Ukrainian investments on the Polish market

Are huge investments in Polish companies constantly on an upward trend?

As a well known business news site „Business Insider” points out, in the first half of the year 2023, a year after Russia started its warfare in Ukraine, almost 14 thousand Ukrainian companies where founded in Poland – almost as much as in the whole year of 2022. On top of that, another business news site bankier.pl informs, that together in the span of years 2022-2023, Ukrainian citizens founded 44,5 thousand active running companies in Poland.

According to the data collected and presented by the Polish Economic Institute, every 1 in 10 companies founded in Poland is a Ukrainian business. And this is not a one-off phenomenon, because only in the first quarter of this year (2024), Ukrainians submitted as many as 9,000 applications for business registration to CEIDG (Central Registration and Information on Business in Poland) – over a thousand more than in 2023. As you can see, the upward trend compared to 2022 and 2023 is enormous and is not going to slow down in 2024 either.

Naturally, sole proprietorships are the most popular form of running a business, mainly due to low starting costs, a simple organizational structure, relatively simple and clear tax settlement rules and independance. However, this does not mean that other forms of business are unpopular. These are also very popular, mainly among more affluent citizens, because they usually require greater financial outlays.

This of course is not a bizarre occurrence. Running your own business gives you broad development prospects, a sense of stability, independence and a chance to provide for yourself and your family. The increase in economic activity on the Polish market by Ukrainian citizens also translates into the creation of new jobs and fills the market gap in industries that were less popular among Polish entrepreneurs.

The most popular industries of Ukrainian entrepreneurs and investors in Poland

Since the start of the war in Ukraine, we are observing the most popular industries among Ukrainian investors and entrepreneurs. Among the companies opened by Ukrainian citizens, most companies operate in the following sectors:

• Trade – 22%;
• Construction – 19%;
• Transport and warehouse management – 14%;
• Administration and support activities – 11%.

Whereas in case of sole proprietorships, 4 of the biggest industries are:

• Construction – 24%;
• Information and communication – 16%;
• Other service activities – 14%;
• Trade – 9%.

Ukrainian companies are most commonly founded in the Mazowieckie voivodeship, where almost 25% of all Ukrainian companies have its seat. The most popular city for a companies seat is of course the capital city of Warsaw. The podium for the most popular locations for seats of Ukrainian companies is closed by the Lower Silesian and Lesser Poland voivodeships.

Investment possibilities for Ukrainian entrepreneurs

Ukrainian investors and entrepreneurs entering into the Polish market have the following options:

1. Establish a new company and gradually transfer the business from Ukraine to Poland.
2. Buy an existing business in Poland and synergistically combine it with a business in Ukraine.

As an Ecovis law firm, we suggest you to choose the second option. As the business situation has shown, there is a lot of such activity on the market. Ukrainian entrepreneurs prefer to invest in functioning companies, mainly because of the existing reputation, experience in the chosen industry, customer database and established organizational structures.

Often, Ukrainian companies relocate their business to Poland and stay in the same industry in which they operated in Ukraine. This is a convenient solution from the entrepreneurs’ perspective, which enables the implementation of their own entrepreneurial methods in prosperous Polish companies and aditionally offer a safe and coordinated connection to the business run in Ukraine. This also allows the enterprise to reach operational capacity in a shorter time frame.

Consolidation on the Polish market

A consolidation trend on the Polish market has been observed for years, although due to the outbreak of war in Ukraine, some occurrences accelerated. Poland has become a key and strategic economic and political partner for countries all around the world. Direct access to the market of the European Union, great geographical location in Central Europe and a rapidly developing economy are just some of the arguments for investing in Poland.

In the span of recent years, the interest in Polish companies from international chains, investment funds and companies (mainly in the medical, communication and IT industries) from Europe, USA and China has increased significantly – the key players in the global economy are willing to get involved. International entities from the above-mentioned countries and region have long been looking forward towards Central and Eastern Europe, perceiving the region as an area with a large economic potential.

Do not let the opportunity pass by

The rapprochement of the Polish-Ukrainian market over recent years is an indisputable fact. Do not let yourself be overtaken, because in some industries the market saturation is already so high, that it is becoming increasingly more difficult to start your own business or invest in an already functioning enterprise. Although the market in construction, trade and transport is already highly saturated by dynamically operating companies, there is still room for less popular, but no less lucrative spheres of economic activity.

According to the report of the Polish Economic Institute, at the end of the year 2022, Ukrainian information and communication companies made up only 7% of companies established by Ukrainian citizens. Similarly with the industrial sector, which accounted for only 6% of the entire market. Due to the dynamic development of technology, these two branches of the market deserve special attention, since high technology, IT and food production companies should experience significant growth in their economic sector.

Poland is still a market very open to investment, including companies operating in the field of IT, financial services, renewable energy solutions, medical services and nutrition. Along with the rising standard of living in Poland, there is a growing demand for the provision of high-quality services based on new social and technological trends. The high-tech industry offers particularly promising prospects, as many smaller cities and regions still have problems with access to high-speed Internet and other such services. The progressive digitization of most aspects of life, necessitates the existence of companies, providing services in this field.

How may we help you?

The process of acquiring companies is complex, not only in business terms, but in legal, tax and organizational terms as well. Having many years of experience in implementing this type of projects, we encourage you to contact the Ukrainian office of Ecovis in Kyiv or Warsaw, shall you require any help in implementing these processes.

• address: Rognidynska 3 St. Office 10, 01004 Kyiv / telephone number: +38 044 537 09 10, e-mail: kyiv-law@ecovis.ua;
• address: Belwederska 9A St. IV floor, 00-761 Warsaw / telephone number: +48 22 400 45 85, e-mail: warsaw-law@ecovis.pl.

Primarily, if you are looking for a company in a specific industry, with specific financial and size parameters (or you do not have such specific parameters), we can find the appropriate company for you to purchase and guide you through the entire process.

We offer help in all industries and market branches in Poland. However, we have the greatest experience, market knowledge and contacts in the following industries:

• Production;
• Dental;
• IT.

Our many years of international experience are right here at your fingertips!

Do not hesitate to contact us!