Poland 2009

FILM PRODUCTION GUIDE POLAND 2009
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obligations of entrepreneurs
Carrying on economic activity requires prior registration
in the Register of Entrepreneurs of the National Court
Register (Krajowy Rejestr Sądowy) or in the Economic Activity
Registry (Ewidencja Działalności Gospodaczej)
In order to perform economic activity in Poland, an
entrepreneur is obliged to:
› obtain a tax identification number (NIP) at the appropriate
tax office and for use in official business (official
correspondence, company seals etc.),
› obtain an identity number based on the type of activity
(REGON) at the Statistical Office,
› register the business with and pay contributions to the Social
Security Office (ZUS) when employing staff,
› open a bank account and use it for all business related
transactions,
› file monthly returns and pay taxes (i.e. VAT, income tax,
advances on payroll tax etc.) to the local tax office,
› file financial statements and statistical reports as required by
appropriate regulations.
The entrepreneur must observe rules of fair competition
(as set by EU regulations, which prohibit monopolistic
practices, concentrated (cartel) practices, dumping pricing
policies, illegal concentration etc.), follow regulations
determining the terms and conditions of economic activity
(health and safety, public ethics and environment protection
in particular) and, where required by law, employ only
properly trained and skilled professionals.
Film Production
The basic legislation for film production is the
Cinematography Act of June 30, 2005 (Polish Official Journal
2005 No 132 item 1111). Poland is also a signatory of the
European Convention on Cinematographic Co-production of
October 2, 1992.
The State supports the film industry in Poland. There
are public grants given for film production, selected festivals
and events, developing archives, education and professional
training, as well as for promotion of the Polish film industry
abroad.
The key organization in the film industry is the Polish
Film Institute, set up under the Cinematography Act.
The Cinematography Act regulates issues related to the
financing of film production (feature, documentary and
animation) and project development. It sketches out the
basic legal framework for the functioning of the film market
and provides clear legal definitions of selected industry terms
– e.g. producer, co-producer, film production and film
services.
Other important Polish film production regulations
include the: Regulation of the Minister of Culture dated 27
October 2005 on the co-financing of cinematography
undertakings by the Polish Film Institute 2 and the Regulation
of the Minister of Culture dated 24 November 2005 on the
means of audit of entities with reference to the use of
additional project funding 3 . Also applicable will be general
rules of Polish civil law and copyright law e.g. when
formulating and signing option agreements, or obtaining
intellectual property rights to music and songs used in films.
There are no legal impediments for foreign
entrepreneurs in terms of autonomous economic activity in
Poland, including the field of film production, even for a
single project. A producer from an EU Member State will,
however, naturally come across a number of formalities to
fulfil. Patience and forward-planning become key factors
when planning to establish some sort of cooperation with a
Polish co-producer, contributing financially or bringing the
promising option of acquiring non-returnable public funds,
because (as elsewhere) public institutions require some time
to assess additional project funding applications, in terms of
both content (script value assessment) and finances.
autonomous Production
When undertaking autonomous production (i.e.
without a Polish counterpart) a foreign producer must first
register economic activity based on the same regulations
that apply to Polish businesses. Tax is a separate issue.
Foreign entrepreneurs must set up a Polish office; hire
qualified legal representatives and an accounting service
provider. This does not imply release of the foreign
entrepreneur from liability for legal and financial decisions.
Under Polish fiscal regulations (the Tax Ordinance Act and
income tax laws), as a business entity the foreign
entrepreneur is responsible for any transgressions.