It is worth stressing that in order to limit operating costs, an entrepreneur can benefit from the so-called secondary entrepreneurial freedom and set up a branch office or representative office. Branch office, according to the Economic Freedom Act, is a separate and self-reliant part of existing business activity, which is being run by an entrepreneur outside the seat of the enterprise or the main place of business activity.

Foreign entrepreneur can incorporate the branch office on the basis of reciprocity. The reciprocity rule states that a foreign person (entity) can institute and run business activity on the territory of Poland according to the same rules that a Polish entity has guaranteed in the other country. However one is obliged to run the activity only within the scope of foreign entrepreneur’s activity. One of the requirements concerns entering information to the National Court Register, as well as e.g. indicating a person representing the foreign entrepreneur in the branch office, submitting a write-off of the incorporation deed as well as a write-off from the foreign entrepreneur’s country Register. Furthermore, the entrepreneur is obliged to run accountancy in Polish and to report all legal and other changes to the Ministry of Economy.

The Minister is empowered to ban the entrepreneur from business activity in case of extreme infringement of Polish law or failing to report legal and other changes concerning this branch office, or if entrepreneur’s activity threatens public security and security, or in case of the necessity to protect state secret or other public interest. Contrary to branch offices, the scope of activity of a representative office can only concern advertisements and promotion of a foreign entrepreneur. It requires an entry to the Foreign Representative Offices Register held by the Minister of Economy. Again, the Economic Freedom Act specifies requirements concerning the content of a proper application form, documents needed and cases of imposing ban on running business activity of this representative office.