Poland’s booming tech and business sectors are drawing global attention, but the legal and administrative barriers of traditional hiring, like creating a local subsidiary, often slow companies down.
A growing number of businesses are sidestepping these hurdles through a simple B2B invoicing model, giving them faster access to skilled professionals, lower overhead, and smoother compliance.
Why Poland is a Prime Destination for Talent Acquisition
Poland’s star is on the rise. As a member of the European Union, the country boasts a stable, rapidly growing economy and a well-educated, highly skilled workforce, particularly in the IT and engineering fields.
The Polish IT market is forecast to reach a value of over $50 billion by 2030, a testament to its dynamic growth. This has attracted global tech giants like Google and Meta to establish significant tech hubs in the country.
However, the traditional method of hiring in Poland by setting up a local entity presents considerable challenges:
- High Costs: Establishing a subsidiary involves significant legal, registration, and administrative fees.
- Legal Complexities: Navigating Polish labor law, tax regulations, and corporate governance can be a labyrinth for foreign companies.
- Time Delays: The process of setting up a legal entity can take months, delaying your entry into the market and potentially causing you to lose out on top candidates.
For companies looking to hire software engineers in Poland, these barriers can be a major deterrent.
The B2B Invoice Simplification Model Explained
So, what exactly is B2B invoice simplification? In essence, it’s a model where you engage with Polish professionals as independent contractors rather than employees. These professionals operate their own registered businesses and invoice your company for their services.
This arrangement bypasses the traditional employer-employee relationship, eliminating the need to establish a local entity.
Legal and Tax Implications
Under Polish law, B2B contracts are governed by the Civil Code, not the Labor Code. This provides greater flexibility for both parties.
The key legal and tax points to consider are:
- Contractor Responsibility: The contractor is responsible for their own taxes, social security (ZUS), and health insurance contributions.
- Tax Options: Contractors in Poland have several tax regimes to choose from, including a flat 19% tax or a lump-sum tax, which can be highly advantageous for IT professionals.
- VAT: Depending on the services provided, VAT may be applicable. It’s crucial to have a clear understanding of these obligations from the outset.
Step-by-Step Process
The process of hiring through a B2B model is straightforward:
- Find the Right Talent: Partner with an expert recruitment agency like RemoDevs to identify and vet the best candidates for your needs.
- Contract Setup: Draft a comprehensive B2B contract that clearly outlines the scope of work, remuneration, and other key terms. RemoDevs can assist in ensuring your contracts are compliant with Polish law.
- Invoicing and Payment: The contractor sends regular invoices for their services, which your company pays directly.
| Feature | Traditional Local Entity | B2B Invoice Simplification |
| Setup Time | Months | Days |
| Upfront Costs | High (legal, registration, office) | Minimal |
| Tax & Social Contributions | Employer responsibility | Contractor responsibility |
| Scalability | Fixed headcount | Flexible |
| Legal Complexity | High | Low |
Benefits and Best Practices
The advantages of the B2B invoice simplification model are numerous:
- Reduced Overhead: By avoiding the costs associated with setting up and maintaining a local entity, you can significantly reduce your operational expenses.
- Flexibility and Scalability: This model offers greater flexibility, allowing you to easily scale your team up or down as your business needs change. This is especially useful for companies looking to scale their engineering team fast with Polish talent.
- Faster Onboarding: Without the bureaucratic delays of traditional hiring, you can onboard new team members in a fraction of the time.
- Access to a Wider Talent Pool: You are not limited to candidates who are only looking for traditional employment, opening up a larger pool of experienced and entrepreneurial professionals.
To ensure a successful implementation of the B2B model, consider these best practices:
- Thoroughly Vet Contractors: Ensure that the professionals you engage have a registered business and understand their legal and tax obligations.
- Use a Reputable Partner: Working with an experienced recruitment agency like RemoDevs will ensure a smooth and compliant process.
- Foster Strong Communication: Effective communication is key to managing any remote team. Establish clear channels and regular check-ins to maintain alignment and productivity. For more on this, explore our insights on cultural fit when hiring software teams in Poland.
Conclusion
Hiring in Poland doesn’t have to be a complex and costly endeavor. The B2B invoice simplification model offers a modern, efficient, and cost-effective solution for companies looking to access Poland’s exceptional talent pool.
By partnering with RemoDevs, the leading IT recruitment agency in Poland, you can navigate this process with ease and confidence.
Ready to build your dream team in Poland? Contact RemoDevs today to learn more about our B2B hiring solutions.
Visit us
Find a moment in your calendar and come to our office for a delicious coffee
Make an apointment
