Are you an international company looking to explore the Central Eastern European markets? Perhaps establishing a legal entity in Poland, Hungary, Romania or other countries in the neighborhood is a step you’re not quite ready to take? Or maybe you’re simply aiming to bring a remote Employee onto your international team?
We’ve got a Hassle-Free Pathway for You!
Welcome to the “Employment without Establishment” (EWE) model – your shortcut to having a Local Employee without the traditional, complex setups. Not only is it an effective solution compared to utilizing Employer of Record (EOR) services, but it’s also a budget-friendly and straightforward alternative.
Here’s How It Works:
To kick things off in Poland, as an example, your company secures a Polish Tax Number (NIP) specifically for employment and gets registered in Polish Social Securities as a Non-Resident Employer. Don’t fret – it’s straightforward with a few electronic forms and foreign registration confirmation. Our BPiON Payroll team can handle all the paperwork and interactions with the authorities, ensuring you stay stress-free!
And Yes, We’ve Got the Legal Jargon Sorted Too for You:
Non-Resident Employers, or companies like yours without a permanent office in Poland, still hold responsibilities for compulsory social security contributions on salaries and similar incomes for Employees working in Poland.
Ensuring compliance, Social Security contributions and Personal Income Tax (PIT) need to be declared and remitted in line with local laws. Although the payroll must meet the Polish regulations, rest assured, we’ve got the slight variances in taxpayer definitions covered.
Key Insights:
- In an Employment without Establishment setup, Employees take on the responsibility for the Personal Income Tax (PIT), paid to them by you, their Employer, each month (net salary + PIT advance payment).
- For Social Security (ZUS) payments, you’ve got flexibility and the choice is yours – either the Employer or Employee makes the payment, whichever suits your agreement better.
Most of our clients are choosing to be Social Security payers because it is safer and gives more control to the Employer and less administration to the Employee. How you choose it needs to be stated in the employment agreement.
The work agreement, along with its rights and duties between the Non-Resident Employer and the Employee must meet the baseline standards of the Polish Labour Code.
Tempting Advantages of the Employment without Establishment setup to help your decision:
Time savings: Setting up a legal entity, initiating a bank account, and securing an office can be a lengthy process. Registering your foreign company with local authorities through Employment without Establishment is considerably quicker.
Lower costs: Financially speaking, Establishment without Employer trumps in affordability over initiating a limited liability company or branch — sparing you from steeper costs related to office leases, legal fees, and more.
Simpler and faster procedure: Establishing a Non-Resident Employer status is not only simpler but also can be achieved faster compared to registering a full-fledged company or branch.
Strategic market-entry approach: The procedure to establish a Non-Resident Employer status is not only simpler but also can be achieved much more swiftly compared to registering a full-fledged company or branch.
Better market insights: Engaging with the market directly, through your local employees, offers invaluable and efficient firsthand experience and insights.
Best market learning experience: It acts as a preliminary step, aiding investors in grasping the nuances of the market before forming a solidified legal entity in Poland.
Bonus – zero local accounting compliance: No local accounting compliance is mandated for such a setup, meaning you’re free from any additional accounting service charges.
What’s more, the BPiON HR & Payroll team is always ready to offer clarity and detailed insights on how to become a Non-Resident Employer and meet the HR and Payroll compliance as easier as possible.
Let’s Explore the EwE Services that BPiON Can Offer You:
- Securing a local Tax Number (NIP) in Poland
- Registering a Foreign Employer with Social Security (ZUS)
- Enrolling Employees under a Foreign Employer
- Drafting preliminary employment contracts and non-compete agreements
- Representing your interests before local authorities
- Administering HR and Managing Payroll Services
- Maintaining employment records according to local guidelines
- Managing Payroll for the Foreign Employer
- Facilitating deregistration for either the Foreign Employer or Employee
Ready to start your business with Zero Hassle? Connect with us now to ensure your market entry is smooth, compliant, and stress-free.
Contact:
