LEGAL CHARACTERISTIC OF FOREIGN ENTREPRENEURS’ BRANCHES

The Polish Business Activity Law Act came into force on 1 January 2001. In section 5 of the Act the Polish legislator regulated the issue of undertaking and performing business activities by foreign entrepreneurs in the form of branches in Poland. The legislator allows a foreigner to undertake and conduct business activities in the form of branches in the Republic of Poland on condition of reciprocity insofar as the international agreements ratified by Poland do not stipulate otherwise. At the same time, an entrepreneur is obliged to obtain an entry in the National Register of Companies in order to undertake a business activity, just like a Polish entrepreneur. Moreover, an entrepreneur is obliged to designate an authorised person in the branch to represent a foreign entrepreneur, formulate the name of the branch and do the bookkeeping separately from the foreign entrepreneur. The Polish legislator ensures freedom for foreign entrepreneurs to undertake business activities, however, the very performance of the business activity is subject to state supervision. The Polish Business Activity Law Act provides for the special means of supervision in order to protect important public interest as well as ensure security of economic relations, i.e. decision concerning the prohibition to perform business activities by a branch. Despite this legal solution, which may put foreign entrepreneurs at a disadvantage, the Polish legislator makes national law more liberal in chapter 5 of the Polish Business Activity Law Act as far as undertaking and performing business activities by foreign entrepreneurs in the form of a branch is concerned. The above liberalization complies with the obligations undertaken by Poland in the European Treaty