Companies with foreign capital in Poland
Poland, as a developing player on the European market, is attracting more and more attention from foreign investors. In recent years, the number of companies with capital from outside the country has been growing rapidly (with the exception of the year of the pandemic of 2020), which affects both the country’s economy and the structure of the market itself.
According to the Central Statistical Office, in 2022 there were 22,200 companies with foreign capital doing business in Poland, and the value of the capital invested in them from outside the country amounted to PLN 233.7 billion (EUR 53.9 billion). The year 2022 was a record-breaking one in terms of the number of newly registered companies with foreign capital – 11,595 were registered. According to the analyses of the Central Economic Information Centre, this was the best result in history with an increase of over 10% compared to 2021.
One of the main advantages of the Polish market for foreign investors is its well-developed infrastructure. A good network of roads, seaports, airports and developing logistics centres are conducive to the efficient distribution of goods. Our country has been appreciated by international giants such as Amazon, DHL and UPS, which are investing in the expansion of their distribution networks throughout the country. As a result, Polish consumers have easy access to products from all over the world, and manufacturers can export their goods in a fast and efficient way.
In which regions?
The largest number of companies with foreign capital were registered in the Mazowieckie, Dolnośląskie and Małopolskie Voivodeships. The Masovian Voivodeship, with the Polish capital, Warsaw, is a central business point in Poland. The capital offers a well-developed infrastructure, access to a skilled workforce and convenient transport links, which makes it an attractive place for businesses. Małopolska, especially with the city of Krakow, is known for its rich scientific and educational base. The presence of renowned Universities and research institutions attracts companies from the innovative sectors such as information technology, biotechnology and modern technologies. Similarly, Wrocław, the capital of Lower Silesia, ranked first in the European Cities & Regions of the Future 2022/23 category for business-friendliness and third among all medium-sized cities. In 2022 ,Wrocław and Lower Silesia had particular reasons to be satisfied with their success, as it is in this area that the largest number of technological companies operate.
It is also important that most Polish regions offer various subsidy programs and tax reliefs for investors, such as income tax exemptions or preferential rates of fees for perpetual usufruct of land, among others.
Where does the investment capital come from?
In 2022, foreign capital came to Poland from 117 countries. Among the non-EU countries, the largest group were companies with Ukrainian, Belarusian and Turkish capital, and among the EU countries – Dutch, German and French.
In which industries?
The Central Statistical Office in its report “Economic activity of enterprises with foreign capital in 2022” informs that the highest percentage of foreign capital (39 per cent) was invested in entities conducting activities related to industrial processing. A high share of foreign capital was also recorded in the trade category; repair of motor vehicles – 18.4 per cent and in real estate services – 12.2 per cent.
Employment in companies with foreign capital
At the end of 2022, enterprises with foreign capital employed 2,185,300 people. Large entities were the workplace for 76.9 per cent of all employees in enterprises with foreign capital. 44 per cent of the total number of employees in the analysed companies worked in industrial processing enterprises, while in entities involved in trade; repair of motor vehicles – 22.7 per cent.
The activity of companies with foreign capital on the Polish market has a significant impact on the country’s economy. The benefits of access to a well-developed infrastructure, a skilled workforce and favourable tax conditions attract investors. In the long term, the presence of these companies on the Polish market may contribute to further economic growth and strengthen the position of Poland as an attractive place for foreign investment.