New minimum capital for Polish companies of PLN 1

“Beware companies established with PLN 1 minimum capital,” Prof. Stanislaw Soltynski of the Polish law firm Soltynski Kawecki & Szlezak, said after the new reform was introduced by the Ministry of Justice, the Polish business daily Puls Biznesu wrote on May 21.

“In theory it will be possible to set up a company with  registered capital of PLN 1, but in practice no rational person would make use of this possibility,” Soltynski said.

In the explanatory memorandum to this bill the Ministry of Justice emphasized that the primary goal of this change is to change the structure of the limited liability companies, the most popular type of company used on the Polish market. The key change is reduction of the minimum registered capital from the current PLN 5,000 to PLN 1, Puls Biznesu wrote.