The United Kingdom remains one of the three largest markets in the world for Polish businesses and investors. This guide brings together everything you need to know before making the decision to expand: from choosing your entry model, through legal and tax formalities, to finance, employment and operations in the UK.
The United Kingdom is the sixth largest economy in the world and the third largest market in Europe — despite Brexit. London remains a global centre for finance, law and corporate activity. For Polish companies, the UK is a market home to over 700,000 Poles building businesses and careers, with extensive legal and institutional infrastructure, and a culture where a contract with a British partner opens doors to further markets — from the Commonwealth to the United States.
J.Dauman Poland has been present in London since 1948. This means we understand the British market not as a set of regulations, but as an environment — with its own business culture, network of relationships and sector-specific dynamics. That knowledge translates directly into the quality of decisions our client companies make.
For a Polish entrepreneur, the UK offers several unique advantages:
There is no single UK entry model that works for everyone. The choice depends on industry, scale, objectives and time horizon. Here are the four main routes used by Polish companies.
The most popular model for Polish companies entering the UK market. A Ltd company is a separate legal entity with limited liability, independent from the Polish parent company. Registration at Companies House takes 24–48 hours. It requires a Registered Office address in the UK, a director (who may be a non-resident) and a minimum share capital of £1.
Best for: service, technology and trading companies entering organically
A branch is not a separate legal entity — it is an extension of the Polish company into the UK territory. Simpler to register than a Ltd, but it carries full liability for obligations back to the parent company. Registration at Companies House as an Overseas Company is required. The branch must file financial accounts, which are publicly available.
Best for: companies testing the market before full commitment
For companies planning a larger UK presence — investments, property, acquisitions — a holding structure is optimal: a UK Ltd as the parent, with the Polish entity or SPVs as subsidiaries. This allows tax optimisation (inter-company UK dividends, participation exemption), risk management and separation of assets from operational activity.
Best for: investors, asset-portfolio companies, multi-phase expansion
The fastest way to build a UK position — by acquiring an existing company with its brand, clients and contracts. Requires legal, financial and operational due diligence, deal structuring and post-transaction integration. J.Dauman coordinated acquisitions for Polish companies in the UK — including EMTECH's acquisition of Andover Trailers.
Best for: companies with capital who want an immediate strong market position
Registering a Ltd company in the UK is a first step — but not a sufficient one. Many Polish companies make the mistake of stopping right there. The company exists, there is an address, a bank account — not yet, an entry model — none. This is the most common scenario in the first six months of expansion.
Every Ltd company must have a Registered Office address in England, Wales or Scotland. Companies House and HMRC send official correspondence to this address — tax notices, warnings, statutory demands. Many Polish companies use a virtual address, which is permitted, but requires ensuring that someone actually receives and acts on that correspondence. Ignored HMRC correspondence can result in penalties and, in extreme cases, Companies House striking the company off the register.
A Ltd company must have at least one director who is a natural person (not a legal entity). The director does not need to be a UK resident — they can be a Polish national living in Poland. They are however responsible for the company's compliance: filing financial accounts and tax returns on time, and reporting changes to Companies House. Failing to meet these obligations results in financial penalties and a public record of the breach.
The UK requires disclosure of all persons with significant influence over a company (above 25% of shares or votes, or the right to appoint the majority of directors). PSC data is publicly available at Companies House. This is important in holding structures and succession planning.
Every year each Ltd company must file a Confirmation Statement (confirming company data) and financial accounts. Small companies may file abbreviated accounts, but deadlines are absolute. Late filing attracts penalties from £150 to £1,500 and above, and the company may be struck off the register.
A Polish company operating in the UK faces a tax system different from Poland — with its own thresholds, deadlines and logic. The most common mistakes arise from applying Polish assumptions to the British context.
In the UK, VAT registration becomes mandatory once annual turnover exceeds the registration threshold (always check the current threshold on gov.uk, as it is regularly updated by HMRC). The standard VAT rate is 20%. Since Brexit, the VAT system for EU transactions has changed — the import of goods is subject to different rules than before 2021, and VAT returns are filed through Making Tax Digital.
Since April 2023, Corporation Tax in the UK is 25% for companies with profits above £250,000. Companies with profits up to £50,000 pay 19% (the Small Profits Rate). Between these thresholds a marginal rate applies. A company's tax year in the UK does not need to coincide with the calendar year — it runs from the registration date or a date chosen by the company.
A Polish company without a Ltd can still be subject to UK taxation if HMRC determines that it has a fixed place of business there (Permanent Establishment). This applies to employees in the UK, warehouses, and sales representations. It is a risk that many companies ignore, which can result in back-tax liabilities.
Opening a bank account for a Ltd company is one of the most challenging aspects of UK expansion for Polish companies. Traditional British banks (Barclays, HSBC, NatWest, Lloyds) have increasingly high entry thresholds for new companies without a UK credit history. The KYC (Know Your Customer) process for non-residents is extensive and can take several months.
For companies without a UK history, a good approach is opening an account with a bank that knows Polish entrepreneurs and has experience serving non-residents. J.Dauman helps clients establish banking relationships in the City — not as a broker, but as a partner who understands the requirements of both sides.
For companies selling products through Amazon UK or their own online store into the British market — separate VAT rules apply (the Import One Stop Shop does not apply in the UK after Brexit), customs duties on EU goods and marketplace compliance requirements. Amazon UK requires a UK VAT number for sellers exceeding the threshold.
Employing people in the UK differs from Poland at every stage — from the contract, through payroll, to dismissal. Polish companies entering the UK often apply Polish HR practices to the British context and run into problems: unfair dismissal claims, disputes over the employment status of contractors, PAYE arrears.
Any company employing workers in the UK must register as an employer with HMRC and operate a PAYE (Pay As You Earn) system — deducting income tax and National Insurance contributions on behalf of employees. Real Time Information (RTI) requires every payment to be reported to HMRC in real time. Delays result in penalties.
IR35 is an HMRC rule concerning companies that engage contractors. If HMRC determines that a contractor is working de facto as a permanent employee, the company is required to pay PAYE for that engagement, retrospectively. The off-payroll working rules (in force since 2021) transfer responsibility for the IR35 determination to the engaging company, not the contractor.
After Brexit, seconding employees from Poland to the UK requires checking the immigration status of each person. Polish nationals as EU citizens are subject to different rules than before 2021 — Settled Status or Pre-Settled Status is required for long-term stays. For new employees from Poland, an appropriate visa is needed (e.g. a Skilled Worker Visa, sponsored by a UK-registered company).
The UK property market is one of the most mature and liquid in the world. For Polish investors, the UK — and London in particular — remains a priority destination because of the stability of property rights, transaction transparency and exit liquidity.
The UK has a dual ownership system unknown in Polish law. Freehold means outright ownership of the property and land in perpetuity. Leasehold means ownership for a defined period (the lease) — often 99, 125 or 999 years — with an annual ground rent and a service charge payable to the Freeholder. For an investor, the difference in value and risk between a Freehold and a Leasehold with a short remaining term can be very significant.
Stamp Duty Land Tax (SDLT) is paid by the buyer on property purchases in England. Non-residents pay an additional 2% surcharge (Non-Resident Surcharge, in force since 2021). Purchases by a company or as a second home attract an additional 3% surcharge. SDLT rates are progressive and depend on the property value.
Buy-to-Let (BTL) is the most popular investment strategy for Polish investors in the UK. It requires understanding the cost structure: a mortgage (available to non-residents with a higher deposit), property management, rental income tax (Income Tax or Corporation Tax through an SPV), insurance and maintenance. ROI must be calculated realistically — including all costs.
The company registers a Ltd within a week, then spends months not knowing what to do with it. A company is a tool — not a strategy. The entry model must precede registration, not follow it.
HMRC correspondence sits uncollected for months. Penalties accumulate. The company may be struck off. A Registered Office is not a formality — it is a real responsibility.
IR35 and the off-payroll working rules mean that many contracts that would be B2B in Poland are treated as employment in the UK. The consequence: retrospective PAYE and National Insurance arrears.
Many companies exceed the VAT threshold without noticing — particularly with e-commerce sales to the UK. Registering late does not exempt you from the obligation to account for VAT retrospectively.
A Polish company has an employee in the UK who signs contracts. HMRC will treat this as a fixed place of business. UK tax is due — regardless of whether a Ltd company exists.
A Leasehold property with 70 years remaining is not the same as 999 years. A short lease dramatically reduces value, makes resale difficult and prevents obtaining a mortgage. Many Polish investors discover this too late.
Financial services, healthcare, transport, construction — in the UK these require licences, FCA authorisation or other permits before starting operations. Entering without checking the regulations ends with a cease-and-desist order.
Polish technology company EMTECH entered the UK market by acquisition — taking over Andover Trailers, a century-old British brand and supplier to the UK armed forces. J.Dauman Poland coordinated the entire transaction: due diligence, structuring the acquisition of 95% of shares, and the UK–Poland operational model after closing.
The transaction was possible because of J.Dauman's 16-year relationship with the owners of Andover Trailers — built since 2008. Without that market knowledge and the prior trust, the negotiations would not have succeeded. The UK became for EMTECH a centre of global expansion and a platform for access to defence contracts.
"Knowledge of the British market and the trust built since 2008 with the owners of Andover Trailers allowed us to deeply understand the specifics of their business."
— Adam Duda, CEO EMTECH & Andover Trailers LtdEach article answers a specific question that Polish companies bring to J.Dauman. Author: Piotr Kubalka, FCCA — Partner at J.Dauman Poland with over 20 years' experience on the British market.
Note: articles are currently available in Polish. English translations are in progress.
Write to us. We will discuss your situation and explain how J.Dauman can help you prepare and take that step.