protection of utility models lasts for 10 years How to Do Business in Poland 171 IX. INDUSTRIAL AND INTELLECTUAL PROPERTY Industrial and intellectual property is protected on the grounds of the Industrial Property Law of 30 June 2000, which came into force on 22 August 2001, replacing four previous pieces of legislation. The law regulates inventions, utility models, industrial designs, trademarks, geographical indications and topographies of integrated circuits, as well as the principles on which entities may accept rationalisation proposals and remunerate the creators thereof. Patent Legislation Poland is a member of the Stockholm Text of the Paris Convention on the Protection of Industrial Property. Since 1990, Poland is also a signatory to the Patent Co-operation Treaty. Protection of inventions by patents and utility models is provided by the above mentioned Industrial Property Law of 30 June 2000. However, if obligatory European Union regulations, or international agreements provide for special procedures for granting protection in the subject matter, the provisions of this law apply only to the subject matter not governed by that agreement or falling within the responsibilities of national authorities. Foreign persons benefit from the rights granted by the Industrial Property Law on the grounds of international agreements. Further, foreign persons may benefit from the rights granted by this law on the basis of reciprocity, if it does not violate international agreements. Applications are filed with the Polish Patent Office. Foreign applicants must be represented by a patent attorney whose registered seat is in Poland. Registered patents are valid for 20 years from the date of filing. A patent granted for a manufacturing process also covers products directly obtained through this process. The protection right of a utility model is valid for 10 years. To keep a patent or protection right in force annuities must be paid. Patents are not granted for: • inventions whose application would be contrary to the principles of public order or decency; • new plant varieties or animal breeds, or purely biological methods for the cultivation of plants or breeding of animals, although this does not apply to the micro-biological cultivation of plants or breeding of animals, nor to its results; • surgical and therapeutic methods of medical or veterinary treatment, or diagnostic methods in the fields of medicine or veterinary science, although this does not apply to products used in diagnosis or treatment. 172 IX. Industrial and Intellectual Property Patents are granted after an examination as to whether an invention is new, involves original research, and is commercially viable. A utility model is to be new and useful and to relate to the shape, construction, or arrangement of an object that has a durable form. The patent or protection right of a utility model gives the owner the exclusive right to exploit the invention on the territory of Poland while it is valid. The exclusive right cannot, however, be abused, especially by applying prohibited monopolistic practices. In particular, patent rights will not apply where its exploitation by a third party is necessary to satisfy a domestic market need and in particular when the public interest requires so and supply and/or the quality of the product concerned is insufficient, and/or its price is unduly inflated. This provision, however, does not apply in the first three years following patent registration. Abusing patent rights, as well as the need to prevent or eliminate a state of national emergency, may be a reason for applying for a compulsory licence. There are no special terms on licences. The owner of a patent or exclusive licence has the right to sue for an injunction on account of profits and/or damages. Criminal penalties are foreseen for false marking and infringement. Marking products with a patent number is commonly used but not obligatory. It is worth noting that on the grounds of the Law on Changing Industrial Property Law of 6 June 2002 a whole new chapter on supplementary protection rights was introduced. It came into force on the date of Poland’s accession to the European Union. From that date supplementary protection rights are granted on the territory of the Republic of Poland following the conditions laid down in the regulations concerning the creation of supplementary protection certificates for medicinal products and plant protection products in the European Union. Trademarks Poland is a member of the Madrid Agreement on the registration of trademarks and the prevention of false or deceptive indications of the origin of goods. Since 1991, Poland has also been a member of the Madrid Agreement on the international registration of trademarks and became a member of the Protocol to this Agreement in the spring of 1997. The following kinds of mark may be registered: • trademark, • service mark, • collective mark, • mutual quality assurance trademark. How to Do Business in Poland 173 An application must define the goods and services that are to be marked by the registered trademark. The application procedure, the rights conferred, and the forms of registerable and unregisterable marks are regulated by the aforementioned Industrial Property Law. The applications are filed with the Polish Patent Office. Priority under the Paris Convention may be claimed. A registered trademark is valid for 10 years from the date of filing. However, there are several instances where the right of protection for a trademark shall lapse earlier, for example, if it is proved that for five consecutive years the mark has not been used. The registration may be renewed for the next 10-year period. After registration, the owner of the trademark may grant the licence to a third party. In case of infringement, the proprietor or licensee can take legal steps. Protection is extended to the names of geographical places and regions, where the name refers to a specific locality or area which is associated with a particular product and where there is a particular characteristic of the product associated with the name. Foreign applicants have to be represented in Poland by a patent attorney whose registered seat is in Poland. A list of such attorneys is available from the Polish Chamber of Patent Attorneys (at www.rzecznikpatentowy.org.pl). A list of European patent attorneys in Poland is also available from the European Patent Office (www.europeanpatent-office.org). Copyright Copyright in Poland is protected by the Law on Copyright and Related Rights of 4 February 1994. The law, following amendments resulting from joining the European Union, meets contemporary international standards and corresponds to the principles of free trade in intellectual property. The scope of copyright protection is quite extensive. The law covers not only the protection of traditionally understood author’s rights, but also related rights. The law provides for new rights and allows copyright owners to decide how their work is to be used and to derive financial benefit from it. The owners include producers of sound and video recordings, TV and radio stations, as well as artist-performers. The law provides protection for intellectual property in the areas of science, technology, and manufacturing, including computer programmes, industrial designs, etc. The protection mechanism for computer software is similar to that used in other EU countries. 174 IX. Industrial and Intellectual Property The rights to any manifestation of creative activity of an individual character in any form, regardless of its value, purpose, and manner of expression are protected. The term during which intellectual property rights are protected was expanded to 70 years after the author’s death or, in cases were the copyright belongs to somebody else, 70 years after its distribution. The law also provides for a general compensation mechanism for losses incurred by authors, performers, and producers due to uncontrolled mass reproduction for personal use (at home). Producers and importers of VCRs, tape recorders, other audio and video equipment, scanners, copying machines, as well as clean tapes, CDs, etc. must pay a surcharge to the artists, performers, and manufacturers amounting to up to 3 % of the sales income generated by these products. The law provides grounds for an efficient enforcing of copyright protection. Illegally obtained benefits may be confiscated and returned to the true owner. Any equipment used for the infringement may also be confiscated, even if it does not belong to the perpetrator. The law also envisages penalties for the infringement of intellectual property rights by fines and prison sentences of up to 5 years. Moreover, a separate piece of legislation, The Law on Suppressing Unfair Competition of 16 April 1993 defines unfair competition as an illegal activity, or an activity contrary to good practises, violating or threatening the interests of another entrepreneur or customer. It protects Polish and foreign companies from such activities, and specifically from: • attempts to convince the public that goods or services originate from someone other than the true producer or supplier, • damaging the company’s image by providing unchecked information or publishing its trade or technological service information, etc., • violating business secrets, • inciting cancellation, or non-performance, of a contract, • product imitation, • impeding market access, • organising pyramid selling schemes. Upon coming into force the Law on Copyright and Related Rights and the Law on Suppressing Unfair Competition have considerably strengthened copyright protection in Poland and contributed to curtailing piracy. EU membership required amendments of both laws, in order to implement EU directives in this area. The amendments have been duly introduced and have resulted in the establishment of a legal framework concerning copyright protection which is similar to that present in other EU countries. How to Do Business in Poland 175 X. OPERATING IN POLAND A variety of legal forms available, to suit any type and size of business How to establish basic types of companies: ♦ joint stock company ♦ limited liability company ♦ limited partnership ♦ limited joint-stock partnership Regulations concerning subsidiaries; branch offices and representative offices Merger regulations Criteria for simplified financial reports for smaller companies Obligatory audit criteria Public procurement tender procedures and exclusions Creditors’ protection Employment contracts Social security charges amount to 48 % of the salary Countries whose citizens do not require a permit to work in Poland Various exclusions from the obligation of obtaining a work permit How to Do Business in Poland 177 X. OPERATING IN POLAND Forms of Business Entities Polish regulations allow the following legal forms of businesses: • • • • • • enterprises run by a natural person; these are small businesses run by private individuals, civil partnerships established under the regulations of the Polish Civil Code, commercial companies, established by natural or legal persons under the regulations of the Polish Code of Commercial Companies, co-operatives established by natural or legal persons, state-owned enterprises, societas europaea (SE) and European Economic Interest Grouping (EEIG) can be set up in Poland as of 19 May 2005 (in accordance with EU Council regulations). The Code of Commercial Companies of 15 September 2000 regulates two groups of companies: • • partnerships (registered partnership, limited partnership, professional partnership and limited joint-stock partnership), corporations (joint-stock company and limited liability company). Societies, foundations, and trade unions may also carry out economic activity. Operations in some business areas require a license or a permit, on the grounds of the Law on Economic Freedom of 2 July 2004, or may be carried out following the company’s entry in the register of regulated activities, regardless of whether the company is domestic or foreign. For some basic information on corporations, as well as licensing and permits, please refer to Legal Considerations in Chapter V. On the basis of the Law on Economic Freedom of 2 July 2004, foreign persons (as defined by the aforementioned law) from EU and EFTA states – members of the European Economic Area – may operate in Poland in accordance with the principles applicable to domestic entrepreneurs. Other foreign persons may conduct their operations solely (unless stated otherwise in international agreements) in the form of a limited partnership, limited joint-stock partnership, limited liability company, and joint-stock company. Moreover, foreign persons may open branch offices and representative offices in Poland. For more information on subsidiaries please refer to the next sub-chapter. 178 X. Operating in Poland Establishing a Company Joint-Stock Companies and Limited Liability Companies Before the registration procedure for a company may be started, the company charter (joint-stock company) or the articles of association (limited liability company) must be prepared and duly signed and notarised. Prior to their finalisation in consultation with a notary, a draft should be prepared by the legal advisers of the company’s founders. In the case of a joint-stock company, the notarial deed should contain the following: • business name and company seat, • type of activity, • duration of the company, if limited, • amount of share capital, capital paid-in before registration, the nominal value of the shares and their number, the indication whether they are registered shares or bearer shares, • number of each type of shares and rights associated with specific share types, if applicable, • names and addresses of the founders, • number of members of the governing and supervisory bodies, or at least a minimum or a maximum number and an entity authorised to appoint the members, • a newspaper/periodical for publishing announcements, if the company intends to publish announcements in other than the Court and Economic Monitor (Monitor Sądowy i Gospodarczy). Apart from the above, the charter should include provisions concerning the number and type of instruments that entitle the holder to participate in the profits or in the division of company assets, along with the rights associated with these instruments, any additional obligations related to the purchase of the shares (other than the requirement to pay for the shares), the conditions and manner in which the shares may be re-deemed, any limitations concerning the shares’ transfer or sale and any extra rights granted to specific shareholders, as well as at least an approximation of the costs resulting from the company’s formation. In the case of a limited liability company, the notarial deed should contain the following: • business name and company seat, • type of activity, • duration of the company, if limited, • amount of share capital, • whether a shareholder is entitled to one or more shares, • number and nominal value of shares held by individual shareholders. How to Do Business in Poland 179 Apart from the above, the deed should include provisions concerning in-kind contributions and stipulations concerning additional shareholder benefits and/or obligations, if applicable. Other documents required at the notary office are: • a list of names of shareholders and the value and number of shares held by the founders, • a draft of the appointment of the Board of Management, • a draft of the appointment of the Supervisory Board (obligatory for joint-stock companies) and Control Committee, if provided by law or the articles of association. If the shareholder is a legal person, he is required to submit: • a copy of the company’s entry in the commercial register (valid for three months), • a resolution of the appropriate body of the company agreeing to the company’s participation in the new company to be formed, • notarialy authorised proxies, if the persons authorised to sign on behalf of the shareholder are not appearing in person and are to be represented by a proxy. Documents in a foreign language must be accompanied by a certified translation. It should be noted that for limited liability companies the founding capital must be fully paid up on incorporation, while for joint-stock companies at least 25 % of the founding capital must be paid up or contributed on incorporation and at least 25 % of the cash capital must be paid up. The next step is to register the company in the National Court Register. This is performed by the Registry Court, which acts after receiving an application for registration submitted by the Board of Management and containing information on: • business name and company seat, and scope of business, • the value of the initial capital (and the number of shares and their nominal value for joint-stock companies), • the names of Board of Management members and how the company is represented (and members’ addresses for limited liability companies), • the names of Supervisory Board members (obligatory for joint-stock companies) and Control Committee, if required by law, or the articles of association, • the duration of the company, if limited, • a newspaper/periodical for publishing announcements, if indicated in the charter/articles of association, • a statement on in-kind contributions made by the partners, • whether a shareholder is entitled to one or more shares (limited liability companies), • number of privileged shares and type of privileges (joint-stock companies), 180 • • • X. Operating in Poland final share capital amount, if provided by the charter (joint-stock companies), amount of capital paid-in before registration (joint-stock companies), any extra rights granted to specific shareholders, if provided by the charter (jointstock companies). Other documents required upon registration include: • The company charter or articles of association; • Documents appointing the company’s governing bodies, with a specification of appointed members. In the case of a limited liability company only when these were not defined in the articles; • A statement from all members of the Board of Management that the contributions towards initial capital have been made by all shareholders in full (limited liability companies), or that the share payments and contributions in kind envisaged by the charter have been effected lawfully (joint-stock companies); • A list, signed by all members of the Board of Management, giving the names of the shareholders (individuals and companies) and the number and nominal value of shares held (limited liability companies); • Specimens of the signatures of the Board of Management members, certified by a notary or made in person in the presence of the Court; • Notarial deeds on establishing the company and on the subscription of shares (joint-stock companies); • A receipt for the share payments, certified by a bank, or an investment company. If there are contributions in kind to be made after the registration, a statement from all members of the Board of Management that the contributions are ensured, as required by the law (joint-stock companies). There are some further requirements concerning documents required upon registration of a joint-stock company, specified in the Code of Commercial Companies, article 320. There is a registration fee amounting to PLN 1,000. The registration has to be officially announced, as required by the law, in the Court and Economic Monitor. The announcement fee is PLN 500. After its registration in the Court, each company must obtain its statistical number (REGON) from the local statistical office (free of charge). To receive it the company is required to fill-in and submit a simple RG-1 form, accompanied by a copy of the articles or charter and a certified copy of the entry in the Commercial Register. Although statistical offices are obliged to issue the REGON within seven days, if you show up in person it can take as little as twenty or thirty minutes, depending on the length of the queue. Finally, the company must be registered with the Social Security Institution (ZUS) and the local tax office (after opening a bank account). How to Do Business in Poland 181 Limited Partnership A limited partnership is a partnership wherein at least one partner is fully liable against creditors (general partner) and the liability of at least one partner (the limited partner) is limited. The partnership agreement must be notarised and it should contain: • business name and company seat, • type of activity, • duration of the company, if limited, • contributions made by each partner and their value, • liability of each limited partner against creditors (value), • if a limited partner contributes in kind, the contribution must be specified, along with its value and the name of the contributing partner. The next step is to register the company in the National Court Register. The same registration and announcement fees apply as in the case of other commercial companies. A limited partnership’s registration application should contain: • business name and company seat, • type of activity, • name(s) of general partners and, separately, names(s) of limited partners, as well as circumstances pertaining to limitations on partners’ active capacity, if applicable, • names of persons authorised to represent the company, and how the company is represented, and, should general partners entrust the running of the company to some of their number alone, this circumstance should be mentioned, • amount up to which the limited partners are liable. A limited partnership is established upon its registration. After this, just as for corporations, the company must obtain its statistical number, and register with the Social Security Institution (ZUS) and with the local tax office (after opening a bank account). Limited Joint-Stock Partnership A limited joint-stock partnership is a partnership wherein at least one partner is fully liable against creditors (the general partner) and at least one of the partners is the company’s shareholder. The minimum share capital of a limited joint-stock partnership amounts to PLN 50,000. The partnership agreement must be notarised and it should contain: • business name and company seat, • type of activity, • duration of the company, if limited, • contributions made by each partner and their value, • amount of share capital, how it was collected, the nominal value of the shares and their number, an indication whether they are registered shares or bearer shares, 182 • • • X. Operating in Poland number of each type of shares and rights associated with specific share types, if applicable, name(s) of general partners, with their seats/addresses, structure of the General Meeting and of the Supervisory Board, if establishment of the Supervisory Board is required by law, or the partnership agreement. The next step is to register the company in the National Court Register. The same registration and announcement fees apply as in the case of other commercial companies. A limited joint-stock partnership’s registration application should contain: • business name and company seat, • type of activity, • duration of the company, if limited, • amount of share capital, the nominal value of the shares and their number, • number of privileged shares and type of privileges, if envisaged in the partnership agreement, • amount of capital paid-in before registration, • name(s) of general partners, as well as circumstances pertaining to limitations on partners’ active capacity, if applicable, • names of persons authorised to represent the company, and how the company is represented, and, should general partners entrust the running of the company to some of their number alone, this circumstance should be mentioned, • a statement on in-kind contributions of the shareholders, if applicable. A limited joint-stock partnership is established upon its registration. After this, just as for corporations, the company must obtain its statistical number, and register with the Social Security Institution (ZUS) and with the local tax office (after opening a bank account). Subsidiaries of Foreign Companies Foreign companies may open branch offices and representative offices in Poland pursuant to the provisions contained in the Law on Economic Freedom of 2 July 2004. Branch Office Foreign companies may establish branch offices in Poland, on the basis of reciprocity, subject to the provisions of international agreements ratified by Poland, in order to conduct business activity in Poland within the scope of their business objectives, exclusively. How to Do Business in Poland 183 Foreign persons (as defined by the aforementioned law) from EU and EFTA states – members of the European Economic Area – may establish branch offices in Poland in accordance with the principles applicable to domestic entrepreneurs. Branch offices are obliged to use the name of the mother company in the language of the country where it is registered, along with the name of its legal form translated into Polish and the words oddział w Polsce (branch in Poland) added. A foreign entity setting up its branch office is obliged to appoint a person at the branch who is authorised to represent this entity. A branch may commence its operations only after it has been registered with the National Court Register. Branch offices are to maintain separate accounting books in Polish, pursuant to Polish accounting regulations. Another requirement stipulates that branch offices are required to notify the Polish Minister of the Economy of: • the commencement of liquidation of the foreign entity that has opened the branch in Poland, • the loss by that foreign entity of the right to conduct business activity. Liquidation of branch offices is carried out following the liquidation procedure for limited liability companies contained in the Code of Commercial Companies of 15 September 2000. Representative Office Foreign companies may establish representative offices in Poland solely in order to promote and advertise the company establishing the office. Establishment of a representative office requires registration in the Register of Representative Offices of Foreign Business Entities kept by the Minister of the Economy. Registration is effected based on an application from the foreign company concerned. The application, in Polish, should contain the following: • name, place of registration, and legal form of the foreign company opening its representative office, • scope of the business activity of the foreign company opening its representative office, • name and address in Poland of a person in the representative office authorised to represent the foreign company, • representative office’s address in Poland. The above-mentioned application should be accompanied by the documents listed below: • deed of formation (articles of association, charter) of the foreign company, if applicable, 184 • • • X. Operating in Poland copy of its entry in the Commercial Register or its equivalent, if applicable, statement of the foreign company on establishing its representative office in Poland, document certifying the foreign company’s rights to the real estate wherein its representative office will carry out the activities. The enclosures in a foreign language contained in this list should be accompanied by a certified translation into Polish. Representative offices are obliged to use the name of the mother company in the language of the country where it is registered, along with the name of its legal form translated into Polish and the words przedstawicielstwo w Polsce (representative office in Poland) added. Just like branch offices, representative offices are required to maintain separate accounting books in Polish, pursuant to Polish accounting regulations. Furthermore, representative offices are obliged to notify the Polish Minister of the Economy of: • the commencement or end of liquidation of the foreign entity that has opened a representative office in Poland, • the loss by that foreign entity of the right to conduct business activity, • the loss by that foreign entity of the right to dispose of its assets, as well as • any change pertaining to the information contained in the application for registering of the representative office. Liquidation of representative offices is conducted following the liquidation procedure for limited liability companies contained in the Code of Commercial Companies of 15 September 2000. Competition and Consumer Protection The Office for Competition and Consumer Protection (UOKiK) is the Polish competition authority guarding freedom of competition and consumer interests. Its major mission is to examine conformity with the Competition and Consumer Protection Law of 15 December 2000 (in force as of 1 April 2001), which forms the legal basis for competition and consumer protection in Poland. The UOKIK’s head-office is located in Warsaw and there are 9 branch-offices in major Polish cities. Its key activities include acting against monopolistic practices, merger control, consumer protection, and public aid monitoring. As of 1 May 2004 the UOKiK is a part of the European Competition Network, formed by the European Commission and competition protection authorities of the member countries. From a foreign investor’s point of view probably the most interesting activities of the Office for How to Do Business in Poland 185 Competition and Consumer Protection and its regional agencies are the ones pertaining to mergers. It should be noted that concentrations having a Community dimension fall into the jurisdiction of the European Commission, on the grounds of Council Regulation (EC) No 139/2004 of 20 January 2004 on the Control of Concentrations Between Undertakings (the EC Merger Regulation). A concentration has a Community dimension where: • the combined aggregate worldwide turnover of all the undertakings concerned is more than EUR 5 billion; and • the aggregate Community-wide turnover of each of at least two of the undertakings concerned is more than EUR 250 million, unless each of the undertakings concerned achieves more than two-thirds of its aggregate Community-wide turnover within one and the same Member State. In specific cases a concentration that does not meet the above thresholds has a Community dimension, providing that the combined aggregate worldwide turnover of all the undertakings concerned is more than EUR 2.5 billion. A merger of companies is subject to the UOKiK’s approval if the companies’ combined turnover in the preceding year exceeded EUR 50 million. This obligation refers, in particular, to: • the merger of two or more independent companies; • the takeover, through acquisition or by entering into the possession of stocks, other securities, shares, of the entirety or a part of the property, or in any other way obtaining direct or indirect control over one or several companies; • the creation of a joint venture; • the takeover or acquisition of stocks or shares of another company resulting in gaining at least 25 % of the votes at the general assembly or assembly of partners; • the same person assuming the function of a member of the managing or controlling body of competing companies. There are some exclusions from the obligation of obtaining the UOKiK’s approval, most notably these pertaining to taking over companies with an annual turnover below EUR 10 million (in the territory of Poland, during each of the two accounting years immediately preceding the merger), to companies of the same holding, and to acquiring only temporary control. However, the exclusion based on an annual turnover below EUR 10 million does not apply to mergers that would result in creating, or strengthening, a dominating market position, as defined by the law. It is assumed that a company has the dominating 186 X. Operating in Poland position, if its market share exceeds 40 %. A merger can take place if UOKiK grants a favourable decision. In order to increase the efficiency of the UOKiK, in cases where a company’s practice may be restricting competition, an explanatory investigation may be instituted instead of the more complex and costly anti-monopoly proceedings, and a decision may be made on the evidence gathered in the shorter proceedings. Furthermore, the question arose as to the obligation of notification of trans-national mergers. It was decided that, on the basis of Article 1 of the Act on Competition and Consumer Protection, which provides that the act will apply to all anti-competitive practices “which cause or may cause effects within the territory of the Republic of Poland”, the parties to trans-national mergers are obliged to notify the UOKiK of their intention to merge if: • any of the enterprises has subsidiaries in Poland; or • they have distribution networks in Poland; or • they conduct permanent sales on the territory of Poland. It should be noted that as of 1 May 2004, art. 13 clause 2 of the Competition and Consumer Protection Law, providing an exemption from the obligation to notify the UOKiK about mergers as a result of which the joint market share of the merging partners will not exceed 20 % is no longer in force. Therefore, all mergers that had not been effected by 1 May 2004 and that were excluded from the obligation to obtain the UOKiK approval on the grounds of the aforementioned clause, need to obtain such an approval regardless of the partners’ market share. The same law prohibits agreements that aim at, or result in, the elimination, restriction, or any other infringement of competition on the relevant market, and in particular, those agreements consisting in: • fixing, directly or indirectly, prices and other conditions for the purchase or sale of products; • limiting or controlling production or supply, or technical development or investments; • sharing markets of supply or purchase; • applying onerous, or different contract terms in like transactions with third parties, thus creating different conditions of competition for these parties; • making the conclusion of an agreement subject to the acceptance or fulfilment by the other party of another performance, having neither substantial nor customary relation with the subject of the agreement; • limiting access to the market or eliminating from the market entrepreneurs who are not party to the agreement; • fixing the conditions of offers to be submitted by entrepreneurs participating in a tender, in particular in relation to the scope of works or price. How to Do Business in Poland 187 There are, however, some exclusions from the above, most notably pertaining to companies with a joint market share of below 5 %. Abusing a dominant market position, as defined in art. 8 of the law, is also prohibited. In 2005, the UOKiK issued 144 decisions on the grounds of anti-monopoly regulations regarding practises limiting competition. Of this number, 16 cases involved horizontal agreements (in 4 cases practises limiting competition were discovered), 11 cases involved vertical agreements (in 2 cases practises limiting competition were discovered), and 117 cases involved abuse of a dominant position (in 41 cases practises limiting competition were discovered). In the same year the UOKiK examined 378 cases pertaining to mergers and completed 329. In 265 instances, the decision was favourable to the merging companies. In two cases the favourable decision was conditional. No intended mergers were banned. Accounting and Auditing The accounting and auditing regulations are based on the Accounting Law of 29 September 1994, as amended. The law does not apply to the State Treasury and the National Bank of Poland. All businesses having their registered seat, or the seat of management in Poland must adhere to Polish accounting and auditing regulations. However, as of 1 January 2005, entities keeping accounts in line with International Accounting Standards (IAS) and following International Financial Reporting Standards (IFRS) and the related interpretations announced as directives of the European Commission are required to apply the Accounting Law only to the matters not regulated therein. Application of the law by the following business entities is voluntary, providing that their net sales do not exceed EUR 800,000: • enterprises run by a natural person, • civil partnerships established by natural persons, • registered partnerships established by natural persons, and • professional partnerships. The required accounting procedures are based on a double-entry system. Each company must establish its own book of accounts. Except for state organisations, no uniform book of accounts is imposed. Nevertheless, a book of accounts must still meet certain requirements, such as the ability to show the company’s assets, the cost of production, and the profitability of the company. The accounting records, the annual balance sheet, and the profit and loss account must be maintained in Polish currency and prepared in the Polish language. 188 X. Operating in Poland The requirements regarding the correctness and clarity of accounting records and vouchers do not differ from those normally applied in other European Union countries. Accounting records, documentation, reports, etc., have to be kept for 5 years. The accounting law provides for the (optional) application of Polish Accounting Standards (only a few exist, presently), and where there is no Polish standard, the appropriate International Accounting Standard (IAS) may be used. In practise, this means that many companies will not comply with IAS where the accounting law is silent on a particular issue. In light of the commercial activity regulations, if a transaction is concluded between entrepreneurs, it is always to be done via a bank account. In the case of transactions between entrepreneurs and other parties, this obligation arises only if the amount of the transaction exceeds EUR 15,000, regardless of the number of payments. The entrepreneur must notify the appropriate tax office of his intention to operate a bank account for business purposes. If he has opened more than one bank account, he is obliged to indicate one of them as basic and to inform both the bank and the relevant tax office which is the principal bank account. The law specifies information to be included in financial reports. There is also a provision allowing for simplified financial reports. Such reports can be used by companies meeting at least two of the following three criteria in the year to be reported and in the previous year: • the average number of employees (in full-time terms) does not exceed 50, • balance sheet assets at the end of the financial year do not exceed EUR 2 million, • net income does not exceed EUR 4 million. However, simplified reports are not allowed in the case of banks and insurance companies. Holdings, joint-stock companies (excluding companies in the process of organisation), banks and insurers, and entities operating according to the provisions concerning the public turnover of securities, the organisation and operation of pension funds, and investment funds, are required to hold an annual audit. Other companies must be audited if two of the following three conditions are met in the preceding year: • the average number of employees (in full-time terms) exceeds 50, • balance sheet assets at the end of the financial year exceed EUR 2.5 million, • net income exceeds EUR 5 million. How to Do Business in Poland 189 The auditor’s report must be submitted to the company’s local tax office, as well as to the registration court. The report is available for public inspection. All auditors must be members of, and are governed by, the National Registered Auditors’ Chamber and the list of auditors entitled to perform audits may be obtained there. Public Procurement The Polish public procurement system is governed by the Law on Public Procurement of 29 January 2004, as amended. It came into force on 2 March 2004, in order to harmonize the Polish law on public procurement with EU requirements. The law specifies the rules and procedures for awarding public contracts, law enforcement measures, monitoring of the award of public contracts and the competent authorities with respect to matters addressed therein. Public procurement activities are supervised by the Public Procurement Office (UZP). Generally, the law applies to all public contracts with a value exceeding EUR 6,000, including for example, those awarded by state and local governments, co-operatives, public health care centres and all other entities which use public funds to finance at least 50 % percent of a given project. Entities from some sectors, such as water management, power, transport and telecommunications are subject to the law if they operate on the basis of special or exclusive rights, or if they are subordinated to dominant entities from the public finance sector. However, it should be noted that defence related purchases are excluded from public tender requirements. Moreover, there are other exclusions, including contracts related to the performance of an international obligation, and labour and real estate transactions. Depending on the value and nature of the tender, one of seven tender procedures envisaged by the law is to be applied. The seven are: • public tenders, • limited tenders, • published competitive negotiations, • unpublished competitive negotiations, • open orders, • price inquiries, and finally, • internet auctions. Public tenders and limited tenders are the primary procedures. The others may be used only in cases specified in the aforementioned law. 190 X. Operating in Poland Generally, public contracts involving the sale of goods and/or services up to EUR 60,000 may be carried out using simplified tender procedures, and thus avoid the need to follow all public tender requirements. If a value of tender for the sale of goods and/or services exceeds EUR 130,000 (EUR 5,000,000 in the case of construction services), public tender announcements are published in the Official Journal of the European Union. However, a public agency administering the tender is allowed a certain degree of discretion to utilize the limited tender procedure as opposed to the formal public tender, regardless of the value of the contract. Specifying the subject of a contract by identifying trademarks, patents, or origin is not allowed. Still, if such a degree of specification necessarily arises out of the very nature of the contract, or the ordering party cannot describe the contract in any other manner, this ban can be avoided. A bidder is entitled to correct obvious mistakes in his tender, including mistakes in calculations. In such case the bidder is obliged to inform all the other bidders accordingly. Moreover, regardless of the value of the tender, an unsuccessful bidder has the right to appeal. Even if just one bid is received, the tender may continue without the need to cancel it, or call for a new one. Polish entities no longer receive preferential treatment as compared to their EU counterparts. On the other hand, nonEU based entities may find themselves at a competitive disadvantage. Bankruptcy and Insolvency Bankruptcy and insolvency are governed by the Law on Corporate Insolvency and Recovery of 28 February 2003. The Law applies to all types of economic entities, including state enterprises, companies, and natural persons conducting business activity. The aim of the Law on Corporate Insolvency and Recovery is to create greater protection for creditors and also to encourage reorganisation schemes during the course of the insolvency process. The primary objective is to ensure that the entity can continue its economic activities, with the objective of maintaining employment and the integrity of the enterprise. Moreover, the law aims at the corporate recovery of the enterprise, creditor satisfaction, the prevention of further insolvency, debt rescheduling, and the encouragement of responsible business practices amongst entrepreneurs. The legislation applies to entrepreneurs, limited liability companies, joint-stock companies, partners in partnerships, and branches of foreign banks operating in Poland. How to Do Business in Poland 191 Insolvency of any business may be declared when a business entity has ceased to pay its debts. However, if the situation is short-lived only, due to some temporary difficulties, it does not give grounds to declare bankruptcy. In the case of state-owned enterprises, co-operatives, joint-stock companies, limited liability companies, other legal persons conducting economic activity, liquidated general partnerships, registered partnerships, professional partnerships, or limited joint-stock partnerships, bankruptcy is also declared if the assets of such subjects cannot satisfy existing debts. In all cases, the court always closely supervises proceedings. An insolvent debtor is obliged to lodge a formal application within 14 days of the occurrence of conditions of insolvency. Failure to comply can lead to civil law consequences, prohibition from conducting economic activity by the individual and prohibition from acting as a director or supervisory board member of any entity. In addition, persons acting dishonestly or impeding the process of insolvency can be prosecuted under criminal law. The legislation has a restrained scope of application to individuals, where its application is limited to personal insolvency caused by factors outside the control of the individual. This law does not apply to non-commercial entities. The insolvency process is divided into two phases. The first concerns the declaration and publication of insolvency and the process of establishing whether there are grounds for declaring insolvency. The second phase regards the execution of the insolvency process, ending in the complete or partial satisfaction of creditors, or in some compromise scheme. The choice of the method to satisfy creditors’ claims is determined by the court. A creditor of the company may also file a motion for bankruptcy, as well as any of his creditors. Further, in the case of general partnerships, registered partnerships, professional partnerships, or limited joint-stock partnerships, any partner or shareholder is entitled to file a motion for bankruptcy, while in the case of legal persons and other organisational units this right is granted to any person representing such an entity. There are the following types of insolvency procedures: • bankruptcy, • arrangements within bankruptcy proceedings, • voluntary agreements, • banking arrangements. 192 X. Operating in Poland The bankruptcy of a company results in the sale of all assets, the meeting of all commitments, and the collection of all debts. Where possible, companies with no financial liquidity should be sold as going concerns. The law aims to avoid the bankruptcy of economic entities that are facing short-term liquidity problems. Under the legislation it is not possible to place the following into insolvency: • The State Treasury, • Local authorities and their entities, • Public health service units, • Institutions and legal entities set up by an act of Parliament, or those set up under delegated authority arising from legislation, • Farmers, • Education establishments. Recovery of a business entity which, as a result of exceptional circumstances beyond its control, has ceased to pay its debts or foresees that its payments will cease, may demand the opening of proceedings for arrangements with creditors in order to make a voluntary arrangement. Entrepreneurs should note, however, that bankruptcy proceedings are very slow and do not give creditors protection at a level foreign investors may be used to. The law introduced the concept of securing the assets of an insolvent entity. The aim is to ensure that the insolvent entity does not dispose of its assets in the period between the declaration of insolvency and the moment of appointment of a liquidator/administrator or the appointment of a court official. The law provides for the possibility to conduct a process of corporate restructuring. The process is designed to ensure speed of action and in practise is carried out by the insolvent enterprise itself. It is designed to be applied to enterprises which are still capable of meeting some of their liabilities, but which are in danger of becoming insolvent. Conducting this process is subject to presenting a restructuring plan. Restructuring, however, can only be conducted by enterprises entered in the National Court Register. The law also extends the application of cross-border insolvency and restructuring. When a foreign entity is put into liquidation, its Polish registered branches and representative offices become subject to the insolvency law. The Polish law imposes the model legal solutions of the 1997 UNCITRAL rules. However, as at the date of Poland’s accession to the European Union, intra-EU insolvency became subject to the EU law. The main consequence of the above is that the insolvency process of a branch or a representative office is conducted on the grounds of the law of the country of registration of the parent entity. How to Do Business in Poland 193 Employees All major employment issues are regulated by the Labour Code of 26 June 1974, as amended. These include employer-employee relations, working conditions, salaries and wages, holidays, etc. Another important act concerning employment, and employment of foreigners in particular, is the Law on the Promotion of Employment and Labour Market Institutions of 20 April 2004. An employer must conclude a written employment contract with an employee. The contract should describe the type of work to be carried out, the commencement date, place of work, working hours, and the salary. The employment contract may be for an unlimited or limited period of time or can be limited to the carrying out of a specific task. There are several types of employment contracts: • unlimited duration contract, which is a permanent employment contract, • limited duration contract, concluded for a probationary period. The term of this contract can not exceed three months. Often it leads to the conclusion of an unlimited duration contract, for which the contractual conditions may be renegotiated. If the parties do not reach an agreement concerning future contract terms, the contract expires at the end of the probationary period, • limited duration contract, • personal service contract (umowa zlecenie) is a fixed term contract concluded for the performance of a specified activity. This type of contract is regulated by the provisions of the Civil Code, • specific task contract (umowa o dzieło) is a fixed term contract concluded for the performance of a commissioned activity, which is to bring specified results. This type of contract is regulated by the provisions of the Civil Code. Employers are allowed to forbid employees from co-operating with rival companies. Non-competition clauses in the contract may take the form of an absolute ban on co-operation with companies with a similar business profile or a ban on working in a rival company after the employee leaves the job. If an employee violates such a clause, he or she is financially liable. The employee is bound to work with due care, to comply with the hours of work laid down within the company and to use such time effectively, always to have in mind the benefit of the company, and to obey those instructions of his superiors that relate to his work. The employment contract can be cancelled without previous notice if the employee commits a serious breach of contract, commits a crime, or, through his own fault, loses any licence required for the carrying out of his or her work. 194 X. Operating in Poland Generally, employees must be at least 18 years old. There are, however, specific rules for employing minors. Employees who have less than 4 years to work before attaining pensionable age and pension rights (65 years for men and 60 years for women) may only be dismissed in the event of the bankruptcy or liquidation of the company. This is also true for employees during periods of vacation, illness, pregnancy, maternity leave, or leave of absence requested in advance by the employee. Upon termination of the employment contract the company must complete a reference with respect to the employee. The reference should include information on the employment period, the type of work carried out, the positions given to the employee, the type of termination or circumstances leading to termination of the employment contract, as well as other information indispensable for a new employer in determining social and other employee benefits. The employee is entitled to request a reference. If the employee is not satisfied with the reference, he or she can request a correction: if necessary, by applying to the labour courts. Wages and salaries are paid in Polish currency at least once a month. There is a minimum salary requirement, obligatory for all business entities in Poland. In 2006, the minimum gross salary for any full-time employee amounts to PLN 899.10, approximately USD 300. However, the minimum gross salary in the first year of work is set at 80 % of the above mentioned amount. Working hours are to amount to an average of 8 hours a day and 40 hours in an average five-day week. There are twelve public holidays: New Year (January 1), Easter Sunday and Easter Monday, May 1 and 3, Whitsunday, Corpus Christi, August 15, All Saints Day (November 1), Independence Day (November 11), and Christmas (December 25 and 26). In specific cases, working 12 hours a day is permitted. The overtime work relates to duties performed during the time beyond the limit set by the Labour Code’s regulations. The circumstances under which such work may be done are thoroughly specified, and include, in particular: • an emergency action to protect human life, or health, or property, or the natural environment, or to eliminate breakdowns, failures, etc. • a case of the specific needs of the employer. The number of overtime hours worked in the second above-mentioned circumstance can not exceed 150 hours per person in the calendar year. How to Do Business in Poland 195 For working overtime an employee, beside his or her usual wages, is entitled to a bonus in the amount of: • 100 % of remuneration for overtime work at night, on Sundays and on holidays which are non-working days for the employee concerned, and during non-working days granted to the employee in exchange for his work carried out on Sundays and on holidays; • 50 % of remuneration for overtime work in periods other than those mentioned above. Employees have a right to annual leave, paid in accordance with their remuneration. An employee starting a job acquires a right to annual leave in the same calendar year after each month of work in the amount of 1/12 of the annual leave. The right to the next annual leave is acquired in each following calendar year. The length of annual leave depends on the length of employment. It amounts to 20 days (up to 10 years of employment), or to 26 days (10 years or over of employment). Women are entitled to paid maternity leave of 16 weeks after the first birth and 18 weeks after the second or any subsequent birth, and 26 weeks for giving birth to more than one child at a time. Employees who have been employed for at least six months are also entitled to a 3 year leave (paid by the Social Security Institution – ZUS) to raise their children of up to 4 years of age. This leave may be taken in up to 4 separate periods. In addition, 2 extra work-free days are permitted to take care of children up to 14 years old. As of 1 April 2006, the total average social security charges amount to 48.07 % of the salary. This amount is split as follows: the social insurance contribution, constituting the major charge and accounting for 36.77 % (encompassing pension insurance – 19.52 %, disability pension insurance – 13 %, insurance against sickness – 2.45 % and accident insurance – average 1.8 %), health insurance, accounting for 8.75 %, the Labour Fund contribution, accounting for 2.45 %, and the FGŚP fund (Fundusz Gwarantowanych Świadczeń Pracowniczych) contribution of 0.10 %. The Social Security Institution (ZUS) transfers 7.3 % out of the 19.52 % of the pension insurance collected to the open pension funds for all employees that are pension fund members. Please note that the accident insurance contribution rate ranges between 0.90 and 3.60 %, depending on the company’s size and activities. Moreover, the health insurance contribution rate is to increase by 0.25 %, to reach 9 % in 2007. Some of these contributions are paid by the employer, some by the employee, and some are divided between them. Employers are obliged to pay for accident insurance, as well as the Labour Fund contribution and the FGŚP fund contribution. The employee pays for insurance against sickness, and for health insurance, while pension insurance and 196 X. Operating in Poland disability pension insurance charges are split between them equally. Therefore, taking into account the average accident insurance of 1.8 %, the social security contribution paid by the employer amounts to 20.61 % of the salary. The maximum base for calculating most elements of the social security contribution is limited to 30 times the average monthly wages envisaged for a given year by the budgetary law. In 2006, the maximum base is equal to PLN 73,560. It is important to note that a company must register with the ZUS department responsible for the region in which the company is located within 7 days after the first employee has started work. Employment of Foreigners Foreigners from Cyprus, the Czech Republic, Estonia, Finland, Greece, Hungary, Ireland, Iceland, Latvia, Lithuania, Malta, Portugal, Slovakia, Slovenia, Spain, Sweden and the United Kingdom are allowed to work in Poland without any permits. Moreover, foreigners who meet any of the following criteria do not need a permit to work in Poland: • a permit for settlement in Poland was received, or • an EC long-term residence permit for the territory of Poland was obtained, or • a consent for tolerated stay was obtained, or • a refugee status granted in the Republic of Poland was obtained, or • temporary protection within the territory of Poland was granted. Further exclusions from obtaining a work permit are listed in art. 87 of the Law on the Promotion of Employment and Labour Market Institutions of 20 April 2004. Other foreign employees require a work permit issued by the district authorities, however foreigners from other EU countries than those already mentioned have easier access to work permits in comparison to non-EU citizens. Still, there are numerous instances where the work permit is not required. These include, but are not limited to: • foreigners resident abroad and delegated by their foreign employer to Poland for up to 3 months for: - the assembly, maintenance and repair of machinery, equipment, constructions, etc., produced by their employer, - the acceptance of machinery, equipment, etc., ordered from a Polish producer, - the training of staff of the Polish employer accepting machinery, equipment, constructions, etc., produced by their employer in servicing and operations thereof, - the assembly and disassembly of fair stalls, if their foreign employer is the exhibitor. How to Do Business in Poland • • • • • 197 foreign language teachers and teachers teaching in a foreign language, working within the framework of international agreements executed by the Minister of Education, foreigners – spouses of Polish citizens, resident in Poland on the grounds of a residence permit for a specified time, granted because of marriage, NATO military and civil staff, actors, singers, conductors, etc., performing in Poland for up to 30 days a year, students attending regular courses in Poland, for up to 3 months during holidays. No permit is needed from the Polish authorities for employees who work outside Poland for the Polish employer. Furthermore, subject to meeting certain conditions, employees from EU and EFTA countries – members of the EEA – delegated to work in Poland do not require a work permit on the grounds of Directive 96/71/EC of the European Parliament and of the Council concerning the posting of workers in the framework of the provision of services. Foreign companies can also accept unpaid assistance from persons delegated by a foreign business partner. Such persons would be neither employed nor paid by the foreign company. Living in Poland Standards of living in Poland have improved vastly since the political and economic transformations started in 1989. Accommodation of various types is readily available. Most native city dwellers live in blocks of relatively small apartments; however, the newly constructed flats are usually quite spacious. Houses tend to be considerably more expensive, but there are a lot to choose from on the real estate market. The options range from relatively small semi-detached buildings to grand estates with swimming pools and tennis courts. There are many real estate agencies all over Poland, offering a wide range of properties. In Warsaw alone there are well over a hundred licensed real estate agencies in operation. For more information on the real estate market, please refer to Chapter VIII. For tourists and visitors, Poland offers a whole range of accommodation, from modern hotels to bed-and-breakfast in private houses. The best hotels offer excellent rooms, restaurants, and room service, but just as everywhere they tend to be expensive. Reservations can be made through travel agencies or directly with a chosen hotel. For more information on tourist accommodation in Poland, please refer to Chapter XI. There are hundreds of travel agencies that provide accommodation, transport, and other logistical services. 198 X. Operating in Poland Most worldwide best-selling foreign newspapers are on sale in Poland, as well as Polish periodicals published in foreign languages, such as the weekly The Warsaw Voice, and Warsaw Business Journal. In the largest cities there are bookshops with books in foreign languages, though the languages are often limited to English. In some larger cities there are schools for foreign children, where lessons are taught in a language other than Polish. In Warsaw, for example, there are American, English, French, and German schools, as well as some others. Most cities offer a well-developed bus and tram system. Usually, tickets must be bought beforehand and punched, or stamped, or placed close to an electronic device in the bus/tram (or the underground) to validate them. However, in some cities, in Warsaw for example, those who are forgetful can buy a ticket directly from the driver. Crowded in peak hours, buses and trams tend to run quite frequently until ten or eleven in the evening. Bus and tram routes are shown on most city maps. In many cases it is also possible to find them, as well as the schedules, on the net. The number of cars in Warsaw, as well as in other major cities, has been rapidly increasing over the past few years and traffic jams are an everyday reality now. In some city zones finding a place to park can be quite challenging. Inter-city train connections, as well as international ones are good and reliable. In fact, due to a dense railway network and the rather poor condition of Polish roads, it is often more convenient to travel by train than to drive. The private medical sector is booming with many small and medium-size private clinics opening throughout the country at a rapid rate. Some of them provide fully comprehensive services supported by English speaking staff. Home visits are among the variety of health care services designed to give foreign guests reassurance while staying in Poland. It is advisable to carefully examine insurance policies to find out exactly what risks are involved and to find a provider whose services cover prevention and cure. Poland has regular direct air connections with most major European countries, as well as some intercontinental connections provided by the national airline LOT and foreign carriers. Charter flights to popular holiday destinations are available. There are also domestic flights between the major cities in Poland. Competition in the Polish sky is rapidly increasing, and with several low-cost carriers already on the market the prices are falling fast, to the passengers benefit. Visitors travelling by car can enter Poland through many border crossings. Please refer to the next Chapter XI, sub-chapter “Visiting Poland” for visa and currency requirements. Rent-a-car services are at hand; cars can be rented in major cities or at the How to Do Business in Poland 199 airports. Generally, to rent a car one has to be 21 and have a valid driving licence, a passport, and a credit card. A foreigner must register within 2 days of crossing into Poland. However, individuals staying in hotels, motels, camping grounds, etc., are relieved from this responsibility, as it is done for them by the facility. The registration procedure for a stay of up to two months is extremely simple and requires only a few minutes of time. There are no applications to be filled, however a person having legal title to the accommodation where the foreigner is staying must be present. The registered person receives an official document of registration, which is required upon leaving Poland at the border. In the case of longer trips, exceeding two months, the procedure is only slightly longer, requiring an application to be filled. The registration takes place in the Office of the Commune (Urząd Gminy) in which the foreigner is staying, in the Division of Citizens’ Affairs. Opening hours vary, but generally shops are open from 10 a.m. to 7 p.m. Groceries usually start much earlier and some are open round the clock. Shopping is easy. Everything is now more or less available, just as in any other European Union country. In small shops payment is usually possible in cash only, especially in the country. Larger shops and restaurants, especially these in cities and tourist resorts, increasingly accept internationally recognised credit cards, such as Visa, American Express, MasterCard, etc. Their opening hours are usually longer, too. There are also many large supermarket chains in Poland, including Auchan, Carrefour, Castorama, E.Leclerc, Geant, Real, Tesco, etc. All in all, there are approximately 140,000 places accepting credit card payments, as the use of credit cards is becoming increasingly popular in Poland (see Chapter II, the end of the section on banking). In the country, it is considerably more difficult to do without cash, but the prices are substantially lower. As far as prices are concerned, Warsaw is certainly cheaper for foreigners than New York, Moscow, or St. Petersburg, but probably more expensive than Prague or Budapest. Everything depends on what one wants to do, and how. After a hard day at the office, a little relaxation is very welcome. Restaurants offering various cuisine, charm, and quality abound. One can find many restaurants offering foreign cuisine, often run by expats. On the other hand, Polish traditional food is also delicious and tasting traditional Polish dishes, such as bigos and various types of pierogi, is a must. The number of pubs and clubs with various types of music is growing rapidly, so it is not difficult to find something to one’s taste, especially in larger cities. However, some clubs have a proper dress code. 200 X. Operating in Poland Cinemas have an extensive and up-to-date repertoire, and they are all non-smoking. Films are usually shown in their original version, with Polish subtitles. There are also many theatres worth visiting. The Teatr Wielki (Grand Theatre) in Warsaw has an impressive ballet and opera programme, and there are often very good concerts at the Warsaw Philharmonic, and, in the summer time, outdoors at the Chopin monument in the beautiful Royal Łazienki Park. Warsaw and Cracow are also famous for their art galleries, with frequently changing exhibitions ranging from the old masters to contemporary experimental artists. However, despite very good macro-economic results and many advantages, Poland and its capital, Warsaw, still face a number of problems. The number of underground parking lots, and the supply of financial, recreational, and exhibition centres are still insufficient. The road network is quite extensive, but the very few highways and the large amount of roads in need of major repairs slow down car travel considerably. Companies, both Polish and foreign alike, often complain of the ever-changing legal environment and less than clear executive provisions and administrative procedures. The European Union membership acquired in 2004 should assist substantially in dealing with the shortcomings mentioned, especially in the area of infrastructure and the legal environment. Living in Poland presents its own difficulties, as in all different cultures. There are many contradictions in Polish society, but with persistence it is easy to be accepted and make many lasting friendships. Everything considered, Poland is a very nice place to live. How to Do Business in Poland 201 XI. TOURISM IN POLAND Border requirements; EU and EEA citizens are required just to present a valid travel document or other document attesting to their identity and citizenship Residence permits are valid for five years with the possibility of extension for further five-year periods 12 Polish sites on the UNESCO World Heritage List 65 million foreign arrivals Total foreign currency receipts from tourists and same-day visitors of USD 6.2 billion 12 % of Poles over 15 years of age took part in tourist travels abroad 7 thousand tourist accommodation facilities offering 600,000 beds How to Do Business in Poland 203 XI. TOURISM IN POLAND The intention of including a chapter on tourism in a guide that deals with business and economy is twofold. First of all, it is to introduce the reader to the numerous and varied qualities of Poland as a tourist location, to show that it is a perfect place not only to do business, but also to have a good time and to rest afterwards. Secondly, as it is an important sector of the Polish economy, our intention is to give an overview of the Polish tourism industry in order to indicate the market potential and thus to unfold the opportunities for business. With the above in mind, this section has two parts. The first deals with the country as a tourist destination from the point of view of the holidaymaker. It is addressed most of all to people who do not seek to explore business opportunities in the sector, but would simply like to rest, be it in a more or less active way. It contains some practical information and a very brief outline of selected aspects or areas of Poland that are widely considered as ‘must see’ sites and are praised by tourists and visitors alike. Please keep in mind, however, that due to the character of this guide the material enclosed had to be severely limited. In fact, it was very difficult to decide on how to compose this section: whether it should cover, more or less, all geographical areas and points of interest or should it focus on some selected ones. Finally, the latter approach has been favoured, since considering the space assigned in this guide for tourist information, one would otherwise end up with just a bare list that would still not be exhaustive. Should you plan a holiday in Poland, please do consult some of the specialist tourist guides that are widely available in many languages both in Poland and abroad. The section that you are about to read is nothing more than a flash, therefore even if you do not find anything here that really appeals to you, it would only mean that, unfortunately, our focus has not included your areas of interest. However, if you take our advice and take a closer look at some specialised guides, you are bound to find places you would like to see and events you would like to attend. The second section of this chapter is intended for businessmen who would like to take a look at the tourist industry in Poland. It was written based on the newest research carried out by the Polish Institute of Tourism. If you are looking for possibilities to invest in the sector or to establish some kind of business co-operation, consulting this part will reveal the market potential and provide much valuable data. Nonetheless, it is recommended that the first section of this chapter be read as well, even if just to have some background information and to be able to place the data in the right frame, so to speak. 204 XI. Tourism in Poland Visiting Poland Information for EU and Other EEA Citizens The following information applies to EU citizens and their family members as well as citizens of states of the European Economic Area (Norway, Iceland, Liechtenstein, Switzerland), which do not belong to the EU, but pursuant to agreements with the EU enjoy free movement of persons and their families members (spouses, children below the age 21, being their legal wards, direct relatives who are their dependants or share their household). In order to cross the border into Poland a citizen of the EU needs a valid travel document or other document attesting his/her identity and citizenship. The visitor’s family members who are not citizens of the EEA are able to enter the territory of Poland on the basis of a valid travel document and visa – if required. Stays beyond three months’ duration require obtaining a residence permit or a temporary residence permit. This requirement does not apply to persons who perform work or a ‘free profession’ on the territory of Poland, or conduct business activity here, provided they retain permanent residence in another EU state, to which they return at least once a week. Decisions concerning residence permits and residence cards for EU citizens, and residence documents (also with regard to their prolongation and revocation), are issued by the governor of the province (voivode) where the EU citizen intends to reside. A residence permit is granted to a EU citizen on condition that he/she: • intends to perform or performs work, a ‘free profession’ or business activity on the territory of Poland for a period exceeding 12 months, or • has health insurance and sufficient resources to cover his/her expenses without needing social security support. Residence permits are valid for five years with the possibility of extension for further five-year periods. For more details on granting EU citizens residence permits see Article 5 of the Law on the Terms and Conditions of Entry and Stay on the Territory of Poland of Citizens of EU States and Members of Their Families of 27 July 2002, as amended. Temporary residence permits are granted to EU citizens who have health insurance and sufficient resources to cover their expenses without needing social security support and who, when in Poland: • take up studies – a temporary residence permit for one year, extendable with further one-year periods until completion of the studies, How to Do Business in Poland • 205 perform or intend to perform work, a ‘free profession’, or business activity for a period from 3 to 12 months for the duration of such occupation, or for 6 months for those seeking employment. Residence and temporary residence permits issued to EU citizens include family members (excluding relatives in the case of students). An EU citizen and members of his/her family may be denied a residence permit solely in the event of a need to protect public order and security, protect public health, or due to a threat to state security or defence. If the application for granting or extending a residence permit or a temporary residence permit covers family members, then the EU citizen is obliged to enclose the following documents with the application: • a document certifying marriage or kinship with the family member, • a document certifying that the family member is his/her dependent, or member of the same household in the state from which he/she has arrived (does not apply to a spouse, a EU citizen, who is not a dependent), • written consent of a family member who is over 16. Any documents attached to the application and issued by foreign authorities or institutions, should be translated into Polish by a certified interpreter. Permanent and temporary residence registrations are issued by Gmina Offices appropriate to the place of residence. To obtain the residence registration, a EU citizen or members of his/her family needs to present personal data and produce a residence card, residence document, or residence permit. Information for Foreigners, Who Are Not EU / Other EEA Citizens • • • • • Passport: a valid passport is required to enter Poland. If a Polish visa is required, the passport’s expiry date should not be less than three months from the expected date of arrival in Poland. Visa: a Polish visa is required, except for tourists coming from the countries listed in Appendix 8. Currency requirements: PLN 100 per day, no less than PLN 500, persons under 16 PLN 50 per day, no less than PLN 300. In transit – PLN 300, persons under 16 half of the amount. Health insurance: an insurance policy covering medical expenses in Poland is required. Alternatively, an additional PLN 300 per day to cover possible medical expenses is necessary, or other proof of being able to meet medical costs. If driving a car, you are obliged to carry a civil liability insurance. 206 XI. Tourism in Poland Practical Information • • • • • • • • • • Currency, arrival: you must fill a currency declaration form and have it stamped by a customs officer if you are bringing in cash or cash equivalents in an amount exceeding EUR 10,000. Currency, departure: upon departure you are allowed to export your personal belongings, souvenirs, and foreign currency up to a total amount of EUR 10,000, as well as foreign currency imported to Poland with a currency declaration form confirmed by the customs authorities. Money exchange: in Poland you can change money either at a bank or at currency exchange offices, labelled Kantor. You can find them at the airports and most hotels, but usually you can find better rates at the independent exchange offices that can be found almost everywhere. Credit cards: Visa, American Express, Diner’s Club, and MasterCard are widely accepted. Transport from Okęcie airport in Warsaw: city buses 175 and 188 and a night bus, the 611. There is also an Airport City Hotels Bus leaving the airport every hour or so and stopping at several major hotels and the Warsaw Central train station. Taxi: at Okęcie Airport beware of taxi drivers stopping you in the airport hall, they are very likely to charge you excessive rates. All you need to do is to go out and take a cab from the queue parked in front of the entrance; they are all licensed by the airport. As far as other trips are concerned, a list of telephone numbers of reliable taxi corporations can be found in the most popular newspaper in Poland: Gazeta Wyborcza, or just ask for advice. These taxis will pick you up at no extra charge from any place in Warsaw, usually within a few minutes of your call. Rent a car: some of Europe’s largest rent a car companies have their offices in the arrival halls of Polish airports, as well as in some hotels. Electricity: 230 volts / 50 cycles. Public phones require a phone card. Phone cards (of different values) are available at post offices and local kiosks. Emergency numbers: Ambulance: 999; Fire-brigade: 998; Police: 997; and finally, 112 is a mobile phone all-emergency number. However, do not count on them to speak any foreign language. An Overview of the Country Poland can satisfy the needs both of the tourist who wants to spend a long holiday here and the traveller who is looking for an interesting place to spend one or more weekends. One can enjoy the country during every season and whenever you come, you are bound to find something new. How to Do Business in Poland 207 The castles call to mind the stormy history of Poland. The most important ones are the Wawel Royal Castle in Cracow and the Royal Castle in Warsaw, destroyed during World War II and rebuilt afterwards. The old quarters of Warsaw, Cracow, Gdańsk, Lublin, Poznań, and Wrocław have witnessed centuries of history. A thousand years of Catholic religion in Poland is reflected in its numerous churches, chapels, and monasteries. The shrine of Jasna Góra in Częstochowa, where the image of the Black Madonna attracts millions of pilgrims from all over the world each year and the Church of St. Mary in Cracow are among the most famous. However, hundreds of sanctuaries and rural churches, some of them built of wood, are also full of mystic atmosphere and well worth visiting. Poland is one of those rare countries that offer a great variety of landscapes. The southern part of Poland is surrounded by the Sudetic and Tatra Mountain ranges, perfect for walking all year round, and for winter sports during the season. Trekking and excursions are possible in all seasons and are especially recommended in summer and autumn, when the country is in full bloom. In winter you can go skiing, for example, in Szczyrk and Zakopane, tourist resorts famous for their mountain folklore. Moving from the mountains to the north, one will find large plains, nests of storks in spring, small rural villages, and forests – the most famous being the National Park in BiałowieŜa, close to the eastern border, which, with its unique charm, is home to the European bison. All in all, there are 23 National Parks in Poland, covering over 314 thousand ha, or 1 % of the country’s surface area. Horse riding and hunting fans will discover numerous opportunities in Poland to follow their favourite hobby. Further north there are lakes, including those of the Mazurian Lake District, which is also known as ‘the country of a thousand lakes’, and contains a series of lakes stretching for more than 750 km. It is possible to sail through the lake district’s rivers and network of canals for days. This is a paradise for those who enjoy water sports and fishing, thanks to the clear waters of the lakes, the green landscape, and its wilderness. Moreover, in winter, as the temperature often drops to well below 0 °C, the frozen lakes are often suitable for ice-sailing. Finally, there is the northern frontier – the Baltic coastline. A very long strip of golden sand, beaches and dunes, Rozewie promontory, Hel peninsula, the gulf of Gdańsk and Wolin island, are just some of the countless views which will fascinate any tourist travelling along the coast. Furthermore, in this region you can enjoy saline thermal baths and healing mud-baths, particularly in the town of Kołobrzeg, all year round. 208 XI. Tourism in Poland Polish Cities, Art, and Culture Polish art and culture has always been a part of Western Europe, though at the same time it is a bridge to the East. Among the most famous Polish contributions to European culture are the genius of Copernicus, the science of Marie Skłodowska-Curie, the art of Chopin, the music of Krzysztof Penderecki, the movies of Andrzej Wajda and Krzysztof Kieślowski, the theatre of Tadeusz Kantor, and the poetry of Adam Mickiewicz and of the Polish Nobel prize-winners, Czesław Miłosz and Wisława Szymborska. Besides, Poland houses the works of artists and architects from all over Europe, such as the Italian painter Bernardo Bellotto (Il Canaletto), the architects Bernardo Morando and Domenico Merlini, the German sculptor Veit Stoss (Wit Stwosz), and the Dutch architect Tylman van Gameren. There are many cities in Poland worth visiting, and most of them are well described in the leading tourist guides. Here we will limit ourselves to just a brief outline of Warsaw and Cracow, which are undoubtedly the most famous cities in Poland. Warsaw is the capital of Poland. You need to keep in mind that Warsaw, which was one of the most lively and cosmopolitan cities in Europe before the Second World War, was destroyed in 1945 and 90 % of it was completely in ruins. It was rebuilt after the War, arising from the rubble thanks to the determination and sacrifice of its surviving citizens. Although sightseeing in the centre of the city will let you take a look at some modern architecture, one can discover the best of Warsaw only through exploration of the old town, where, besides the old restored buildings and villas, here and there the pre-war architecture miraculously survived. Walking about the old town and plunging into the magic atmosphere of the past, thanks to an amazing reconstruction which took place in the fifties and which brought to life again the Warsaw of the 17th and 18th centuries, is a truly remarkable experience. There is enchantment in its parks and gardens, the wide course of the Vistula River, and the rich cultural life of this city, which is cosmopolitan without losing its particular, native charm. While visiting the Royal Castle one can admire its interiors and its works of art, including some works of the world’s finest painters. Another ‘must see’ is the Polish portrait gallery in Wilanów Palace, the beautiful Baroque residence of Jan III Sobieski. Then there is the Grand Theatre, a remarkable example of classicist architecture; the Łazienki Park, a beautiful 18th century park, one of everybody’s favourite places to have a stroll and rest from all the excitement; the National Museum, featuring precious collections of Polish art; and much, much more. How to Do Business in Poland 209 The uniqueness of Cracow is primarily due to the rare cultural heritage contained within its walls. Here, the Royal Castle, presently housing the crown jewels and a collection of Flemish tapestry, was constructed on Wawel Hill, and became the site for the coronation and burial of kings, as Cracow was the capital of Poland for hundreds of years, from the 11th to the 17th century. Here, in 1364, the Cracow Academy was established, the first Polish university (today known as the Jagiellonian University). The city’s image has changed during the past centuries. During the Middle Ages, Cracow was a safe, rich, fortified city surrounded by walls with 55 towers (fragments of the city fortification have been preserved to this day). During the Renaissance, Cracow became a centre of progressive ideas, with a culture that brought together outstanding humanists, writers, architects, and musicians. City life focuses around the Market Square, which is the second largest square in Europe after St. Mark’s Square in Venice. Tradition interlaces with modern times nearly everywhere you go, and it can truly be said that each stone has its own history. There is a multitude of architectural monuments, estimated at 6,000 buildings and structures. Furthermore, there are approximately 2.5 million artefacts collected and displayed in museums, churches, and other public places. In 1978, thanks to this extraordinary accumulation of cultural heritage, the city’s historic centre was registered as the first of the 12 Polish sites on the UNESCO World Heritage List. 210 XI. Tourism in Poland Tourism Industry The number of foreign arrivals to Poland has been steadily increasing since the beginning of the 90’s. At the turn of the century a disruption in this favourable trend was noted, albeit lasting only three years. In 2005, Poland registered 64.6 million foreign arrivals (4.3 % more than in 2004), including both tourists and same-day visitors. (million) Foreign Arrivals 100 90 80 70 60 50 40 30 20 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Central Statistical Office, 2006 As far as the country structure of arrivals to Poland is concerned, a domination of arrivals from Germany must be noted, accounting for over half of all arrivals and increasing by 10 % in comparison to 2004. Arrivals from other ‘old’ EU countries increased by almost 13 %, and from ‘new’ EU countries decreased by almost 14 %. In 2005, arrivals from the following countries registered the highest growth (over 20 %, countries with over 50,000 arrivals, only): Canada, Great Britain, Israel, the Netherlands, Spain, and the USA. On the other hand, the largest decline (over 20 %, countries with over 50,000 arrivals, only) was recorded in arrivals from the Czech Republic, Latvia, and Slovakia. While analysing tourist arrivals in 2003 and later one must take into account that as of October 2003 legal regulations introducing visa requirements concerning countries bordering with Poland in the east came into force (due to Poland’s entering the EU). Thus October 2003 witnessed a very sharp decline in arrivals from these countries. In the following two months arrivals from the aforementioned countries further decreased, although not by so much. In 2004, arrivals from Belarus declined by 8 %, from Russia by 7 %, and from Ukraine by 6 %, in comparison to 2003. In 2005, however, arrivals from these countries increased by 4, 13, and 17 %, respectively, in comparison to 2004. 211 How to Do Business in Poland In 2005, according to the Institute of Tourism’s estimates, the number of tourist arrivals (i.e., of visitors staying in Poland for at least one night, but no longer than one year) amounted to approximately 15.2 million, which is 6.4 % more than the year before. Mazowieckie province, as it boasts Warsaw, the capital of Poland, attracted 3.4 million tourists, more than the next in line, Wielkopolskie (1.6 million) and Małopolskie (1.5 million) provinces together. Over the period of 1992-2000, the average duration of stay for foreign tourists remained at a level of 4.8 to 5.1 nights. Over the period of 2001-2005 it decreased to 3.9 - 4.6 nights (4.4 nights in 2005). In 2005, business was the primary reason for tourist arrivals (27 %), closely followed by leisure tourism (25 %). However, if visiting friends and relatives (18 %) is included in the leisure category, then it still dominates the motives of foreigners visiting Poland. The structure of tourist arrivals by purpose of visit is reflected in the following graph. Tourist Arrivals to Poland in 2005 by Main Purpose 25 % Leisure tourism 27 % Business Shopping 7% 18 % Visiting friends and relatives Transit Other 13 % 10 % Source: Institute of Tourism, Warsaw, 2006 In 2005, total foreign currency receipts from tourists and same-day visitors amounted to approximately USD 6.2 billion, approximately 8 % more in comparison to 2004. This increase in receipts resulted in part from the growth in tourists’ spending (in USD terms), but most of all it was due to a further appreciation of the Polish currency. Nonetheless, this amount still does not include the spending of foreign visitors who get a job in Poland, and their number is estimated at some 500,000. In 2005, average expenditure per tourist using accommodation services in Poland amounted to approximately USD 150 per person, 6 % less than the year before. The average expenditure per tourist per day remained at the 2004 level, and amounted to 212 XI. Tourism in Poland USD 34. It ranged from USD 24 for overseas tourists to USD 43 for tourists from Austria. The average expenditure by same-day visitors, who are visitors that come to Poland mainly for shopping, also decreased, albeit very slightly. In 2005, the average expenditure by same-day visitors amounted to USD 58 (a 3 % decrease over the previous year), ranging from USD 19 (Czech Republic) to USD 78 (Ukraine). All in all, tourist receipts increased by nearly 15 %, while same-day visitors’ receipts remained at the 2004 level. In 2005, the structure of tourist expenditures slightly changed in comparison to the previous year. Accommodation still remains the most important expense, accounting for 36.8 % of spending (31.2 % in 2004). Less money was spent on shopping (22.4 %), and food (19.3 %), while more was spent on transport (13.0 %), and recreation (6.8 %). Just as in the past, shopping (including shopping for resale) constitutes an important item in the expenditure of tourists from Ukraine, Belarus, Russia, and Lithuania. In the past few years changes in the average expenditure levels of same-day visitors, as well as the number of same-day visitors has had a significant impact upon the structure of total currency receipts generated by inbound travel, as indicated below. Foreign Currency Receipts (in USD billion) 5 4.4 4.0 4 4.3 4.4 4.4 3.6 3.3 3.3 3.4 2.7 3 3.3 3.1 3.0 2.9 1.9 2 2.8 1.7 2.7 2.9 2.9 2.9 1.4 1 0 1995 1996 1997 1998 1999 2000 Expenditures of same-day visitors 2001 2002 2003 2004 2005 Expenditures of tourists Source: Institute of Tourism, Warsaw 2006 In 2005, the volume of Polish outbound travel reached 40.8 million, i.e., increased by 9.7 % in comparison to the previous year, thus signalling a possible comeback to the growth trend visible from the early 90’s, with outbound trips almost tripling in the period of 1991-2000. This trend is very well reflected in the following graph. 213 How to Do Business in Poland Outbound Trips by Polish Residents 60 (million) 50 40 44.7 30 55.1 56.7 53.1 45.0 34.3 36.4 29.3 31.4 20 10 48.6 49.3 38.7 37.2 40.8 20.8 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Central Statistical Office, Border Control, 2006 In 2005, according to preliminary estimates of the Institute of Tourism, tourist trips accounted for 6.2 million (a decrease of some 2 %) out of a total of 40.8 million trips. As in the case of inbound tourism to Poland, Germany accounts for the majority of outbound tourist trips (1.85 million). Italy (0.55 million), the Czech Republic (0.55 million), and Slovakia (0.55 million) are the other most favoured destinations. Nonetheless, it should be noted that many tourists trips to Germany, the Czech Republic, and Slovakia are related to further trips to other countries located in Western and Southern Europe. Leisure and recreation remains the major motive of Poles travelling abroad (47 %) and business trips account for a fifth of foreign travels. All in all, 12 % of Poles over 15 years of age took part in tourist travels abroad in 2005. As far as domestic tourism is concerned, it is worth mentioning that approximately 29 % of Polish residents took long-term domestic trips (i.e., at least 5 days) and 24 % made short term trips in 2005. It is interesting to note that while the long-term trips are concentrated in the summer, with the remaining shares spread almost evenly over the other three seasons, the short trips are spread more or less in a uniform manner throughout the year, as presented in the figure below. Poland really is a country for all seasons. 100% Seasonal Breakdown of Domestic Tourist Travel in 2005 13 24 50 29 80% 60% Summer 40% 20% 0% Spring 18 19 Long term trips 23 Autumn 24 Winter Short term trips Source: Institute of Tourism, 2006 214 XI. Tourism in Poland Finally, a few words about accommodation facilities in Poland. In the past two decades their number has been slowly decreasing, however this decrease results mainly from the closing-down of low-quality facilities. Facilities offering better standards of accommodation are growing in number. For example, the number of hotels almost doubled in the period of 1990 (499 hotels) – 2000 (924 hotels). In 2004, according to the Central Statistical Office, there were 6,972 facilities, offering almost 600,000 beds, including 1,202 hotels, with almost 123,000 beds, in Poland. The following table presents the structure of hotel rooms in Poland in terms of hotel category. Hotels and Hotel Beds in 2003-2004 Total ***** **** *** ** * Obtaining rating Hotels 2003 2004 1,155 1,202 8 13 51 63 380 425 367 388 177 165 172 148 Beds (thousand) 2003 2004 117.1 122.9 3.3 4.6 11.3 13.7 48.7 51.8 28.9 31.1 12.0 11.7 12.9 9.9 Source: Central Statistical Office, 2006 In 2005, 16.55 million tourists (including 4.30 million foreign tourists) stayed in various tourist accommodation facilities in Poland, including hotels, motels, campgrounds, tourist resorts, etc. The majority of foreigners (almost 80 %) stayed in hotels. The market’s size, political stability, and impressive economic growth encourage investment. At the end of 2005, according to data collected by GUS, there were 1,679 commercial companies with foreign capital operating in the hotel and restaurant business (out of 5,049 commercial companies operating in the sector). How to Do Business in Poland XII. HISTORY OF POLAND Original settlement The Piast Dynasty – Corona Regni Poloniae ♦ Christianity and Early Statehood ♦ Territorial Fragmentation ♦ Consolidation of the State The Jagiellonian Dynasty – Ad mari usque ad mare ♦ The Lithuanian Connection ♦ The Golden Age The Elective Kings – Respublica Sarmatiae ♦ The Polish-Lithuanian Commonwealth ♦ The Swedish Connection and the ‘Deluge’ ♦ Sobieski and the Siege of Vienna The 18th Century – Finis poloniae ♦ The Saxon Connection ♦ King Stanisław and the Reform Party ♦ The Partitions of Poland The 19th century – The Crossing of the Desert ♦ The Grand Duchy of Warsaw ♦ The Congress of Vienna ♦ The November and January Uprisings The 20th Century – To the Abyss and Back ♦ WW I and the Rebirth of Poland ♦ The Second Republic ♦ WW II ♦ The People’s Republic of Poland ♦ Solidarity, NATO, and the EU 215 How to Do Business in Poland 217 XII. HISTORY OF POLAND “How to Do Business in Poland” is a publication whose purpose is to assist foreign business people – particularly those considering direct investments – in getting to know Poland’s investment environment and legal framework. It is also meant as a source of the latest available information about Poland’s economic performance. Business activities in any country lead to negotiations with its people, whose customs, habits and mentality it is desirable to know, as the understanding of one’s business partners, their values, and backgrounds may prove to be a key element of a successful operation. One of the keys to understanding the Poles is their history. With this in mind, we have included a chapter summarising over a thousand years of history of the Polish nation in this year’s edition of our guide. This chapter intends to provide a concise description of the evolution of the Polish state and of its people, from proto-Slavonic times to the restoration of democracy following communist rule. The following material is an abbreviated version of “Polish History in Brief”, commissioned and copyrighted by the Ministry of Foreign Affairs, that can be found in its unabridged form on Poland’s official website http://www.poland.gov.pl. Proto-Slavonic Origins The earliest signs of human presence in the Vistula and Oder river basins date back to about 100,000 B.C. The earliest settlements of Homo Sapiens in Poland go back to the Mesolithic Age (8,000 to 5,500 years B.C.). These settlements were established by migrant peoples belonging to the Danubian group of cultures. In time (partly due to the incursions of warring tribes from Asia) the inhabitants of present-day Polish territories began to organise into larger social groups and to build fortified strongholds. An example of this type of construction, an island settlement from the 8th century BC surrounded by palisades, can be found in Biskupin. The settlement in Biskupin had a population of around 1,000 to 1,200 people. Later, from the 6th century B.C. onwards, Poland became the target of raids by Scythian and Sarmatian tribes from the east, and Celtic and Germanic tribes from the west. Often the invaders would assimilate with the indigenous inhabitants and settle in the conquered territories, and although they wrought a great deal of destruction, they also brought the achievements of the civilised world to Poland and encouraged trade: the earliest traces of the ‘Amber Route’, linking the Baltic Sea with Rome and the Mediterranean basin, date back to the 5th century B.C. 218 XII. History of Poland Arrival of Slavonic Tribes The earliest references to Polish territories appear in the works of Roman and Byzantine authors of the 1st and 2nd century A.D (Tacitus, Ptolemy, Pomponius Mela, Jordanes, and Procopius of Caesarea). In the 6th century, Slavonic tribes arrived in the territories of present-day Poland and subsequently became the dominant group in the area. Not only were they able to establish strong administrative centres like Wiślica, Poznań, and Gniezno (with power structures based on tribal assemblies under a chieftain), trading settlements like Szczecin or Wolin, and focal points for religious worship like Mt. ŚlęŜa, but they also withstood invasions by nomadic tribes from Asia and attacks by the neighbouring principality of Greater Moravia. Around 850, in Descriptio civitatum et regionum ad septentrionalem plagem Danubii (A Description of the Cities and Regions North of the Danube), Geographus Bavarus mentioned several Slavonic tribes – the Goplanians, the Dziadoszanians, the Silesians, the Bobrzanians, the Opolanians, the Vislanians and the Ledzianians – inhabiting the Vistula and Oder river basins. A rising volume of trade contributed to the growth of settlements along trade routes. In time, and on account of wars, these settlements were fortified, while the role of the chieftain, and later of the tribal prince, increased. This process was most visible in Greater Poland (Wielkopolska), where the Polanian tribe quickly gained the ascendancy and by the mid-tenth century was expanding to lands adjoining its territories to the east (Mazovia) and west (the Lubusz Region and Lusatia). The Polanians gradually subjugated the neighbouring Slavonic tribes and created a uniform principality with an efficient administrative system. The Beginnings of Statehood In the middle of the 10th century the Piast dynasty, rulers of the Polanian tribe, adopted Christianity. The Vislanians had already established links with Christendom earlier. However, the Polanian Prince Mieszko decided that conversion to Christianity – providing a common religion for all the subject tribes, and supremacy for the anointed prince – would raise his own and his country’s status not only at home but also in foreign affairs. Poland would join the civilised kingdoms, and the German thrust to bring Christianity to the Slavs would be halted. The year 966, when Mieszko was baptised, is regarded as marking the beginning of Poland as an independent, Christian, unified state, following the model set up in Western Europe. How to Do Business in Poland 219 Mieszko I and Bolesław Chrobry (Boleslaus the Brave) The reigns of Mieszko I (?-992) and his son Bolesław Chrobry (Boleslaus the Brave), mark the period when the Polish tribes, brought together in a united and internally wellknit realm, began to make an active contribution to European politics. Assisted by the ecclesiastical authorities, the principality of Poland grew in the years between 972 and 990, absorbing Pomerania, Lesser Poland (Małopolska – Polonia Minor), and Silesia through military conquest, the pursuit of trade, marriage alliances, and the establishment of a system of administration. Most importantly, the new state gained a foothold on the international scene. The wars skilfully conducted by Mieszko and Boleslaus gained Poland not only new territories (the Czerwień strongholds and, temporarily, Moravia and Lusatia), but also the reputation of being a power to be reckoned with even by the Holy Roman Empire. A major success of early Piast foreign policy was the Congress of Gniezno (1000), during which the Emperor Otto III recognised Boleslaus as his principal ally in his plan to unite Europe under his own rule, approved the erection of an independent Polish metropolitan see, and permitted Boleslaus’ coronation, which took place in 1025. Mieszko II When Mieszko II, Boleslaus I’s son, assumed the throne, Poland was already a vast country run by an efficient administrative system and a well-developed Church structure with a metropolitan see in Gniezno and dioceses in Cracow, Poznań, Wrocław, and Kołobrzeg. Unfortunately, the civil wars which ravaged the country in the following century severely undermined Poland’s position. Neighbouring states joined in the conflict (Gniezno was plundered by the Czechs in 1038), which led not only to the loss of the crown but also to the loss of part of Poland’s domains, temporary submission to the Empire, internal disorder, including an attempted secession by Mazovia, and a pagan rebellion after Mieszko’s death. Kazimierz Odnowiciel (Casimir the Restorer) and Boleslaw Śmialy (Boleslaus the Bold) It was not until the reign of Casimir, Mieszko II’s son, that stability was restored. The Restorer reunified the country administratively, recuperating Silesia, Mazovia and Pomerania thanks to the help of Emperor Conrad and through skilful alliances, especially with Kievan Rus. Poland rose in international standing. Casmir’s son, Boleslaus the Bold, continued his policies. Thanks to Boleslaus’ military talents and the support he gave the Pope in the investiture conflict with the Emperor, he managed to regain the crown. He influenced the installation of princes in Ruthenia (Kievan Rus) and Hungary, and halted the eastward 220 XII. History of Poland expansion of the Holy Roman Empire. However, in 1079 he lost his throne in consequence of a rebellion supported by the Empire and Bohemia. A factor contributing to the rebellion was the conflict between the King and Stanislaus, Bishop of Cracow, a conflict which led the Church to withdraw its support for Boleslaus. Bolesław Krzywousty (Boleslaus the Wry-mouthed) and Fragmentation The reign of Boleslaus the Wry-mouthed (Boleslaus the Bold’s nephew) could not stop the country’s decline. Boleslaus gained renown for his military achievements (victory against the Empire in 1109, and the defeat of Pomerania in 1113-19), but on his deathbed in 1138 he divided up his realm, distributing a province to each of his sons. This ushered in a period of feudal dismemberment that lasted for over a century and a half, during which Poland’s status diminished. Its former standing would not be recovered until the mid-14th century. However, Boleslaus’ reign was a period of social stability and rapid advancement, despite several devastating Mongol invasions. Issues of land tenure were regulated; knights were enfeoffed (granted property in exchange for feudal service to the prince); thousands of new villages and many towns were founded. Numerous settlers came from Germany, and others, who settled on the Baltic Coast, came from the Low Countries. Scores of monasteries and priories – mostly Cistercian and Dominican – sprang up. A Reunified Realm: the Last Piast Monarchs In the reigns of the last two Piast kings, Władysław Łokietek (Vladislaus the ElbowHigh), and Kazimierz Wielki (Casimir the Great), most of the Polish lands were reunified. Poland became a strong, well-run kingdom that participated actively in the political, economic, and cultural life of Europe. In 1364 a university was founded in Cracow, the second university established in Central Europe, after that of Prague. Cracow served as a major diplomatic centre: in 1364 it hosted a congress of European monarchs. The country’s main problems lay in its incessant conflicts with the Czechs (disputes over Silesia) and, after 1226, with the Teutonic Order, which had managed to set up a strong state in Prussia and constantly threatened the Polish borders. As Casimir had no male heir, the Piast dynasty ended in 1370, and the Polish throne passed to the Piast’s relatives and allies, the Hungarian branch of the House of Anjou (1370-1384, King Louis the Hungarian and his daughter Jadwiga). The threat from the Teutonic Order induced Poland to enter into an alliance with Lithuania. The alliance led to the marriage of Jadwiga, (who had ascended the throne of Poland while still in her minority) with Jagiełło (Iogaila) Grand Duke of Lithuania; Lithuania’s conversion to Christianity; and the dynastic union of both countries at Krewo in 1385. How to Do Business in Poland 221 The Jagiellons For the next two hundred years the Jagiellonian dynasty ruled the two states of Poland and Lithuania, forming together one of the vastest domains in Europe. At one point in the late 15th century, Bohemia and Hungary also had a Jagiellonian monarch. One of the highlights of Vladislaus Jagiełło’s reign was his victory over the Teutonic Order at Grunwald (1410). Unfortunately, Poland did not take full advantage of the victory: the Teutonic Order was allowed to keep its principal fortress at Marienburg (Malbork) and, in spite of further defeats in battle, retained much of its military power. It is only when war broke out again several decades later (1454-1466) that Poland succeed in recovering the part of Pomerania surrounding Gdańsk and in freeing itself from the Teutonic menace. In 1525 the monastic state of the Teutonic Order was secularised and became a fief of the king of Poland. However, another danger was arising: the Grand Duchy of Moscow, an ascendant power with which Poland’s fortunes would be inseparably linked for the next 500 years. Nor were the Jagiellons able to save Hungary, which fell to the Turks in 1526 and remained under Ottoman rule for 200 years. Growth of Parliament and Privileges for the Nobility By ancient custom the kings of Poland convened general assemblies called sejms attended by legati terrestres, representatives of the noble or equestrian (knights’) estate. By the late 15th century, under King Jan I Olbracht (Ioannes Albertus, John Albert), a national assembly had emerged consisting of the king, the senate (or royal council), the lower house consisting of legati terrestres delegated by regional dietines (sejmiki), and of a few representatives from the richest cities. It was one of Europe’s earliest parliaments. From the reign of Louis of Hungary and the Koszyce Privileges of 1374, the kings of Poland solicited the support of the politically and economically ascendant nobility by granting privileges, especially tax exemptions and by the famous Neminem Captivabimus Nisi Jure Victum (We Shall Not Imprison Anyone Unless He Be Proved Guilty Under the Law) statute of 1432. These privileges gradually curtailed the monarch’s prerogatives, culminating in the Nihil Novi statute (1505), which prevented the King from making any important decisions without the approval of the Sejm. Cultural Advancement The Jagiellonian period witnessed a tremendous cultural flowering. Poland became one of the main centres of the Renaissance. Spectacular achievements in the arts and sciences were made under Kazimierz Jagiellończyk (Casimir the Jagiellonian) and Zygmunt I Stary (Sigismund I). These were the times of Jan Długosz’s and his Annals 222 XII. History of Poland of the Kingdom of Poland, Veit Stoss and his sculptures, the Italian humanist writer Callimachus (Filippo Buonaccorsi), and the writings of native-born literati like Mikołaj Rej, Jan Kochanowski, and Andrzej Frycz Modrzewski. Copernicus’ De Revolutionibus Orbium Coelestium, 1543 – itself a revolution in the sciences – reflected the high standards in Polish scholarship under the Jagiellons. Its luminaries made Polish the language of the educated in this part of Europe. The Polish Reformation In the 15th and 16th centuries, Poland was a country open to new religious trends. Unlike other European countries, there were no religious wars here. Not only could heterodox religionists find sanctuary here, they were also protected by the kings and lords of Poland. As a result, culture and scholarship experienced an influx of new ideas and literary works, and Poland came to be seen as a country of tolerance. This latter was particularly true in relation to the Confederation of Warsaw, ratified in 1573, which gave all major religions equal rights with Catholics. The last Jagiellonian monarch, Zygmunt August (Sigismundus Augustus), said to the Sejm: “I do not rule your consciences”. Not surprisingly, contemporaries and later generations called the Jagiellonian era, especially the 16th century, Poland’s Golden Age. Kingdom and Grand Duchy As with the Piasts, the Jagiellonian dynasty became extinct through lack of a male heir (1572). In 1569 King Zygmunt August effected the statutory union of Poland and Lithuania, up till then joined by a personal union. Henceforth the Kingdom of Poland and Grand Duchy of Lithuania would be an elective monarchy, with members of the entire gentry (equestrian) estate enjoying the right to elect their king. The First Elected Monarchs The first royal election was held in the spring of 1573. The contenders to the throne of Poland included Ivan (IV) the Terrible, Tsar of Muscovy, Archduke Ernest Habsburg, and Henri de Valois, brother of Charles IX of France. Henri won, but turned out a bad choice. He did not understand the country he was expected to rule, and after only four months, as soon as he learned of his brother’s death, he fled from Poland to assume the throne of France as Henri III. After a new interregnum lasting a year, the nobility elected Anna, sister of Zygmunt August, to be the new monarch. She was required to marry the successful candidate in the royal election, Stefan Batory (István Báthory) of Transylvania. Batory proved to be an energetic ruler. After a swift campaign, he successfully concluded the conflict with Russia for the contested territory of Livonia. He also managed to put internal affairs in order and strengthen the royal powers. How to Do Business in Poland 223 The Swedish Dynasty on the Polish Throne The election following Batory’s death went to the grandson of Sigismund I, Sigismund Vasa of Sweden, the first king of the Vasa dynasty to ascend the Polish throne. The Vasas – Sigismund III, Vladislaus IV, and Ioannes Casimirus (John Casimir) – ruled until 1668; and although they maintained Poland’s status as a respected European power, they also entangled the kingdom in a series of wars, failed to prevent a civil war in Ukraine, and tolerated the growth of the magnates’ power. A War-Ravaged Country From the early 17th century, Poland was in a constant state of war with one or another of its neighbours. Military successes (victory over Sweden at Kircholm in 1605, Russia at Kłuszyn in 1610, and Turkey at Chocim in 1621) were intertwined with disasters: failed intervention in Russia in 1612, disastrous defeat at the hands of the Turks in the Battle of Cecora in 1620, and a series of setbacks during the Khmelnytsky (Chmielnicki) Cossack uprising in Ukraine in 1648. The outcome at home was inevitable: the country was nearly ruined, the treasury emptied, the nobility in ever-growing opposition to royal prerogatives. Beginning in 1652 several sejms were stopped by obstructionists. The nadir of disaster came with the Swedish Deluge (1655-1660), when the country had to face a simultaneous invasion by Swedish, Russian, Cossack, Prussian, and Transylvanian armies. Although this war ended in victory, Poland emerged from it devastated and weakened internally. Religious toleration waned in the climate of the Counter-Reformation and wars with heterodox neighbours (Orthodox Russia and Protestant Sweden). On several occasions the nobility withdrew its allegiance to the Crown. Finally, a civil war broke out in 1665, leading to the abdication of Jan Kazimierz in 1668. The Siege of Vienna After the short reign of Michał Korybut Wiśniowiecki, the throne of Poland passed to Hetman Jan Sobieski, hero of the Turkish wars. He had to reign over a country rent by rival factions of magnates and territorially diminished by a temporary Turkish occupation of Podolia. Though from the military standpoint he was the glorious victor of the relief of Vienna in 1683, he could not live up to the challenging task of putting the affairs of state in order. He was not successful on the diplomatic front either, losing half of Ukraine to Russia, and making shaky alliances with France and Austria. With Sobieski’s death in 1696, the Sarmatian period of the Polish Noblemen’s Commonwealth wound to a close. From then on, the predominant role in the country would be played by factions of magnates. Polish military triumphs also became a thing of the past. 224 XII. History of Poland Association with Saxony The reigns in Poland of Augustus the Strong and Augustus III, Electors of Saxony of the House of Wettin, brought further military and political decline. Poland’s involvement in the Great Northern War (1702-1721) was the next calamity, the time when neighbouring powers started to meddle in Poland’s internal affairs (e.g., the Swedish “appointment” of Stanisław Leszczyński to the Polish throne, 1704-1709). However, in a situation where maintaining neutrality in the face of a Russo-Swedish conflict proved impossible, the Wettins not only managed to keep the country intact territorially, but also prevented its social and cultural degradation. Although weak and dependent on her neighbours, Poland was still a dynamically developing European state. However, any attempts to remedy the domestic situation were doomed to fail not only due to behind-the-scene interventions by Russia, Prussia and Austria, but most of all because of the feuding factions of the great lords (the Potockis, Czartoryskis, and Sapiehas), who looked more and more to foreign powers for (mostly financial) support. The Last King – A Patron of the Arts The reign of Stanisław August Poniatowski, last king of Poland-Lithuania, was full of contradictions. On the one hand, he was submissive towards Russia, to whose support he owed his victory in the elections, and depended on the Czartoryski Familia; on the other, he made it possible for Poland to flourish culturally. His reign saw the publication of Adam Naruszewicz’ works of history and of Bishop Ignacy Krasicki’s satires and novels, as well as the launch of the national theatre, established by Wojciech Bogusławski. Warsaw, Poland’s capital since the times of Sigismund III, became one of the centres of the Neo-Classical style in architecture, as exemplified by the king’s residence at Łazienki. Michał Ogiński contributed to Diderot’s famous Encyclopaedia. The political writings of the times, by outstanding thinkers like Stanisław Staszic and Hugo Kołłątaj, spread Enlightenment ideas originating in England and France. The Enlightenment period witnessed a reform of education conducted under the supervision of the world’s first modern ministry of education, created in 1773. The Collapse of the State The debilitated state was not capable of defending itself against attack by the neighbouring powers. In 1772, against a backdrop of increasing internal chaos, Russia, Prussia and Austria accomplished the First Partition of Poland, which lost 1/3 of its territory. In the 1790s Poland underwent radical domestic reform. The Constitution of the Third of May was passed (1791). Alarmed at the prospect of a strong Poland, Russia and Prussia decided to intervene. How to Do Business in Poland 225 Despite its resistance, Poland was vanquished by an overwhelming military force, which resulted in the Second Partition in 1793. This time, the aggressors were assisted by domestic dissenters united under the banner of the Targowica Confederacy of magnates. The final blow to Polish independence was dealt after the failure of the Kościuszko Insurrection, an anti-Russian uprising in 1794. After several initial successes, the popular and brave national leader, General Tadeusz Kościuszko (a hero of the American War of Independence, like his compatriot General Kazimierz Pułaski) lost the decisive battle at Maciejowice and was taken prisoner by the Russians. In 1795, Russia, Prussia, and Austria divided what remained of Poland-Lithuania among themselves, forcing Stanisław August to abdicate. From that moment, the name Poland disappeared from the maps of Europe for over a century. Napoleonic Times – Hopes for Poland The turn of the 19th century brought hope for the restoration of independence in the wake of Napoleon’s military triumphs. The Polish Legions formed in Italy fought in many of Napoleon’s battles (Trebia, Hohenlinden, Marengo). Meanwhile Prince Adam Czartoryski, then Russia’s foreign minister, was planning the restoration of the Polish state under the rule of the Russian Tsar Alexander I. This division of the country into those who favoured co-operation with the West and those who favoured the East lasted for decades and affected Polish history on numerous occasions. Napoleon did partly fulfil the hopes vested in him. After defeating Austria and Prussia, he created the Duchy of Warsaw out of part of the former Polish territories. He helped the Poles to raise their own army, under Prince Józef Poniatowski, nephew of the last king. The Polish army fought in all Napoleon’s campaigns and major battles, including Borodino and in the Battle of the Nations at Leipzig, where Prince Poniatowski perished. However, the disastrous invasion of Russia in 1811-12 and Napoleon’s downfall changed the fate of Poland and indeed all of Europe. The Duchy of Warsaw was replaced by a Kingdom of Poland linked to Russia through a personal union (the Tsar of Russia was made King of Poland), with its own constitution, sejm, army, and treasury. The remaining territories of the Grand Duchy of Warsaw were placed under Prussian rule as the Grand Duchy of Poznań, with the Free City of Cracow being ‘supervised’ by the 3 partitioning powers. 226 XII. History of Poland Fighting for Independence The Poles did not give up their hopes of full independence. Already in 1830, on the wave of European-wide protests against the decisions of the Congress of Vienna, an armed insurrection, the November Uprising, broke out in the Russian Partition on 29 November 1830. The Tsar was dethroned and a National Government was established. Despite initial success, the uprising ended in failure. The Kingdom was abolished and its territories annexed to the Russian Empire, and the economic and political concessions of 1815-1830 were lost. The Sejm was disbanded. Subsequent uprisings brought more disasters. One occurred in Cracow in 1846. The authorities put it down with the help of Polish peasants, and the Free City was annexed by the Austrian Empire. Another uprising in 1848, in Greater Poland, was crushed as well. During the Revolution of 1848, Poles were present wherever battles were fought against the Holy Alliance: in Italy (under the leadership of Adam Mickiewicz and Wojciech Chrzanowski), in Germany (Wiktor Heltman, Ludwik Mierosławski, and Franciszek Sznajde), in Austria (Józef Bem) and in Hungary (Bem, Henryk Dembiński, and Józef Wysocki). In the debate over whether to struggle or to co-operate with the aggressors, the idea of an uprising carried the day again in the 1860s. But the January Uprising (1863-1865) met with a defeat so severe that the vision of national restoration by force of arms was subsequently shelved for many years. Polish Émigrés After each uprising a wave of political exiles left the Polish territories. After the November Uprising, more than ten thousand were forced to emigrate. This tide was called the Great Emigration on account both of its volume and the intellectual potential of the émigrés, who included the statesman Prince Adam Czartoryski, the national bards Adam Mickiewicz and Juliusz Słowacki, the historian Joachim Lelewel, and almost the entire general staff of the Uprising. Most of the émigrés became involved in European politics, while continuing to strive for Polish independence. Some, like Prince Czartoryski, tried to further the cause by diplomatic means, others by military service, others still by participating in secret European organisations like Young Europe. The best-known masterpieces of Polish literature were created in France, notably the national epic Pan Tadeusz by Adam Mickiewicz. Poles were ever present in world events, not only as soldiers or politicians: Ignacy Domeyko laid the foundation of geology in Chile; Ernest Malinowski built railways in Peru; Paweł Edmund Strzelecki explored Africa and Australia for the British Crown. There were also the Polish writers and artists: Joseph Conrad (Józef Konrad Korzeniowski) made a mark in world literature, Henryk Rodakowski won gold medals at Paris art exhibitions, while in music Frédéric Chopin and Ignacy Paderewski became world-famous as composers and virtuoso performers. How to Do Business in Poland 227 The ‘Polish Question’ After the January Uprising, increasingly oppressive measures were introduced in the Russian zone of partitioned Poland, and another wave of politicians, artists and soldiers was forced to emigrate. As efforts intensified to turn the Poles into Russians, the Polish language was barred from a growing number of schools and institutions. The situation was similar in the territories under Prussia, where the authorities sometimes resorted to brutal methods in a drive to Germanise the population. The Catholic Church was severely repressed both in Russia and Prussia. Only Galicia (the Austrian partition zone) enjoyed a measure of autonomy after 1867, with its own national assembly, and a Polish run administrative and educational system. But unlike the Prussian and, to an extent, the Russian partition zones, it was deeply impoverished and, except for the cities, economically depressed. Politics, Parliament, Parties The second half of the 19th century saw a more vibrant Polish political life. Not only did Poles participate in the politics of the three occupying empires – Polish deputies held seats in their parliaments – and were appointed to the highest offices (Kazimierz Badeni was Prime Minister of the Austro-Hungarian Empire), they also set up their own, modern political parties (e.g. the Proletariat, 1882; the Polish Socialist Party, 1892; the National-Democratic Party, 1897; the People’s Party, 1895, to name but a few). These groups made a signal impact on partitioned Poland, and would affect future developments at the restoration of independence. Literature, Science and the Arts Thanks to the struggle to keep the national spirit alive, and to the dissemination of the ideal of work for the good of society, in the late 19th century Polish culture enjoyed a period of dynamic growth. This was an age highlighted by the work of writers like Bolesław Prus, Eliza Orzeszkowa, Stefan śeromski, and Adam Asnyk, and of painters like Jan Matejko, Józef Chełmoński, Henryk Siemiradzki, and Stanisław Wyspiański, who was also an outstanding playwright. In 1905 Henryk Sienkiewicz received the Nobel Prize in literature. Advances were being made in science: Zygmunt Wróblewski and Karol Olszewski were the first to liquefy atmospheric oxygen and nitrogen (1886). In 1853 Ignacy Łukasiewicz developed an industrially efficient method for the distillation of petroleum oil and constructed the world’s first practicable paraffin lamp, while Ludwik Zamenhof created Esperanto and published his manual for this language. The crowning achievement by a Polish scientist was the discovery of radioactivity and the isolation of the first radioactive isotopes by Maria Skłodowska- Curie (in collaboration with her husband Pierre), for which she was awarded two Nobel Prizes (1903 and 1911). 228 XII. History of Poland With Russia or with Germany? The dream of independence returned with the 1905 Revolution in Russia. Although no significant political changes were achieved within the ‘Kingdom’ (the Russian zone of partitioned Poland) or in Russia itself, Polish hopes and memories of bygone national uprisings revived. Some political groups opted for armed struggle leading to independence, while others preferred a policy of negotiations with the partitioning powers. However, everybody knew that it would take a Pan-European conflict, a war between the partitioning powers, for a chance for the Polish cause to succeed. The main problem lay in the choice of an ally; some campaigners (Józef Piłsudski and the independence group) called for co-operation with Austria and Prussia Germany; others (Roman Dmowski and the nationalist groups) saw an opportunity in alliance with Russia and the Entente Powers (France and United Kingdom, joined later by the United States). The Road to Independence The First World War brought the solution to the Polish Question. Józef Piłsudski, Commander of the Polish Legions, put forward a political concept calling for a proAustrian orientation, which proved to be the most effective. He bet that Germany and Austro-Hungary would beat Russia, and would in turn be defeated by France and United Kingdom, the defeat of the partitioning powers allowing an independent Poland to arise. This was indeed what happened: after the Revolution of 1917 Russia withdrew from the War, while Germany and Austro-Hungary capitulated. The Treaty of Versailles, which ended the Great War, sanctioned Poland’s independence. By October 1918 Polish forces were already disarming German and Austrian units in Poland. On 7 November, the first Polish interim government was created under the leadership of the Socialist Ignacy Daszyński. Following Piłsudski’s return (he had been arrested by the Germans in July 1917), the army and the interim government deferred to the Commander of the Legions. Piłsudski was appointed National Commander-in-Chief (Naczelnik). Border Conflicts Fighting broke out in Ukraine in 1918, and an anti-German uprising in Greater Poland (27 December 1918-14 February 1919) led to that region’s return to Poland. Under the Treaty of Versailles, Poland was granted access to the Baltic Sea, although Gdańsk was to remain a Free City. A plebiscite was held in the contested territories of Upper Silesia and Mazuria, which went against Poland (1920 and 1921). Eventually three uprisings induced the League of Nations to grant 30 % of Silesia to Poland. Another danger loomed in the east: in the Polish-Soviet war of 1920, Russia’s Bolshevik armies narrowly missed the chance for a ‘revolutionary march across Europe’, having reached the outskirts of Warsaw. The battle fought there on 13-18 August was dubbed by Lord D’Abernon, a British diplomat, “the eighteenth decisive battle of the world”. The people How to Do Business in Poland 229 of Poland called it the ‘Miracle on the Vistula’. The war was concluded with a peace treaty which proved relatively favourable for Poland (Riga, 18 March, 1921). Difficult Beginnings in an Independent Country Three months after independence, the Legislative Sejm opened its session. The Small Constitution had already been passed (February 1919), agricultural reform introduced, national administrative bodies created, and the educational system and war-damaged industry were being reconstructed by the time the Silesian Uprisings and the war with Soviet Russia broke out. By March 1921 Poland could boast a modern constitution. However, in the first years of independence the domestic situation was uneasy. Gabriel Narutowicz, the first President of the Republic, was assassinated one week after his election (16 December 1921) by an ultra-conservative fanatic. Numerous political conflicts and a growing economic crisis brought about a loss of credibility for the state authorities. Even the radical and successful state finance reform of 1924 did not alleviate tensions. Piłsudski Assumes Power In May 1926, with the assistance of loyal military units, Józef Piłsudski, who had kept out of politics for four years, carried out what has come down in history as the May Coup. His adherents, the Sanacja group, intended to ‘sanitise’ the country (hence the name). After several days of fighting, President Wojciechowski and the Cabinet of Prime Minister Witos resigned. Although Piłsudski was elected President by the Sejm, he turned down this option, and put forward the candidacy of Professor Ignacy Mościcki. Poland entered a period called the Sanacja régime or the ‘government of the colonels’, as most of Piłsudski’s colleagues in this government were either active or retired army officers. The Sanacja régime brought Poland economic stability, but also meant a drift from democracy towards authoritarianism. Marshal Piłsudski governed with a heavy hand, tolerated no opposition, and did not hesitate to use drastic methods to curb defiant politicians (as exemplified by the bringing of police into the Sejm assembly hall in March 1928). This state of affairs was manifest especially in the 1930s, when Poland was affected by the crash on the New York stock market, and the ensuing economic crisis brought a tense atmosphere. In September 1930 Piłsudski dissolved Parliament and had many members of the opposition arrested, sentencing them to prison terms during a ‘trial’ that was a travesty of justice. In 1934 a camp was set up at Bereza Kartuska, where “individuals who posed a threat to security and order” were to be detained. Before his death on 12 May 1935 Piłsudski managed to approve the authoritarian April Constitution which significantly curtailed the powers of the Sejm in favour of the president’s prerogatives. After Piłsudski’s death, the Sanacja group split into two rival factions (the followers of Marshal Śmigly-Rydz and the supporters of President Mościcki). Deputy Prime Minister Eugeniusz Kwiatkowski proved to be the only notable politician of the 230 XII. History of Poland Sanacja era; he was the creator of an economic development project for Poland, involving the Central Industrial Region and the new port of Gdynia. A Flowering of Independent Culture Alongside the political and economic unrest, interwar Poland also experienced a veritable burst of artistic activity. In 1924 Władysław S. Reymont received the Nobel Prize in literature for his novel Chłopi (The Peasants, 1924-25). The jury also considered the candidacy of Stefan śeromski, another novelist. In music Poland was represented by Ignacy Jan Paderewski and Karol Szymanowski. But perhaps the greatest claim to international fame was staked by the actress Pola Negri (Apolonia Chałupiec), who captivated Hollywood and silent movie fans. Disaster: the End of the Short Spell of Independence The life of the Second Republic of Poland was interrupted by the outbreak of the Second World War. On 1 September 1939, Germany invaded Poland, and on 17 September the Soviet Union attacked from the east. After a month of fighting, Germany and the USSR enacted another partition of Poland. A portion of the Polish territories under German control were turned into what became known as the ‘General-Government’ and the rest was simply annexed directly to Nazi Germany. Poland’s eastern territories remained under Soviet occupation. Both powers pursued deliberate policies of an extreme harshness and cruelty towards the Polish population, albeit in different ways. German concentration camps and Soviet labour camps filled up; Large numbers of Polish intellectuals were shot in the Palmiry woods, at Wawer, and at many other mass execution sites. On Stalin’s orders, 21,000 reserve officers (mostly officials and intellectuals) held as POWs were executed in Katyn, Kharkov, and elsewhere in the USSR. The Nazis murdered 3 million Polish Jewish citizens, and over 2 million non-Jewish Poles. Over a quarter of a million Polish civilians of all ethnic backgrounds were deported east by the Soviet authorities, where many of them died. The Polish Government did not give up the struggle. President Władysław Raczkiewicz, and General Władysław Sikorski, who was Prime Minister and Commander-in-Chief, were in exile in London, from where the government-in-exile ran the underground organisations at home. A fully operational, clandestine Polish administrative system known as the ‘Underground State’ was established and conducted its affairs, including an extensive clandestine education system at the secondary (grammar school) and university level, as the Nazis had closed down all education for Poles except elementary schools. The ranks of the armed resistance movement reached over 400,000 combatants, and their sabotage operations and undercover campaigns were carried out on the largest scale in occupied Europe. How to Do Business in Poland 231 Fighting on the Frontlines and Conducting the Ideological Battle Polish forces fought on every European front during the Second World War (Narvik, the French campaign and the Battle of Britain in 1940, Tobruk in 1941/42, Normandy and Monte Cassino in 1944). The biggest Polish Army unit in the West was General Anders’ Second Corps, which fought in Italy. This unit was created in 1941 in the USSR, following an agreement between Sikorski and Stalin, and consisted mainly of Polish POWs and deportees freed from Stalin’s camps. Poles made a major contribution to the Allied effort in intelligence. (Two Polish mathematicians broke the German Enigma code). But, for the future of Poland, the political decisions were the most important. Diplomatic relations with the Soviet Union were broken off after the discovery of the Katyn massacre, while the death of Gen. Sikorski in a mysterious plane crash in 1943 weakened the Polish position on the international arena. Neither Prime Minister Mikołajczyk nor Commander-in-Chief Sosnkowski managed successfully to put Poland’s case to Churchill and Roosevelt, who left Poland under Soviet influence in exchange for the USSR’s continued participation in the war against Nazi Germany. The military campaigns of the Polish underground movement in the eastern territories were of no avail in securing a favourable attitude from the Western powers, and neither was the Warsaw Uprising (63 days of fighting). The Allied conferences in Tehran (1943) and Yalta (1945) sealed the fate of Poland: the Republic’s eastern territories were ceded to the USSR, and Poland found itself in the Soviet sphere of influence. The only concession on the part of Stalin was his agreement to grant Poland territories along the River Oder, together with part of former East Prussia. It was a sop to the government of Polish communists which was being formed in the USSR under Stalin’s tutelage (two Polish armies were fighting side by side with the Red Army under Russian command). Once again, a war between the superpowers left Poland devastated (a loss of 1/5 of its pre-war territory; a population diminished by a third, and national economic assets depleted by 38 %). Communist Rule With the help of Polish communists, the Soviet authorities quickly managed to crush all overt opposition. Combatants who were members of the AK (the ‘Home Army’) and WiN (‘Freedom and Independence’) independent underground resistance organisations were murdered, deported to Russia, or sent to prisons or labour camps; their leaders were imprisoned in Moscow and tried in a showcase trial. A condition was formally set by the Western Allies that democratic elections be held, but members and associates of Mikołajczyk’s PSL – an independent peasant party – were arrested, intimidated, and assassinated. The results of a referendum of 30 June 1946 and parliamentary elections in January 1947 were rigged. Mikołajczyk, a Deputy Prime Minister of the Interim Government, fled the country. 232 XII. History of Poland Thereafter Poland would be ruled by the PPR (the Polish Workers’ Party, which in 1948 forcibly absorbed a pre-war socialist party and changed its name to PZPR, or Polish United Workers’ Party). Between 1948 and 1956, the Stalinist era, Poland was under the absolute rule of the PZPR Communist Party, assisted by the secret police and Soviet ‘advisers’. Repressive measures were directed not just against political opponents, but the general public. Former AK combatants and Catholic priests filled the prisons. Cardinal Wyszyński, Primate of Poland, was interned in 1953. Inconvenient PZPR members (like Party Secretary Władysław Gomułka) were imprisoned too. Poland was a satellite of the USSR. There was next to no private business, and economic specialists were all Communists; there was an attempt to collectivise agriculture; and enforced industrialisation caused a significant drop in the standard living and severe discontent. The October '56 thaw and "Our Little Stabilisation" The people of Poland had to wait until 1956 for the political terror to wane. In that year Stalinism was officially repudiated in the USSR, and after the death of the PZPR leader Bolesław Bierut and workers’ strikes and protests in Poznań (28 June), changes occurred in the regime. In October of that year, after a sharp conflict within the Party and difficult negotiations with the USSR, Władysław Gomułka once again became leader of the Party and head of state, initially with the support of the nation. The new First Secretary used the new situation to reduce Poland's dependence on the USSR. Gradually political prisoners were released from jail, the Primate was freed from house arrest. Enforced agricultural collectivisation was dropped; a negligible volume of private business was tolerated. Recovering from the wartime devastation, Poland now entered the "little stabilisation" period. However, Gomułka soon backed out of the liberal course. The PZPR was still the absolute power in Poland. The conflict between the government and society became more and more patent. The clash between State and Church during Poland's millennium celebrations (1966), and student strikes (March 1968), as well as the anti-Semitic campaign started by the Party in 1968 underpinned the nation's disenchantment with the Gomułka government. Gierek and the "propaganda of success" The end of Gomułka's rule, much like his rise to power in 1956, was brought about largely due to workers' discontent. In December 1970, after a price rise, there were strikes in several coastal cities, and street fights between dockers and the police and army, in which several dozen protesters were killed. Eventually, an opposition group within the Party removed Gomułka and appointed Edward Gierek the new First Secretary. In the 1970s the How to Do Business in Poland 233 People's Republic of Poland enjoyed a period of phoney prosperity. Thanks to foreign credit, the shops were full of consumer goods, new companies sprang up and the standard of living rose. The first sign of crisis came in 1976, with riots in Radom and at the Ursus industrial plant. The Communist economy was highly inefficient, and real wages fell and the supply of consumer goods dwindled. More strikes and workers' protests followed. Repressions directed against the 1976 rioters led to the creation of an illegal workers' defence committee (KOR). Other illegal opposition groups and clandestine publications began to appear. The Church played a significant role, organising widespread educational activities and addressing the most urgent social needs. Widespread strikes also engulfed other regions, especially Szczecin and the coal mines of Silesia. Throughout the country, the totalitarian regime found itself in serious danger. This was the beginning of a general strike. Solidarity The end of the ‘success propaganda’ period (as the 70s decade was dubbed) came in 1980. An extremely strong wave of strikes engulfed Poland after another price increase, and the working people of Gdańsk organised a trade union strike committee. This time the Party did not resort to violence, and the subsequent negotiations resulted in the signing of the August Agreements (31 August 1980) and the emergence of Solidarity, an independent trade union organisation, headed by a Gdańsk shipyard worker, Lech Wałęsa. Momentous events in the Catholic Church also encouraged an atmosphere of freedom and change, and an increasing boldness on the part of the working people. In 1978, Cardinal Karol Wojtyła, Metropolitan Archbishop of Cracow, had been elected Pope, assuming the name John Paul II, and 8 months later had made a pilgrimage to his home country. Solidarity quickly became a widespread social movement uniting over 9 million members, including a large number from the ruling Communist Party. It was an unprecedented phenomenon in the entire Soviet bloc, essentially irreconcilable with the political system. Despite the fact that, in general, it did not express any revolutionary political goals and only called for the ‘rationalisation of the existing system’, it enjoyed the widespread support of political and trade-union circles in the West, and became an inspiration to other independence minded groups in the Communist bloc. Another symbolic event in 1980 was the awarding of the Nobel Prize for literature to an émigré Polish poet, Czesław Miłosz. Martial Law In the face of economic crisis and the growing influence of Solidarity, and under pressure from the USSR, General Jaruzelski decided to adopt drastic measures. On 13 December 1981 Martial Law was introduced in the People’s Republic of Poland. Several thousand opposition activists were interned, and strikes were crushed with the help of the army and special riot police units. On 16 December nine miners were killed 234 XII. History of Poland at the Wujek Coal Mine. Many members of the opposition and underground tradeunionists were sentenced to prison terms, others were forced to emigrate. Martial Law, which was officially lifted in July 1983, did not solve Poland’s problems. The Polish economy still could not emerge from the crisis; opposition to the government did not diminish but was kept alive by the Pope’s subsequent pilgrimages in 1983 and 1987, and the awarding in 1983 of the Nobel Peace Prize to Lech Wałęsa, Solidarity’s leader. Under Wałęsa’s leadership, the Solidarity trade union continued to operate illegally, as evidenced by the regular publication and distribution of several hundred clandestine periodicals and bulletins. Solidarity campaigners received support from the Church, which had maintained its strong position in society. By 1983 the scale of the repressions as well as that of the opposition activities was relatively modest compared to the earlier phase. The Round Table Agreements and the Polish Road to Democracy In 1988, PZPR Communist party leaders started negotiations with representatives of the then unofficial opposition. In the early months of 1989, as a result of the Round Table talks, an agreement was signed calling for partially free elections to the Parliament. The opposition was to have 35 % of the seats in the Sejm, and an entirely free election to the Senate. The election held on 4 June 1989 brought a landslide victory to Solidarity. Although the Parliament, dubbed the ‘contractual Parliament’, elected Gen. Jaruzelski President of the Republic, the office of Prime Minister was entrusted to a Solidarity candidate, Tadeusz Mazowiecki, who had been chief adviser to the Gdańsk strike committee in 1980. On 29 July 1989 the Parliament changed the country’s name and constitution. The People’s Republic of Poland became a thing of the past. The events in Poland precipitated the fall of the entire Communist block. The Yalta arrangement finally collapsed. How to Do Business in Poland 235 XIII. SOURCES OF BUSINESS INFORMATION IN POLAND Polish embassies and embassies in Poland Polish institutions to turn to include the Polish Information and Foreign Investment Agency, Ministry of the Treasury, and Central Statistical Office English language newspapers: The Warsaw Voice, The Warsaw Business Journal, Polish Market Internet: Poland’s official web pages, Polish Export Promotion Portal, BMB Promotions, websites of the ministries, Polish embassies and UNIDO Warsaw Office website Web lists of trade fairs in Poland How to Do Business in Poland 237 XIII. SOURCES OF BUSINESS INFORMATION IN POLAND Considering information distribution methods and accessibility, one can basically group sources of business information into three categories: • • • institutions, newspapers, magazines, and other printed publications, internet pages. Usually an institutional source of information provides access to its information in many ways: direct consultation, publications, and information on its website. For English speaking foreigners, accessing business and financial news in Poland is quite easy. Nowadays state and research institutions employ highly-qualified staff and finding somebody who speaks English there is not a problem. Whether this particular person will be an expert in the issues you would like to discuss is another matter. English-language publications pertaining to the Polish economy cover the whole spectrum of information, from daily stock market news and reports, to the legal aspects of setting up a business in Poland, and market analysis. Finally, one can always order a specific report to be prepared in a language of choice from Poland’s many consulting and corporate intelligence companies. Last but not least the easiest and cheapest way of accessing a wealth of information is surfing the web. There are many exclusively business and finance oriented websites and if one is patient enough one will find most of the information required right there. Institutions State and research institutions are among the most reliable sources of information. Appendix 14 provides a list of central institutions and ministries with contact information (including websites). Nearly all of them issue various publications (some in English) and maintain websites, usually with an English language version. Of course, a foreigner’s obvious first choice is his/her embassy in Poland, or a Polish embassy abroad. A list of embassies in Poland is contained in Appendix 26 and a list of the economic and commercial sections of Polish embassies and consulates abroad is presented in Appendix 27. Next, there are various bilateral chambers of commerce, some of which are listed in Appendix 25. 238 XIII. Sources of Business Information in Poland Obviously, which institution to contact depends on the nature of one’s business in Poland, therefore it is not possible to indicate the single best contact that would suit everyone’s needs. However, if one considers direct investment, PAIiIZ (the Polish Information and Foreign Investment Agency) is a prime choice. PAIiIZ produces a series of high quality English-language titles under different headings, covering areas ranging from the construction sector to banking, and offers a whole range of free of charge services to foreign investors. For more information on PAIiIZ see the Institutional Structure for Foreign Direct Investments in Chapter V. The Warsaw UNIDO Office, publisher of this guide, is also helpful. For a company wanting to participate in the privatisation processes in Poland, the Ministry of the Treasury (described in Chapter IV) is the institution to turn to, while the Ministry of the Economy deals with state economic policy, foreign trade regulations, investment incentives, state aid, etc., and will provide useful general and specific information. It is also worth to note that the Ministry of Finance supervises the customs system. Some information in English, regarding customs regulations one may find via their website (Customs Service). An outline of basic functions of some major government institutions is provided in Chapter I. The Central Statistical Office (GUS) disseminates a wide range of detailed data covering all aspects of the economy. Some of it is readily available in English in their bilingual publications, such as the Statistical Bulletin, published monthly. Accessing the information is very simple. The best way is to visit the Inquiry Office, which has a small reading room and a very helpful staff, ready to help you find the required publications, or to assist you in searching their databanks. A fair range of information is also available through the website. The National Bank of Poland (NBP) is an invaluable source of reliable information concerning the Polish financial system, system of payments, and, obviously, the banking sector. Up to date information includes the balance of payments, foreign reserves, and foreign debt, not to mention monetary policy and exchange rates. The Office for Competition and Consumer Protection (UOKiK) protects freedom of competition and consumer interests. It counteracts monopolistic practices, controls mergers, and monitors public aid. The register of dangerous products can also be found on their website, as well as reports concerning the above mentioned activities. For more information on UOKiK please refer to Chapter X. The Insurance and Pension Funds Supervisory Commission (KNUiFE) provides detailed information regarding the insurance sector and pension funds. This includes insurance agents, pension societies, individual pension accounts, employee pension plans, etc. Information on the Polish insurance sector is contained in Chapter II. How to Do Business in Poland 239 In the case of the tourism industry, the Institute of Tourism is highly recommended. It provides a lot of current information regarding the tourism sector in Poland free of charge, and in-depth analyses of particular aspects of the market are available through their publications. Moreover, it also offers consulting services, such as compiling specific reports upon request, at very reasonable prices. Trade and co-operation offers are collected and distributed by, among other institutions, the Polish Chamber of Commerce, which also offers corporate due diligence services. This organisation produces regular bulletin-type publications on business trends and financial news in Poland. The Polish Press Agency (PAP) offers an informative and comprehensive, if somewhat expensive, guide to Polish politics and business, as well as general issues. It provides Warsaw Stock Exchange and currency rate listings. The English is not free of lapses, although it serves its purpose. International news agencies, like Reuters, Bloomberg, and the German Press Agency (dpa) are all accessible for in-depth daily and weekly financial news, although for the uninformed they pose the problem of little or no contextual analysis, and for the average news seeker they pose questions of price. There are also many international organisations and institutions present in Poland, usually based in Warsaw, which are willing and able to provide various facts and figures. Some of them are listed in Appendix 16. Finally, business reports from corporate intelligence companies are becoming increasingly popular in Poland. The companies undertaking to draw up such reports will take an in-depth look at a given company on your behalf and offer confidential, if often costly, advice on the company’s financial credibility, in Polish or in a foreign language. For the potential business partner in search of company details, such information may prove to be well worth its price. 240 XIII. Sources of Business Information in Poland Newspapers, Magazines and Other Publications English-language newsprint publications in Poland cover a broad selection of areas for the English-speaking foreigner, from the general interest weekly, The Warsaw Voice, the oldest and highest circulation newspaper, to the purely entertainment-based Warsaw Insider (http://www.warsawinsider.pl). The Voice also produces a Business and Economy Yearbook, which is available on request from the Warsaw Voice office. The Warsaw Business Journal provides perhaps the most comprehensive coverage of financial and business news, although the Voice has decent weekly reports on the stock market and currency, and often in-depth studies of key markets and industries. The Warsaw Business Journal publishes its well-known Book of Lists, which is a useful database for companies. Book of Lists is also available on-line as a paid service. The WBJ web page, http://www.wbj.pl, contains some articles from the Warsaw Insider, as well as from Poland A.M., a morning news digest published by the same house. There is also Polen am Morgen, a German version of Poland A.M. The Warsaw Voice’s internet site, http://www.warsawvoice.pl is well presented, easy to access, and offers comprehensive coverage of financial and business stories. Its weekly updates on the currency market, Warsaw Stock Exchange, and the odd feature or news article on sectors of industry in the news, are found on these pages, free of charge. There is also an extensive archive available, with a search option. The Polish Market, a business focused monthly, presents a valuable compendium of data and information about the government’s economic policy. It covers investment, commodity and service markets’ issues, and provides information on leading Polish companies and high quality prize-winning products. It promotes various Polish regions, presenting their development strategies and investment offers. One may also notice articles on Polish business leaders and the biggest Polish and foreign investors. Many interesting articles from current and past issues are available at their website http://www.polishmarket.com.pl. Accessing most of the materials requires a free registration. Several other sources of business and financial news are published outside Poland and can be found in Poland at any of the major hotels, English-language book shops, and, if one is lucky, at kiosks. For the upper end of the business information market, one may look towards The Economist Intelligence Unit’s Quarterly Business Report on Poland, updated monthly. Other sources include the reports of international organisations such as the IMF, World Bank, OECD, and the European Commission, which are usually published at least once a year and are available through their respective websites. How to Do Business in Poland 241 Internet A real flurry of internet pages has appeared (and sometimes, vanished) in recent years on Polish business and finance, each new one stepping on the toes of the last, while offering something slightly different, in format as well as content. The following are outlines of the main sources of internet business and financial news from Poland. For those in search of current data and hard economic news, as well as commercial and business offers and practical guidance concerning legal, tax, or, for example, insurance matters, the internet is an ideal source of information, especially for the Englishspeaking persons, and persons not based in Poland, who don’t have access to other sources. From the point of view of reliability of information, and of its being up to date, it is certainly best to hear it ‘straight from the horse’s mouth’. Speaking in terms of the internet, this translates into seeking information on the pages of the information providers. Anyone seeking reliable business information on Poland is best advised to turn to the official pages of various Polish ministries and other government and quasigovernment institutions. Most of their websites have an English language version covering if not all, then at least the major topics available on the Polish site. However, quite often the information in English is not quite up to date, so it is highly advisable to verify whether the information presented reflects the current state of affairs. Frequently this can be done by a simple phone call to the institution involved, or by checking the part of the website in Polish. As far as business information is concerned, the sites especially recommended include the ones administered by the Ministry of the Economy, the Ministry of the Treasury, the Ministry of Finance, PAIiIZ, and the Central Statistical Office. Furthermore, one may find specific business information on the pages of the Warsaw Stock Exchange, the National Bank of Poland, and other financial institutions. Please refer to Appendix 14 for the web pages of various state institutions. Below, there is a short description of a few general sites on Poland and on doing business in Poland. However, please remember that the internet is a very dynamic medium and by the time this information reaches the reader, there may be many other, equally good, websites. Poland Home Page http://www.poland.pl This page is the official web-site of Poland. It offers some general information on Poland, as well as the latest news. Moreover, it provides access to a wide range of information through redirecting to various specialised sites. The major topics include the economy, science and education, the natural environment, tourism and recreation, 242 XIII. Sources of Business Information in Poland culture and art. The site provides access to business, financial and economic news, although not all the pages to which one is redirected have their English versions. However, each link is marked with flags indicating the available language versions. It is highly recommended as a good starting point for anyone who wants to learn about Poland, for business, leisure, or any reason. There is also http://www.poland.gov.pl, another high quality and easy to navigate official website of Poland, managed by the Ministry of Foreign Affairs. Its considerable advantage is that apart from Polish and English, it is also available in French, German, Russian and Spanish. The information is divided into three sections: for travellers, for businessmen, and for info-seekers. The content covers both current news, and general information concerning the economy, tourism, culture, and the history of Poland. It is particularly focused on tourism and culture and provides a lot of interesting material, such as information on the most famous Poles, Polish traditions and customs, interesting castles and landscapes, etc. Polish Export Promotion Portal http://www.polishproducts.gov.pl, http://www.exporter.gov.pl This useful service is provided by the Ministry of the Economy. It contains some general economic reports, as well as brief and up to date information on the Polish economy, including facts and figures pertaining to industry, agriculture, foreign trade, prices, salaries and wages, etc. Furthermore, the portal contains a database of Polish exporters, with an option to search for particular products. It is also probably the best place to submit your enquiry concerning Polish products and services. As is often the case, the Polish language version offers more information and material to download. BMB Promotions http://www.export-import.pl This internet service is a window onto the world of Polish exports. The service enables users to access thousands of offers of Polish firms looking for export and import opportunities. It is available in seven language versions, including English, French, and German. The service is run by BMB Promotions, which also offers a CD-ROM version. Furthermore, BMB Promotions has prepared and included in this service a general access database containing information about the economic potential and investment environment of all local self-government units. It contains thousands of investment projects in Polish districts, towns, communes, etc. The site contains a very useful feature which ranks communes based on a selected set of criteria. It is also available in several languages and on CD-ROM. In addition, there are some very good pages created by the economic and commercial divisions of various Polish embassies and consulates. The ones well-worth visiting certainly include www.handelsratpolen.at (Austria), www.poland-canada.org (Canada), How to Do Business in Poland 243 www.wirtschaft-polen.de (Germany), www.polishemb-trade.co.uk (United Kingdom), www.brhusa.com and www.polandembassy.org (both USA). Of course there are many other useful websites. For a complete list of the economic and commercial sections of Polish embassies and consulates please refer to Appendix 27. An updated list is also available at the Polish Export Promotion Portal, www.exporter.gov.pl. Finally, anyone interested in commercial relations will be glad to take a look at Targi i Wystawy w Polsce (www.targi.com) which lists all the major trade fairs in Poland. This site is simple to navigate, it is updated on a regular basis, and provides information on some 400 trade fairs organised in Poland each year. There are also information and/or links to some 130 fair organisers. The information is available in Polish and in English. Alternatively, one can use the Polish Trade Fair Corporation (www.polfair.com.pl), which offers a similar service, available in the same languages. It also offers some basic statistics on trade fairs in Poland, albeit only in Polish. How to Do Business in Poland 245 XIV. APPENDICES 1. Main Economic Indicators ............................................................................................247 2. Establishment of a Limited Liability Company ............................................................248 3. Establishment of a Joint-Stock Company......................................................................250 4. Fundamental Business Regulations ................................................................................252 5. Basic Tax Liabilities .....................................................................................................254 6. Agreements on Avoiding Double Taxation.....................................................................255 7. Agreements on the Reciprocal Promotion and Protection of Investments........................257 8. List of Countries Whose Citizens Do Not Require a Polish Visa..................................259 9. Top 50 Companies by Sales Revenue.............................................................................260 10. Output of Major Goods and Raw Materials ...................................................................262 11. Average Retail Prices of Selected Food Products and Other Articles .............................263 12. WSE – Equity ..............................................................................................................264 13. WSE – Bonds ...............................................................................................................265 14. Central Institutions and Ministries ...............................................................................266 15. Regional Offices of the Ministry of the Treasury.........................................................270 16. International Organisations and UN Agencies in Poland................................................271 17. Local Authorities – Provincial Governments .................................................................273 18. Economic Divisions of District Courts (Registering Companies)...................................274 19. Regional Branches and Subsidiary Offices of APA .....................................................275 20. Polish Technologies and Technology Providers.............................................................276 21. Special Economic Zones ...............................................................................................285 22. Banks ...........................................................................................................................286 23. Representative Offices of Foreign Banks.....................................................................289 24. National Investment Funds ..........................................................................................290 25. Selected Bilateral Chambers of Trade and Industry .....................................................291 26. Embassies and Commercial Counsellors’ Offices in Poland........................................292 27. Economic and Commercial Sections of Polish Embassies and Consulates..................297 28. UNIDO Established Networks ......................................................................................308 247 How to Do Business in Poland APPENDIX 1 MAIN ECONOMIC INDICATORS IN 2005 Gross Domestic Product growth Gross fixed capital formation Industrial output growth Productivity growth Construction growth Unemployment rate Inflation rate Rediscount rate (December) Budget deficit Foreign debt Public debt Foreign trade, SAD and INTRASTAT statistics: Export revenue Import expenditures Trade deficit Liquidity – import coverage Foreign debt/export ratio Foreign reserves (December) Foreign direct investments Cumulative foreign direct investments (NBP data) Average exchange rate Wages (average gross monthly) Minimum gross salary (as of 1 Jan. 2005) 3.4 % 6.5 % 3.8 % 2.9 % 5% 17.6 % 2.1 % 4.75 % 2.9 % of GDP 42.9 % of GDP 47.7 % of GDP USD 95.8 bn USD 98.5 bn USD 2.7 bn 5 months 1.4 USD 42.6 bn USD 7.72 bn USD 75.8 bn 3.2348 PLN/USD 4.0254 PLN/EUR PLN 2,380.29 PLN 899.10 SELECTED ECONOMIC INDICATORS IN 2006 AVAILABLE AT THE TIME OF PUBLISHING Gross Domestic Product growth (first quarter) Industrial output growth (January-April) Unemployment rate (end of April) Inflation rate (January-April) Rediscount rate (June) Foreign trade, SAD and INTRASTAT statistics (January-April): Export revenue Import expenditures Trade deficit Foreign reserves (May) Average exchange rate (May) 5.2 % 10.8 % 17.2 % 0.6 % 4.25 % USD 32.10 bn USD 35.32 bn USD 3.22 bn USD 48.5 bn 3.0491 PLN/USD 3.8941 PLN/EUR 248 XIV. Appendices APPENDIX 2 ESTABLISHMENT OF A LIMITED LIABILITY COMPANY - CONSECUTIVE STEPS Stage of Company Institution Formation 1. Signing of Articles Notarial Office of Association / Deed of Formation 2. Company registration National Court Register Comments According to the provisions of the Code of Commercial Companies, Articles of Association or Deed of Formation of a limited liability company must be executed as a notarial deed. The registration takes place at the Economic Court having jurisdiction in the principal place of business of the company being formed. Upon being entered into the register the company acquires a legal personality. Office for the publishing of “Monitor Sądowy i Gospodarczy”, Ministry of Justice - through the secretariat of the competent economic court 4. Assigning the Provincial Statistical company’s statistical Office number (Wojewódzki Urząd Statystyczny) Cost 1. Notarial fee. 2. Tax on civil and legal proceedings. The amount of both charges depends on the amount of the company’s initial capital. Fixed charge of PLN 1,000. 3. Announcement of the company’s registration in “Monitor Sądowy i Gospodarczy” The charge is paid in advance to the Office account in an amount not lower than PLN 500. Applications for the company’s registration in the REGON system are to be submitted at the Provincial Statistical Office that has jurisdiction in the company’s principal place of business. 5. Company’s Social Security Institution Within seven days of employing the registration with the (Zakład Ubezpieczeń first employee the company should Social Security Społecznych) register in the district office of the Institution (ZUS) Social Security Institution (ZUS). 6. Obtaining Competent licensing body A list of business activities requiring a licence or permit, if licences or permits is available at required PAIiIZ. No charge. 7. Opening the company’s bank account Bank A company is obliged to open a bank account in Polish złotys and may also hold foreign currency accounts with a bank authorised to deal in foreign currency. No charge. Stamp duty in an amount depending on the type of licence or permit. According to the bank’s regulations. 249 How to Do Business in Poland Stage of Company Institution Formation 8. Registration of the Local Tax Office company with the Tax Office in respect of income tax and VAT Comments Cost Upon commencing business activity, that is issuing the first invoice, the company is obliged to register with the competent tax office. Tax Identification Number (NIP) no charge. VAT registration stamp duty PLN 152. Source: Various acts Notarial Fees – maximum rates determined by the Minister of Justice Company’s Initial Capital To PLN 3,000 Over PLN 3,000 to PLN 10,000 Over PLN 10,000 to PLN 30,000 Over PLN 30,000 to PLN 60,000 Over PLN 60,000 to PLN 1,000,000 Over PLN 1,000,000 Fees PLN 100 PLN 100 + 3 % of an amount in excess of PLN 3,000 PLN 310 + 2 % of an amount in excess of PLN 10,000 PLN 710 + 1 % of an amount in excess of PLN 30,000 PLN 1,010 + 0.5 % of an amount in excess of PLN 60,000 PLN 5,710 + 0.25 % of an amount in excess of PLN 1,000,000 Please note: • the maximum notarial fee for an individual service is PLN 14,282. • the above fees are subject to 22 % VAT. Tax on Civil and Legal Proceedings – the Company’s Deed of Formation Tax on civil and legal proceedings with respect to a company’s deed of formation amounts to 0.5 % of the company’s initial capital. 250 XIV. Appendices APPENDIX 3 ESTABLISHMENT OF A JOINT-STOCK COMPANY - CONSECUTIVE STEPS Stage of Company Institution Formation 1. Signing the Deed of Notarial Office Formation and Charter 2. Accumulation of the company’s share capital The Securities Commission (in certain cases) 3. Company registration National Court Register 4. Announcement of the company’s registration in “Monitor Sądowy i Gospodarczy” Office for the publishing of “Monitor Sądowy i Gospodarczy”, Ministry of Justice through the Secretariat of the competent economic court Provincial Statistical Office (Wojewódzki Urząd Statystyczny) 5. Assigning the company’s statistical number 6. Company’s registration with Social Security Institution (ZUS) 7. Obtaining a licence or permit, if required Social Security Institution (Zakład Ubezpieczeń Społecznych) Competent licensing body Comments According to the provisions of the Code of Commercial Companies, the Deed of Formation and Charter of a joint-stock company must be executed as a notarial deed. Cost 1. Notarial fee. 2. Tax on civil and legal proceedings. The amount of both charges depends on the amount of the company’s share capital. - Immediate formation (through subscription for shares by the founders and third parties). - Consecutive formation (through public subscription of shares; in which case a permit from the Securities Commission is required). The registration takes place at the Fixed charge of Economic Court having jurisdiction in PLN 1,000. the principal place of business of the company being formed. Upon being entered into the register the company acquires legal personality. The charge is paid in advance to the Office account in an amount not lower than PLN 500. Applications for the company’s registration in the REGON system are to be submitted at the Provincial Statistical Office that has jurisdiction in the company’s principal place of business. Within seven days of employing the first employee the company should register with the district office of the Social Security Institution (ZUS). A list of business activities requiring licences or permits is available at PAIiIZ. No charge. No charge. Stamp duty in an amount depending on the type of licence or permit. 251 How to Do Business in Poland Stage of Company Formation 8. Opening the company’s bank account 9. Registration of the company with the Tax Office in respect of income tax and VAT Institution Bank Local Tax Office Comments A company is obliged to open a bank account in Polish złotys and may also hold foreign currency accounts with a bank authorised to deal in foreign currency. Upon commencing business activity, that is issuing the first invoice, the company is obliged to register with the competent tax office. Cost According to the bank’s regulations. Tax Identification Number (NIP) no charge. VAT registration stamp duty PLN 152. Source: Various acts For notarial fees and taxes on civil and legal proceedings please refer to Appendix 2. 252 XIV. Appendices APPENDIX 4 FUNDAMENTAL BUSINESS REGULATIONS REGULATION Published in Journal of Laws (Dz. U.) Accounting Law of 29 September 1994 Acquisition of Real Estate by Foreigners Law of 24 March 1920 Administration of Foreign Trade in Goods Law of 16 April 2004 Banking Law of 29 August 1997 Civil Code of 23 April 1964 Code of Commercial Companies of 15 September 2000 Commercialisation and Privatisation of State Enterprises Law of 30 August 1996 Competition and Consumer Protection Law of 15 December 2000 Construction Law of 7 July 1994 Copyright and Related Rights Law of 4 February 1994 Corporate Insolvency and Recovery Law of 28 February 2003 Customs Law of 19 March 2004 Economic Freedom Law of 2 July 2004 Financial Assistance for Investments Law of 20 March 2002 Financial Restructuring of Banks and Enterprises Law of 3 February 1993 Foreign Exchange Law of 27 July 2002 Formation of the Agricultural System Law of 11 April 2003 Industrial Property Law of 30 June 2000 Insurance Law of 22 May 2003 Dz. U. No. 76, item 694 of 2002 – uniform text Dz. U. No. 167, item 1758 of 2004 – uniform text Dz. U. No. 97, item 963 of 2004 Dz. U. No. 72, item 665 of 2002 – uniform text Dz. U. No. 16, item 93 of 1964 Dz. U. No. 94, item 1037 of 2000 Dz. U. No. 171, item 1397 of 2002 – uniform text Dz. U. No. 122, item 1319 of 2000 Dz. U. No. 89, item 414 of 1994 Dz. U. No. 24, item 83 of 1994 Dz. U. No. 60, item 535 of 2003 Dz. U. No. 68, item 622 of 2004 Dz. U. No. 173, item 1807 of 2004 Dz. U. No. 41, item 363 of 2002 Dz. U. No. 18, item 82 of 1993 Dz. U. No. 141, item 1178 of 2002 Dz. U. No. 64, item 592 of 2003 Dz. U. No. 49, item 508 of 2001 Dz. U. No. 124, item 1151 of 2003 How to Do Business in Poland 253 REGULATION Published in Journal of Laws (Dz. U.) Labour Code of 26 June 1974 National Investment Funds and their Privatisation Law of 30 April 1993 Promotion of Employment and Labour Market Institutions Law of 20 April 2004 Public Aid Procedure Law of 30 April 2004 Public Procurement Law of 29 January 2004 Refinancing the Interest on Fixed Interest Rate Export Credits Law of 8 June 2001 Spatial Zoning Law of 27 March 2003 Special Economic Zones Law of 20 October 1994 State Enterprises Law of 25 September 1981 Suppressing Unfair Competition Law of 16 April 1993 Tax Laws Dz. U. No. 21, item 94 of 1998 – uniform text Dz. U. No. 44, item 202 of 1993 Dz. U. No. 99, item 1001 of 2004 Dz. U. No. 123, item 1291 of 2004 Dz. U. No. 19, item 177 of 2004 Dz. U. No. 73, item 762 of 2001 Dz. U. No. 80, item 717 of 2003 Dz. U. No. 123, item 600 of 1994 Dz. U. No. 112, item 981 of 2002 – uniform text Dz. U. No. 47, item 211 of 1993 See Appendix 5 254 XIV. Appendices APPENDIX 5 BASIC TAX LIABILITIES Tax Rate Remitters Notes Corporate income tax 19 % Legal persons Revenue earned abroad is also subject to this tax VAT 22 % 7% 3% 0% Legal and natural persons Excise duty Various Legal and natural persons Indirect tax 22 % - basic rate 7 % - preferential rate 3 % - unprocessed products 0 % - export rate some goods & services are exempted Indirect tax limited to some 60 commodity groups Tax on dividends 19 % Personal income tax 19 % 30 % 40 % Agricultural tax Legal Base Act on Income Tax on Legal Persons (Dz.U. of 2000 No. 54, item 654, as amended) Act on Value Added Tax (Dz.U. of 2004 No. 54 item 535) Act on Excise Duty (Dz.U. of 2004 No. 29 item 257, as amended) Shareholders in Holdings are effectively exempted. Act on Income Tax on Legal companies, Rate may be reduced by Agreements Persons (Dz.U. of 2000 No. legal and on Avoiding Double Taxation. Tax 54, item 654, as amended) natural persons residence certificate for shareholder required if lower rate to be applied Natural persons Foreigners staying temporarily in Act on Income Tax on Poland pay tax only on the income Natural Persons (Dz.U. of earned in Poland and from work 2000 No. 14 item 176, as carried out in Poland (limited tax amended) liability) Act on Lump-sum Income Tax on Some Income Derived by Natural Persons (Dz.U. of 1998 No. 144 item 930, as amended) Legal and Calculated on the area of land on Act on Agricultural Tax natural persons which agricultural activity is carried (Dz.U. of 1993 No. 94 item out. The rates vary according to the 431, as amended) category of land. LOCAL TAXES Real estate tax Various Real estate owners, legal and natural persons Rates determined by local authorities, per m2 Act on Local Taxes and Charges (Dz.U. of 1991 No. 9 item 31, as amended) Source: Various acts 255 How to Do Business in Poland APPENDIX 6 AGREEMENTS ON AVOIDING DOUBLE TAXATION Agreement No. Country Signed on 1. 2. 3. 4. 5. Albania Algeria Armenia Australia Austria 6. Azerbaijan 7. Bangladesh 8. Belgium 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Belarus Bulgaria Canada Chile China Croatia Cyprus Czech Republic Denmark Egypt Estonia Finland Protocol 21. France 22. Georgia 23. Germany Protocol 24. Greece 25. Hungary Protocol 26. Iceland 27. India 28. Indonesia 29. Iran 30. Ireland 31. Israel 32. Italy 33. Japan 34. Jordan 35. Kazakhstan 36. Kuwait * 05.03.1993 31.01.2000 14.07.1999 07.05.1991 02.10.1974 13.01.2004 26.08.1997 08.07.1997 14.09.1976 20.08.2001 18.11.1992 11.04.1994 04.05.1987 10.03.2000 07.06.1988 19.10.1994 04.06.1992 24.06.1993 06.12.2001 24.06.1996 09.05.1994 26.10.1977 28.04.1994 20.06.1975 05.11.1999 18.12.1972 24.10.1979 14.05.2003 20.11.1987 23.09.1992 27.06.2000 19.06.1998 21.06.1989 06.10.1992 02.10 1998 13.11.1995 22.05.1991 21.06.1985 20.02.1980 04.10.1997 21.09.1994 16.11.1996 Entry into Force 27.06.1994 Applied from 01.01.1995 Published in Dziennik Ustaw 1994/No 101, item 492 27.02.2005 04.03.1992 21.09.1975 01.04.2005 20.01.2005 28.01.1999 21.09.1978 29.04.2004 30.07.1993 10.05.1995 30.11.1989 30.12.2003 07.01.1989 11.02.1996 07.07.1993 20.12.1993 13.12.2002 16.07.2001 09.12.1994 30.03.1979 25.01.1995 12.09.1976 01.01.2006 01.01.1993 01.01.1974 01.01.2006* 01.01.2006* 01.01.2000 01.01.1979 01.01.2005 01.01.1994 01.01.1996 01.01.1989 01.01.2004 01.01.1990 01.01.1997 01.01.1994 01.01.1994 01.01.2003 01.01.2002 01.01.1995 01.01.1980 01.01.1996 01.01.1974 2005/No 66, item 576 1992/No 41, item 177 1975/No 24, item 129 2005/No 224,item 1921 14.09.1975 01.01.1972 19.12.2004 28.09.1991 10.09.1995 01.05.2002 20.06.1999 26.10.1989 25.08.1993 01.01.2005 01.01.1992 01.01.1996 01.08.2002 01.01.2000 01.01.1990 01.01.1994 1975/No 31, item 163 1982/No 1, item 1 2005/No 12, item 90 1991/No 120, item 524 1995/No 125, item 602 2002/No 108, item 946 1999/No 79, item 890 1990/ No 8, item 46 1994/No 46, item 187 22.12.1995 30.12.1991 26.09.1989 23.12.1982 22.04.1999 13.05.1995 25.04.2000 01.01.1996 01.01.1992 01.01.1984 01.01.1983 01.01.2000 01.01.1996 01.01.1996 1996/No 29, item 129 1992/No 28, item 124 1989/No 62, item 374 1983/No 12, item 60 1999/No 61, item 654 1995/No 121, item 586 2000/No 69, item 811 2000/No 106, item 1121 1978/No 24, item 109 2004/No 211, item 2139 1993/No 120,item 534 1995/No 137, item 679 1990/No 38, item 216 2004/No 193, item 1976 1989/No 13, item 65 1996/No 78, item 370 1993/No 117, item 523 1994/No 47, item 189 2003/No 43, item 368 2003/No 78, item 690 1995/No 77, item 388 1979/No 12, item 84 1995/No 106, item 517 1977/No 1, item 5 Income tax collected at source - on income derived starting from 1 January 2006, other income taxes / taxes on assets - on income derived in each fiscal year starting on 1 January 2006, or later 256 No. XIV. Appendices Country Signed on 37. Kyrgyzstan 19.11.1998 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. Switzerland 67. Syria 68. Tajikistan 17.11.1993 26.07.1999 20.01.1994 14.06.1995 28.11.1996 16.09.1977 07.01.1994 30.11.1998 16.11.1994 18.04.1997 24.10.1994 13.02.2002 21.04.2005 12.02.1999 24.05.1977 25.10.1974 09.09.1992 09.05.1995 23.06.1994 22.05.1992 23.04.1993 18.08.1994 28.06.1996 10.11.1993 21.06.1991 15.11.1979 25.04.1980 05.06.1975 19.11.2004 02.09.1991 15.08.2001 27.05.2003 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 08.12.1978 29.03.1993 03.11.1993 12.01.1993 31.01.1993 16.12.1976 02.08.1991 08.10.1974 11.01.1995 31.08.1994 12.06.1997 19.05.1995 09.07.1993 Latvia Lebanon Lithuania Luxembourg Macedonia FYR Malaysia Malta Mexico Moldova Mongolia Morocco Netherlands New Zealand Nigeria Norway Pakistan Philippines Portugal Romania Russia Singapore Slovakia Slovenia South Africa South Korea Spain Sri Lanka Sweden Thailand Tunisia Turkey Ukraine United Arab Emirates United Kingdom Uruguay USA Uzbekistan Vietnam Yugoslavia Zambia Zimbabwe Entry into Force 22.06.2004 30.11.1994 07.11.2003 19.07.1994 11.07.1996 17.12.1999 05.12.1978 24.11.1994 06.09.2002 27.10.1995 21.07.2001 29.03.1995 18.03.2003 30.10.1979 24.11.1975 07.04.1997 04.02.1998 15.09.1995 22.02.1993 25.12.1993 21.12.1995 10.03.1998 05.12.1995 21.02.1992 06.05.1982 21.10.1983 18.02.1977 15.10.2005 25.09.1992 23.12.2003 24.06.2004 Agreement Applied from 01.09.2004** 01.01.2005*** 01.01.1995 01.01.2004 01.01.1995 01.01.1997 01.01.2000 01.01.1977 01.01.1995 01.01.2003 01.01.1996 01.01.2002 01.01.1996 01.01.2004 Published in Dziennik Ustaw 2004/No 228, item 2304 1995/No 53, item 285 2004/No 244, item 2445 1995/No 51, item 277 1996/No 110, item 527 2002/No 206, item 1744 1979/No 10, item 62 1995/No 49, item 256 2003/No 13, item 131 1996/No 38, item 166 2002/No 206, item 1746 1996/No 110, item 529 2003/No 216, item 2120 1979/No 27, item 157 1976/No 9, item 47 1997/No 127, item 817 1998/No 48, item 304 1995/No 109, item 530 1993/No 125, item 569 1994/No 38, item 139 1996/No 30, item 131 1998/No 35, item 198 1996/No 28, item 124 1992/No 28, item 126 1982/No 17, item 127 1988/No 5, item 38 1977/No 13, item 51 2006/No 26, item 193 1993/No 22, item 92 2004/No 193, item 1972 2005/No 12, item 92 13.05.1983 15.11.1993 01.10.1996 11.03.1994 21.04.1994 25.02.1978 01.01.1976 01.01.1973 01.01.1998 01.01.1999 01.01.1996 01.01.1994 01.01.1994 01.01.1996 01.01.1999 01.01.1996 01.01.1991 01.01.1983 01.01.1983 01.01.1978 01.01.2006 01.01.1992 01.01.2004 01.09.2004** 01.01.2005*** 01.01.1983 01.01.1994 01.01.1998 01.01.1995 01.01.1995 01.04.1975 23.07.1976 29.04.1995 20.01.1995 17.06.1998 01.01.1974 01.01.1996 01.01.1996 01.01.1999 1976/No 31, item 178 1995/No 116, item 560 1995/No 49, item 258 2001/No 101, item 1137 28.11.1994 01.01.1995 1995/No 62, item 318 1983/No 37, item 170 1994/No 78, item 357 1997/No 11, item 58 1994/No 63, item 269 1994/No 81, item 373 1978/No 7, item 20 Source: Ministry of Finance, 2006 ** Income tax collected at source Other taxes *** 257 How to Do Business in Poland APPENDIX 7 AGREEMENTS ON THE RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENTS No. Country 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Albania Argentina Australia Austria Azerbaijan Bangladesh Belarus Belgium-Luxembourg Bulgaria Canada Chile China Croatia Cyprus Czech Republic Denmark Egypt Estonia Finland France Germany Protocol Greece Hungary India Indonesia Iran Israel Protocol Italy Jordan Kazakhstan Kuwait Latvia Lithuania Macedonia Malaysia Moldova Mongolia Morocco Netherlands Norway Signed on 05.03.1993 31.07.1991 07.05.1991 24.11.1988 26.08.1997 08.07.1997 24.04.1992 19.05.1987 11.04.1994 06.04.1990 05.07.1995 07.06.1988 21.02.1995 04.06.1992 16.07.1993 01.05.1990 01.07.1995 06.05.1993 25.11.1996 14.02.1989 10.11.1989 14.05.2003 14.10.1992 23.09.1992 07.10.1996 06.10.1992 02.10.1998 22.05.1991 27.06.1997 10.05.1989 04.10.1997 21.09.1994 05.03.1990 26.04.1993 28.09.1992 28.11.1996 21.04.1993 16.11.1994 08.11.1995 24.10.1994 07.09.1992 05.06.1990 Entry into Force 09.08.1993 01.09.1992 27.03.1992 01.11.1989 10.02.1999 19.11.1999 18.01.1993 02.08.1991 09.03.1995 22.11.1990 17.01.2000 07.01.1989 04.10.1995 06.07.1993 29.06.1994 13.10.1990 17.01.1998 06.08.1993 13.03.1998 10.02.1990 24.02.1991 28.10.2005 20.02.1995 16.06.1995 31.12.1997 01.07.1993 30.10.2001 06.05.1992 27.07.2003 09.01.1993 14.08.1999 25.05.1995 18.12.1993 19.07.1993 06.08.1993 22.04.1997 23.03.1994 27.07.1995 26.03.1996 08.07.1999 01.02.1994 24.10.1990 Published in Dziennik Ustaw 1993/No 122, item 547 1993/No 124, item 567 1992/No 39, item 166 1989/No 54, item 321 1999/No 61, item 656 2000/No 43, item 492 1993/No 122, item 545 2001/No 15, item 153 1995/No 62, item 322 1991/No 27, item 114 2000/No 21, item 265 1989/No 13, item 67 1995/No 28, item 126 1993/No 117, item 521 1994/No 97, item 469 1992/No 28, item 122 1998/No 48, item 302 1995/No 39, item 196 1998/No 54, item 342 1990/No 38, item 220 1991/No 27, item 116 2006/No 13, item 84 1995/No 51, item 275 1995/No 113, item 542 1998/No 34, item 186 1994/No 46, item 185 2002/No 22, item 217 1993/No 124, item 562 2004/No 41, item 381 1994/No 42, item 157 2001/No 143, item 1603 1995/No 121, item 584 1994/No 50, item 199 1993/No 122, item 549 1993/No 122, item 543 1997/Nr 63, item 393 1994/No 78, item 359 1995/No 118, item 568 2004/No 216, item 2193 1999/No 76, item 858 1994/No 57, item 235 1990/No 84, item 488 258 XIV. Appendices No. Country 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. Portugal Romania Russia Serbia and Montenegro Singapore Slovakia Slovenia South Korea Spain Sweden Switzerland Thailand Tunisia Turkey Ukraine United Arab Emirates United Kingdom Uruguay USA Protocol 60. Uzbekistan 61. Vietnam Signed on 11.03.1993 23.06.1994 02.10.1992 03.09.1996 03.06.1993 18.08.1994 28.06.1996 01.11.1989 30.07.1992 13.10.1989 08.11.1989 18.12.1992 29.03.1993 21.08.1991 12.01.1993 31.01.1993 08.12.1987 02.08.1991 21.03.1990 12.01.2004 11.01.1995 31.08.1994 Entry into Force 09.10.1993 30.12.1994 Published in Dziennik Ustaw 1995/No 19, item 90 1995/No 77, item 386 23.01.1997 29.12.1993 14.03.1996 31.03.2001 02.02.1990 01.05.1993 04.01.1990 18.04.1990 10.08.1993 22.09.1993 19.08.1994 14.09.1993 09.04.1994 14.04.1988 21.10.1994 06.08.1994 20.08.2004 29.04.1995 24.11.1994 1997/No 39, item 236 1994/No 57, item 237 1996/No 55, item 246 2001/No 106, item 1119 1990/No 8, item 48 1993/No 124, item 563 1990/No 38, item 218 1990/No 63, item 366 1994/No 8, item 26 1994/No 8, item 28 1994/No 112, item 539 1993/No 125, item 575 1994/No 81, item 371 1988/No 12, item 93 1995/No 55, item 291 1994/No 97, item 467 2005/No 3, item 14 1995/No 116, item 561 1995/No 41, item 209 Source: Ministry of the Economy, 2006 How to Do Business in Poland 259 APPENDIX 8 LIST OF COUNTRIES WHOSE CITIZENS DO NOT REQUIRE A POLISH VISA WHEN ENTERING POLAND FOR LESS THAN 90 DAYS Countries A - G Andorra Argentina Australia Austria Belgium Bolivia Brazil Brunei Bulgaria Canada Chile Costa Rica Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Countries G - N Countries N - Z Guatemala Norway Honduras Panama Hong Kong Paraguay Hungary Portugal Iceland Romania Ireland Salvador Israel San Marino Italy Singapore Japan Slovakia Latvia Slovenia Liechtenstein South Korea Lithuania Spain Luxembourg Sweden Macao Switzerland Malaysia United Kingdom Malta United States of America Mexico Uruguay Monaco Vatican Netherlands Venezuela Nicaragua New Zealand Source: Ministry of Foreign Affairs, 2006 Citizens from other countries, not listed above, need to have a Polish visa when visiting Poland. For further information, also concerning studies, work and stay of over 3 months, please contact your nearest Embassy or Consulate of Poland. 260 XIV. Appendices APPENDIX 9 TOP 50 COMPANIES BY SALES REVENUE IN 2005 (in thousand PLN) Name of Company 1. Polski Koncern Naftowy ORLEN SA, Płock 2. Telekomunikacja Polska SA GK, Warszawa 3. Polskie Sieci Elektroenergetyczne SA, Warszawa 4. PZU SA GK, Warszawa 5. PGNiG SA, Warszawa 6. Metro AG Polska, Warszawa 7. Grupa PKP SA, Warszawa 8. Grupa Lotos S.A., Gdańsk 9. KGHM Polska Miedź S.A. GK, Lubin 10. Volkswagen Poznań Sp. z o.o., Poznań 11. Kompania Węglowa, Katowice 12. Fiat Auto Poland S.A., Bielsko-Biała 13. Mittal Steel Poland S.A. GK, Katowice 14. PKO BP S.A. GK, Warszawa 15. BOT Górnictwo i Energetyka S.A. GK, Łódź 16. Polska Telefonia Cyfrowa Sp. z o.o. GK, Warszawa 17. BP Polska Sp. z o.o., Kraków 18. Polkomtel S.A. Warszawa 19. PTK Centertel Sp. z o.o. Warszawa 20. Poczta Polska PPUP, Warszawa 21. Bank Pekao SA, GK Warszawa 22. Jeronimo Martins Dystrybucja Sp. z o.o., Poznań 23. Tesco GK, Kraków 24. Lasy Państwowe PP, Warszawa 25. Bank BPH S.A. GK, Kraków 26. Energia Koncern Energetyczny S.A., Gdańsk Net Sales Total Revenue Revenue 42 804 215 45 344 017 Pre-tax Profit 5 457 825 Net Profit 4 670 483 18 342 000 n.a. 3 005 000 2 316 000 16 768 808 17 149 342 1 159 675 860 138 16 713 901 n.a. 12 552 802 13 265 544 11 700 000 n.a. 10 710 000 n.a. 9 646 474 9 968 833 9 029 496 9 045 082 3 991 847 1 187 311 n.a. n.a. 1 148 634 2 739 766 3 214 792 812 017 n.a. -707 000 976 023 2 112 015 8 827 125 833 295 668 790 8 611 039 10 022 438 8 569 307 8 740 670 245 685 n.a. 283 003 295 815 8 367 726 8 692 944 311 806 258 701 7 979 579 7 454 893 8 238 279 7 655 507 2 075 900 638 418 1 675 500 527 335 6 723 301 6 975 741 1 469 475 1 189 410 6 543 227 6 495 963 6 423 730 4 780 064 -42 967 6 818 910 1 3100 746 6 648 056 1 279 912 -75 287 1 067 105 1 043 237 6 141 937 5 781 323 5 370 000 6 177 046 6 066 299 n.a. 427 570 1 873 599 n.a. 268 387 1 534 852 n.a. 5 300 000 5 130 323 5 107 241 5 097 918 n.a. 5 199 505 5 228 433 5 265 979 n.a. 126 787 1 294 445 319 061 n.a. 119 380 1 027 436 220 709 8 707 558 261 How to Do Business in Poland Name of Company 27. Grupa Energetyczna Enea S.A., Poznań 28. Węglokoks S.A., Katowice 29. Grupa Shell Polska, Warszawa 30. Carrefour Polska, Warszawa 31. Jastrzębska Spółka Węglowa S.A. Jastrzębie Zdrój 32. Polski Koks S.A. Katowice 33. J&S Energy S.A. Warszawa 34. Volkswagen Motor Polska Sp. z o.o., Polkowice 35. Enion SA, Kraków 36. Auchan Polska, Warszawa 37. Ruch SA, Warszawa 38. Polska Grupa Farmaceutyczna S.A. GK, Łódź 39. Grupa Vattenfall Poland, Warszawa 40. Fiat-GM Powertrain Polska Sp. z o.o. Bielsko-Biała 41. Geant Polska Sp. z o.o., Warszawa 42. Południowy Koncern Energetyczny SA, Katowice 43. EnergiaPro Koncern Energetyczny S.A., Wrocław 44. Commercial Union TUnś SA, Warszawa 45. Ahold Polska sp. z o.o. Kraków 46. Farmacol SA GK, Katowice 47. Katowicki Holding Węglowy SA, Katowice 48. Tele-Fonika Kable SA, Kraków 49. LG Electronics Mława Sp. z o.o., Mława 50. Grupa śywiec SA GK, śywiec * n.a. – not available Net Sales Revenue 4 807 111 Total Revenue 4 828 128 Pre-tax Profit 56 060 Net Profit 45 905 4 779 157 4 722 184 4 700 000 4 554 329 5 021 072 n.a. n.a. 4 813 746 144 178 n.a. n.a. 1 101 743 99 088 n.a. n.a. 800 379 4 511 906 4 470 839 4 358 102 4 519 011 4 484 762 4 401 336 13 045 28 966 127 124 11 045 22 681 126 642 4 252 530 3 965 000 3 946 553 3 891 462 4 407 570 n.a. 3 964 498 3 902 004 190 082 n.a. n.a. 71 138 126 395 n.a. n.a. 53 322 3 837 486 4 130 909 572 535 467 813 3 704 189 3 707 581 205 682 205 682 3 625 000 n.a. n.a. n.a. 3 564 567 3 687 898 420 725 283 469 3 289 934 3 355 147 56 891 55 473 3 131 411 n.a. 428 391 364 671 3 060 000 3 052 879 3 027 129 n.a. 3 104 886 3 205 378 n.a. 91 267 116 415 n.a. 72 572 81 650 2 934 278 2 930 618 2 985 684 2 963 322 66 674 -23 508 52 853 -14 700 2 867 630 2 927 144 416 807 333 053 Source: Rzeczpospolita, 26 April 2006 262 XIV. Appendices APPENDIX 10 OUTPUT OF MAJOR GOODS AND RAW MATERIALS IN 2005* Product Hard coal Brown coal Coke Fuel oils Petrol (incl. aviation) Diesel oil Cement Crude steel Refined copper Pure sulphur Sugar Milk Passenger cars Farm tractors TV sets (incl. monitors other than for computers) Refrigerators Sawn timber Natural gas Electricity * Output Units million tons million tons million tons million tons million tons million tons million tons million tons th. tons th. tons th. tons million hectolitres ths. ths. 98.3 61.6 8.5 3.4 4.2 6.1 12.4 8.4 560 802 2,057 21.3 540 5.7 ths. 6,660 ths. cubic decametres cubic hectometres TWh 1,691 2,187 5,703 153.3 Data for companies employing over 49 persons Source: Central Statistical Office, 2006 263 How to Do Business in Poland APPENDIX 11 AVERAGE RETAIL PRICES OF SELECTED FOOD PRODUCTS AND OTHER ARTICLES (as of April 2006) Product Milk, fat content 3 - 3.5 % Wheat-rye bread Wheat flour Fresh butter, fat content 82.5 % Beef, boneless (gammon) Pork ham, boiled White sugar, crystallised Quantity Price (PLN) 1 litre 0.5 kg 1 kg 0.2 kg 1 kg 1 kg 1 kg 2.41 1.32 1.36 3.01 21.55 19.12 2.99 Men’s suit, polyester staple fibres and wool Men’s shirt, long-sleeve, polyester staple fibres and cotton Women’s suits, wool set 457.07 piece 81.18 set 355.27 Fridge-freezer, approx. 300 l capacity Washer-dryer machine TV-set, 21 inch unit unit unit 1353 2034 827.75 Washing powder for washing machines Toilet soap 100 g. Shampoo 200 ml. Toothpaste 125 ml Electricity, for households Natural gas for households Hot water supply Central heating, for dwellings Petrol, Euro-Super Regular fast train ticket, 2nd class, 181-200 km Regular long-distance bus ticket, 41-50 km Taxi, daily fare, 5km Regular ticket, urban bus Regular cinema ticket 0.6 kg one one one 4.39 1.45 5.58 8.45 kWh 1 m3 1 m3 1 m2 of usable floor area 0.44 1.91 14.26 1 litre one one trip one one 4.02 34.03 8.56 13.08 1.97 13.21 3.18 Source: Central Statistical Office, 2006 264 XIV. Appendices APPENDIX 12 WSE – EQUITY KEY FIGURES 2005 2004 2003 2002 2001 INDICES & INDICATORS WIG (end of period) 35,600.79 26,636.19 20,820.07 14,366.65 13,922.16 WIG20 (end of period) 2,654.95 1,960.57 1,574.04 1,175.64 1,208.34 MIDWIG (end of period) 2,207.74 1,730.10 1,269.34 950.24 1,020.49 PLN return on the WIG index (%) 33.66 27.94 44.9 3.2 -22 PLN return on the WIG20 index (%) 35.42 24.56 33.9 -2.7 -33.5 PLN return on the MIDWIG index (%) 27.61 36.30 33.6 -6.9 1.6 COMPANIES Number of listed companies (end of period) Capitalisation at year-end (PLN million) Total turnover value (PLN million) Number of sessions Number of investment accounts at end of period (thousand) CONTINUOUS TRADING Number of listed companies (end of period) Number of transactions per session Total turnover value (PLN million) SINGLE-PRICE AUCTION Number of listed companies (end of period) Number of transactions per session Total turnover value (PLN million) BLOCK TRADES (TOTAL) Number of transactions (single-counted) Average value of transaction (PLN million) Total turnover value (PLN million) 255 230 203 216 230 424,900 291,697 167,717 110,565 103,370 191,095 118,518 79,774 63,662 80,443 251 255 251 249 250 871 851 947 1,016 1,085 240 206 159 152 141 19,165 175,247 15,270 109,531 12,085 66,281 11,190 47,599 12,097 60,032 15 24 44 64 89 110 156 195 244 140 162 165 130 409 516 582 778 703 688 1,159 13.48 5.62 9.48 11.6 8.6 15,693 8,743 13,331 15,933 19,895 Source: WSE, 2006 265 How to Do Business in Poland APPENDIX 13 WSE – BONDS 2005 2004 2003 2002 2001 ORDER BOOK TRANSACTIONS Number of bonds at the year-end Turnover value (PLN mill)∗ Average turnover per session (PLN mill) Number of transactions per session Average transaction value (PLN) 76 81 70 61 53 5,059 7,820 7,840 3,986 5,093 20.0 31 31 16 20 210 411 410 331 525 48,052 37,287 38,130 24,222 19,386 BLOCK TRADES Number of transactions (single-counted) Average value of transaction (PLN mill) Total turnover value (PLN mill) 35 6.40 448 113 2.36 533 1,278 1.89 4,834 45 1.61 145 13 1.55 40 Source: WSE, 2006 ∗ Excluding block trades 266 XIV. Appendices APPENDIX 14 CENTRAL INSTITUTIONS AND MINISTRIES Chancellery of the President of the Republic of Poland Kancelaria Prezydenta RP ul. Wiejska 10; 00-902 Warszawa tel.: (+48-22) 6952900; fax: 6951109 www.prezydent.pl Sejm Chancellery Kancelaria Sejmu RP ul. Wiejska 4/6/8; 00-902 Warszawa tel.: (+48-22) 6942500; fax: 6942252 www.sejm.gov.pl Ministry of Agriculture and Rural Development Ministerstwo Rolnictwa i Rozwoju Wsi ul. Wspólna 30; 00-930 Warszawa tel.: (+48-22) 6231000; fax: 6231788 www.minrol.gov.pl Ministry of Construction Ministerstwo Budownictwa ul. Wspólna 2/4; 00-926 Warszawa tel.: (+48-22) 6281718; fax: 6295389 www.mtib.gov.pl Senate Chancellery Kancelaria Senatu RP ul. Wiejska 6; 00-902 Warszawa tel.: (+48-22) 6942500; fax: 6942224 www.senat.gov.pl Ministry of Culture and National Heritage Ministerstwo Kultury i Dziedzictwa Narodowego Krakowskie Przedmieście 15/17 00-071 Warszawa tel.: (+48-22) 4210100; fax: 8269148 www.mkidn.gov.pl Chancellery of the Prime Minister Kancelaria Premiera Al. Ujazdowskie 1/3; 00-583 Warszawa tel.: (+48-22) 6946000; fax: 6218827 www.kprm.gov.pl Ministry of Defence Ministerstwo Obrony Narodowej ul. Klonowa 1; 00-909 Warszawa tel.: (+48-22) 6280031 ... 34; fax: 8455378 www.wp.mil.pl Constitutional Tribunal Trybunał Konstytucyjny Al. Szucha 12a; 00-918 Warszawa tel.: (+48-22) 6574531; fax: 6574532 www.trybunal.gov.pl Ministry of the Economy Ministerstwo Gospodarki Plac Trzech KrzyŜy 3/5; 00-507 Warszawa tel.: (+48-22) 6935000; fax: 6934048 www.mg.gov.pl Supreme Administrative Court Naczelny Sąd Administracyjny ul. Jasna 6; 00-013 Warszawa tel.: (+48-22) 5516000; fax: 8276687 www.nsa.gov.pl Ministry of Education Ministerstwo Edukacji Al. Szucha 25; 00-918 Warszawa tel.: (+48-22) 6280461; fax: 3474100 www.men.gov.pl Supreme Chamber of Control NajwyŜsza Izba Kontroli ul. Filtrowa 57; 00-950 Warszawa tel.: (+48-22)4445000; fax: 8257376 www.nik.gov.pl Ministry of the Environment Ministerstwo Środowiska ul. Wawelska 52/54; 00-922 Warszawa tel.: (+48-22) 5792900; fax: 5792224 www.mos.gov.pl National Bank of Poland Narodowy Bank Polski ul. Świętokrzyska 11/21; 00-919 Warszawa tel.: (+48-22) 6531000; fax: 6208518 www.nbp.pl Ministry of Finance Ministerstwo Finansów ul. Świętokrzyska 12; 00-916 Warszawa tel.: (+48-22) 6945555; fax: 6943816 www.mf.gov.pl How to Do Business in Poland Ministry of Foreign Affairs Ministerstwo Spraw Zagranicznych Al. Szucha 23; 00-580 Warszawa tel.: (+48-22) 5239000; fax: 6298635 www.msz.gov.pl Ministry of Transport Ministerstwo Transportu ul. Chałubińskiego 4/6; 00-928 Warszawa tel.: (+48-22) 6301000; fax: 8300063 www.mtib.gov.pl Ministry of Health Ministerstwo Zdrowia ul. Miodowa 15; 00-952 Warszawa tel.: (+48-22) 6349600; fax: 8311212 www.mz.gov.pl Ministry of the Treasury Ministerstwo Skarbu Państwa ul. Krucza 36/Wspólna 6; 00-522 Warszawa tel.: (+48-22) 6958000; fax: 6280872 www.mst.gov.pl Ministry of Internal Affairs and Administration Ministerstwo Spraw Wewnętrznych i Administracji ul. Batorego 5; 02-591 Warszawa tel.: (+48-22) 6212020, ; fax: 6227933 www.mswia.gov.pl Agricultural Market Agency Agencja Rynku Rolnego ul. Nowy Świat 6/12; 00-400 Warszawa tel.: (+48-22) 6617272; fax: 6289353 www.arr.gov.pl Ministry of Justice Ministerstwo Sprawiedliwości Al. Ujazdowskie 11; 00-950 Warszawa tel.: (+48-22) 5212888; www.ms.gov.pl Agricultural Property Agency Agencja Nieruchomości Rolnych ul. Dolańskiego 2; 00-215 Warszawa tel.: (+48-22) 6358009; fax: 6350060 www.anr.gov.pl Ministry of Labour and Social Policy Ministerstwo Pracy i Polityki Społecznej ul. Nowogrodzka 1/3/; 00-513 Warszawa tel.: (+48-22) 6610100; fax: 6611124 www.mps.gov.pl Office of Technical Inspection Urząd Dozoru Technicznego ul. Szczęśliwicka 34; 02-353 Warszawa tel.: (+48-22) 572 21 00; fax: 8227209 www.udt.gov.pl Ministry of Maritime Economy Ministerstwo Gospodarki Morskiej ul. Chałubińskiego 4/6; 00-928 Warszawa tel.: (+48-22) 6301870 www.mtib.gov.pl Central Office of Measures Główny Urząd Miar ul. Elektoralna 2; 00-139 Warszawa tel.: (+48-22) 5819399; fax: 6208378 www.gum.gov.pl Ministry of Regional Development Ministerstwo Rozwoju Regionalnego ul. Wspólna 2/4; 00-926 Warszawa tel.: (+48-22) 4613000 www.mrr.gov.pl Central Statistical Office Główny Urząd Statystyczny Al. Niepodległości 208; 00-925 Warszawa tel.: (+48-22) 6083000; fax: 6083001 www.stat.gov.pl Ministry of Science and Higher Education Ministerstwo Nauki i Szkolnictwa WyŜszego ul. Wspólna 1/3; 00-529 Warszawa tel.: (+48-22) 5292718; fax: 6280922 www.mnisw.gov.pl Ministry of Sport Ministerstwo Sportu Al. RóŜ 2, 00-559 Warszawa tel.: (+48-22) 5223399; fax: 8262172 www.msport.gov.pl 267 Office for Competition and Consumer Protection Urząd Ochrony Konkurencji i Konsumenta Pl. Powstańców Warszawy 1; 00-950 Warszawa tel.: (+48-22) 5560800; fax: 8265076 www.uokik.gov.pl General Administration of Domestic Roads and Highways Generalna Dyrekcja Dróg Krajowych i Autostrad ul. śelazna 59; 00-848 Warszawa tel.: (+48-22) 3758888; fax: 3758763 www.gddkia.gov.pl 268 XIV. Appendices Government Centre for Strategic Studies Rządowe Centrum Studiów Strategicznych ul. Wspólna 4; 00-926 Warszawa tel.: (+48-22) 6618600; fax: 6212550 www.rcss.gov.pl State Mining Authority WyŜszy Urząd Górniczy ul.Poniatowskiego 31; 40-956 Katowicze tel.: (+48-32) 2511471; fax: 2514884 www.wug.gov.pl Industrial Development Agency Agencja Rozwoju Przemysłu S.A. ul. Domaniewska 41; 02-672 Warszawa tel.: (+48-22) 4603799; fax: 4603701 www.arp.com.pl Institute of National Remembrance Instytut Pamięci Narodowej ul. Towarowa 28; 00-839 Warszawa tel.: (+48-22) 5818542; fax: 5818543 www.ipn.gov.pl National Broadcasting Council Krajowa Rada Radiofonii i Telewizji Skwer Kard. Stefana Wyszyńskiego Prymasa Polski 9 01-015 Warszawa tel.: (+48-22) 5973000; fax: 5973180 www.krrit.gov.pl National Police Headquarters Komenda Główna Policji ul. Puławska 148/150; 02-514 Warszawa tel.: (+48-22) 6210251; fax: 8488494 www.kgp.gov.pl Office of the Committee for European Integration Urząd Komitetu Integracji Europejskiej Al. Ujazdowskie 9; 00-918 Warszawa tel.: (+48-22) 4555500; fax: 4555348 www.ukie.gov.pl Office for Veterans and Repressed Persons Urząd ds. Kombatantów i Osób Represjonowanych ul. Wspólna 2/4; 00-926 Warszawa tel.: (+48-22) 6618129; fax: 6618740 www.udskior.gov.pl Polish Academy of Sciences Polska Akademia Nauk 00-901 Warszawa, Plac Defilad 1; PO Box 24 tel.: (+48-22) 6204970; fax: 6204910 www.pan..pl Polish Information and Foreign Investment Agency Polska Agencja Informacji i Inwestycji Zagranicznych ul. Bagatela 12; 00-585 Warszawa tel.: (+48-22) 3349800; fax: 3349999 www.paiz.gov.pl Polish Agency For Enterprise Development Polska Agencja Rozwoju Przedsiębiorczości ul. Pańska 81/83; 00834 Warszawa tel.: (+48-22) 4328080; fax: 4328620 www.parp.gov.pl Polish Chamber of Commerce Krajowa Izba Gospodarcza ul. Trębacka 4; 00-074 Warszawa tel.: (+48-22) 6309600; fax: 8274673 www.kig.pl Polish Committee for Standardisation Polski Komitet Normalizacyjny ul. Świętokrzyska 14; 00-050 Warszawa tel.: (+48-22) 5567755; fax: 5567416 www.pkn.pl Polish Centre for Testing and Certification Polskie Centrum Badań i Certyfikacji ul. Kłobucka 23a; 02-699 Warszawa tel.: (+48-22) 4645200; fax: 6471222 www.pcbc.gov.pl Polish Patent Office Urząd Patentowy RP Al. Niepodległości 188/192 00-950 Warszawa tel.: (+48-22) 8258001; fax: 8750680 www.uprp.pl Public Procurement Office Urząd Zamówień Publicznych Al. Szucha 2/4; 00-582 Warszawa tel.: (+48-22) 4587777; fax: 4587700 www.uzp.gov.pl State Atomic Agency Państwowa Agencja Atomistyki ul. Krucza 36; 00-522 Warszawa tel.: (+48-22) 6959800; fax: 6290164 www.paa.gov.pl How to Do Business in Poland State Hygiene Department Institute of Scientific Research Państwowy Zakład Higieny Instytut Naukowo-Badawczy ul. Chocimska 24; 00-791 Warszawa tel.: (+48-22) 5421400; fax: 8497484 www.pzh.gov.pl State Environmental Protection Inspectorate Główny Inspektorat Ochrony Środowiska ul. Wawelska 52/54; 00-922 Warszawa tel.: (+48-22) 5792900; fax: 8250465 www.gios.gov.pl State Inspection of Labour Chief Labour Inspectorate Państwowa Inspekcja Pracy Główny Inspektorat Pracy ul. Krucza 38/42; 00-926 Warszawa tel.: (+48-22) 4203723; fax: 6254770 www.pip.gov.pl Stock Exchange Commission Komisja Papierów Wartościowych i Giełd Pl. Powstańców Warszawy 1 00-950 Warszawa tel.: (+48-22) 3326600; fax: 3326793 www.kpwig.gov.pl Insurance and Pension Funds Supervisory Office Komisja Nadzoru Ubezpieczeń i Funduszy Emerytalnych ul. Niedźwiedzia 6E; 02-737 Warszawa tel. (+48-22) 5487240; fax: 5487245 www.knuife.gov.pl ---------------------------------------------------Export Credit Insurance Corporation Korporacja Ubezpieczeń Kredytów Eksportowych KUKE S.A. ul. Sienna 39; 00-121 Warszawa tel. (+48-22) 3568300; 3130110; fax: 3130119 www.kuke.com.pl Foreign Investors’ Chamber of Industry and Commerce in Poland Izba Przemysłowo-Handlowa Inwestorów Zagranicznych w Polsce ul. Pańska 73, 00-834 Warszawa tel.: (+48-22) 3147575; fax: 3147576 www.iphiz.com.pl 269 Institute of Tourism Instytut Turystyki ul. Merliniego 9a; 02-511 Warszawa tel. (+48-22) 8446347; fax: 8441263 www.intur.com.pl Polish Chamber of Patent Attorneys Polska Izba Rzeczników Patentowych ul. Madalińskiego 20 lok. 2.; 02-513 Warszawa tel/fax: (+48-22) 6464143; tel./fax: 6464012 www.rzecznikpatentowy.org.pl Polish Federation of Valuers’ Associations Polska Federacja Stowarzyszeń Rzeczoznawców Majątkowych ul. Nowogrodzka 50, 00-695 Warszawa tel.: (+48-22) 6270717; fax: 6270779 www.pfva.com.pl Polish Real Estate Federation Polska Federacja Rynku Nieruchomości ul. Śliska 52, 00-826 Warszawa tel.: (+48-22) 6545869; fax: 8253495 www.pfrn.pl Polish Tourism Organisation Polska Organizcja Turystyczna ul. Chałubińskiego 4/6; 00-928 Warszawa tel.: (+48-22) 6301736; fax: 6301742 www.pot.gov.pl Warsaw Stock Exchange Giełda Papierów Wartościowych ul.KsiąŜęca 4; 00-498 Warszawa tel.: (+48-22) 6283232; fax: 6281754 www.gpw.com.pl 270 XIV. Appendices APPENDIX 15 REGIONAL OFFICES OF THE MINISTRY OF THE TREASURY REGIONAL OFFICE PROVINCES COVERED ADDRESS Białystok podlaskie 15-085 Białystok ul. Branickiego 17a Ciechanów mazowieckie 06-400 Ciechanów ul. 17 Stycznia 7 Gdańsk Katowice pomorskie, warmińskomazurskie śląskie Kielce świętokrzyskie Kraków małopolskie Lublin lubelskie Łódź łódzkie Poznań wielkopolskie, lubuskie Rzeszów podkarpackie Szczecin zachodniopomorskie Toruń kujawskopomorskie Wrocław dolnośląskie, opolskie TELEPHONE FAX NUMBER E-MAIL Tel.: (+48-85) 7327981, 7328053 Fax: 7322387 e-mail: [email protected] Tel.: (+48-23) 6722393 Fax: 6722463 e-mail: [email protected] 80-852 Gdańsk Tel.: (+48-58) 3013306, 3012972, 3016035 ul. Dyrekcyjna 6 Fax: 3012972 e-mail: [email protected] 40-038 Katowice Tel.: (+48-32) 2552601, 2552617, 2553065 ul. Powstańców 34 ext. 324 Fax: 2552585 e-mail: [email protected] 25-955 Kielce Tel.: (+48-41) 3445287, 3421295, 3421763 ul. IX Wieków Kielc 3 3421371 Fax: 3444008 31-503 Kraków Tel.: (+48-12) 4120726, 6197459 ul. Lubicz 25 Fax: 4210015 e-mail: [email protected] 20-072 Lublin Tel.: (+48-81) 5323424, 7424521, 7404527, ul. Lubomelska 1-3 7402272 Fax: 5323424 e-mail: [email protected] 90-051 Łódź Tel.: (+48-42) 6363409, 6362277 ul Piłsudskiego 8 Fax: 6363809, 6370237 e-mail: [email protected] 60-734 Poznań Tel.: (+48-61) 8654023, 8654441, 8654442 ul. Głogowska 26 Fax: 8654443 e-mail:[email protected] 35-959 Rzeszów Tel.: (+48-17) 8627384 ul. Grunwaldzka 15 Fax: 8627199 e-mail:[email protected] 70-603 Szczecin Tel.: (+48-91) 4623923, 4623924, 4623925 ul. Bytomska 9 Fax: 4623924 e-mal:[email protected] 87-100 Toruń Tel.: (+48-56) 6224786, 6221352 ul. Szosa Chełmińska Fax: 6222936 30/32 e-mail: [email protected] 53-333 Wrocław Tel.: (+48-71) 3350311 ul. Powstańców Śląskich Fax: 3350313 28/30 e-mail: [email protected] Source: Ministry of the Treasury, 2006 How to Do Business in Poland 271 APPENDIX 16 INTERNATIONAL ORGANISATIONS AND UN AGENCIES IN POLAND The World Bank ul. Emilii Plater 53; 00-113 Warsaw tel.: (+48-22) 5208000; fax: 5208001 www.worldbank.org.pl International Monetary Fund ul. Emilii Plater 53; 00-113 Warsaw tel.: (+48-22) 5207100; fax: 5207101 www.imf.org European Bank for Reconstruction and Development ul. Emilii Plater 53; 00-113 Warsaw (Warsaw Financial Centre, 13th floor) tel.: (+48-22) 5205700; fax: 5205800 www.ebrd.org International Finance Corporation ul. Emilii Plater 53; 00-113 Warsaw (Warsaw Financial Centre, 9th floor) tel.: (+48-22) 5206100; fax: 5206101 www.ifc.org Delegation of the European Commission ul. Emilii Plater53; 00-113 Warsaw tel.: (+48-22) 5208200; fax: 5208282 www.europa.delpopl.pl Organization for Security and Co-operation in Europe Al. Ujazdowskie 19; 00-557 Warsaw tel.: (+48-22) 5200600; fax: 5200605 e-mail: [email protected] Council of Europe Al. Niepodległości 22; 02-653 Warsaw tel.: (+48-22) 8535773; fax: 8535774 e-mail: [email protected] www.coe.org.pl IOM International Organization for Migration ul. Mariensztat 8; 00-302 Warsaw tel.: (+48-22) 5389103; fax: 5389140 e-mail: [email protected] www.iom.pl United Nations Development Programme Al. Niepodległości 186; 00-608 Warsaw tel.: (+48-22) 8259245; fax: 8254958 e-mail: [email protected] www.undp.org.pl United Nations Industrial Development Organization Al. Niepodległości 186; 00-608 Warsaw tel.: (+48-22) 8259186; fax: 8258970 e-mail: [email protected] www.unido.pl United Nations International Drug Control Programme United Nations House Al. Niepodległości 186, 1st Floor, 00-608 Warsaw tel.: (+48-22) 8259245, fax: 8254958 United Nations Economic Commission for Europe Trans-European North-South Motorway Central Office ul. Golędzinowska 10; 03-302 Warsaw tel.: (+48-22) 6145397; fax: 6145401 e-mail: [email protected] Environmental Information Centre United Nations Environment Programme GRID Warsaw ul. Sobieszyńska 8; 00-764 Warsaw tel.: (+48-22) 8406664; fax: 8516201 e-mail: [email protected] www.gridw.pl United Nations Population Fund United Nations House Al. Niepodległości 186, 00-608 Warsaw tel.: (+48-22) 8259245; fax: 8254958 United Nations High Commissioner for Refugees Branch Office in Poland Al. RóŜ 2; 00-556 Warsaw tel.: (+48-22) 6286930; fax: 6256124 e-mail: [email protected] www.unhcr.pl 272 XIV. Appendices United Nations Information Centre in Warsaw United Nations House Al. Niepodległości 186, 00-608 Warsaw tel.: (+48-22) 8252557, 8259245; fax: 8254958 www.unic.un.org.pl World Food Programme United Nations House Al. Niepodległości 186, 1st Floor, 00-608 Warsaw tel.: (+48-22) 8259245; fax: 8254958 World Health Organization Liaison Office in Poland ul. Długa 38/4; 00-238 Warsaw tel.: (+48-22) 6359496; fax: 8310892 e-mail: [email protected] www.who.un.org.pl Polish FAO National Committee Ministry of Agriculture and Rural Development Department for Foreign Relations ul. Wspólna 30; 00-930 Warsaw tel.: (+48-22) 6231303; fax: 6212326 Polish Committee for UNICEF Pl. Defilad 1; 00-901 Warsaw tel.: (+48-22) 6566610; fax: 6566613 e-mail: [email protected] www.unicef.org.pl The Polish National Commission for UNESCO and the Permanent Secretariat of the Commission Pałac Kultury i Nauki; 7th Floor; 00-901 Warsaw tel./fax: (+48-22) 6203355, 6203362 e-mail: [email protected] www.unesco.pl How to Do Business in Poland APPENDIX 17 LOCAL AUTHORITIES – PROVINCIAL GOVERNMENTS Dolnośląskie Dolnośląski Urząd Wojewódzki Pl. Powstańców Warszawy 1, 50-951 Wrocław tel.: (+48-71) 3406273; fax: 7907119 www.duw.pl Podkarpackie Podkarpacki Urząd Wojewódzki ul. Grunwaldzka 15, 35-959 Rzeszów tel.: (+48-17) 8671000; fax: 8671950 www.uw.rzeszow.pl Kujawsko-Pomorskie Kujawsko-Pomorski Urząd Wojewódzki ul. Jagiellońska 3, 85-950 Bydgoszcz tel.: (+48-52) 3497913; fax: 3497460 www.uwoj.bydgoszcz.pl Podlaskie Podlaski Urząd Wojewódzki ul. Mickiewicza 3, 15-213 Białystok tel.: (+48-85) 7439315; fax: 7429231 www.bialystok.uw.gov.pl Lubelskie Lubelski Urząd Wojewódzki ul. Spokojna 4, 20-914 Lublin tel.: (+48-81) 5324543; fax: 7424319 www.lublin.uw.gov.pl Pomorskie Pomorski Urząd Wojewódzki ul. Okopowa 21/27, 80-810 Gdańsk tel.: (+48-58) 3077695; fax: 3011417 www.uw.gda.pl Lubuskie Lubuski Urząd Wojewódzki ul. Jagiellończyka 8, 66-400 Gorzów Wlkp. tel.: (+48-95) 7215600; fax: 7223680 www.wojewodalubuski.pl Śląskie Śląski Urząd Wojewódzki ul. Jagiellońska 25, 40-032 Katowice tel.: (+48-32) 2077777; fax: 2654245 www.katowice.uw.gov.pl Łódzkie Łódzki Urząd Wojewódzki ul. Piotrkowska 104, 90-926 Łódź tel.: (+48-42) 6641000; fax: 6641040 www.lodz.uw.gov.pl Świętokrzyskie Świętokrzyski Urząd Wojewódzki Al. IX Wieków Kielc 3, 25-516 Kielce tel.: (+48-41) 3421800; fax: 3421833 www.kielce.uw.gov.pl Małopolskie Małopolski Urząd Wojewódzki ul. Basztowa 22, 31-156 Kraków tel.: (+48-12) 3921527; fax: 6160438 www.malopolska.uw.gov.pl Warmińsko-Mazurskie Warmińsko-Mazurski Urząd Wojewódzki Al. Piłsudskiego 7/9, 10-575 Olsztyn tel.: (+48-89) 5232200; fax: 5237754 www.uw.olsztyn.pl Mazowieckie Mazowiecki Urząd Wojewódzki Pl. Bankowy 3/5, 00-950 Warszawa tel.: (+48-22) 6956997; fax: 6203704 www.mazowsze.uw.gov.pl Wielkopolskie Wielkopolski Urząd Wojewódzki Al. Niepodległości 16/18, 61-713 Poznań tel.: (+48-61) 8541071; fax: 8527327 www.poznan.uw.gov.pl Opolskie Opolski Urząd Wojewódzki ul. Piastowska 14, 45-082 Opole tel.: (+48-77) 4524100; fax: 4544575 www.opole.uw.gov.pl Zachodniopomorskie Zachodniopomorski Urząd Wojewódzki ul. Wały Chrobrego 4, 70-502 Szczecin tel./fax: (+48-91) 4303500 www.szczecin.uw.gov.pl 273 274 XIV. Appendices APPENDIX 18 ECONOMIC DIVISIONS OF DISTRICT COURTS (REGISTERING COMPANIES) XII Wydział Gospodarczy 15-017 Białystok ul. Łąkowa 3 tel.: (0-85) 7408980, 7326655 XX Wydział Gospodarczy Rejestrowy 90-928 Łódź ul. Pomorska 37 tel.: (0-42) 6305200 ext. 207 VIII Wydział Gospodarczy 43-300 Bielsko-Biała ul. Bogusławskiego 24 tel.: (0-33) 4997912 VIII Wydział Gospodarczy 10-523 Olsztyn ul. Partyzantów 70 tel. (0-89) 5211754 XIII Wydział Gospodarczy 85-023 Bydgoszcz ul. Toruńska 64A tel.: (0-52) 3262736 VIII Wydział Gospodarczy 45-057 Opole ul. Ozimska 19 tel. (0-77) 4543834 XVII Wydział Gospodarczy KRS 42-200 Częstochowa ul. Rejtana 6 tel.: (0-34) 3779930 XXI / XXII Wydział Gospodarczy 61-752 Poznań ul. Grochowe Łąki 6 tel. (0-61) 6473466, 6473464 VII / VIII Wydział Gospodarczy 80-169 Gdańsk ul. Piekarnicza 10 tel.: (0-58) 3213785, 3213835 XII Wydział Gospodarczy 35-324 Rzeszów ul. Trembeckiego 11a tel. (0-17) 8628933 X Wydział Gospodarczy 44-100 Gliwice ul. Kościuszki 15 tel.: (0-32) 3380212 XVII Wydział Gospodarczy 70-485 Szczecin ul. Królowej Korony Polskiej 31 tel.: (0-91) 4224999 VIII Wydział Gospodarczy 40-040 Katowice ul. Lompy 14 tel.: (0-32) 7313469 VII Wydział Gospodarczy Rejestrowy 87-100 Toruń ul. MłodzieŜowa 31 tel.: (0-56) 6105864 X Wydział Gospodarczy 25-312 Kielce ul. Warszawska 44 tel. (0-41) 3495701 XII / XIII / XIV Wydział Gospodarczy 02-315 Warszawa ul. Barska 28/30 tel. (0-22) 5705112; 5705514; 5705116 IX Wydział Gospodarczy Rejestrowy 75-626 Koszalin ul. Wł. Andersa 34 tel.: (0-94) 3428260 VI / IX Wydział Gospodarczy 53-234 Wrocław ul. Grabiszyńska 269 tel. (0-71) 3348210; 3348220 XI / XII Wydział Gospodarczy 31-547 Kraków ul. Przy Rondzie 7 tel.: (0-12) 6195172; 6195178 VIII Wydział Gospodarczy 65-364 Zielona Góra ul. KoŜuchowska 8 tel.: (0-68) 3220263 XI Wydział Gospodarczy 20-340 Lublin ul. Garbarska 20 tel.: (0-81) 7454711 How to Do Business in Poland 275 APPENDIX 19 REGIONAL BRANCHES AND SUBSIDIARY OFFICES OF AGRICULTURAL PROPERTY AGENCY Head Office 1. Warsaw Subsidiary office 2. Bydgoszcz 3. Gdańsk 4. Gorzów Wlkp. Subsidiary office 5. Lublin 6. Olsztyn Subsidiary office 7. Opole 8. Poznań Subsidiary office 9. Rzeszów 10. Szczecin Subsidiary office 11. Wrocław Address 00-215 Warszawa ul. Dolańskiego 2 00-095 Warszawa Plac Bankowy 2 91-420 Łódź ul. Północna 27/29 85-039 Bydgoszcz ul. Hetmańska 38 83-000 Pruszcz Gdański ul. Powstańcow Warszawy 28 66-400 Gorzów Wlkp. ul. Jagiellończyka 8 65-225 Zielona Góra ul. Lwowska 25 20-027 Lublin ul. Karłowicza 4 10-448 Olsztyn ul. Głowackiego 6 16-400 Suwałki ul. Sportowa 22 45-068 Opole ul. 1 Maja 6 61-701 Poznań ul. Fredry 12 64-920 Piła ul. Motylewska 7 35-959 Rzeszów ul. 8 Marca 13 70-500 Szczecin ul. Wały Chrobrego 4 75-411 Koszalin ul. Partyzantów 15a 54-610 Wrocław ul. Mińska 60 Phone / E-mail (0-22) 6358009 [email protected] (0-22) 6351000 (0-42) 6362972, 6365326 [email protected] (0-52) 3493773 [email protected] (0-58) 3004841, 3023817 [email protected] (0-95) 7215340 [email protected] (0-68) 3254641, 3272389 [email protected] (0-81) 5325967, 5322112 Fax 6350060 6354000 6329133 3493797 3004843 7215433 3272006 5320211 (0-89) 5235029 5235685 (0-87) 5651847, 5663591 5665861 (0-77) 4000900 4000929 (0-61) 8560601 [email protected] (0-67) 2123001 [email protected] (0-17) 8537800 [email protected] (0-91) 8144200 [email protected] (0-94) 3433930, 3474100 [email protected] (0-71) 3563900 8515092 2123527 8537816 8144222 3433695 3579097 276 XIV. Appendices APPENDIX 20 POLISH TECHNOLOGIES AND TECHNOLOGY PROVIDERS Department of Bacterial Genetics, Institute of Microbiology, Warsaw University, Warsaw Bivalent Chicken Vaccine: Anti-Campylobacter / Salmonella Inventors: A group of researchers at the Department of Bacterial Genetics, Institute of Microbiology, Warsaw University, headed by Prof. E. K. Jagusztyn-Krynicka, in co-operation with Biowet Ltd., Puławy and the Laboratory of Bio-Informatics and Protein Engineering of the IIMCB. Campylobacter jejuni is one of the leading causes of human bacterial gastroenteritis worldwide. In developed countries, Campylobacteriosis is a food borne disease, while poultry is the major source of human Salmonella and Campylobacter infections. The vaccine is meant to prevent chicken flocks from acquiring Salmonella and Campylobacter infections. Chickens that were orally immunised with the developed avirulent Salmonella strain expressing Campylobacter antigens developed serum IgG and mucosal IgA responses against Campylobacter. Moreover, this approach greatly reduced the ability of the heterologous wild-type Campylobacter strain to colonize the bird cecum. Live, genetically defined and attenuated strains of bacterial enteropathogens able to stimulate both innate and adaptive immune responses are good candidates for the development of mucosal multivalent vaccines. S. enterica sv. Typhimurium χ3987 is a derivative of χ3985 which induced protective immunity, when administered orally to chickens and is a licensed chicken vaccine (Megan Health Inc., St. Louis, MO, USA). The research was based on several new and innovative technologies of molecular biology and immunology employed to study the molecular basis of bacterial pathogenesis. The introduction of the bivalent chicken vaccine antyCampylobacter/Salmonella should decrease the Campylobacter and Salmonella related morbidity rate, improve human health, and reduce health care costs. This technology is the winner of the 2004 edition of the Polish Product of the Future competition in the Product of the Future category. Institute of Industrial Organic Chemistry, Warsaw and Rokita-Agro S.A., Brzeg Dolny 2,4-D Herbicide Ecological Production Technology Inventors: Wiesław Moszczyński and Arkadiusz Białek from the Institute of Industrial Organic Chemistry, and Edward Makieła, Bolesław Rippel, Edward Listopadzki, and Zdzisław Okulewicz from Rokita-Agro S.A. 2,4-dichlorophenoxyacetic acid is an active substance in selective hormonal weed killing preparations used in the growing of grain, rice, and other crops. According to the EU Directive 2001/103/EC of 28 November 2001, the standard of 96 % for active isomer in 2,4-D preparations is required in EU countries. The traditional production technology is based on technical 2,4-dichlorophenol which is a compound of phenol mono-, diand trichloroderivatives. 2,4-D acid of 89 % purity is obtained, and is then refined by crystallisation to a maximum of 96 % of active 2,4-D isomer. Rokita-Agro S.A. has been producing the 2,4-D acid by using a new technology in the new 98 % standard since 2004. The selective reaction of phenol chlorination and the new method of exuding and refining 2,4-D acid were elaborated and introduced on an industrial scale. In 2004 the new technology won a prize in Master of Technology Competition organised by the Rzeczpospolita daily and the Main Technical Organization (NOT), as well as in the Złoty Orbital competition How to Do Business in Poland 277 organised by the Rynek Chemiczny journal. The technology is protected by patent No. P354552/2002. In addition to the 2,4-D acid of 98 % purity, Rokita-Agro S.A. produces 2,4-D natrium salt monohydrate with a 92.5 % active isomer purity level. The research team at the Institute and Rokita-Agro elaborated a new 95 % purity monohydrate production technology. In this new technology, which is to be introduced in industry, chlorination by selective complex was employed. The complex residues and vestigial organic and mineral impurities are eliminated during the production process. In the new technology, in addition to the high quality of monohydrate: - chlorination selectivity increases by 6 %, consumption of raw materials decreases by 6.5 %, waste chemical oxygen demand levels decrease by 60 %. The new acid and monohydrate of natrium salt of 2,4-D technologies are based on original chemical and technological solutions: - 2,4-dichlorophenol synthesis with the use of the selective chlorination complex, - recovery and full utilisation of 2,4-dichlorophenol residue, - combination of chemical and physical methods in the process eliminating complex residues and vestigial organic mineral impurities. The acid and monohydrate of natrium salt of 2,4-D are of the highest standard. This technology is the winner of the 2004 edition of the Polish Product of the Future competition in the Technology of the Future category. METALCHEM Plastics Processing Institute, Toruń Production of Polymer Road Posts Using the Extrusion - Blow Moulding Method Inventors: Stanisław Lutomirski, Jan Szumny, Jan Gołębiewski, and Tadeusz Sobczak. This single-process manufacturing technology includes solutions for in-mould decorating, accommodating reflecting, numbering and description elements. The plastic profile is continuously extruded, put into the mould and then blown up using a blowing mandrel and compressed air to achieve the required shape, so such operations like welding or gluing are no longer necessary. The characteristics of the road posts leaving the mould are: - low mass, - closed profile with no welding points, - durable adhesion of reflecting elements to the body, - aesthetic appearance of the product, - good range and stability of colours. The process is controlled by a microprocessor system and it guarantees the high stability of processing parameters, reliability, simple maintenance, and the high quality of the elements produced. The technology as well as the product are protected by patents. The products conform to the relevant Polish Standards and the requirements of the General Direction of Domestic Roads and Highways. This technology won a distinction in the 2004 edition of the Polish Product of the Future competition in the Technology of the Future category. 278 XIV. Appendices BLACHOWNIA Institute of Heavy Organic Synthesis, Kędzierzyn-Koźle Kotamina Plus – a Multi-Functional Correction Preparation for Boiler Water in Energy Systems Inventors: Marian Kozupa, Wojciech Jerzykiewicz, Maria Majchrzak, Sławomir Twardowski, Marian Maciejko, Marek Szymonik, Barbara Haliniak, Artur Zdunek. The use of thermo-stable synthetic amines for water treatment in the power industry has many economic and ecological advantages, as it considerably improves water quality and reduces the consumption of raw materials as well as the emission of contaminants into the environment. Moreover, it enables the elimination of hydrazine, which has a carcinogenic effect. The thermal stability, adsorption and surface protection efficiency of branched amines is much higher than that of the alkylamines used so far. The use of Kotamina Plus results in an increase of convective heat transfer by about 55 %, an increase of boiler heat flux by more than 120 %, and an increase of condenser heat flux by more than 120 %, as compared to the use of demineralised water. This in turn improves the efficiency of the energy system and reduces the temperature of boiler tubes, helping to prevent overheating. The high efficiency of boiler steel passivation with Kotamina Plus increases with temperature: at 400oC the corrosion rate is 0.63 µm/year. Industrial tests in the electric power stations of Połaniec and Chorzów, and the thermal-electric power stations of Białystok, Elbląg and Zofiówka indicate that the use of the new product resulted in very efficient corrosion protection and a significant reduction of ammonia concentration. The ammonia concentration was more than three times lower than the upper limit of 0.5 mg/dm3. This is of great importance for the corrosion protection of brazen elements, especially that of condensers. The significant improvement of heat exchange in the boiling and condensation processes, the reduction of operating and corrosion deposits on heat exchange surfaces, the reduction of losses in wet steam turbines due to improved stream dispersion, the reduction of boiler desalination to a value below 1 %, and fast boiler start-up after banking enable savings of 0.35g of fuel per 1 kWh of energy generated. The use of tert-alkylamines (C16÷C20) as a base for correction preparation for chemical treatment of boiler water in energy systems is a world-scale innovation. Amine agents offered by other producers do not contain polyamines, or contain only small amounts of alkylamines, which are necessary to raise pH to levels ensuring good corrosion protection. Kotamina Plus in turn provides shield protection of construction materials against corrosion, eliminates operating and corrosion deposits on surfaces, and helps prevent erosion within the system, especially within turbine blades. The product is protected by patent. This technology won a distinction in the 2004 edition of the Polish Product of the Future competition in the Product of the Future category. KOMAG Mining Mechanisation Centre, Gliwice Labyrinth Dust Collector LDCU-630 Inventors: A group of project engineers under the direction of Zbigniew Szkudlarek. Designers: Marcin Steindor and Wiesław Turejko. The LDCU-630 labyrinth dust collector was constructed at the KOMAG Mining Mechanisation Centre, a R&D organisation in Gliwice. It is produced by KOWENT S.A. in Końskie, an environmental protection equipment industry company. The LDCU-630 labyrinth dust collector is designed for cleaning, using the wet method, of dust laden air which is generated during manufacturing processes, especially in the metallurgical, How to Do Business in Poland 279 foundry, and mining industries. In addition to the above-mentioned broad area of application, the fixed nozzle labyrinth dust collector can also be used in the control of combustion gas dust and other high temperature gases, as it lacks a rigid rotating component and an electric motor placed in the air stream. The dust collector can operate with both axial-flow and centrifugal fans, installed in front or behind it. Due to this, it can operate in exhaust and combined ventilation systems. In technical solutions designed so far, the breakdown of rotating nozzle type motors would seriously limit the efficiency of the whole installation and increase operational costs. The labyrinth dust collector has a fixed nozzle, thus not only reducing the length of the dust control system, but also providing for significantly higher reliability, due to the elimination of the rotating nozzle assembly. Due to the use of the labyrinth, the overall dust control efficiency in double-stream and two-stage dust control systems reaches 99 %. The unique and innovative solutions used in the dust collector’s components result in high dust control efficiency, low energy consumption, dependability, and easy maintenance and servicing. This technology won a distinction in the 2004 edition of the Polish Product of the Future competition in the Product of the Future category. Industrial Research Institute for Automation and Measurements, Warsaw The SMR - 100 Expert Anti-Terrorist Neutralisation and Assistance Robot Inventors: A group of project engineers under the direction of Piotr Szynkarczyk made up of Adam Andrzejuk, Mariusz Kozak, Tomasz Krakówka, Sebastian Pawłowski, Ignacy Bojanek, Michał Kulawiec, Sławomir Kapelko, Stanisław Nycz, Rafał Czupryniak, Wiesław Zalewski, and Przemysław Wieczorek, with the participation of Prof. Andrzej Masłowski. The SMR-100 Expert Anti-Terrorist Neutralisation and Assistance Robot has been designed within the framework of the Polish National Science Foundation program. During the project engineers consulted with various specialists from the Police, the Government Protection Office, the Security Department of Warsaw Airport, and the National Border Guard. The principal purpose of the robot is the identification and neutralisation of hazardous explosive devices (IED) in tight indoor environments and in mass transit vehicles such as aircrafts, buses, and railroad cars. With the use of the robot it is possible to carry out a remote inspection of a threatened area, the recognition of IEDs, the removal or destruction of IED, and negotiations with terrorists. The robot can be send to area threatened by an explosion (or subject to other dangers, such as chemical contamination) instead of a person. The SMR-100 Expert is made up of a crawler mounted mobile platform, with a manipulator with gripping device mounted on top, and an operator’s station. The collapsible operator’s station is designed in the form of a suitcase resistant to mechanical damage. The mobile base moves on caterpillar tracks. The additional front mini-track angle position can be remotely altered. The robot is stabilised by two movable lateral stabilisers. The manipulator, with six degrees of freedom, is fitted with a gripping device. It can be easily equipped with a variety of accessories. The robot is remotely controlled by radio or cable. It is equipped with a set of colour cameras and lighting devices. The miniaturisation of electronic devices designed in SMT technology, a distributed multiprocessor controller architecture, unconventional stabilisation of the mobile base (providing 280 XIV. Appendices for a wide manipulator reach) contribute to the robot’s efficiency. To the best of the robot’s designers knowledge, the SMR-100 Expert is the only robot in the world capable of carrying out comprehensive assignments inside aircrafts. This technology is the winner of the 2003 edition of the Polish Product of the Future competition in the Product of the Future category. P.P.U.H MARBET-WIL Sp. z o.o., Bielsko-Biała MARWIL®-REFBET® - Technology of Applying Protective Layers on Concrete and Reinforced Concrete Surfaces Inventor: Włodzimierz Mysłowski The MARWIL®- REFBET® technology created to apply protective layers on concrete and reinforced concrete surfaces, uses SULCEM®, a sulphur polymer. The SULCEM® sulphur polymer production technology was developed by the MARBET®-WIL company (the first industrial application in Europe). The technology is based on the modification of waste sulphur generated in the process of removing sulphur from natural gas and oil in Claus-type installations. The development of the MARWIL®- REFBET® technology, required the construction of the SULSPRAY® system, a device unique in the world that is used to spray SULCEM® sulphur polymer on concrete surfaces. SULCEM® sulphur polymers and the SULSPRAY® device facilitated the development of the MARWIL®- REFBET® technology, which protects road curbs and other concrete road elements against the destructive action of salt and frost. Through the addition of reflective particles and luminescent material, the MARWIL®- REFBET® system enhances road aesthetics and traffic safety by improving visibility both day and night. The system seals and reinforces the structure of concrete through surface and deep sealing injection, making it water-repellent and smooth. The SULSPRAY® device is designed for the application of a sulphur polymer layer on concrete and reinforced concrete structures to impregnate and seal them as well as to protect the surface against corrosion. The SULSPRAY® device can also be used as a sulphur polymer batcher when reeling the aggregate in mixing devices. The MARWIL®-REFBET® system ensures high resistance to aggressive media, high sealing properties, good adherence to concrete surfaces, a water and oil repellent surface, an increased resistance to frost and abrasive agents. It also hampers the growth of bacteria, mould, lichen, and fungi on the coating. The SULCEM® system is available in a wide range of colours. Innovativeness of the technology consists in a novel use of sulphur polymers that is less expensive than the agents commonly used so far, and in that thermoplastic properties ensures better concrete impregnation. So far, sulphur polymer has not been applied as a protective coating for concrete and reinforced concrete elements, nor as a surface sealing, impregnation, and corrosion-proofing agent. This technology is the winner of the 2003 edition of the Polish Product of the Future competition in the Technology of the Future category. How to Do Business in Poland 281 Plastic Waste Processing System Inventors: Stanisław Lewandowski and Izabella Bogacka, with the cooperation of Piotr Banaszuk from the Białystok Institute of Technology. Today’s waste disposal sites contain plastics mixed with other types of waste. This system, designed to process such waste into liquid fuels, is small and efficient. It can be used to produce most types of benzines and oils, as well as larger quantities of paraffins and heavy hydrocarbons. The system is made up of three elements: a loading device, a depolymeriser, and a vapour condenser. The loading device feeds plastics into the system on a continual or intermittent basis. The depolymeriser, heart of the system, is a diaphragm-heated reservoir. Unsegregated plastics are transformed here. This process generates depolymerisate vapour. The nature of this solution allows for effective and quick transmission of the burning fuel energy without a loss. The combustion method and its duration results in unusually pure combustion gases. Moreover, the leftover combustion energy is used to dry, heat and de-oxidise the charge. The vapour condenser allows for the zonal out-dropping of the depolymerisate, which enables good isolation of products in the form of a broad fraction of oil-like hydrocarbons, or its division into relevant fractions. Incondensable high-energy gases can be used for the generation of any type of energy for the needs of the system (thermal, rotational, or electric energy). This makes the system usable anywhere, without the need to connect it to electricity and water. This system’s innovativeness consists in a highly-efficient and fast transmission and distribution of burned fuel energy, thanks to which the heating elements are not subject to coking. It makes it possible to set-up and operate a very efficient installation operating continuously, with no need to shutdown for cleaning. Impurities loaded along with the plastics can be evacuated without interrupting the system’s operation. This technology won a distinction in the 2003 edition of the Polish Product of the Future competition in the Technology of the Future category. Hydromega Sp. z o.o., Gdynia Pulsation Method for Swilling Oil Pipelines Inventors: Zbigniew Zienowicz and a group of consultants from the Gdańsk Polytechnic directed by Prof. Andrzej Osiecki The pulsation method for the swilling of oil pipes technology combines two flows of hydraulic oil. The final effect is achieved by combining the pulsation flow with the constant capacity flow of specific technical parameters. This method allows to define the distribution of pollutants along and across the pipeline, which in turn was vital for setting of parameters of the swilling processes and for the construction of a new swilling device. On the basis of results obtained in laboratory, a new swilling device was designed, the HM/MR-500, followed by another one, the HM/MR-50, for swilling pipelines of a diameter from 8 to 168 mm. Both devices are designed to monitor changes in oil purity. This method allows for the reduction of swilling time to a minimum, and it was shown that it ensures real pipeline cleanliness. The technology has been tested in the field. The failures of pressurised hydraulic systems caused by assembly-related contamination were eliminated. Moreover, the life of all the hydraulic elements was prolonged. Considering that heavy industry widely employs hydraulic power and control units, pulsation swilling of oil pipes has considerable market potential. Its innovativeness consists in a combination of two swilling methods, constant capacity and pulsation methods, 282 XIV. Appendices which ensures the removal of contaminants left over from the assembly process. It considerably reduces swilling time, even to a few hours, thus eliminating the need to shut down assembly lines on account of post-assembly contamination. This technology won a distinction in the 2003 edition of the Polish Product of the Future competition in the Technology of the Future category. Road and Bridge Research Institute, Warsaw GUFI Modified Bituminous Mix for Laying of Crack-Resistant and Sound-Absorbing Pavements Inventors: Dariusz Sybilski, Andrzej Wróbel, Janusz Kopaniewski, Renata Horodecka, Wojciech Bańkowski, and Krzysztof Mirski The GUFI bituminous mix, in addition to standard components such as mineral aggregate and bituminous binder, contains granulated rubber and polymer fibres, giving the mix many unique and useful properties, which make it very different from ordinary bituminous mixes. Specifically, it consists of plain bitumen or polymer modified bitumen, mineral aggregate with coarse and fine particles (sand), granulated rubber and polymer fibres (preferably polyester) with melting temperature of no less than 200°C. The mix’s production process consists of adding – either continuously or in portions – granulated rubber and polymer fibres to the heated mineral aggregate and, after mixing, binder is added after which the mixture is mixed to consistency. Additives, such as rubber and fibres, in combination with the modified-polymer binder, make for specific properties of pavements made of the GUFI mixture, such as resistance to cracking. The mixture can be used as an anti-crack membrane on the road pavement. It presents very good adherence properties with regards to all kinds of base surfaces, including concrete, stone slabs and blocks, paving stones, etc. It also leads to a reduction in tire-pavement contact noise. The result of applying the GUFI mix to pavements is twofold: Technical – longer pavement durability, and environmental – lower traffic noise (silent pavement) and the use of industrial waste material (granulated used tire rubber). Traffic noise reduction is of the order of 3 to 5 dB (A), which is equivalent a reduction of road traffic intensity by half. Furthermore, this mixture is suitable for bicycle paths, sports fields, and playgrounds, as the granulated rubber in the mix decreases the hardness of the pavement, making it safer in case of a fall. This technology won a distinction in the 2003 edition of the Polish Product of the Future contest in the Product of the Future category. Industrial Chemistry Research Institute Reactive Extrusion Technology for the Production of PET Bottle Based Structural Elements Inventors: Regina Jeziórska, Jacek DzierŜawski, Teresa Jaczewska, Agnieszka Szadkowska, Piotr Chrzanowski, GraŜyna Chrzanowska, Marek Borensztejn, Stanisław Kalinowski, Piotr KrzyŜanowski, Zbigniew Wielgosz, Witold Zieliński, and Maria Zielonka As a result of chemical reactions taking place during the reactive extrusion process between functional PET groups and the modifier’s functional group, stable chemical bonds are created. The polymer thus obtained has structural properties. Structural plastics sold under the trademark of Reylan® and produced by King-Plast Ltd. on the basis of waste can be applied in a variety of leading branches of industry, such as mechanical and electrical engineering, the automotive and electronic industries, etc. How to Do Business in Poland 283 The environmental impact of this technology is also very important. A single production line uses 1,200 tons of plastic waste annually, that’s approximately 240 million PET bottles. This project takes advantage of the newest achievements in the field of chemical modification of thermoplastic polymers and results in the production of structural plastics with unique, high quality parameters with a wide range of uses. This technology is patented (PL 183 370). This technology won a distinction in the 2003 edition of the Polish Product of the Future competition in the Technology of the Future category. VIGO System S.A., Warszawa The V-20 Thermographic Camera Inventors: Prof. Józef Piotrowski, Mirosław Brudnowski, Maciej Rzeczkowski, and Robert Słomka The V-20 thermographic camera serves for remote temperature measurement and visualisation of its distribution without physical contact. The camera records infrared radiation that is emitted by all bodies with a temperature of above 0 K. The device operates within a 3-5µm range and uses a high-sensitivity detector (NEDT @20°C:0.05°C) made by VIGO Systems SA. The camera is controlled by two microprocessors, using 16-bit analog-to-digital conversion. The measurement data collected in the camera’s memory is sent to a computer, typically through a USB 2.0 port. A user can connect any type of computer to the camera. If the camera is used for laboratory measurements on measuring stands, a traditional PC or laptop is used. In other cases, where measurements are taken in the field and when the camera is carried from one measuring point to another, it is recommended to use a palmtop. It acts as a display device, playing a role similar to that of a large video-camera viewfinder. In the camera, measuring ranges were defined in the 10 to 1,500ºC range. The user can assign colours from the colour palette corresponding to selected temperatures. Measurement results in a set of data presented in a form of a colour map, the thermogram. The thermogram consists of 57,600 measuring points (240 points on 240 lines). The user can select a point and read out its coordinates and temperature. The built-in laser indicator makes framing easier, indicating precisely the point that lies in the camera’s optical axis (the point of coordinates x=120, y=120) and peripheral points in the field of vision. The V-20 camera finds an application in various fields, such as preventive inspections of power grid equipment, diagnostics of machines in industrial plants, and searching for sources of heat loss from buildings. Thanks to its high sensitivity, it can also be used in medical and veterinary diagnostics and various types of research into slow-change thermal processes. The heart of the camera is a relatively cheap, ultra-fast, un-cooled and high-sensitivity detector, also designed by VIGO System S.A. on the basis of its own infrared detector manufacturing technology that makes it possible to obtain high parameters without the necessity of using expensive liquid nitrogen cooling systems. A single element detector is used in combination with a mechanical scanning system. An advantage of this design is that the temperature of each elementary field of vision area of the camera is measured by means of the same detector, thus increasing the measurement’s accuracy. In the case of matrix cameras, which make it possible to obtain real-time images, there are sensitivity differences between the matrix pixels that lead to errors in measurements. Presently, the V-20 Camera is the cheapest device for temperature distribution measurement without physical contact offered on the market. This technology won a distinction in the 2003 edition of the Polish Product of the Future contest in the Product of the Future category. 284 XIV. Appendices ChemTech - ProSynTech ul. Podwalna 23, 41-260 Sławków tel./fax: (+48-12) 6542255 e-mail: [email protected] KOMAG Mining Mechanization Centre ul. Pszczyńska 37; 44-101 Gliwice tel.: (+48-22) 2374100, fax: (+48-22) 2310843 e-mail: [email protected] www.komag.gliwice.pl HYDROMEGA Spółka z o.o. ul. Wrocławska 93; 81-553 Gdynia tel.: (+48-71) 6647704, fax: (+48-71) 6647292 e-mail: [email protected] www.hydromega.com.pl MARBET-WIL Sp. z o.o. ul. Chocholowska 28, 43-346 Bielsko-Biała tel: (+48-33) 8127100, fax: (+48-33) 8127103 www.marbetwil.com.pl Industrial Chemistry Research Institute ul. Rydygiera 8; 01-793 Warszawa tel.: (+48-22) 5682000, fax: (+48-22) 6338295 e-mail: [email protected] www.ichp.pl Pharmaceutical Research Institute ul. Rydygiera 8; 01-793 Warszawa tel.: (+48-22) 4563900, fax: (+48-22) 4563838 e-mail: [email protected] www.ifarm.waw.pl Industrial Research Institute for Automation and Measurement - PIAP Al. Jerozolimskie 202, 02-486 Warszawa tel.: (+48-22) 8740000, fax: (+48-22) 8740220 e-mail: [email protected] www.piap.pl POLATOM Radioisotope Centre 05-400 Otwock – Świerk tel.: (+48-22) 7180713, fax: (+48-22) 7180738 www.polatom.pl Institute of Heavy Organic Synthesis BLACHOWNIA ul. Energetyków 9, 47-225 Kędzierzyn-Koźle tel.: (+48 77) 4873199, fax: (+48 77) 4873060 e-mail: [email protected] www.icso.com.pl Institute of Industrial Organic Chemistry ul. Annopol 6, 03-236 Warszawa tel.: (+48 22) 8111231, fax: (+48 22) 8110799 e-mail: [email protected] www.ipo.waw.pl Institute of Microbiology, Warsaw University Department of Bacterial Genetics ul. Miecznikowa 1, 02-096 Warszawa tel.: (+48 22) 5541403, 5541216 e-mail: [email protected] www.biol.uw.edu.pl Institute of Plastics Processing „METALCHEM” ul. M. Skłodowskiej-Curie 55; 87-100 Toruń tel.: (+48-56) 6500044, fax: (+48-56) 6500333 e-mail: [email protected] www.ipts-metalchem.torun.pl Road and Bridge Research Institute ul. Jagiellońska 80; 03-301 Warszawa tel.: (+48-22) 8113231, fax: (+48-22) 8111792 e-mail: [email protected] www.ibdim.edu.pl Rokita-Agro S.A. ul. Sienkiewicza 4, 56-120 Brzeg Dolny tel.: (+48 71) 7942040, fax: (+48 71) 7942150 e-mail: [email protected] www.rokita-agro.com.pl SMARTTECH Łąkowa 15, 05-092 Łomianki tel.: (+48-22) 7511916, fax: (+48-22) 7511916 e-mail: [email protected] www: smarttech.wizytowka.pl VIGO System S.A. ul. Świetlików 3; 01-389 Warszawa tel.: (+48-22) 6660145, fax: (+48-22) 6660159 e-mail: [email protected] www.vigo.com.pl Association of Polish Inventors Stowarzyszenie Polskich Wynalazców i Racjonalizatorów ul. Rydygiera 8; 01-793 Warszawa tel./fax: (+48-22) 6338482, 6339511 ext.2105 e-mail: [email protected] www.spwir.org.pl How to Do Business in Poland 285 APPENDIX 21 SPECIAL ECONOMIC ZONES Special Economic Zone in Kamienna Góra Kamiennogórska Specjalna Strefa Ekonomiczna Małej Przedsiębiorczości S.A. ul. Jana Pawła II 11a; 58-400 Kamienna Góra tel.: (+48-75) 6451503 do 06; fax: 7442017 e-mail: [email protected] www.ssemp.pl Special Economic Zone in Olsztyn Warmińsko-Mazurska Specjalna Strefa Ekonomiczna S.A. ul. Mickiewicza 21/23; 10-508 Olsztyn tel.fax: (+48-89) 5350241 e-mail: [email protected] www.wmsse.com.pl Special Economic Zone in Katowice Katowicka Specjalna Strefa Ekonomiczna S.A. ul. Sienkiewicza 28; 40-032 Katowice tel.: (+48-32) 2510736; fax: 2513766 e-mail: [email protected] www.ksse.com.pl Special Economic Zone in Słupsk Słupska Specjalna Strefa Ekonomiczna Pomorska Agencja Rozwoju Regionalnego S.A. ul. Poznańska 1a; 76-200 Słupsk tel./fax: (+48-59) 8412892, fax: 8413261 e-mail: [email protected] www.sse.slupsk.pl Special Economic Zone in Kostrzyn-Słubice Kostrzyńsko-Słubicka Specjalna Strefa Ekonomiczna ul. Orła Białego 22; 66-470 Kostrzyn n. Odrą tel.: (+48-95) 7219800; fax: 7524167 e-mail: [email protected] www.kssse.pl Special Economic Zone in Kraków Specjalna Strefa Ekonomiczna Krakowski Park Technologiczny Centrum Zaawansowanych Technologii-Kraków ul. Jana Pawła II 37; 31-864 Kraków tel.: (+48-12) 6401940; fax: 6401945 e-mail: [email protected] www.sse.krakow.pl Special Economic Zone in Legnica Legnicka Specjalna Strefa Ekonomiczna S.A. ul. Kardynała B. Kominka 9; 59-220 Legnica tel.: (+48-76) 8522446/7; fax: 8522443 e-mail: [email protected] www.cuprum.com.pl/strefa Special Economic Zone in Łódź Łódzka Specjalna Strefa Ekonomiczna ul. Ks. Tymienieckiego 22/24; 90-349 Łódź tel./fax: (+48-42) 6762753; fax: 6762755 e-mail: [email protected] www.sse.lodz.pl Special Economic Zone in Mielec Agencja Rozwoju Przemysłu Oddział w Mielcu EURO-PARK Mielec ul. Partyzantów 25; 39-300 Mielec tel.: (+48-17) 7887236; fax: 7887769 e-mail: [email protected] www.europark.com.pl Special Economic Zone in Starachowice Specjalna Strefa Ekonomiczna Starachowice S.A. ul. Radomska 29; 27-200 Starachowice tel.: (+48-41) 2754101; fax: 2754102 e-mail: [email protected] www.sse.com.pl Special Economic Zone in Suwałki Suwalska Specjalna Strefa Ekonomiczna S.A. ul. Noniewicza 49; 16-400 Suwałki tel/fax: (+48-87) 5652217 e-mail: [email protected] www.ssse.com.pl Special Economic Zone in Tarnobrzeg Agencja Rozwoju Przemysłu S.A. Tarnobrzeska Specjalna Strefa Ekonomiczna EURO-PARK Wisłostan ul. Zakładowa 48; 39-405 Tarnobrzeg-Machów tel.: (+48-15) 8229999 tel/fax: 8236888 ext. 108 e-mail: [email protected] www.tsse.pl Special Economic Zone in Wałbrzych Wałbrzyska Specjalna Strefa Ekonomiczna Invest-Park Sp. z o.o. ul. Uczniowska 21; 58-306 Wałbrzych tel.: (+48-74) 6649164; fax: 6649162 e-mail: [email protected] www.invest-park.com.pl Special Economic Zone in Gdańsk Pomorska Specjalna Strefa Ekonomiczna ul. Władysława IV 9; 80-703 Sopot tel.: (+48-58) 5559700; fax: 5559711 e-mail: [email protected] www.strefa.gda.pl 286 XIV. Appendices APPENDIX 22 BANKS OPERATING IN POLAND (Head Offices – Excluding Co-operative Banks) Name of Bank Address Narodowy Bank Polski 00-919 Warszawa ul. Świętokrzyska 11/21 02-134 Warszawa ul. 1 Sierpnia 8A 02-134 Warszawa ul. 1 Sierpnia 8A 00-450 Warszawa ul. Przemysłowa 26A 31-548 Kraków ul. Pokoju 1 01-211 Warszawa ul. Kasprzaka 10/16 00-955 Warszawa Al. Jerozolimskie 7 00-923 Warszawa ul. Senatorska 16 00-184 Warszawa ul. Dubois 5A 02-017 Warszawa Al. Jerozolimskie 123A 00-950 Warszawa Al. Jana Pawła II 12 00-113 Warszawa ul. Emilii Plater 53 85-959 Bydgoszcz ul. Jagiellońska 17 00-950 Warszawa ul. Grzybowska 53/57 01-231 Warszawa ul.Płocka 9/11B 02-117 Warszawa ul. Racławicka 131 lok.2U 60-959 Poznań ul. Mickiewicza 33 02-135 Warszawa ul. IłŜecka 26 53-128 Wrocław ul. Sudecka 95/97 50-950 Wrocław Rynek 9/11 00-095 Warszawa pl. Bankowy 2 ABN AMRO Bank (Polska) SA ABN AMRO Bank N.V. S.A. oddział w Polsce AIG Bank Polska SA Bank BPH SA Bank Gospodarki śywnościowej SA Bank Gospodarstwa Krajowego Bank Handlowy w Warszawie SA Bank Inicjatyw Społeczno-Ekonomicznych SA Bank Millenium SA Bank Ochrony Środowiska SA Bank of Tokyo-Mitsubishi (Polska) SA Bank Pocztowy SA Bank Polska Kasa Opieki SA Grupa Pekao SA Bank Polskiej Spółdzielczości S.A. Bank Rozwoju Budownictwa Mieszkaniowego SA Bank Rozwoju Cukrownictwa SA Bank Svenska Handelsbanken AB SA(Polska) Bank Współpracy Europejskiej SA Bank Zachodni WBK SA Banque PSA Finance S.A. Oddział w Polsce Telephone Fax 0-22 6531000 8264123 0-22 5730500 5730501 0-22 5730500 5730502 0-22 5235300 5235350 0-12 6187411 6187593 0-22 8604000 8605000 0-22 5229112 6270378 0-22 6577200 6577580 0-22 8601100 8601103 0-22 5981050 5981058 0-22 8508735 8508891 0-22 5208165 5205236 0-52 3499100 3270407 0-22 6560000 6560203 0-22 5395100 5395222 0-22 8238824 8238826 0-61 6629786 6629785 0-22 8787387 8787388 0-71 3349105 3349107 0-71 3701000 3702787 0-22 5311811 5311817 How to Do Business in Poland BNP - Paribas S.A. oddział w Polsce BNP-Paribas Bank Polska SA BPH Bank Hipoteczny SA BRE Bank Hipoteczny SA BRE Bank SA Calyon Bank Polska SA Cetelem Bank SA DaimlerChrysler Services Bank Polska SA Danske Bank Polska SA Deutsche Bank PBC SA Deutsche Bank Polska SA DOMINET BANK SA Dresdner Bank Polska SA Dresdner Bank AG S.A. Oddział w Polsce DZ Bank Polska SA EFG Eurobank Ergasias S.A. oddział w Polsce Euro Bank SA FCE Bank Polska SA Fiat Bank Polska SA Fortis Bank Polska SA GE Money Bank SA Getin Bank SA GMAC Bank Polska SA Gospodarczy Bank Wielkopolski SA HSBC Bank Polska SA 00-078 Warszawa pl. Piłsudskiego 1 00-078 Warszawa pl. Piłsudskiego 1 00-805 Warszawa ul. Chmielna 132/134 00-609 Warszawa Al. Armii ludowej 26 00-950 Warszawa ul. Senatorska 18 00-950 Warszawa Al. Jerozolimskie 65/79 03-738 Warszawa ul. Kijowska 1 02-460 Warszawa ul. Gottlieba Daimlera 1 00-688 Warszawa ul. Emilii Plater 28 00-609 Warszawa al.Armii Ludowej 26 00-609 Warszawa al. Armii Ludowej 26 59-300 Lubin ul. Księci Ludwika I 3 00-499 Warszawa pl.Trzech KrzyŜy 18 00-499 Warszawa Pl.Trzech KrzyŜy 18 Pl. Piłsudskiego 3 00-078 Warszawa 00-560 Warszwa ul.Mokotowska 19 50-126 Wrocław ul. Świętego Mikołaja 72 02-222 Warszawa Al. Jerozolimskie 181 02-678 Warszawa ul. Szturmowa 2 02-676 Warszawa ul. Postępu 15 80-894 Gdańsk ul. ElŜbietańska 2 40-479 Katowice ul. Pszczyńska 10 02-515 Warszawa ul. Puławska 15 61-725 Poznań ul. MielŜyńskiego 22 00-073 Warszawa ul. Piłsudskiego 2 287 0-22 6972308 6972316 0-22 6972300 6972309 0-22 6562169 6562188 0-22 5797500 5797589 0-22 8290000 8290033 0-22 6306888 6354500 0-22 5118888 5118800 0-22 3127800 3126710 0-22 3377100 3377101 0-22 5799800 5799801 0-22 5799000 5799001 0-76 8404100 8404103 0-22 5253112 5253119 0-22 5253000 5253119 0-22 5057000 5057442 0-22 3477000 6221680 0-71 7955500 7955501 0-22 6086900 6086901 0-22 6074800 6074849 0-22 5669000 5669010 0-58 3007001 3040701 0-32 2008500 2008685 0-22 5215400 5215401 0-61 8562400 8522730 0-22 3540500 3540510 288 XIV. Appendices ING Bank Ślaski SA INVEST - BANK SA Jyskie Bank A/S S.A. Oddział w Polsce Kredyt Bank SA LUKAS Bank SA Mazowiecki Bank Regionalny SA NORD/LB Bank Polska SA Nordea Bank Polska SA Nykredit Bank Hipoteczny SA Nykredit Realkredit A/S S.A. oddział w Polsce Powszechna Kasa Oszczędności - Bank Polski SA Rabobank Polska SA Raiffeisen Bank Polska SA RCI Bank Polska S.A. Santander Consumer Bank S.A. Societe Generale S.A. oddział w Polsce Svenska Handelsbanken AB SA Oddział w Polsce Sygma Banque Societe Anonyme (SA) Oddział w Polsce Śląski Bank Hipoteczny SA Toyota Bank Polska SA Volkswagen Bank Polska SA WestLB Bank Polska SA Wschodni Bank Cukrownictwa SA 40-086 Katowice ul. Sokolska 34 04-175 Warszawa ul. Ostrobramska 77 00-103 Warszawa ul. Królewska 16 01-211 Warszawa ul. Kasprzaka 2/8 53-605 Wrocław ul. Orląt Lwowskich 1 01-747 Warszawa ul. Elbląska 15/17 00-380 Warszawa ul. Kruczkowskiego 8 81-303 Gdynia ul. Kielecka 2 00-103 Warszawa ul. Królewska 16 00-103 Warszawa ul.Królewska 16 00-975 Warszawa ul. Puławska 15 00-958 Warszawa al. Jana Pawła II 27 00-549 Warszawa ul. Piękna 20 02-674 Warszawa ul.Marynarska 13 50-062 Wrocław pl.Solny 16 00-102 Warszawa ul. Marszałkowska 111 02-135 Warszawa ul. IłŜecka 26 00-807 Warszawa Al. Jerozolimskie 92 02-587 Warszawa ul. Wiktorska 63 02-672 Warszawa ul. Domaniewska 41 00-828 Warszawa Al. Jana Pawła II 15 02-781 Warszawa ul. Rtm. Witolda Pileckiego 65 20-022 Lublin ul. Okopowa 1 0-32 3577000 7353740 0-22 5145100 5145106 0-22 5386996 5386997 0-22 6345400 6345335 0-71 3559511 3553005 0-22 5600400 5600409 0-22 5250700 5250710 0-58 6691111 6691110 0-22 5386000 5386001 0-22 5386000 5386001 0-22 5356565 0-22 6535000 6535004 0-22 5852000 5852585 0-22 5411140 5411241 0-71 3748666 3748500 0-22 5284000 5284444 0-22 8787387 8787388 0-22 4564704 4564701 0-22 5401700 5401701 0-22 4885000 4885500 0-22 5387000 5387888 0-22 6530500 6530501 0-81 5322220 5329005 Source: National Bank of Poland, 2005 289 How to Do Business in Poland APPENDIX 23 REPRESENTATIVE OFFICES OF FOREIGN BANKS IN POLAND Name of the Bank Address American Express Bank Ltd., New York 00-121 Warszawa ul. Sienna 39 02-511 Warszawa ul. Bielawska 6 m.57 00-950 Warszawa ul. Krucza 6/14 apt. 206,207 02-611 Warszawa ul. Krasickiego 12A m.1 02-703 Warszawa ul. Bukowińska 24A apt.118 00-175 Warszawa al. Jana Pawła II 80 lok. 58 00-697 Warszawa Al. Jerozolimskie 65/79 p.1824 02-135 Warszawa ul. IłŜecka 26 00-193 Warszawa ul. Stawki 2 00-498 Warszawa ul.KsiąŜęca 4 00-113 Warszawa ul. Emilii Plater 53 00-609 Warszawa ul. Armii Ludowej 26 00-113 Warszawa ul. Emilii Plater 53 00-121 Warszawa ul. Sienna 39 00-193 Warszawa ul. Stawki 2 00-113 Warszawa ul. Emilii Plater 53 00-845 Warszawa ul. Łucka 20 apt. 15 02-672 Warszawa ul. Domaniewska 41 00-536 Warszawa Al. Ujazdowskie 51 BELARUSBANK, Minsk BELPROMSTROJBANK, Minsk BELINVESTBANK, Minsk BELVNESHECONOMBANK, Minsk BANCA-INTESA S.p.A., Milan Banca Nazionale del Lavoro S.p.A., Rome Bank of America, National Association, Charlotte Crédit Industriel et Commercial, Paris DEPFA BANK plc S.A. Przedstwicielstwo w Polsce, Dublin DekaBank Deutsche Girozentrale Przedstawicielstwo w Polsce, Frankfurt a/Main, Berlin EUROHYPO Aktiengesellschaft Europaeische Hypothekenbank der Deutschen Bank HSH Nordbank AG, Hamburg Investkredit Bank AG, Wien Istituto Bancario San Paolo di Torino - Istituto Mobiliare Italiano S.p.A., Turin JPMorgan Chase Bank, New York Landesbank Baden - Wuerttemberg, Stuttgart The Export-Import Bank, Taiwan, Taipei UBS AG, Zurych & Basel Telephone Fax 0-22 5815268 5815269 0-22 6460595 8444480 0-22 6218979 6210693 0-22 8443301 8443301 0-22 8530127 8475180 0-22 4354710 4354712 0-22 6306780 6306781 0-22 5757200 5757406 0-22 8606503 8606504 0-22 5377600 5377601 0-22 5286723 5206701 0-22 5797780 5797780 0-22 4561060 4561069 0-22 8503300 8503301 0-22 8606200 8606205 0-22 5205100 5205120 0-22 6541689 6541687 0-22 8743582 8743583 0-22 5258400 5258433 Source: National Bank of Poland, 2005 290 XIV. Appendices APPENDIX 24 NATIONAL INVESTMENT FUNDS I National Investment Fund FUND 1. SA Ballinger Capital Sp. z o.o. ul. Dworkowa 3; 00-784 Warszawa tel.: (+48-22) 6468546; fax: 6468536 www.ballinger.com.pl II National Investment Fund SA NIF Management Sp. z o.o. ul.Emilii Plater 53, 00-113 Warszawa tel: (+48-22) 520 93 50, fax: 520 93 51 e-mail: [email protected] www.ca-ib.com.pl IV National Investment Fund PROGRESS SA NIF Management Sp. z o.o. ul.Emilii Plater 53, 00-113 Warszawa tel: (+48-22) 5209350, fax: 5209351 e-mail: [email protected] www.ca-ib.com.pl V National Investment Fund VICTORIA SA Ballinger Capital Sp. z o.o. ul. Dworkowa 3; 00-784 Warszawa tel.: (+48-22) 6468546; fax: 6468536 www.ballinger.com.pl VI National Investment Fund MAGNA POLONIA SA AIB WBK Fund Management Sp. z o.o. Al. Jana Pawła II 25; 00-854 Warszawa tel.: (+48-22) 6534700; fax: 6534707 e-mail: [email protected] www.magnapolonia.com.pl VII National Investment Fund KAZIMIERZ WIELKI SA ul. Zwycięzców 28/51; 03-938 Warszawa tel.: (+48-22) 7406740; fax: 6725115 e-mail: [email protected] VIII National Investment Fund OCTAVA SA ul. Królewska 16, 00-103 Warszawa tel.: (+48-22) 3306333, fax:3306300 www.octava.com.pl IX National Investment Fund E. KWIATKOWSKI SA NIF Management Sp. z o.o. ul. Emilii Plater 53, 00-113 Warszawa tel: (+48-22) 5209333, fax: 5209351 e-mail: [email protected] www.ca-ib.com.pl X National Investment Fund FOKSAL SA ul. Zwycięzców 28/18A; 03-938 Warszawa tel.: (+48-22) 7406770…74; fax: 6728051 e-mail: [email protected] www.foksalnfi.com.pl III and XI National Investment Fund JUPITER SA Trinity Management Sp. z o.o. ul. Nowogrodzka 47a; 00-695 Warszawa tel.: (+48-22) 5259900; fax: 5259988 e-mail: [email protected] www.jupiter-nfi.pl XII National Investment Fund PIAST SA ul. Królewska 16, 00-103 Warszawa tel.: (+48-22) 3306333, fax: 3306300 www.piast.com.pl XIII National Investment Fund FORTUNA SA Ballinger Capital Sp. z o.o. ul. Dworkowa 3; 00-784 Warszawa tel.: (+48-22) 6468546; fax: 6468536 [email protected] XIV National Investment Fund ZACHODNI SA ul. śurawia 22, 00-515 Warszawa tel.: (+48-22) 4389220; fax:4389221 e-mail: [email protected] XV National Investment Fund NFI Empik Media & Fashion S.A. ul. śurawia 8, 00-508 Warszawa tel.: (+48-22) 5833771; fax: 6234057 e-mail: [email protected] www.emf.pl How to Do Business in Poland 291 APPENDIX 25 SELECTED BILATERAL CHAMBERS OF TRADE AND INDUSTRY Association of Cooperation between Poland and the East ul. Marszałkowska 115; 00-102 Warszawa tel.(+48-22) 6200301; fax: 8269601 e-mail: [email protected] American Chamber of Commerce in Poland Amerykańska Izba Gospodarcza w Polsce ul. Emilii Plater 53; 00-113 Warszawa tel.: (+48-22) 5205999; fax: 5205998 www.amcham.com.pl Polish-Azerbaijan Chamber of Commerce Polsko-AzerbejdŜańska Izba Gospodarcza ul. W. Kossaka 37; 42-200 Częstochowa tel.: (+48-34) 3612550; fax: 3613126 ext.18 e-mail: [email protected] www.paig.bigduo.pl British Chamber of Commerce in Poland Brytyjska Izba Handlowa w Polsce ul. Fabryczna 16/22, 00-446 Warszawa tel.: (+48-22) 3200100; fax: 6211937 www.bpcc.org.pl French Chamber of Trade & Industry in Poland Francuska Izba Handlowo-Przemysłowa w Polsce ul. Mokotowska 19, 00-560 Warszawa tel.: (+48-22) 6967580; fax: 6967590 www.ccifp.pl Italian Foreign Trade Institute Włoski Instytut Handlu Zagranicznego ul. Marszałkowska 72, 00-545 Warszawa tel.: (+48-22) 6280243; fax: 6280600 www.italtrade.com/polska Poland-Israel Chamber of Commerce Izba Gospodarcza Polska-Izrael ul. Trębacka 4; 00-074 Warszawa tel.: (+48-22) 6309798; fax: 8274673 Polish-Belarussian Chamber of Trade & Industry Polsko-Białoruska Izba Handlowo-Przemysłowa ul. Trębacka 4, 00-074 Warszawa tel: (+48-22) 6309844; fax: 6309926 e-mail: [email protected] www.chamber.pl Polish-Belgian-Luxembourgian Chamber of Commerce Polsko-Belgijsko-Luksemburska Izba Handlowa ul. Trębacka 4; 00-074 Warszawa tel.: (+48-22) 6309773; fax: 6309974 www.polbelux.pl Polish-German Chamber of Commerce Polsko-Niemiecka Izba Przemysłowo-Handlowa ul. Miodowa 14; 00-952 Warszawa tel.: (+48-22) 5310500; fax: 5310600 e-mail: [email protected] www.ihk.pl Union of Chambers of Commerce and Industry of Kazakhstan - Representative Office in Poland Przedstawicielstwo Związku Izb HandlowoPrzemysłowych Republiki Kazachstan w Polsce ul. Nowowiejska 10; 00-643 Warszawa tel.: (+48-22) 8758567 www.ihprk.pl Polish-Latvian Chamber of Commerce Polsko-Łotewska Izba Gospodarcza ul. Trębacka 4; 00-074 Warszawa tel.: (+48-22) 6309823; fax: 8274673 Polish-Lithuanian Chamber of Commerce Polsko-Litewska Izba Gospodarcza Rynków Wschodnich ul. Kościuszki 76, 16-400 Suwałki tel. (+48-87) 5632600 fax: 5632602 www.plig.org.pl Polish-Russian Chamber of Trade & Industry Polsko-Rosyjska Izba Handlowo-Przemysłowa ul. Zimna 2 - 2, 00-138 Warszawa tel.: (+48-22) 6547373, 6547399; fax: 6547388 www.prihp.com.pl Polish-Swiss Chamber of Industry & Trade Polsko-Szwajcarska Izba Przemysłu i Handlu ul. Szpitalna 6/11; 00-031 Warszawa tel.: (+48-22) 8277621; fax: 8277623 e-mail: [email protected] www.psiph.pl Polish-Ukrainian Chamber of Commerce Polsko-Ukrainska Izba Gospodarcza ul. Trębacka 4, 00-074 Warszawa tel: (+48-22) 6309929; fax: 6309793 e-mail: [email protected] www.chamber.pl Scandinavian-Polish Chamber of Commerce Skandynawsko-Polska Izba Gospodarcza Wiśniowa 40b apt.3, 02-520 Warszawa tel.: (+48-22) 8497414; fax: 6464930 www.spcc.pl 292 XIV. Appendices APPENDIX 26 EMBASSIES AND COMMERCIAL COUNSELLORS’ OFFICES IN POLAND Embassy of Afghanistan ul. Goplańska 1, 02-954 Warsaw tel.: (+48-22) 8855410, fax: 8856500 www.afghanembassy.com.pl Embassy of the Republic of Belarus ul. Wiertnicza 58, 02-952 Warsaw tel.: (+48-22) 7420990, 8425202; fax: 7420980 www.belembassy.org/poland Embassy of the Republic of Albania ul. Altowa 1, 02-386 Warsaw tel.: 8241427; fax: 8241426 e-mail: [email protected] Embassy of the Kingdom of Belgium ul. Senatorska 34, 00-095 Warsaw tel.: (+48-22) 5512800; fax: 5512888 e-mail: [email protected] Economic and Commercial Office for the Flemish Region: ul. Senatorska 34; 00-095 Warsaw tel.: (+48-22) 8280878, 8263897; fax: 8278136 e-mail: [email protected] Economic and Commercial Office for the Walloon Region (AWEX): ul. Skorupki 5, 00-546 Warsaw tel.: (+48-22) 5837011; fax: 5837019 e-mail: [email protected] Economic and Commercial Office for the Brussels Capital Region: pl. Bankowy 2, 00-095 Warsaw tel.: (+48-22) 5311824, 5311825; fax: 5311826 e-mail: [email protected] Embassy of the People’s Democratic Republic of Algeria ul. Dąbrowiecka 21, 03-932 Warsaw tel.: (+48-22) 6175855; fax: 6160081 e-mail: [email protected] Embassy of the Republic of Angola ul. Balonowa 20, 02-635 Warsaw tel.: (+48-22) 6463529 e-mail: [email protected] Embassy of the Argentine Republic ul. Brukselska 9, 03-973 Warsaw tel.: (+48-22) 6176028; fax: 6177162 Economic Section: e-mail: [email protected] Embassy of the Republic of Armenia ul. A. Waszkowskiego 11, 02-913 Warsaw tel.: (+48-22) 8408620; fax: 6420643 e-mail: [email protected] Australian Embassy ul. Nowogrodzka 11, 3rd floor, 00-513 Warsaw tel.: (+48-22) 5213444; fax: 6273500 e-mail: [email protected] www.australia.pl Embassy of the Republic of Austria ul. Gagarina 34, 00-748 Warsaw tel.: (+48-22) 8410081…84; fax: 8410085 e-mail: [email protected] Commercial Section: ul. Idzikowskiego 7/9, 02-704 Warsaw tel.: (+48-22) 8437909, 8439932; fax: 8439505 e-mail: [email protected] Embassy of the Republic of Azerbaijan ul. Zwycięzców 12, 03-941 Warsaw tel.: (+48-22) 6162188, fax: 6161949 e-mail: [email protected] Embassy of the Federative Republic of Brazil ul. Poselska 11, 03-931 Warsaw tel.: (+48-22) 6174800; fax: 6178689 e-mail: [email protected] www.brasil.org.pl British Embassy Al. RóŜ 1, 00-556 Warsaw tel.: (+48-22) 3110000; fax: 3110311 e-mail: [email protected] Commercial Section: ul. Emilii Plater 28, 2nd floor, 00-688 Warsaw tel.: (+48-22) 3110000; fax: 3110250 Embassy of the Republic of Bulgaria Al. Ujazdowskie 33/35, 00-540 Warsaw tel.: (+48-22) 6294071...75; fax: 6282271 e-mail: [email protected] Commercial Section: tel.: (+48-22) 6294111, 6212535; fax: 6255989 e-mail: [email protected] Canadian Embassy ul. Matejki 1/5, 00-481 Warsaw tel.: (+48-22) 5843100, fax: 5843182 e-mail: [email protected] www.canada.pl How to Do Business in Poland Embassy of Chile ul. OkręŜna 62, 02-925 Warsaw tel.: (+48-22) 8582330…33; fax: 8582329 www.embachile.pl Commercial Section e-mail: [email protected] Embassy of the Republic of Ecuador ul. Rejtana 15 m. 15, 02-516 Warsaw tel.: (+48-22) 8487230; fax: 8488196 e-mail: [email protected] www.mmrree.gov.ec Embassy of the People’s Republic of China ul. Bonifraterska 1, 00-203 Warsaw tel.: (+48-22) 8313836; fax: 6354211 www.chinaembassy.org.pl Commercial Counsellor ul. Bonifraterska 1, tel.: (+48-22) 8313861 Embassy of the Arab Republic of Egypt ul. Alzacka 18, 03-972 Warsaw tel.: (+48-22) 6176973; fax: 617 90 58 e-mail: [email protected] Commercial Section: ul. Alzacka 3 C, 03-972 Warsaw tel.: (+48-22) 6161368; fax: 6161370 e-mail: [email protected] Embassy of the Republic of Colombia ul. Zwycięzców 29, 03-936 Warsaw tel.: (+48-22) 6170973; fax: 6176684 e-mail: [email protected] Embassy of the Democratic Republic of Congo ul. Miączyńska 50, 02-637 Warsaw tel.: (+48-22) 8496999, fax: 8485215 e-mail: [email protected] Embassy of the Republic of Costa Rica ul. Kubickiego 9 m. 5, 02-954 Warsaw tel.: (+48-22) 8589112; fax: 6427832 e-mail: [email protected] Embassy of the Republic of Croatia ul. Ignacego Krasickiego 10, 02-628 Warsaw tel.: (+48-22) 8442393; fax: 8444808 e-mail: [email protected] Embassy of the Republic of Estonia ul. Karwińska 1, 02-639 Warsaw tel.: (+48-22) 8811810; fax: 8811812 e-mail: [email protected] www.estemb.pl Embassy of Finland ul. Chopina 4/8, 00-559 Warsaw tel.: (+48-22) 6294091; fax: 6213442 e-mail: [email protected] Commercial Section: fax: 6216394 e-mail: [email protected] Embassy of the Republic of Cuba ul. Rejtana 15 m. 8, 02-516 Warsaw tel.: (+48-22) 8481715; fax: 8482231 e-mail: [email protected] Embassy of France ul. Piekna 1, 00-477 Warsaw tel.: (+48-22) 5293000; fax: 5293001 e-mail: [email protected] www.ambafrance-pl.org Commercial Service: tel.: (+48-22) 5293100; fax: 5293101 e-mail: [email protected] http://www.missioneco.org/pologne/ Embassy of the Republic of Cyprus ul. Pilicka 4, 02-629 Warsaw tel.: (+48-22) 8444577; fax: 8442558 e-mail: [email protected] Embassy of Georgia ul. Wąchocka 1 S, 03-934 Warsaw tel./fax: (+48-22) 3531650, fax: 4997752 e-mail: [email protected] Embassy of the Czech Republic ul. Koszykowa 18, 00-555 Warsaw tel.: (+48-22) 6287221...25; fax: 6298045 e-mail: [email protected] www.mfa.cz/warsaw Economic and Commercial Section tel.: (+48-22) 6281957; fax: 6219880 Embassy of the Federal Republic of Germany ul. Dąbrowiecka 30, 03-932 Warsaw tel.: (+48-22) 5841700; fax: 5841729 e-mail: [email protected] www.ambasadaniemiec.pl Commercial and Economic Section: ul. Jazdów 12 B, 00-467 Warsaw tel.: (+48-22) 5841900; fax: 5841919 Royal Danish Embassy ul. Rakowiecka 19, 02-517 Warsaw tel.: (+48-22) 5652900; fax: 5652970 e-mail: [email protected] www.danishembassy.pl Commercial and Economic Section tel.: (+48-22) 5652917; fax: 5652973 Embassy of Hellenic Republic ul. Górnośląska 35, 00-432 Warsaw tel.: (+48-22) 6229460; fax: 6229464 e-mail: [email protected] www.greece.pl 293 294 XIV. Appendices Economic and Commercial Office: Krakowskie Przedmieście 47/51, 00-071 Warsaw tel.: (+48-22) 8264828; fax: 8264008 e-mail: [email protected] Embassy of the Republic of Hungary ul. Chopina 2, 00-559 Warsaw tel.: (+48-22) 6284451...55; fax: 6218561 e-mail: [email protected] Commercial Section: ul. SzwoleŜerów 10, 00-464 Warsaw tel.: (+48-22) 8413551; fax: 8413863 e-mail: [email protected] Embassy of India ul. Rejtana 15 apt. 2-7, 02-516 Warsaw tel.: (+48-22) 8495800; fax: 8496705 e-mail: [email protected] www.indianembassy.pl Embassy of the Republic of Indonesia ul. Estońska 3/5, 03-903 Warsaw tel.: (+48-22) 6175179; fax: 6174455 e-mail: [email protected] www.indonesianembassy.pl Embassy of Japan ul. SzwoleŜerów 8, 00-464 Warsaw tel.: (+48-22) 6965000; fax: 6965001 e-mail: [email protected] www.emb-japan.pl Embassy of the Republic of Kazakhstan ul. Królowej Marysieńki 14, 02-954 Warsaw tel.: (+48-22) 6425388; fax: 6423427 www.kazakhstan.pl Embassy of the Democratic People’s Republic of Korea ul. Bobrowiecka 1 A, 00-728 Warsaw tel.: (+48-22) 8405813; fax: 8405710 e-mail: [email protected] Embassy of the Republic of Korea ul. SzwoleŜerów 6, 00-464 Warsaw tel.: (+48-22) 5592900; fax: 5592905 e-mail: [email protected] Embassy of the State of Kuwait ul. Franciszka Nullo 13, 00-486 Warsaw tel.: (+48-22) 6222860; fax: 6274314 e-mail: [email protected] Embassy of the Islamic Republic of Iran ul. Królowej Aldony 22, 03-928 Warsaw tel.: (+48-22) 6171585; fax: 6178452 e-mail: [email protected] www.iranemb.warsaw.pl Embassy of the Lao People’s Democratic Republic ul. Rejtana 15 m. 26, 02-516 Warsaw tel.: (+48-22) 8484786; fax: 8497122 e-mail: [email protected] Liaison Office of the Republic of Iraq ul. Dąbrowiecka 9 A, 03-932 Warsaw tel.: (+48-22) 6175773, 6174911; fax: 6177065 e-mail: [email protected] Embassy of the Republic of Latvia ul. Królowej Aldony 19, 03-928 Warsaw tel.: (+48-22) 6174389; fax: 6174289 e-mail: [email protected] Embassy of Ireland ul. Mysia 5, 00-498 Warsaw tel.: (+48-22) 8496633, 8496655; fax: 8498431 e-mail: [email protected] www.irlandia.pl Commercial Section: tel.: (+48-22) 6469797; fax: 6465015 Embassy of Lebanon ul. Starościńska 1 B m. 10-11, 02-516 Warsaw tel.: (+48-22) 8445065; fax: 6460030 e-mail: [email protected] Embassy of Israel ul. Krzywickiego 24, 02-078 Warsaw tel.: (+48-22) 8250028, 8250923; fax: 8251607 e-mail: [email protected] www.israel.pl Embassy of Italy pl. Dąbrowskiego 6, 00-055 Warsaw tel.: (+48-22) 8263471; fax: 8278507 e-mail: [email protected] www.italianembassy.pl People’s Bureau of the Great Socialist People’s Libyan Arab Jamahiriya ul. Kryniczna 2, 03-934 Warsaw tel.: (+48-22) 6174822; fax: 6175091 e-mail: [email protected] Embassy of the Republic of Lithuania al. Jana Chrystiana Szucha 5, 00-580 Warsaw tel.: (+48-22) 6253368, 6290596; fax: 6253440 e-mail: [email protected] Commercial Section: Al. Ujazdowskie 51, 00-536 Warsaw tel.: (+48-22) 5847050; fax: 5847053 e-mail: [email protected] How to Do Business in Poland Embassy of the Republic of Macedonia FYR ul. Królowej Marysieńki 40, 02-954 Warsaw tel.: (+48-22) 6517291; tel./fax: 6517292 e-mail: [email protected] www.ambasadarm.zigzag.pl Embassy of the Islamic Republic of Pakistan ul. Starościńska 1 m. 1-2, 02-516 Warsaw tel.: (+48-22) 8494808; fax: 8491160 e-mail: [email protected] www.pakembwaw.com.pl Embassy of Malaysia ul. Gruzińska 3, 03-902 Warsaw tel.: (+48-22) 6173144; fax: 6176256 e-mail: [email protected] Embassy of Palestine ul. Starościńska 1 m. 7, 02-516 Warsaw tel.: (+48-22) 8497772; fax: 8567376 e-mail: [email protected] Embassy of Mexico ul. Starościńska 1 B m. 4-5, 02-516 Warsaw tel.: (+48-22) 6468800; fax: 6464222 e-mail: [email protected] Embassy of the Republic of Peru ul. Starościńska 1 m. 3-4, 02-516 Warsaw tel.: (+48-22) 6468806; fax: 6468617 e-mail: [email protected] www.perupol.pl Embassy of the Republic of Moldova ul. Miłobędzka 12, 02-634 Warsaw tel./fax: (+48-22) 6462099 e-mail: [email protected] www.moldova.pl Embassy of Mongolia ul. Rejtana 15 m. 16, 02-516 Warsaw tel.: (+48-22) 8499391; fax: 8482063 e-mail: [email protected] www.ambmong.net7.pl Embassy of the Kingdom of Morocco ul. Starościńska 1 m. 11-12, 02-516 Warsaw tel.: (+48-22) 8496341; fax: 8481840 e-mail: [email protected] www.moroccoembassy.org.pl Royal Netherlands Embassy ul. Kawalerii 10, 00-468 Warsaw tel.: (+48-22) 5591200; fax: 8402638 e-mail: [email protected] www.nlembassy.pl Commercial Section: tel.: (+48-22) 5591239 e-mail: [email protected] Embassy of the Federal Republic of Nigeria ul. Wiertnicza 94, 02-952 Warsaw tel.: (+48-22) 8486944; fax: 8485379 e-mail: [email protected] www.nigeriaembassy.pl Royal Norwegian Embassy ul. Chopina 2 A, 00-559 Warsaw tel.: (+48-22) 6964030; fax: 6280938 e-mail: [email protected] www.amb-norwegia.pl Commercial Section: ul. Chmielna 85/87, 00-805 Warsaw tel.: (+48-22) 5810581; fax: 5810981 e-mail: [email protected] Embassy of Portugal ul. Francuska 37, 03-905 Warsaw tel.: (+48-22) 5111010; fax: 5111013 E-mial: [email protected] Commercial and Tourism Office: ul. Francuska 37, 03-905 Warsaw tel.: (+48-22) 6176460; fax: 6174477 e-mail: [email protected] Embassy of Romania ul. Chopina 10, 00-559 Warsaw tel.: (+48-22) 6283156; fax: 6285264 e-mail: [email protected] Economic Section - tel.: (+48-22) 6283300 Embassy of the Russian Federation ul. Belwederska 49, 00-761 Warsaw tel.: (+48-22) 6213453, 6215575; fax: 6253016 e-mail: [email protected] www.poland.mid.ru Royal Embassy of Saudi Arabia ul. Stępińska 55, 00-739 Warsaw tel.: (+48-22) 8400000; fax: 8405636 e-mail: [email protected] www.saudiembassy.pl Embassy of Serbia and Montenegro Al. Ujazdowskie 23/25, 00-540 Warsaw tel.: (+48-22) 6285161; fax: 6297173 e-maill: [email protected] Embassy of the Slovak Republic ul. Litewska 6, 00-581 Warsaw tel.: (+48-22) 5258110; fax: 5258122 e-mail: [email protected] www.ambasada-slowacji.pl Commercial Section: tel.: (+48-22) 5258110; fax: 6252452 e-mail: [email protected] 295 296 XIV. Appendices Embassy of the Republic of Slovenia ul. Starościńska 1 m. 23-24, 02-516 Warsaw tel.: (+48-22) 8498282; fax: 8484090 e-mail: [email protected] Embassy of the Republic of South Africa ul. Koszykowa 54, 6th floor, 00-675 Warsaw tel.: (+48-22) 6256228; fax: 6256270 e-mail: [email protected] Embassy of the Kingdom of Spain ul. Myśliwiecka 4, 00-459 Warsaw tel.: (+48-22) 6224250; fax: 6225408 e-mail: [email protected] Commercial Office: ul. Genewska 16, 03-963 Warsaw tel.: (+48-22) 6179408, 6176368; fax: 6172911 e-mail: [email protected] Embassy of the Democratic Socialist Republic of Sri Lanka Al. Wilanowska 313 A, 02-665 Warsaw tel.: (+48-22) 8538896; fax: 8435348 e-mail: [email protected] www.srilanka.pl Embassy of Sweden ul. Bagatela 3, 00-585 Warsaw tel.: (+48-22) 6408900; fax: 6408983 e-mail: [email protected] www.swedishembassy.pl Commercial Section: ul. Krolewska 16, 00-103 Warsaw tel: +48 22 5386820; fax: +48 22 5386821 e-mail: [email protected] www.swedishtrade.se/polen Embassy of Switzerland Al. Ujazdowskie 27, 00-540 Warsaw tel.: (+48-22) 6280481...82; fax: 6210548 e-mail: [email protected] Embassy of the Syrian Arab Republic ul. Narbutta 19 A, 02-536 Warsaw tel.: (+48-22) 8484809, 8491456; fax: 8491847 www.syrian-embassy.com Royal Thai Embassy ul. Willowa 7, 00-790 Warsaw tel.: (+48-22) 8492655; fax: 8492630 e-mail: [email protected] Office of Commercial Affairs: ul. Migdałowa 4/27, 02-796 Warsaw tel.: (+48-22) 6451210; fax: 6451250 e-mail: [email protected] Embassy of the Republic of Tunisia ul. Myśliwiecka 14, 00-459 Warsaw tel.: (+48-22) 6286330; fax: 6216295 e-mail: [email protected] Embassy of Turkey ul. Malczewskiego 32, 02-622 Warsaw tel.: (+48-22) 6464321…22; fax: 6463757 e-mail: [email protected] Commercial Counsellor’s Office: tel.: (+48-22) 6461408; tel./fax: 6463447 e-mail: [email protected] Embassy of Ukraine al. Jana Chrystiana Szucha 7, 00-580 Warsaw tel.: (+48-22) 6293446, 6224797; fax: 6298103 e-mail: [email protected] www.ukraine-emb.pl Trade and Economic Office: tel./fax: (+48-22) 6224743 Embassy of the United States of America Al. Ujazdowskie 29/31, 00-540 Warsaw tel.: (+48-22) 5042000; fax: 5042688 http://poland.usembassy.gov/ Foreign Commercial Service: ul. Poznańska 2/4, 00-680 Warsaw tel.: (+48-22) 6254374 e-mail: [email protected] Embassy of the Eastern Republic of Uruguay ul. Rejtana 15 m. 12, 02-516 Warsaw tel.: (+48-22) 8495040; fax: 6466887 e-mail: [email protected] Embassy of Uzbekistan ul. Wernyhory 21, 02-727 Warsaw tel.: (+48-22) 847 52 53, fax: 853 22 88 www.uzbekistan.pl Embassy of the Bolivarian Republic of Venezuela ul. Rejtana 15 m. 10, 02-516 Warsaw tel.: (+48-22) 6461846; fax: 6468761 e-mail: [email protected] Embassy of the Socialist Republic of Vietnam ul. Resorowa 36, 02-956 Warsaw tel.: (+48-22) 6516098; fax: 6516095 e-mail: [email protected] www.ambasadawietnamu.org Commercial Section: ul. Polna 48 m. 17, 00-644 Warsaw tel.: (+48-22) 8258163; fax: 8258106 e-mail: [email protected] Embassy of the Republic of Yemen ul. Zwycięzców 18, 03-941 Warsaw tel.: (+48-22) 6176025...26; fax: 6176022 e-mail: [email protected] www.yemen-embassy.pl How to Do Business in Poland 297 APPENDIX 27 ECONOMIC AND COMMERCIAL SECTIONS OF POLISH EMBASSIES AND CONSULATES Albania Embassy of the Republic of Poland Rruga e Durresit 123, Tirana tel.: (+355-4) 234-190 fax: (+355-4) 233-364 e-mail: [email protected] Azerbaijan Embassy of the Republic of Poland 2 Kichik Gala street, Icheri Sheher, AZ-1000 Baku tel.: (99-412) 4920114, fax: 4920214 e-mail: [email protected] www.embpol.azeurotel.com Algeria Ambassade de la République de Pologne Service Economique et Commercial 4 bis, rue Rabah Bourbia 16606 El-Biar, Alger BP 148 tel.: (+213-21) 921706, 921828; fax: 921622 e-mail: [email protected] Australia Embassy of the Republic of Poland Economic and Commercial Section 10 Trelawney Str., Woollahra NSW 2025, Sydney tel.: (+61-2) 9363 9821; fax: 9327 8568 e-mail: [email protected] www.poland.org.au/trade Ambassade de la République de Pologne 37 Av. Mustapha Ali Khodja 16030 El-Biar, Alger BP 60 tel.: (+213-21) 923474, 922533; fax: 921435 e-mail: [email protected] Angola Embaixada da Republica da Polonia Rua Comandante N´zaji 21/23, Alvalade Luanda; CP 1340 tel.: (+244) 222 323 088; tel./fax: 222 323 086 e-mail: [email protected] www.embpolonia-ang.info Embassy of the Republic of Poland 7 Turrana Str., Yarralumla, ACT 2600 Canberra tel.: (+61-2) 6272 1000, 6273 1208; fax: 6273 3184 e-mail: [email protected] www.poland.org.au Austria Botschaft der Republik Polen Wirtschafts-und Handelsbeteilung; Titlgasse 15; 1130 Wien tel.: (+43-1) 877 8341; fax: 877 3597 e-mail: [email protected] www.handelsratpolen.at Argentina Embajada de la Republica de Polonia Departamento Economico y Comercial Virrey del Pino 3147 1426 Buenos Aires tel.: (+54-11) 45515397; fax: 45515097 e-mail: [email protected] www.polonia-wehbaires.com.ar Botschaft der Republic Polen Hietzinger Hauptstraβe 42c A-1130 Wien; PO Box 17 tel.: (+43-1) 87015-0 ...46; fax: 87015-222 e-mail: [email protected] www.botschaftrp.at Embajada de la Republica de Polonia Calle Alejandro Maria de Aguado 2870 1425 Buenos Aires tel.: (+54-11) 4802 9681/82; fax: 4802 9683 e-mail: [email protected] Belgium Ambassade de la République de Pologne Service Economique et Commercial 18, Avenue de l`Horizon; 1150 Bruxelles tel.: (+32-2) 771 6815; fax: 771 1839 e-mail: [email protected] www.poleconomie.be Armenia Embassy of the Republic of Poland 44A Hanrapetutyan Str., Erewan tel. (+374-1) 542493 fax.(+374-1) 542498 e-mail: [email protected] Ambassade de la République de Pologne Avenue des Gaulois 29, 1040 Bruxelles tel.: (+32-2) 739 0101; fax: 736 1881 e-mail: [email protected] www.polembassy.be 298 XIV. Appendices Belarus Ambassade de la République de Pologne Service Economique et Commercial ul. Wołodarskiego 6; 220030 Minsk tel.: (+375-17) 222 4819; fax: 220 4974 e-mail: [email protected] Canada Embassy of the Republic of Poland 443 Daly Avenue, Ottawa 2, Ontario K1N 6H3 tel.: (+1-613) 7890-468, 7893-376; fax: 7891-218 e-mail: [email protected] www.polishembassy.ca Ambassade de la République de Pologne P. Rumiancewa 6, 220034 Minsk tel.: (+375-17) 288 2313; fax: 236 4992 e-mail:[email protected] www.embassypoland.nsys.by Economic and Commercial Division of the Embassy 3501 Ave du Musee, Montreal, Quebec H3G 2C8 tel.: (+1-514) 282-1732, 282-1734, fax: 282-1784 e-mail: [email protected] www.poland-canada.org Brazil Embaixada da Republica da Polonia Escritorio do Conselheiro Comercial Avenida das Naçoes, Quadra 809, Lote 33 Brasilia D.F. CEP 70423-900 tel.: (+55-61) 242 8698; fax: 242 8738 e-mail: [email protected] www.polonia.org.br Polish Trade Comission - Toronto Branch 3300 Bloor Street West, Suite 2860 - Centre Tower Toronto, Ontario M8V 2X3 tel.:(+1-416) 233-6571, fax: 233-9578 e-mail: [email protected] www.poland-canada.org Departamento Econômico e Comercial da Embaixada em São Paulo Rua Zequinha de Abreu, 240, Pacaembu CEP: 01250-050 São Paulo, SP tel.: (+55-11) 3673-2776, fax: 3673-0354 e-mail: [email protected] Bosnia and Herzegovina Embassy of the Republic of Poland ul. Dola 13, 71000 Sarajevo tel.: (+387-33) 201142; 215862; fax: 233796 e-mail: [email protected] Bulgaria Ambassade de la République de Pologne Service Economique et Commercial ul. Ewłogi Georgiew 125; 1504 Sofia tel.: (+359-2) 943 4245; fax: 943 4814 e-mail: [email protected] www.brhplsofia.bsbg.net Ambassade de la République de Pologne Chan Krum 46, 1000 Sofia tel.: (+359-2) 987 2610, 987 2660; fax. 987 2939 e-mail: [email protected] Cambodia Ambassade de la République de Pologne 767 Monivong Boulevard, Phnom Pehn Cambodge, P.O. Box 58 tel. (+855-23) 217782/3; fax: 217781 e-mail: [email protected] www.polishembassy-cambodia.org People’s Republic of China Embassy of the Republic of Poland Economic and Commercial Section 1, Ri Tan Lu, Beijing, 100600 Beijing tel.: (+86-10) 6532-1888; fax: 6532-1235 e-mail: [email protected] www.polecom.com.cn Consulate General of the Republic of Poland Economic and Commercial Section 1375 Huai Hai Zhong Rd., Shanghai, 200031 tel.: (+86-21) 6433-4735; fax: 6433-0161 e-mail: [email protected] www.polandshanghai.com Consulate General of the Republic of Poland Economic and Commercial Section Shamian Dajie 63, Guangzhou, 510130 tel.: (+86-20) 8121-8991; fax: 8121-8992 e-mail: info@ polandguangzhou.com www.polandguangzhou.com Consulate General of the Republic of Poland Economic and Commercial Section Suite 2009, Two Pacific Place 88 Queensway, Central Hong Kong tel.: (+852) 2840-0814; fax: 2918-9109 e-mail: [email protected] www.polandtrade.com.hk Chile Embajada de la República de Polonia Mar del Plata 2055, Providencia, Santiago de Chile tel.: (+562) 2041213, 2690212; fax: 2049332 e-mail: [email protected] www.embpolonia.cl How to Do Business in Poland Colombia Embajada de la República de Polonia Apartado Aereo 101363 Unicentro Calle 104a, No 23-48, Bogota tel.:(+57-1) 2140400, 2142931; fax: 2140854 e-mail: [email protected] www.embajadadepolonia.com Czech Republic Ambassade de la République de Pologne Service Economique et Commercial ul. Hradešinska 1931/58; 10100 Praha 10 tel.: (+420-2) 71732342; fax: 72735442 e-mail: [email protected] www.weh.cz The Democratic Republic of the Congo Embassy of the Republic of Poland 63, Avenue de la Justice, Kinshasa Gombe tel./fax: (+243-81) 7006327, 7006326 e-mail: [email protected] Ambassade de République de Pologne Valdštejnská 8, 11801 Praha 1 tel.: (+4202) 57099500; fax: 57530399 e-mail: [email protected] www.ambpol.cz Costa Rica Embajada de la República de Polonia Avenida 9, Calle 33 No 3307, Barrio Escalante San Jose, 664-2010 Correos Zapote tel.: (+506) 2347411, 2346024; fax: 2347900 e-mail: [email protected] www.polonia-emb-cr.com Consulat Général de la République de Pologne Service Economique et Commercial Blahoslavova 4, 70100 Ostrava tel.: (+420-596) 120460 e-mail: [email protected] www.wehostrawa.cz Croatia Ambassade de la République de Pologne Service Economique et Commercial ul. Rokefellerova 49; 10000 Zagreb tel.: (+385-1) 468-4202; tel/fax: 468-3128 e-mail: [email protected] www.wehzagreb.com.hr Ambassade de la République de Pologne Krlezin Gvozd 3, 10000 Zagreb tel.: (+385-1) 4899-444; fax: 4834-577 e-mail: [email protected] www.ambasadapoljska.hr Cuba Embajada de la República de Polonia Calle G No.452, esq.19, Vedado, La Habana tel.: (+53-7) 8332439; fax: 8332442 e-mail: [email protected] www.embajadapolonia.cu Cyprus Embassy of the Republic of Poland Economic and Commercial Section 11 Acharnon str., 2027 Stravolos, Nicosia tel.: (+357-2) 242-7007; fax: 251-0611 e-mail: [email protected] www.wehcypr.org.cy Embassy of the Republic of Poland 12-14 Kennedy Ave. flat 302, 1087 Nicosia tel.: (+357-2) 275-3517; fax: 275-1981 e-mail: [email protected] Denmark Embassy of the Republic of Poland Economic and Commercial Section Ryvangs Alle 46, Copenhagen - 2900 Hellerup tel.: (+45) 3962-2633; fax: 3962-2554 e-mail: [email protected] www.brh-dania.dk Embassy of the Republic of Poland Richelieus Allé 12, Copenhagen - 2900 Hellerup tel.: (+45) 3946-7700; fax: 3946-7766 e-mail: [email protected] www.ambpol.dk Egypt Embassy of the Republic of Poland Economic and Commercial Section 8, Ahmed Nessim St.304, Giza-Cairo tel.: (+202) 337-9683; fax: 760-9353 e-mail: [email protected] Embassy of the Republic of Poland 5 El Aziz Osman Str., Zamalek, Cairo tel.: (+202) 736-7456, fax: 735-5427 e-mail: [email protected] www.bolanda.org Estonia Ambassade de la République de Pologne Service Economique et Commercial Narva mnt. 9A, 10503 Tallinn, BP 240 tel.: (+372) 6604-378; fax: 6604-380 e-mail: [email protected] www.poola.ee 299 300 XIV. Appendices Ambassade de la République de Pologne Pärnu Mnt. 8, 10503 Tallinn, BP 247 tel.: (+372) 6278-206; fax: 6445-221 e-mail: [email protected] www.poola.info Ethiopia Embassy of the Republic of Poland PO Box 27207/1000 Addis Abeba Bole Sub-city, Kebele 03, House No 2111 tel.: (+251-1) 185401; 637635; fax: 610000 e-mail: [email protected] Georgia Embassy of the Republic of Poland ul. Zubałaszwili 19, 0108 Tbilisi tel. (+995-32) 920398 fax. (+995-32) 920397 e-mail: [email protected] Germany Botschaft der Republik Polen Lassenstr. 19-21, 14193 Berlin tel.: (+49-30) 223-130; fax: 2231-3155 e-mail: [email protected] www.botschaft-polen.de European Communities Mission de la République de Pologne Auprès des Communautés Européennes 282-284 Av. de Tervuren; 1150 Bruxelles, Belgique tel.: (+32-2) 7777-200; fax: 7777-297 e-mail: [email protected] www.polrepeu.be Botschaft der Republik Polen Wirtschafts-und Handelsabteilung Glinkastrasse 5-7, 10117 Berlin tel.: (+49-30) 220-2551; fax: 229-2451 e-mail: [email protected] www.wirtschaft-polen.de Finland Embassy of the Republic of Poland Economic and Commercial Section Risto Rytin tie 7; 700-570 Helsinki tel.: (+358-9) 684-9188; fax: 684-8907 e-mail: [email protected] www.embassyofpoland.fi/weh Generalkonsulat der Republik Polen Wirtschafts- und Handelsabteilung An der Alteburger Mühle 6, 50968 Köln 51, Marienburg tel.: (+49-221) 34990, 349913; fax: 349910 e-mail: [email protected] www.wirtschaft-polen.de Embassy of the Republic of Poland Armas Lindgrenin tie 21, F-00570 Helsinki tel.: (+358-9) 684-8077; fax: 684-7477 e-mail: [email protected] www.embassyofpoland.fi Generalkonsulat der Republik Polen Wirtschafts- und Handelsabteilung Röntgenstraße 5, 81679 München tel.: (+49-89) 4702-7747, 4186-0842; fax: 4707-223 e-mail: [email protected] www.wirtschaft-polen.de France Ambassade de la République de Pologne Service Economique et Commercial 86, rue de la Faisanderie; 75116 Paris tel.: (+33-1) 4504-1020; fax: 4504-6317 e-mail: [email protected] www.eco.amb-pologne.fr Ambassade de la République de Pologne 1 rue de Talleyrand, 75343 Paris tel.: (+33-1) 4317-3405; fax: 4317-3507 e-mail: [email protected] www.ambassade.pologne.net Consulat Général de la République de Pologne Service Economique et Commercial 79, rue Crillon, 69006 Lyon tel.: (+33-4) 3751-1233; fax: 3751-1238 e-mail: [email protected] www.lyon.consulat.pologne.net Generalkonsulat der Republik Polen Wirtschafts-und Handelsabteilung Grundgenstr. 20; 22309 Hamburg tel.: (+49-40) 611870; fax: 6325030 e-mail: [email protected] www.wirtschaft-polen.de Generalkonsulat der Republik Polen Wirtschafts-und Handelsabteilung Gorber str.14/411-412, 04105 Leipzig tel.: (+49-341) 980-0281; fax: 980-2043 e-mail: [email protected] www.wirtschaft-polen.de Greece Embassy of the Republic of Poland Economic and Commercial Section 1, Kondoleondos st., 154-52 Paleo Psychico, Athens tel.: (+30-210) 672 6176; fax: 672 1952 e-mail: [email protected] www.wehateny.gr How to Do Business in Poland Embassy of the Republic of Poland 22 Chrysanthemon st. 154-52 Paleo Psychico, Athenes tel.: (+30-210) 679 7700; fax: 679 7711 e-mail: [email protected] www.poland-embassy.gr The Holy See Ambassade de la République de Pologne Via dei Delfini 16 int.3, 00186 Roma tel.: (+39-06) 6990958; fax: 6990978 e-mail: [email protected] Hungary Embassy of the Republic of Poland Economic and Commercial Section Stefania ut 65, H-1143 Budapest XIV tel.: (+36-1) 251-4677; fax: 252-9289 e-mail: [email protected] www.ambpl-weh.hu Embassy of the Republic of Poland Városligeti fasor 16, 1068 Budapest tel.: (+36-1) 413-8200; fax: 351-1722 e-mail: [email protected] www.lengyelorszag.hu India Embassy of the Republic of Poland Economic and Commercial Section 50-M, Shantipath, Chanakyapuri; New Delhi 110021 tel.: (+91-11) 5149-6922, fax: 2687-2033 e-mail: [email protected] www.poltradeindia.org Consulate of the Republic of Poland Economic and Commercial Section Manavi Apartments, 36, B.G. Kher Marg, Malabar Hill, Mumbai 400 006 tel.: (+91-22) 363-3863/4; fax: 363-3376 e-mail: [email protected] www.polishconsulate.com Indonesia Embassy of the Republic of Poland Economic and Commercial Section JL.H.R.Rasuna Said, Kav.X Blok IV/3 Jakarta 12950 tel.: (+62-21) 2525-947; fax: 2525-960 e-mail: [email protected] www.polandembjak.org 301 Iran Embassy of the Republic of Poland Africa Expressway, Pirouz Str. 1/3 P.O.Box 11365-3489, 19-174 Tehran tel.: (+9821) 8787-262/4, fax: 8788-774 e-mail: [email protected] www.embpoltehran.com Iraq Embassy of the Republic of Poland Baghdad, Hay Al-Wahda, Mahalla 904, Zukak 60, House 20/24 tel.: +964 7901 909506; fax: (sat) +873-762 05 3415 e-mail: [email protected]; [email protected] Ireland Embassy of Republic of Poland Economic and Commercial Section 4 The Vicarage St John`s Road; Dublin 4 tel.: (+353-1) 269-1370; fax: 269-7662 e-mail: [email protected] www.dublin.polishembassy.ie Embassy of the Republic of Poland 5, Ailesbury Road, Ballsbridge, Dublin 4 tel.: (+3531) 283-0855; fax: 269-8309 e-mail: [email protected] www.polishembassy.ie Israel Embassy of the Republic of Poland Economic and Commercial Section 79, Yehuda Hamaccabi St.; 62-300 Tel-Aviv tel.: (+972-3) 5446-246; fax: 5446-247 e-mail: [email protected] www.polemb.org/economic.htm Embassy of the Republic of Poland 16, Soutine St., Tel-Aviv 64-484 tel.: (+972-3) 5240-186, fax: 5237-806 e-mail: [email protected] www.polemb.org Italy Ambassade de la République de Pologne Service Economique et Commercial Via Olona 2; 00198 Roma tel.: (+39-6) 854-1128; fax: 855-3391 e-mail: [email protected] www.infopolonia.it Embassy of the Republic of Poland Via P.P. Rubens 20, 00197 Roma tel.: (+39-6) 362 04 200; fax: 321 7895 e-mail: [email protected] www.ambasciatapolonia.it 302 XIV. Appendices Consulat Général de la République de Pologne Service Economique et Commercial Via Capecelatro 53/4, 20148 Milano tel.: (+39-2) 487 131 64; fax: 405 303 e-mail: [email protected] Embassy of the Republic of Poland 70, Sagan-dong, Jongno-gu, Seoul tel.: (+82-2) 723 9681; fax: 723 9680 e-mail: [email protected] www.polandseoul.org Japan Embassy of the Republic of Poland Economic and Commercial Section 2-13-5 Mita, Meguro-ku, Tokyo 153-0062 tel.: (+81-3) 5794 7050; fax: 5794 7053 e-mail: [email protected] www.poland.or.jp Kuwait Embassy of the Republic of Poland P.O. Box 5066, Safat, 13501 Kuwait tel.: (+965) 5311 571/2, fax: 5311 576 e-mail: [email protected] www.polambakuw.gov.kw Jordan Embassy of the Republic of Poland No 3 Mahmoud Seif Al-Din Al-Irani St. PO Box 942050, Amman 11194 tel. (+9626) 5512593, 5512594; fax: 5512595 e-mail: [email protected] Kazakhstan Embassy of the Republic of Poland Economic and Commercial Section ul. Baturina 4, Almaty 480051 tel./fax: (+7-3272) 647911, 534427 e-mail: [email protected] Embassy of the Republic of Poland DŜarkentskaja 9 / Iskanderowa 11/13, 480099 Almaty, P.O.Box 228 tel.: (+7-3272) 581 551, fax: 581 550 e-mail: [email protected] Kenya Embassy of the Republic of Poland Kabarnet Road, Nairobi, PO Box 30086 tel.: (+254-20) 3872 811, 3872 812; fax: 3872 814 e-mail: [email protected] Democratic People’s Republic of Korea Ambassade de la République de Pologne Tedonggang - Munsudong, Pyongyang, D.P.R.K. tel. (+8502) 3817325, 3817328; fax: 3817634 www.msz.gov.pl/amb/phenian Republic of Korea Embassy of the Republic of Poland Economic and Commercial Section 4F, Dongkyung B/D, 604 Hannam-dong, Yongsan-Ku, Seoul 140-210 tel.: (+82-2) 3785 2471 fax: 797 0853 e-mail: [email protected] www.buypoland.or.kr Lao People's Democratic Republic Ambassade de la République de Pologne 263 Thadeua Rd., km. 3 P.O. Box 1106 Vientiane tel.: (+856 21) 312-940; fax: 312-085 e-mail: [email protected] Latvia Embassy of the Republic of Poland Economic and Commercial Section 11 Elizabetes str., 1010 Riga tel.: (+371) 735-8251; fax: 735-8250 e-mail: [email protected] www.poltrade.lv Embassy of the Republic of Poland Miednieku iela 6B, 1010 Riga tel.: (+371) 703-1500; fax: 705-1549 e-mail: [email protected] Lebanon Ambassade de la République de Pologne Av. President Suleiman Frangieh 52 Raymong Khalife Bldg Baabda - PO Box 40-215 tel. 05-924-881, 05-468-951; fax: 05-924-882 e-mail: [email protected] Libya Ambassade de la République de Pologne 61 Sharia Ben Ashour Str. Garden City Tripoli, PO Box 519 tel.(+218 21) 3608569, 3615972; fax: 3615199 e-mail: [email protected] http://ambrp.trypolis.w.interia.pl Lithuania Ambassade de la République de Pologne Service Economique et Commercial Vasario 16-osios g.14/2, 01107 Vilnius-1 tel.: (+370-5) 261-7960; fax: 261-0686 e-mail: [email protected] www.weh-wilno.lt How to Do Business in Poland Embassy of the Republic of Poland Smelio g. 20A. 10323 Vilnius tel.: (+370-5) 270-9001; fax: 270-9007 www.polandembassy.lt Macedonia FYR Ambassade de la République de Pologne ul. Djuro Djaković 50, 1000 Skopje tel.: (+389 2) 3119744, 3112647 e-mail: [email protected] Malaysia Embassy of the Republic of Poland Economic and Commercial Section Suite 6, level 7, Mesiara Dato’Onn, P.O.Box 47 & 48, Putra World Trade Centre, 45 Jalan Tun Ismail, 50480 Kuala Lumpur tel.: (+60-3) 4043 0940; fax: 4043 0216 e-mail: [email protected] www.wehkl.com Embassy of the Republic of Poland No 495, 4 ½ Miles Jalan Ampang, 68000 Ampang, Selangor 50704 Kuala Lumpur tel.: (+60-3) 4257-6733; fax: 4257-0123 e-mail: [email protected] Mexico Embajada de la República de Polonia Calle Cracovia 40, Colonia San Angel, 01000 México D.F. Apartado Postal 20383 tel.: (+52 55) 5550-4700, fax: 5616-0822 e-mail: [email protected] www.polonia.org.mx Moldova Embassy of the Republic of Poland Economic and Commercial Section MD-2009 Chisinau, str. Plamadeala 3 tel: (+373-22) 238956; fax: 238957 e-mail: [email protected] www.polonia.md Embassy of the Republic of Poland MD-2009 Chisinau, str. Plamadeala 3 tel: (+373-22) 238551; fax: 238553 e-mail: [email protected] Mongolia Ambassade de la République de Pologne Diplomat 95 Ajlyn Oron Suuc VI ORC PO Box 1049, Ulaanbaatar-13 tel.: (+976-11) 320641, fax: 321926; e-mail: [email protected] 303 Morocco Ambassade de la République de Pologne Service Economique et Commercial 22, rue Khouribga, BP 384, 10000 Rabat tel.: (+212-37) 768368; fax: 769068 e-mail: [email protected] www.wehrabat.ma Ambassade de la République de Pologne 23, Rue Oqbah, Rabat, BP 425 tel.: (212-37) 771173; fax: 775320 e-mail: [email protected] www.ambpologne.ma Consulat Général de la République de Pologne Service Economique et Commercial 9 rue d’Alger-Villa Beausoleil, 20000 Casablanca tel.: (+212-22) 279138; fax: 279139 e-mail: [email protected] www.consulatpl.net Netherlands Embassy of the Republic of Poland Economic and Commercial Section Van Lennepweg 51; 2597 LG Den Haag tel.: (+31-70) 306-9944; fax: 354-3966 e-mail: [email protected] www.wehhaga.nl Embassy of the Republic of Poland Alexanderstraat 25, 2514 JM Den Haag tel.: (+31-70) 7990-100; fax: 360-2810 e-mail: [email protected] www.polamb.nl New Zeland Embassy of the Republic of Poland 17 Upland Road, Kelburn Wellington 6005, P.O. Box 10211 tel.: (+644) 4759453, fax: 4759458 e-mail: [email protected] www.poland.org.nz Nigeria Embassy of the Republic of Poland Economic and Commercial Section 1 Amado Tijani Street, Victoria Island, Lagos tel.: (+234-1) 262-0660; fax: 262-0649 e-mail: [email protected] Embassy of the Republic of Poland 16, Ona Crescent, Maitama, Abuja tel.: (+234-9) 41382-80…83; fax: 41382-81 e-mail: [email protected] 304 XIV. Appendices Norway Embassy of the Republic of Poland Economic and Commercial Section Uranienborg terrasse 11; 0351-Oslo tel.: (+47-22) 602448; fax: 565381 e-mail: [email protected] www.wehoslo.com Republic of South Africa Embassy of the Republic of Poland Economic and Commercial Section PO Box 1547, Houghton 2041, Johannesburg, RSA tel.: (+27-11) 788-6597; fax: 442-5375 e-mail: [email protected] www.brhjhb.org.za Embassy of the Republic of Poland Olav Kyrres plass 1, 0244 Oslo tel.: (+47-24) 110850; fax: (+47-24) 444839 e-mail: [email protected] www.poland-embassy-no.com Embassy of the Republic of Poland 14 Amos Street, Colbyn 0083, Pretoria PO Box 12277, Queenswood 0121 tel.: (+27-12) 430-2621; fax: 430-2608 e-mail: [email protected] Pakistan Embassy of the Republic of Poland Diplomatic Enclave II, Street 24, G-5/4, Islamabad P.O. Box 1032 tel. (+92-51) 2279491, 2279493; fax: 2279498 e-mail: [email protected] Romania Ambassade de la République de Pologne Service Economique et Commercial Bd Aviatorilor 24; 011862 Bucuresti tel.: (+40-21) 230-7714; fax: 230-7732 e-mail: [email protected] www.polonia.ro Panama Embajada de la República de Polonia Bella Vista, Calle 47, Edificio "Vista Marina", piso 2. Zona 5, Apartado Postal 8782, Panama tel.: (+507) 2636254, 2635097; fax: 2233717 e-mail: [email protected] www.embajadadepolonia.net Ambassade de la République de Pologne Al. Alexandru 23, 011821 Bucuresti tel.: (+40-21) 308-2200; fax: 230-7832 e-mail: [email protected] www.bukareszt.ro Peru Embajada de la República de Polonia Casilla de coreo 180174, Miraflores, Lima 18 tel.: (+511) 4713-920, fax: 4713-925 e-mail: [email protected] www.polonia.org.pe Portugal Embaixada da Republica da Polonia Departamento Econômico e Comercial Avenida da Pepublica, 9-7; 1050-185 Lisboa tel.: (+351-21) 352-6170; fax: 352-6174 e-mail: [email protected] www.negociosnapolonia.com Embaixada da Republica da Polonia Avenida das Descobertas 2, 1400-092 Lisboa tel.: (+ 351-21) 301-2350; fax: 301-0202 e-mail: [email protected] www.emb-polonia.pt Russia Ambassade de la République de Pologne Service Economique et Commercial 123557 Moscou, rue Klimashkina 4 tel.: (+7-095) 231-1611; fax: 231-1615 e-mail: [email protected] www.polweh.ru Consulat Général de la République de Pologne Service Economique et Commercial Rue 5-ya Sovietskaya 12; 193130 Sankt Petersburg tel.: (+7-812) 274-4328; fax: 274-4318 e-mail: [email protected] www.weh.spb.ru Consulat Général de la République de Pologne Service Economique et Commercial Prospekt Mira 81/2; 236000 Kaliningrad tel.: (+7-0112) 218-741; fax: 216-287 e-mail: [email protected] www.weh-kaliningrad.ru Saudi Arabia Embassy of the Republic of Poland Abdullah Bin DŜafar Street, House No.20 Al-Woorood District Riyadh (Rijad) P.O.Box 94016, Riyadh 11693 tel.: (+966-1) 4549274, 4508889; fax: 4549210 e-mail: [email protected] www.polandembassy.org.sa How to Do Business in Poland Senegal Ambassade de la République de Pologne Avenue des Ambassadeurs, Fann Residence Dakar BP 343 tel.: (+221) 8252403, 8242354; fax: 8249526 e-mail: [email protected] www.ambassade-pologne.sn Serbia and Montenegro Ambassade de la République de Pologne Service Economique et Commercial Il.Vladimira Popovica 6 ap 401, 11070 Beograd tel.: (+381-11) 311-2340; fax: 311-2307 e-mail: [email protected] Ambassade de la République de Pologne Kneza Milośa 38, 11000 Beograd tel.: (+381-11) 206-5301; fax: 361-6939 e-mail: [email protected] Singapore Embassy of the Republic of Poland Economic and Commercial Section 435 Orchard Road, 10-01/02 Wisma Atria Singapore 238877 tel.: (+65) 6734-0466; fax: 6734-6129 e-mail: [email protected] Slovakia Ambassade de la République de Pologne Service Economique et Commercial Zelena 6; 81101 Bratyslava tel.: (+421-2) 5443-2744; fax: 5443-2007 e-mail: [email protected] www.weh.polamb.sk Ambassade de la République de Pologne Hummelova 4, 81491 Bratyslava tel.: (+421-2) 5441-3175, fax: 5441-3184 e-mail: [email protected] www.polskevelvyslanectvo.sk Slovenia Embassy of the Republic of Poland Economic and Commercial Section Cesta 27 aprila 37, 1000 Lublana tel./fax: (+386-1) 426-1448, 426-0505 e-mail: [email protected] www.pl-brh.si Embassy of the Republic of Poland Bezigrad 10, 1000 Lublana tel.: (+386-1) 436-4712; fax: 436-2521 e-mail: [email protected] www.poland-embassy.si Spain Embajada de la República de Polonia Sección de Economía y Comercio Avenida del Dr. Arce, 25; 28002 Madrid tel.: (+34-91) 590-1280; fax: 561-5108 e-mail: [email protected] Embajada de la República de Polonia Calle Guisando 23 bis, 28035 Madrid tel.: (+34-91) 373-6605; fax: 373-6624 e-mail: [email protected] www.polonia.es Sweden Embassy of the Republic of Poland Economic and Commercial Section Friggagatan 4, 11427 Stockholm tel.: (+46-8) 453-8420; fax: 216-188 e-mail: [email protected] www.polcommerce.com Embassy of the Republic of Poland Karlavägen 35, 11432 Stockholm tel.: (+46-8) 5057-5000; fax: 5057-5086 e-mail: [email protected] www.polemb.se Switzerland Botschaft der Republik Polen Wirtschafts- und Handelsabteilung Elfenstrasse 9; CH-3000 Bern 6 tel.: (+41-31) 350-8282; fax: 351-3457 e-mail: [email protected] www.weh-pl-bern.ch Botschaft der Republik Polen Elfenstrasse 20a, CH-3000 Bern 6 tel.: (+41-31) 358-0202, fax: 358-0216 e-mail: [email protected] www.pol-amb.ch Syria Ambassade de la République de Pologne Rue Georges Haddad, Damascus P.O. 501 tel.: (+963-11) 3333010, fax: 3315318 e-mail: [email protected] www.msz.gov.pl/amb/damaszek Tanzania Embassy of the Republic of Poland 63 Aly Khan Road, Upanga, Dar es Salaam P. O. Box 2188 tel.: (+255-22) 2115271, tel./fax: 2115812 e-mail: [email protected] 305 306 XIV. Appendices Thailand Embassy of the Republic of Poland Economic and Commercial Section 11th Fl., Two Pacific Place 142 Sukhumvit Road, Bangkok 10110 tel.: (+66-2) 653-2014; fax: 653-2013 e-mail: [email protected] www.polbizbkk.com Embassy of the Republic of Poland 8A, Sriyukhon Bldg, Sukhumvit Soi 5 PO Box 1167, Bangkok 10110 tel.: (+66-2) 251-8891/2; fax: 251-8895 e-mail: [email protected] www.polemb.or.th Tunisia Ambassade de la République de Pologne Service Economique et Commercial 5, Rue Ibn Assaker, El Menzah I, 1004 Tunis tel.: (+21671) 751 907; fax: 238 812 e-mail: [email protected] www.pologne.intl.tn Ambassade de la République de Pologne 5, Impasse No 1, Rue de Cordoue, 2092 El Manar I, Tunis tel.: (+21 6) 71 873 837; fax: 71 872 987 e-mail: [email protected] Turkey Embassy of the Republic of Poland Economic and Commercial Section And Sokak No 8/17; 06680 Cankaya - Ankara tel.: (+90-312) 468-0990; fax: 428-1234 e-mail: [email protected] www.polonya.org.tr/weh Embassy of the Republic of Poland Atatürk Bulvari 241, Kavaklidere PK 20 06650 Ankara tel.: (+90-312) 467-5619; fax: 467-8963 e-mail: [email protected] www.polonya.org.tr Consulate General of the Republic of Poland Economic and Commercial Section Toprakkale Sok. No 6, Burak Apt. D-3 Etiler - 80630, Istanbul tel.: (+90-212) 265-8609; fax: 265-0722 e-mail: [email protected] Ukraine Ambassade de la République de Pologne Service Economique et Commercial Volodymyrska 45, 01034 Kiev tel.: (+380-44) 279-4537; fax: 278-1140 e-mail: [email protected] http://users.adamant.net/~wehamb/ Ambassade de la République de Pologne Jaroslawiw Wal 12, 01034 Kiev tel.: (+ 380-44) 230-0700, fax: 270-6336 e-mail: [email protected] www.polska.com.ua Consulat Général de la République de Pologne Economic and Commercial Section Sarachowa 78a III, 79026 Lviv tel/fax: (+380-322) 976-677, 971-353 e-mail: [email protected] www.wehkg-Lv.txnet.com Consulat Général de la République de Pologne Service Economique et Commercial Artioma 16 - 401, 61002 Charkiv tel.: (+380-572) 585-424; fax: 585-425 e-mail: [email protected] United Arab Emirates Embassy of the Republic of Poland Abu Dhabi, Delma Street, Corner with Karama Street, P.O. Box 2334, Abu Dhabi tel.: (+971-2) 4465-200; fax 4462-967 e-mail: [email protected] www.plembassy.gov.ae United Kingdom Embassy of the Republic of Poland Economic and Commercial Section 15, Devonshire Street; London W1G 7AP tel.: (+44) 20 75 8054 81; fax: 20 73 23 01 95 e-mail: [email protected] www.polishemb-trade.co.uk Embassy of the Republic of Poland 47 Portland Place, London W1B 1JH tel.: (+44) 87 07 74 27 00 fax: (+44) 20 72 91 35 75 e-mail: [email protected] www.polishembassy.org.uk Urugway Embajada de la República de Polonia Jorge Canning 2389, C.P. 11600 Montevideo tel.: (+59 82) 4801151, 4801313; fax: 4873389 e-mail: [email protected] www.embajadapoloniauruguay.com How to Do Business in Poland USA Embassy of the Republic of Poland Economic and Commercial Section 675, 3rd Ave. (19th floor) New York, NY 10017 tel.: (+1-212) 370-5300; fax: 818-9623 e-mail: [email protected] www.brhusa.com Venezuela Embajada de la República de Polonia Av. Nicolas Copernico, Qta. "Ambar" Valle Arriba, Sector Los Naranjos Apartado 62293, Chacao, Caracas 1060-A fel.: (+58-212) 991-6167; fax: 992-2164 e-mail: [email protected] www.ambasada.org.ve Embassy of the Republic of Poland 2640, 16th Street, N.W., Washington DC 20009 tel.: (+1-202) 234-3800; fax: 328-6271 e-mail: [email protected] www.polandembassy.org Vietnam Ambassade de la République de Pologne Service Economique et Commercial 5, Ba Huyen Thanh Quan PO Box 21, Hanoi tel.: (+84-4) 845-2836; fax: 843-0517 e-mail: [email protected] Embassy of the Republic of Poland Economic and Commercial Section 1503, 21st Street N.W. Washington DC 20036 tel.: (+1-202) 467-6690; fax: 833-8343 e-mail: [email protected] www.polandembassy.org Consulate General of the Republic of Poland Economic and Commercial Section 333 East Ontario Street, Suite 3906 Chicago, Illinois 60611 tel.: (+1-312) 642-4102; fax: 642-8829 e-mail: [email protected] www.wehchicago.com Consulate General of the Republic of Poland Economic and Commercial Section 12400 Wilshire Blvd., Suite 555 Los Angeles, CA 90025 tel.: (+1-310) 442-8500 ext.113; fax: 442-8526 e-mail: [email protected] www.pan.net/tradeconsul Uzbekistan Embassy of the Republic of Poland Economic and Commercial Section Mahatma Gandi 1, tupik 4 700000 Tashkent tel.: (+998-71) 133-9650; fax: 133-9750 e-mail: [email protected] http://weh-amb.ziyo.uz Embassy of the Republic of Poland Fridavsiy 66, Yunasabadskiy Rayon 700084 Tashkent tel.: (+998-71) 120-8650; fax: 120-8651 email: [email protected] www.poland.uz Ambassade de la République de Pologne 3 Chua Mot Cot, Hanoi tel.: (+84-4) 845-2027, 845-3728; fax: 823-6914 e-mail: [email protected] Yemen Embassy of the Republic of Poland Fajj Attan Area, Sana’a, Yemen P.O. Box 16168 tel.: (+9671) 413523, 413524; fax: 413647 e-mail: [email protected] www.y.net.ye/polemb Zimbabwe Embassy of the Republic of Poland 16 Cork Rd, Belgravia Harare, PO Box 3932 tel.: (+263-4) 253442; fax: 253710 e-mail: [email protected] 307 308 XIV. Appendices APPENDIX 28 UNIDO ESTABLISHED NETWORKS INVESTMENT AND TECHNOLOGY PROMOTION OFFICES UNIDO Investment and Technology Promotion Office in Bahrain Mr. Hashim Hussein, Head Bahrain Development Bank House P.O. Box 10523, Bldg. No. 170.Road 1703, Manama 317, Bahrain Telephone: +973 17 536881; Fax: +973 17 536883 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in Belgium Ministère de la Region Wallonne Agence Wallonne à l’Exportation Place Sainctelette, 2; B-1080 Brussels, Belgium Telephone: +32 2 4218211; Fax: +32 2 4218787 e-mail: [email protected] http://www.awex.be UNIDO Investment and Technology Promotion Office in Brazil Mr. Valerio Veloso, Head Rua do Apolo, 181 Bairro do Recife - PE; State of Pernambuco, Brasil – CEP: 50030-220 Telephone: +55-81 3419 8002/8004; Fax: +55-81 3419 8001 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in China Mr. Tao Dong, Head UNIDO Shanghai Investment Promotion Center 16F New Town Center, 83, Loushanguan Road, Shanghai, 200336, China Telephone: +8621 62368800; Fax: +8621 62368024 e-mail: [email protected] Mr. Yuandong HU, Head No. 17, Xi WU Jei, San Li tun, Chaoyang District, Beijing 100600, China Telephone: +8610 65326140, 65326141; Fax: +8610 65326145 e-mail: [email protected] http://www.unidoitpo.org.cn UNIDO Investment Promotion Unit in Egypt Mr. Enrico Sasdelli, Head Sherif Street 30, Cairo, Egypt Telephone: +202 392 5277, 393 7447; Fax: +202 3957631 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in France Mr. Gérard Gaveau, Head 9, rue Notre Dame des Victoires, F-75002 Paris, France Telephone: +331 44550505; Fax: +331 49269726 e-mail: [email protected] Mr. Jean Claude Plana, Head 271, corniche Président J.F. Kennedy, F-13007 Marseille, France Telephone: +33-4-91525619, Fax: +33-4-91571728 e-mail: [email protected] How to Do Business in Poland UNIDO Investment and Technology Promotion Office in Greece Mr. Ioannis Karmokolias, Head 7, Stadiou Street, 7th Floor, Syntagma Sqr, 10562 Athenes, Greece Telephone: +302 10 3248319, 3248367; Fax: + 302 10 3248778 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in Italy Ms. Diana Battaggia, Head Via della Beverara, 123, I-40131 Bologna, Italy Telephone: +39051 634 3031; Fax: +39051 634 1186 e-mail: [email protected] Ms.Diana Battaggia, Head Via Panisperna 28, 00 184 Rome, Italy Phone: +39 06 6962 153, 6962 129; Fax: +39 06 6962 122 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in Japan Mr. Seiji Oshima, Head Shin-Aoyama Building, W-16F, 1-1-1 Minami-Ayoama, Minato-Ku, Tokyo 107, Japan Telephone: +81 3 340 29341; Fax: +81 3 340 29384 e-mail: [email protected] UNIDO Investment Promotion Unit in Jordan Ms. Monica Carcó, Head c/o Jordan Investment Board P.O. Box 893; Amman 11821, Jordan Telephone: +962 6 5608400; Fax: +962 65517626 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in Republic of Korea Mr. Wan-Gil Kang, Head c/o Korea International Cooperation Agency (KOICA) 128, Yunkun-dong, Chongro-gru, Seoul 110-460, Republic of Korea Telephone: +82 2 747 8191, 747 8192; Fax: +82 2 747 8193 e-mail: [email protected] UNIDO Investment and Promotion Unit in Morocco Mr. Luca Ranieri, Officer-in-Charge c/o Unité de Promotion des Investissements Office pour le Développement Industriel 10 Rue Ghandi; BP 211 – Rabat, Morocco Telephone: +212 37 737 979, 737 889; Fax: +212 37 738 070 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in Poland Mr. Krzysztof Loth, Head Aleja Niepodległości 186, 00-608, Warsaw, P.O. Box 10, Warsaw 12, Poland Telephone: +48 22 8259186 Fax: +48 22 8258970 e-mail: [email protected] UNIDO Investment and Technology Promotion Office in Russian Federation Mr. Mikhail V. Rytchev, Director UNIDO Center for International Industrial Coop. Ulitsa Kuusinena 21B, 125252 Moscow, Russian Federation Telephone: +7 095 9430021, 1989809; Fax: +7 095 9430018 e-mail: [email protected] http://www.unido.ru 309 310 XIV. Appendices UNIDO Investment Promotion Unit in Tunisia Mr. Claudio Scaratti, Head ONUDI Tunis 63, Rue de Syrie 6th floor, Tunis-Belvedere, Tunisia Telephone: +216 71 283 923 / 216 98 652 979 [mobile]; Fax: +216 71 283 724 e-mail: [email protected] UNIDO Center for Regional Cooperation in Turkey Mr. Celal Armangil Birlik Mahallesi, 2. Cadde, No:11, 06610, Çankaya, Ankara, Turkey Tel: (+90 312) 4541078, 4541079; Fax: (+90 312) 496 14 75 e-mail: [email protected] http://www.un.org.tr/unido UNIDO Investment and Technology Promotion Office in United Kingdom Mr. John McFadzean, Head Renaissance House P.O. Box 37, Centre Park Warrington Cheshire WA1 1XB, United Kingdom Telephone: +44 1925 400224; Fax: +44 1925 400405 e-mail: [email protected] http://www.nwda-unido.org.uk UNIDO Investment Promotion Unit in Uganda Mr. Andrea Negri, OIC c/o Uganda Investment Authority The Investment Centre Plot 28, Kampala Road P.O. Box 7418, Kampala Telephone: +256 41 251561/-5; 244733; Fax: +256 41 342903 e-mail: [email protected] INTERNATIONAL/NATIONAL TECHNOLOGY CENTRES COOPERATING WITH UNIDO InterTec Ltd. Austria Brahmsplatz 8/3 A-1040 Vienna, Austria Telephone: +431 5044091; Fax: +431 5044094 General Information: [email protected] The International Centre for Genetic Engineering and Biotechnology in Italy Dott. Decio Ripandelli, ICGEB – Area di Ricerca, Padriciano 99 34012 Trieste – Italia Telephone: +39 040 3757345; Fax: +39 040 3757363 e-mail: [email protected] National Technology Transfer Centre – Kyiv (TTC) in Ukraina Kyiv 03150, a/я 52, Ukraine Telephone/fax: +044 – 2276502 e-mail: [email protected] National Technology Transfer Centre (NCTT) in Republic of Belarus k.106, Akaдемическая 1, 220072 Minsk, Republic of Belarus Telephone/fax: +375 17 2841499 e-mail: [email protected] How to Do Business in Poland INTERNATIONAL TECHNOLOGY CENTRES AND COOPERATING NETWORKS The International Centre for Application of Solar Energy (CASE) in Australia Mr. Gordon Thompson, Managing Director 220 St. Georges Terrace Perth, Western Australia 6000 Telephone: +618 93217600; Fax: +618 93217497 e-mail: [email protected] The International Materials Assessment and Application Centre (IMAAC) in Austria Mr. Vladimir Kozharnovich, Programme Manager Quality, Technology and Investment Branch Investment Promotion & Institutional Capacity-Building Division UNIDO Vienna International Centre P.O.Box 300, A-1400 Vienna, Austria Telephone: +431 26026 3720/3702; Fax: +431 26026 6809 e-mail: [email protected] The International Centre for Advancement of Manufacturing Technology in India Mr. Vinod Kumar Yadav, Project Director Core 5A, Ist Floor, BMTPC Office India Habitat Centre. Lodi Road New Delhi – 110003 India Telephone: +91 80 24647083; Fax: +91 80 24647082 e-mail: [email protected] , [email protected] The International Centre for Science and High Technology in Italy Mr. Francesco Pizzio, Managing Director AREA Science Park, Padriciano 99 34012 Trieste, Italy Telephone: +39 040 9228101; Fax: +39 040 9228101 e-mail: [email protected] The International Centre for Small Hydro Power (ICSHP) in China Prof. Tong Jiandong, Director P.O.Box 202, 136 Nanshan Road Hangzhou 310002, People’s Republic of China Telephone: +86 571 87023380; Fax: +86 571 87023353 e-mail: [email protected] The International Centre for Materials Technology Promotion (ICM) in China Prof. Yan Yao (Ms) President China Building Materials Academy Guanzhuang, Chaoyang District Beijing 100024, People’s Republic of China Telephone: +86 10 65750105, 65761325 Fax: +86 10 65762976 e-mail: [email protected] The International Centre of Medicine Biotechnology (ICMB) in Russian Federation Mr. Nikolay Durmanov, International Coordinator Ulitsa Kuusinena 21B 125252 Moscow, Russian Federation Telephone: +7 095 2010051; Fax: +7 095 7254636 e-mail: [email protected] 311
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