By MOTIFE Insights, 22 January 2025
To help you navigate this process, we’ve prepared a comprehensive guide that addresses the key factors to consider when choosing Poland as your next IT hub. Whether you’re a senior executive, technology manager, or entrepreneur, this guide is tailored to support your decision-making journey.
Read to find out:
Poland has become a leading choice for IT hubs in Europe, supported by a dynamic IT sector, strategic position, and economic benefits. The country offers a growing workforce of more than 400 000 IT professionals, supplemented annually by over 80 000 graduates from top technical universities. This workforce combines seasoned expertise with fresh, innovative ideas. Polish IT professionals are skilled in advanced technologies and have experience with international firms.
The country's developed IT infrastructure and supportive government policies enhance its attractiveness. Government initiatives focusing on innovation, R&D incentives, and grants for IT companies provide an encouraging business environment. Poland's central location in Europe ensures excellent connectivity via air, rail, and road, facilitating easy operations and collaboration across the continent. Poland offers a good ratio of cost to quality solutions within a stable political and economic framework.
There are many success stories of companies that have based their IT hubs in Poland. First Advantage, a global leader in background screening, has set up a center in Krakow, drawing on the local talent pool and favorable business conditions. Other major firms like IBM, Google, and ABB have also established extensive operations in Poland, underscoring the country's ability to host large-scale IT projects.
Check out: Tax incentives for IT companies in Poland
Conduct market research. Begin by conducting thorough market research and feasibility studies to understand the local ecosystem, including talent availability, cost factors, and specific industry dynamics in Poland. You can seek advice from a local partner such as MOTIFE to facilitate this phase.
Legal formalities. Register the business with the Polish authorities, obtain necessary permits, and ensure compliance with local laws and regulations.
Choose the right location. Consider factors like proximity to universities, tech hubs, access to skilled labor, and infrastructure facilities. Locations like Krakow, with technology parks and special economic zones, are often beneficial.
Team recruitment. Build a skilled team by hiring local talent. This can be done through partnerships with universities and using recruitment agencies specializing in the tech sector.
Integrate into the local ecosystem. Establish collaborations with academic institutions, participate in local industry networks, and engage with other IT hubs to integrate into the local tech ecosystem.
Financial planning. Budget for operational costs, understand tax obligations, and explore funding opportunities. Utilize available government and EU grants and tax incentives for R&D activities.
Develop a strategic plan. Create a strategic plan that aligns with the company’s global IT function objectives and the opportunities in the Polish market. Continuously assess and adapt to the evolving technology landscape and invest in staff development.
Foster a culture of innovation. Encourage a culture of innovation and excellence within the IT hub to ensure long-term success and adaptability in the rapidly changing technological environment.
IT talent pool: 100 000 IT professionals
ICT graduates yearly: 3 150
Sample IT hubs of international companies: Google, Microsoft
Number of airports: 2 (Warsaw Chopin Airport, Warsaw Modlin Airport)
Warsaw is recognized for its dynamic business environment and high concentration of tech accelerators, which promote rapid growth in technology sectors. The city's extensive international business links make it a strategic location for global IT companies.
IT talent Pool: 60 000 IT professionals
ICT graduates yearly: 2 600
Sample IT hubs of international companies: IBM, Motorola
Number of airports: 1 (John Paul II International Airport Krakow-Balice)
Krakow's strong academic foundations and historic commitment to cultural and scientific pursuits create a unique blend that attracts tech innovation. It has a particularly strong presence of R&D centers due to the availability of a highly skilled workforce.
IT talent pool: 42 000 IT professionals
ICT graduates yearly: 2 000
Sample IT hubs of international companies: Nokia, Credit Suisse
Number of airports: 1 (Wroclaw Copernicus Airport)
Wroclaw is noted for its active involvement in various tech-oriented clusters and its competitive edge in IT and telecommunications. The city's business ecosystem is supported by proactive local government policies aimed at fostering innovation.
IT talent pool: 30 000 IT professionals
ICT graduates yearly: 1 050
Sample IT hubs of international companies: Intel, Amazon
Number of airports: 1 (Gdansk Lech Walesa Airport)
The Tri-City region benefits from a strategic geographic location that enhances trade and business connectivity. Its collaborative business environment includes several tech parks and innovation hubs that support IT growth.
IT talent pool: 25 000 IT professionals
ICT graduates yearly: 2 000
Sample IT hubs of international companies: SABRE
Number of airports: 1 (Poznan-Lawica Henryk Wieniawski Airport)
Poznan is an emerging tech hub with a focus on IT and e-commerce businesses. The city is known for its entrepreneurial spirit and the Poznan Science and Technology Park, which plays a crucial role in supporting tech startups and spin-offs.
IT talent pool: 34 000 IT professionals
ICT graduates yearly: 1 200
Sample IT hubs of international companies: Capgemini, IBM
Number of airports: 1 (Katowice Airport)
Despite its industrial heritage, Katowice is rapidly developing its IT sector, backed by local government incentives and the growing number of tech gatherings and conferences that attract international firms to the region.
Check out: IT Talent in Poland
Establishing a business entity in Poland is a strategic move for companies looking to leverage local tech talent and infrastructure. Here’s an outline of the steps to register a business, suitable for foreign companies, based on common practices found in similar IT hub setup processes.
This is the most common form for small to medium-sized enterprises. A limited liability company (LLC) is solely responsible for its obligations, and its shareholders are generally not liable for the company's debts. However, management board members may bear responsibility for the company’s debts if enforcement against the LLC’s assets proves ineffective.
Suitable for larger businesses, this entity type is often used if the company plans to be publicly traded. It requires a minimum share capital of 100 000 PLN (around 24,000 USD), and it can offer its shares to the public.
In this arrangement, at least one partner must have unlimited liability (general partner), while the liability of other partners (limited partners) is restricted to the extent of their capital contributions.
All partners in a Sp.j. have unlimited liability for the obligations of the business. However, the risk is distributed among them in proportion to their ownership interests. This type of entity is often chosen for professional services with a low level of risk, on a small or medium scale.
This hybrid type combines elements of an unlimited liability partnership and a joint-stock company. The stockholder is not liable for the company's obligations and is treated solely as an investor, while the general partner bears full responsibility for company’s debts. It is less common and suitable for businesses that need a legal form allowing them to issue stocks while having unlimited liability partners. It requires a minimum share capital of 50,000 PLN (around 12, 000 USD).
A relatively new form of company designed to encourage innovation and ease the process of raising capital. It requires a minimal share capital (as low as 1 PLN) and offers a more flexible corporate structure compared to traditional Joint Stock Companies (S.A.). P.S.A. is especially appealing to startups and tech-focused ventures, as it simplifies procedures such as share transfers and profit distribution, making it easier for businesses to scale and adapt to rapidly changing market conditions.
Obtain a company address: You need a registered address in Poland to proceed with the registration.
Draft and notarize the articles of association: This foundational document outlines the company's operating structure and must be notarized in Poland.
Apply for registration: Submit the application to the National Court Register (KRS). This includes providing the notarized Articles of Association, information about shareholders and directors, and the company's registered address.
Obtain a REGON number: Register with the Central Statistical Office to get a REGON number, which is an official statistic number.
Register for VAT: If your company will be trading within Poland, you need to register for VAT with the Tax Office.
Open a corporate bank account: Once the company is registered, you will need to open a corporate bank account in Poland to handle transactions.
Social Insurance Institution (ZUS) registration: Register with ZUS for social security services if you will be employing staff.
Compliance and reporting: Ensure compliance with local accounting and reporting requirements, which include annual financial statements and tax returns.
Open a corporate bank account: Once the company is registered, you will need to open a corporate bank account in Poland to handle transactions.
Social Insurance Institution (ZUS) registration: Register with ZUS for social security services if you will be employing staff.
Compliance and reporting: Ensure compliance with local accounting and reporting requirements, which include annual financial statements and tax returns.
Check out: Operations setup in Poland with MOTIFE
Regulatory and bureaucratic hurdles. Poland's business environment is sometimes marked by complex regulations and red tape. Navigating the legal requirements for business registration, tax compliance, and labor laws can be cumbersome and time-consuming, especially for foreign entities unfamiliar with the Polish system.
Talent competition. Despite a large pool of IT professionals, the competition for top talent is fierce, especially in major cities like Warsaw and Krakow where global tech giants have a significant presence. This competition can drive up salaries and make talent retention more challenging.
Cultural and communication barriers. While English is widely spoken within the Polish IT community, language differences can still pose challenges in terms of broader communication and integration into local workflows. Cultural differences in business practices might also require adjustments from foreign companies.
Economic fluctuations. Like any market, Poland is subject to economic shifts that can affect business operations. Economic volatility can influence everything from investment and funding availability to consumer behavior and overall market stability.
Infrastructure and logistical concerns. While Poland’s IT infrastructure is generally robust, disparities can exist between urban and more rural areas. Companies looking to establish outside of major cities may face challenges related to connectivity, utilities, or transportation logistics.
Intellectual property (IP) protection. Ensuring the protection of IP in the tech industry can be a concern, with companies needing to be vigilant about adhering to local and EU regulations to safeguard their innovations.
Engage with local legal and tax advisors. Working closely with professionals who understand Poland’s regulatory landscape streamlines registration, compliance, and day-to-day operations. They can also help ensure you meet local labor law requirements, reducing the risk of costly delays or penalties.
Differentiate your employer brand to attract talent. In highly competitive markets like Warsaw and Krakow, a strong company culture, clear career paths, and benefits such as upskilling opportunities or flexible work arrangements can set you apart. Collaborating with local universities and attending job fairs broadens your recruiting reach.
Implement cross-cultural training and language support. Providing cultural awareness workshops and offering English and Polish language courses help bridge communication gaps. Encouraging bilingual hiring and fostering an inclusive team environment can smooth interactions both within your organization and with local stakeholders.
Maintain a proactive financial strategy. Keep a close eye on economic indicators and consider building a buffer fund to weather potential market shifts. Diversifying your customer or product base, exploring government grants, and periodically reviewing your budget can help counter economic volatility.
Research locations and plan infrastructure needs in advance. While major cities like Warsaw, Krakow, and Wroclaw boast modern tech ecosystems, expanding to smaller cities or rural areas may require extra logistics planning. Evaluate internet connectivity, transportation options, and local utility reliability to ensure your IT hub’s operational stability.
Protect intellectual property with the right legal framework. Consult specialized IP lawyers who understand both local Polish regulations and EU directives. Ensure clear guidelines are in place for patenting, licensing, and data security, and educate your team on IP best practices to safeguard your innovations.
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Why did First Advantage expand to Poland?
First Advantage, a global leader in background screening serving over 30 000 clients, sought to enhance its operations as part of a digital transformation strategy. Poland was selected for its skilled workforce, cost efficiency, and robust IT sector, making it an ideal location for the company’s European technology hub.
Why Krakow?
Krakow, Poland’s leading IT hub, offered access to top talent, a strong tech ecosystem, and modern office facilities. First Advantage established its hub in the High Five Office, centrally located in downtown Krakow. The hub was designed to house scrum teams working on SaaS platforms and key technology roles, including Frontend and Backend Engineers, QA Automation Engineers, Data Architects, and Project Managers. Additional functions included screening and customer care with multilingual support in languages such as Polish, German, Spanish, and French.
Partnering with MOTIFE
To streamline its market entry, First Advantage partnered with MOTIFE. Through a Build-Operate-Transfer, the company established a modern office and hired its initial employees, ensuring a smooth start to operations.
After 12 months, First Advantage transitioned the Krakow operations to its internal management. Today, the Krakow hub continues to support the company’s growth in Europe, contributing to engineering, customer care, and digital transformation goals.
Check out: More success stories of international companies building IT hubs in Poland.
Is Poland a secure business location?
Poland is considered one of the more stable countries in Central and Eastern Europe, enjoying both political and economic security as part of the European Union. The country has well-established legal and financial frameworks that protect foreign investments and support fair trade practices. In terms of cybersecurity, Poland’s IT sector places increasing emphasis on data privacy and secure software development, guided by EU regulations like GDPR. Additionally, local law enforcement and government agencies frequently collaborate with tech and telecom firms to foster a safe digital environment, making Poland a reassuring choice for businesses looking to establish or expand their IT operations.
What is the quality of IT talent in Poland?
Polish IT professionals are recognized for their strong technical capabilities, problem-solving skills, and adherence to industry best practices. Their high level of English proficiency enables seamless collaboration with multinational teams, while a track record of experience in international companies ensures familiarity with global business standards and project management methodologies. With growing maturity across the talent pool, professionals in Poland are increasingly adept at leading innovative projects and scaling complex solutions. This combination of technical prowess, strong communication skills, and industry-specific expertise places Poland’s IT workforce among the most attractive in Europe for companies looking to establish or expand their tech operations.
Is Poland a competitive location for establishing an IT hub compared to other European countries?
Yes, Poland stands out as a dynamic market with a highly skilled tech workforce and lower operating costs than many Western European nations. Its central location within Europe also makes it easier to collaborate with partners across the continent. A strong focus on innovation and a supportive ecosystem (including government grants and university partnerships) has attracted numerous multinational companies to establish IT hubs in major Polish cities.
Which Polish cities offer the best combination of tech talent, infrastructure, and quality of life?
Warsaw, Krakow, and Wroclaw are traditionally the top choices for establishing an IT hub, each offering advanced infrastructure, well-connected airports, and strong academic ties. Warsaw boasts a bustling corporate scene and quick access to international partners, while Krakow is noted for its rich academic heritage and vibrant R&D centers. Wroclaw’s tech community is particularly active in software and telecommunications. Emerging hubs like Poznan and Katowice offer lower operating costs and growing pools of skilled workers, making them attractive options for certain industries.
How do I secure local support or government incentives for IT investment in Poland?
The Polish government offers various incentives for research and development activities, including tax breaks and grants. Many technology parks and special economic zones also provide additional benefits, such as reduced corporate tax rates and subsidized training programs. Partnering with local universities and participating in innovation clusters or industry associations can further help you integrate into the Polish ecosystem and open doors to networking, knowledge sharing, and collaborative projects.
Learn more about what international companies have achieved with their Krakow tech labs by downloading our Krakow IT Market Report 2024
If you are interested in setting up your own engineering hub in Poland, contact us at MOTIFE to learn more.
If you are looking for interesting job opportunities in tech companies in Poland, check out open roles at motife.com/jobs.
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