Credit Management magazine October 2017

COUNTRY FOCUS
AUTHOR – Adam Bernstein is a freelance business writer
Railways are a priority for the Polish
Government and between 2015 and 2030
the network will see 25 billion euros
of investment. Opportunities exist for
planning and development, supply of
technologies, supply of rolling stock,
maintenance, and management.
Security and crime reduction has
not been ignored in a country where
cybersecurity is a concern. As a result,
there is scope for the supply of CCTV
and monitoring systems, access control,
homeland monitoring and surveillance,
IT security, and cybersecurity for critical
infrastructure.
On defence, there is wide opportunity
for military material such as combat
helicopters, drones (air and sea), military
vessels, tanks, anti-missile systems,
logistics, R&D, and individual soldier
equipment.
With a burgeoning consumer market,
retail is not to be missed. Those in
that sector should look for breaks with
new store openings and malls, online,
mobile commerce, warehousing, and the
importation of premium products.
In 2015, notes the UK Government,
Poland had Europe’s seventh largest
market for healthcare (and the second
largest per capita spend). It’s estimated
that over the counter medicines will grow
at six percent, while image diagnostics
will see 15 percent growth and antenatal
diagnostics by nine percent. Projections
suggest scope for specialised medical
equipment, telemedicine, trials, and
project investment.
But it’s also worth remembering
other sectors. Agriculture, for example,
employs 11.6 percent of the population
and contributes three percent to GDP. It is,
however, fragmented into smallholdings.
Automotive is a key part of the economy
Beautiful interior of famous salt mine in Wieliczka, Poland.
and employs 180,000, who in 2016 made
677,000 vehicles. Business services have
grown in five years to employ – say Ernst
and Young – more than 212,000 people in
930 plus companies. As might be expected,
firms in this sector are concentrated in
urban areas.
Poland is, in terms of gas, trying to
wean itself off a single supplier – Russia.
It’s building new import centres in the
east and there are new interconnectors
and new domestic infrastructure. Mining
in the country is based on large quantities
of some 50 key minerals such as coal,
copper, silver, zinc, sulphur and salt.
Some 80 percent of the country’s energy
presently comes from coal – it also
produces 40 percent of European coal
output.
It’s interesting to
note that Polish law
gives everyone equal
rights in carrying out
a business activity.
However, this doesn’t
mean that there aren’t
restrictions in terms of
who can freely access
the market.
EXPORTING TO POLAND
Apart from being in the EU, Poland
is also a member of the World Trade
Organisation (WTO) and has signed up to
the Schengen Agreement area. Of course,
what will happen come March 2019 to
the free movement of people, capital and
goods is unknown. In the meantime, as of
2015, Poland is the UK’s 19th largest export
market which stood at £3.83 billion.
As with any nation, there are
different routes to market. Poland is no
different and offers access via a limited
liability company (spółka z ograniczoną
odpowiedzialnością – sp. z o.o.); jointstock
company (spółka akcyjna – S.A.);
European Company (Societas Europea)
(Spółka Europejska – SE); general
partnership (spółka jawna – sp.j.); limited
liability partnership (spółka partnerska
– sp.p.); limited partnership (spółka
komandytowa - sp.k.); partnership
limited by shares (spółka komandytowoakcyjna
– S.K.A.); sole proprietorship
(indywidualna działalność gospodarcza);
civil law partnership (spółka cywilna);
and a branch of a foreign enterprise
(oddział zagranicznego przedsiębiorcy).
There is plenty of information on
these entities at the Polish Investment
and Trade Agency’s website: paiz.gov.pl/
polish_law/forms_of_doing_business.
It’s interesting to note that Polish law
gives everyone equal rights in carrying
out a business activity. However, this
doesn’t mean that there aren’t restrictions
in terms of who can freely access the
market. Non-exhaustively, those with
greatest freedoms are those from the EU;
from Norway, Iceland and Liechtenstein;
and those from non-EEA countries that
have a bilateral agreement with Poland.
Section two on the website goes into far
more detail.
The UK Government’s general feeling
is that direct sales into the Polish market
can be difficult and it is often more
effective to approach the market through
local business partners who can both
distribute and provide technical support.
It also notes that licensing and franchising
are becoming increasingly popular.
The Recognised Standard / www.cicm.com / November 2017 / PAGE 26