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					PL 00-585 Warsaw, 12 Bagatela Street, phone: (+48 22) 334 98 00, fax: (+48 22) 334 99 99; e-mail: post@paiz.gov.pl; www.paiz.gov.pl




                       Business Opportunities


                                            in Poland

                                           Warsaw, May 2006




                                                                             Polish Information and Foreign Investment Agency
                      Presentation plan


I. Poland strengths

II. Labour market

III. Infrastructure

IV. Existing SSC and R&D (case study)

V. Setting up the buisness and state aid

VI. About PAIiIZ


                                   Polish Information and Foreign Investment Agency
Poland can become the service center for Europe
Source: McKinsey Polska - centrum usług dla Europy?

        Sectors                   Potential new workplaces (thous.)




        Call/contact centers
        Shared Service Centers
        IT Centers


        • Health Services

        • Other
        Planes’ repair services
        Transportation
        Logistics centers


        TOGETHER




                                                      Polish Information and Foreign Investment Agency
   In Poland there is a large number of possible locations

        Population per 1 sq km by poviats                                              Cities with more than
                                                                                       100,000 inhabitants
                                                                                          Poland               42
                                                                                       Czech Rep.               5
                                                                                         Slovakia               2
                                                                                         Hungary                9




       0    50    100    150    200   250   500    1000   3000 5000



Source: www.citypopulation.de, www.jobmonkey.com, GUS Polish statistical office   Polish Information and Foreign Investment Agency
The Polish graduate pool are dwarfing other near
shore countries
Available new graduates per year per business process (thousands)
                         Czech
                Poland   Rep.     Slovakia   Hungary   Romania    Bulgaria
  Process                                                                     Russia     Ukraine     Assumption

                                                                                                   Graduates in
 Software
                                                                                                   Science,
 development     22       5         2          2          5           2         52         10      mathematics &
                                                                                                   computing



                                                                                                   Graduates in
                                                                                                   social sciences,
 F&A services
                211       14        7          23        33          22        513       135       business and
                                                                                                   law


                                                                                                   Language
 Voice-based                                                                                       students with
                                                                               n/a        1.4      German as
 inquiry        2.5        1.0      2.6        1.0       0.7         0.2                           major at
 call center                                                                                       university

                                                                                                   Graduates in
                                                                                                   engineering,
 Data center                                                                                       manufacturing
 operations      43           5      4         5        14           7         105         28      and construction



                                                                 Polish Information and Foreign Investment Agency
Young society

                 3 500

                 3 000

                 2 500
ths of persons




                 2 000
                                           Our        Our                                                               High poll of labour
                                          Future    Employees
                 1 500                                                                                                  force is guaranteed
                                                                                                                        in fallowing 10 years
                 1 000

                  500

                     0
                         0-4   5-9   10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69

                                                           age sections




                  Polish society is relatively young considering the European average.
                                                     56% of Poles are below their 40s




                                                                                                       Polish Information and Foreign Investment Agency
                      Presentation plan


I. Poland strengths

II. Labour market

III. Infrastructure

IV. Existing SSC and R&D (case study)

V. Setting up the buisness and state aid

VI. About PAIiIZ


                                   Polish Information and Foreign Investment Agency
    Poles are hard working and loyal

        Korea                                                             2380
                                                                                           Average annual hours actually
       Poland                                                      1957                        worked per person in
       Mexico                                                      1920                   dependent employment in 2004
   Slovak Rep                                                      1913
   Czech Rep                                                      1900              • Poles are the hardest working
        Japan                                                 1840                  nation after Korea
 United States                                                1812
                                                                                    • In 2004 each Polish employee
      Hungary                                                 1806
                                                                                    worked on average 1957 hours
       Greece                                                 1803

 New Zealand                                                  1801                  • Compared to France and Germany
        Spain                                               1746                    it is almost 600 hours more
      Canada                                                1742

      Portugal                                             1690
                                                                                 Average job tenure in years in 2003
United Kingdom                                         1646
      Finlandb                                         1622

       Ireland                                       1570

          Italy                                     1519

      Belgium                                   1441

     Denmark                                   1406

       France                                 1360
     Germany                                  1360
  Netherlands                                1312


                  Source: OECD, Employment Outlook 2005                             Polish Information and Foreign Investment Agency
Higher education international comparison

                  Percentage of population in higher
                  education in the 20-29 age group

        Poland                                                           29

      Germany                                                     26,7

   Netherlands                                               24,9

       Hungary                                        22,3

           USA                                        22,2

       Ireland                                 19,3

Czech Republic                          16,6

Slovak Republic                  13,2


                                        Source: Education at Glance OECD 2005

                                           Polish Information and Foreign Investment Agency
Main academic centres of crucial faculties



                         Trójmiasto


  Szczecin                                                                              English philology

                                                                                        German philology
                                                           Białystok
                                                                                        French philology
                                 Toruń                                                  Spanish philology
                Poznań
                                                Warszawa                                Italian philology
     Zielona
                                                                                        B&A and Finance
     Góra

                                      Łódź                                              ICT
               Wrocław                                         Lublin


                         Opole   Częstochowa

                                 Katowice

                                             Kraków




                   Scheme complies up to 10 most populous academic centres of respective faculties.

                                                                        Polish Information and Foreign Investment Agency
         Business Students and F&A SSC

16 business academic centres with more                                  Gdańsk
than 10. 000 students each.
                                                      Szczecin                        Olsztyn
More than 500 000 finance, business and
administration students.


                                                                                      Warszawa
According to PAIiIZ reaserch there are 50                         Poznań
Shared Service Centers in Poland
providing services in finance, accounting,                          Gądki
HR, logistics and CRM management.                                              Łódź     Piaseczno
In 2005 alone 9 new centers were
established in Poland. Mainly financial and              Wrocław
accounting. The biggest SSC belong to
and serves:                                                             Dąbrowa
                                                                        Górnicza



                                                              Bielsko-Biała           Kraków




                                              NUMBER OF CENTERS    <2    3-4    5-6      7>

Source: PAIiIZ                                                      Polish Information and Foreign Investment Agency
            ICT Students and Software Development / IT Centres

20 ICT academic centres
with more than 2500          Intel                                        Gdansk
students each.
                                                                                        Olsztyn
150 000 informatics,         Lucent technologies,
                             Atos Origin
                                                  Szczecin
computer science,                                                                                        Białystok
telecommunication students   HP, Oracle,                                 Bydgoszcz
                             Samsung, SAS
                                                                Poznan                      Warsaw
                             GlaxoSmithKline
                                                 Zielona Góra
                             ADB
                                                                                     Lodz   Radom
                             HP, Siemens,                                                                Lublin
                             CapGemini
                                                             Wroclaw
                                                                       Opole    Czestochowa
            20
                                                                               Katowice Kielce
Thousands




            18
            16
            14                                                            Gliwice
            12
                                                                                      Cracow        Rzeszow
            10                                                                                         Przemysl
             8
             6
             4
             2
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                                                                  Polish Information and Foreign Investment Agency
  ICT Students and Research and Development Centers and
  Software Development Centres

18 Technology                Intel                          Koszalin         Gdansk
Universities with about
350 000 engineering
                          Lucent Technologies,   Szczecin
students                  Atos Origin                                                                         Białystok
                                                                           Bydgoszcz
                             GE, Samsung,
                                                                  Poznan                          Warsaw
                             GlaxoSmithKline


                                                                                       Lodz       Radom
                             Siemens                                                                          Lublin
                                                               Wroclaw
                                                                         Opole   CzestochowaKielce
50 000
40 000
                                                                             Gliwice
30 000                                                                                                    Rzeszow
20 000                                                                                   Cracow
10 000
     0
                                                                           TRW Automotive
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                                                                       Polish Information and Foreign Investment Agency
Students from Poland are winning major programming contests

                                                      TopCoder is fast becoming the major league for
                                                               programming competitions



Polish students were the best
coders in 2003, 2004 and 2005                                                Best Universities
                                                                            1.    Warsaw University
                         Country Ranking                                    2.    University of Waterloo
                                                                            3.    Moscow State University
         2600                                                               4.    MIT
                                                                            5.    FER Zagreb
                                                                            ...
                                                                            11.   Wrocław University
                                                                            14.   Jagiellonian University
points




         2500                                                               21.   Poznań universuty of
                                                                                  Technology


         2400
                Poland       USA         Russia       Canada

                                                                         Source: www.topcoder.com, June 2006
                Source: www.topcoder.com, June 2006

                                                                     Polish Information and Foreign Investment Agency
Students from Poland are winning major programming contests




         „ACM is it is the oldest, largest, and most prestigious
                   programming contest in the world”

   In the 2005 ACM Central Europe Programming Contest
      first three places were occupied by Polish students

      In International Collegiate Programming Contest in 2006:

      Jagiellonian University Team took 2nd place

      Warsaw University Team took 7th place

                                        1582 universities form 71 countries
                                              Polish Information and Foreign Investment Agency
Polish Team won Global Management Challenge in 2005


                        Innovation and continual change is the hallmark
                             of the Global Management Challenge


                   Results of the 25th
              International Final in Lisbon


                          1. China
                          2. Poland
                          3. Spain




        In 2005 there were 35,000 competitors from 19 countries

                                              Polish Information and Foreign Investment Agency
Foreign languages’ knowledge
                                                                             Percentage of Poles speaking foreign
• 44% of Polish society is                                                     languages in age groups (in %)
                                                                       45
able to communicate
foreign language                                                                                                  33              33

• 33% of them speak two                                                     22          21    19   19
foreign languages                                                                13                      12 9
                                                                                                                          8   9
Source: Public Opinion Research
Centre, June 2004



                                                                        18-24                25-34         35-44          45-54
Percentage of pupils in general secondary
     education by foreign language
                                                                                        English      German     Russian
94                                  100                 97
                                                             80
                  70                      69
      66
                       52
                                                                                       • Learning of the foreign
             18                                                                        language is obligatory in
           12                                  18             13                       Polish education system
                            6                                      7
                                1                   1
                                                                                       • English is the most
                                                                                       popular foreign language
     Poland        Hungary            Czech             Slovakia                       in Poland
                                     Republic
                                                                                       Source: Eurostat 2005
            English     German      French          Russian

                                                                                      Polish Information and Foreign Investment Agency
 Students of philology departments in 2005

       English                                        German



                                      0-1000                                     0-500
                                      1001-2000                                  501-1000
                                      2001-4000                                  1001-1500
                                      over 4000                                  over 1500




      Russian                                         French


                                      0
                                      1-200                                      1-200
                                      201-400                                    201-400
                                      401-600                                    401-600
                                      over 600                                   over 600



Statistical Yearbook of the Regions, GUS 2005     Polish Information and Foreign Investment Agency
                      Presentation plan


I. Poland strengths

II. Labour market

III. Infrastructure

IV. Existing SSC and R&D (case study)

V. Setting up the buisness and state aid

VI. About PAIiIZ


                                   Polish Information and Foreign Investment Agency
 Warsaw is the best city in terms of the value for money
                    of office space
 Source: European Cities Monitor 2005,
 Cushman & Wakefield Healey & Baker

Survey among 500 companies from “Europe’s 15,000               Office rents in modern office projects 2005
largest companies”. The score is derived from the number
of nominations for best, second best and third best
                0   0,2       0,4      0,6       0,8       1

      Lisbon

    Warsaw
                                                                POZNAŃ                     WARSAW
     Prague
                                                                12-15 EUR/m2/month         18-24 USD/m2/month
   Glasgow

   Budapest

       Berlin

      Madrid
                                                                                        KRAKÓW
      Dublin                                                   WROCŁAW                  13-15 USD/m2/month
                                                               11-13 EUR/m2/month
    Brussels

     Vienna

       Paris

     London
                                                                               Source: KnightFrank 2005
      Zurich


                                                                    Polish Information and Foreign Investment Agency
   Major cities in Poland offer direct European and overseas air
   connections
     Direct flights to major
                                                                   GDAŃSK
   European and world cities
  TO              FROM
                 WARSAW               SZCZECIN
                 GDAŃSK, WROCŁAW
LONDON
                 KRAKÓW, BYDGOSZCZ
                 SZCZECIN, RZESZÓW                      BYDGOSZCZ
                 WARSAW, SZCZECIN
COPENHAGEN       GDAŃSK, WROCŁAW                 POZNAŃ                     WARSAW
                 POZNAŃ, KRAKÓW

                 WARSAW, GDAŃSK
                                     ZIELONA GÓRA
                 RZESZÓW, KATOWICE
FRANKFURT
                 WROCŁAW, KRAKÓW                                   ŁÓDŹ
                 POZNAŃ
                 WARSAW, KATOWICE
PARIS
                 KRAKÓW

MUNICH
                 WARSAW, WROCŁAW              WROCŁAW
                 KATOWICE, KRAKÓW

                 WARSAW, KATOWICE                            KATOWICE
BARCELONA
                 KRAKÓW
NEW YORK,                                                                                RZESZÓW
                 WARSAW, KRAKÓW
CHICAGO

TEL AVIV         WARSAW, KRAKÓW                                            KRAKÓW
                                          Overseas flights
                                          European flights
                                          Domestic connections
                                                             Polish Information and Foreign Investment Agency
                      Presentation plan


I. Poland strengths

II. Labour market

III. Infrastructure

IV. Existing SSC and R&D (case study)

V. Setting up the buisness and state aid

VI. About PAIiIZ


                                   Polish Information and Foreign Investment Agency
                                   R&D Centers in Poland

There are 40 R&D centers created
by foreign investors in Poland.
They totaly employ over 4500
people.
                                                                Gdańsk
In 2005 alone 9 new centers were
established in Poland.                   Szczecin
The biggest SSC belong to and
serves:
                                                            Bydgoszcz                   Radzymin
Warsaw:
                                   Gorzów
                                   Wielkopolski
                                                            Poznań                               Warszawa
                                   Zielona Góra
                                                                                                 Garwolin
Krakow:                                                 p
                                                  Wrocław
                                        Bielawa                      Częstochowa         Kielce
Wrocław:
                                                              Gliwice
                                                              Katowice
                                                                                        Kraków
                                                        Bielsko-Biała       Skawina


≤2    3-4    5-6         7>
     NUMBER OF CENTERS
                                                                      Polish Information and Foreign Investment Agency
                                                                       Polish Information and Foreign Investment Agency
   R & D Centres - area of activity of chosen centers
Source: PAIiIZ                                               Gdańsk
software and
hardware research                                                                           Development of software for telecommunication
centre dedicated to                                                                         and IT (functional and quality tests).
communications technology (system
architecture, software & hardware                         Bydgoszcz
development, network quality labs);
150 engineers.
                                                                       Warszawa

                                          Zielona Góra
developing software system                                                                  Enginering Design        software for digital
solutions for digital TV, designing                                                         Centre (design of jet    satellite, cable and
highly advanced set-top boxes; 200                                                          engine, including        terrestrial TV (in the future
engineers.
                                               Wrocław                                      disks, turbine blades,
                                                                                            airfoils, combustors;
                                                                                                                     - software development in
                                                                                                                     DVD devices and digital
                                                                                            150 engineers.           cameras); 100 engineers.
                                                                     Kraków


Software Development          Development and
Centre – development of       integration of customized      engineering systems and
                                                                                                                      software research centre
GSM, GPRS and UMTS            IT solutions (special          automation, emerging      software development in
                                                                                                                      (telecommunication,
networks; further expansion   competence on German           software technologies,    automotive industry –
                                                                                                                      internet and programming-
(from present 270 to 400      IT market); 140 IT-            manufacturing             mobile multimedia and
                                                                                                                      tools applications); 380
engineers).                   specialists are to be          technology and            body electronics ( testing
                                                                                                                      software engineers.
                              employed by 2006.              mechanical engineering,   and validation); 480
                                                             advanced service and IT   engineers.
                                                             diagnostic systems.

                                                                                   Polish Information and Foreign Investment Agency
 Shared Service Centers in Poland - case study
                 Value: 40 mn EUR                         Location: Wrocław
                 New jobs: 1000
                 Financial and accounting center for the European units of
                 Hewlett-Packard; second shared service center in Europe (the
                 first is located in Spain) but the first HP’s center in Central and
                 Eastern Europe; the center will also serve the external clients.
Country: USA

                           Wrocław was selected mainly from the reason of:


                            Access to well-educated labour force (21 local
                           univeristies and higher education institutions)
                            Lower labour costs
                            Access to the modern office space
    WROCLAW                Access to the airport with direct international
                           flights
                            Good location near A 4 motorway
                            Enthusiastic attitude of the regional authorities
                           and assistance offered by them for the investor


                                             Polish Information and Foreign Investment Agency
                      Presentation plan


I. Poland strengths

II. Labour market

III. Infrastructure

IV. Existing SSC and R&D (case study)

V. Setting up the buisness and state aid

VI. About PAIiIZ


                                   Polish Information and Foreign Investment Agency
                   Poland – Setting up the business
  Basic principles                                                  Forms of activity available for
   Equal treatment for domestic                                    EU (EEA) enterpreneurs
  companies & companies founded by                                  • 2 forms of companies (limited liability,
  foreign investors.                                                joint-stock) and 5 forms of partnerships
   Full repatriation of profits, dividends                         (registered, professional, limited,
  and capital invested.                                             limited joint-stock, civil).

   No restrictions on foreign                                      Number of days to start a
  investment to enter any business                                  business (World Bank data)
  activity.
                                                                      Poland                         31
   The right to buy real estate & other
  assets.
                                                  Poland              Hungary                        65
                                                                      Czech Republic                 88
Acquisition of real estate
                                                                      Slovakia                       98
 Free purchase of investment real estate for
EEA entrepreneurs (EU, Iceland, Norway and
Lichtenstein)
Transition periods:                                        Taxation & Social Security
                                                            • Corporate Income Tax (CIT) - 19%.
EEA nationals and entrepreneurs must obtain
                                                            • Personal Income Tax (PIT) - 19%, 30%, 40%
a permit in the following cases:
                                                            • Value Added Tax (VAT) –
•To purchase agricultural and forest land - for
                                                             - basic rate – 22%
12 years (i.e. until 2 May 2016),
                                                             - reduced rates – 7%, 3%
•To purchase a second home (the real estate
                                                             - export and intra-community supply rate – 0%
for residential or recreational purposes and
                                                            • Social security contributions paid by
which will not be used by a foreigner as the
habitual residence) - for 5 years (i.e. until 1             employer (from 19.83% to 22.72% of the
May 2009).                                                  salary) and employee (18.71% of the salary).

                                                           Polish Information and Foreign Investment Agency
Tax Incentives/Abatements/Exemptions:


                                         1. CIT Exemption

                                     •     A special economic zone (SEZ) is a designated area in
                                           which manufacturing or distribution activities can be
                                           conducted on preferential terms
                                     •     The purpose of SEZs is to support regional
                                           development
                                     •     Currently, there are 14 SEZ in Poland, each consisting
                                           of several subzones
                                     •     Total area of all SEZ – ca. 6,300 hectares. Additional
                                           1,700 available for big investors from June 2004
                                     •     SEZ operate until 2015-2017
                                     •     Permits to conduct activities in SEZ are issued by the
                                           authorities of each SEZ

     Benefits from obtaining a permit to conduct activities in SEZs
 •   eligibility for income tax exemption – a form of regional aid
 •   plot of land prepared for an investment project, available at a competitive price
 •   free assistance in dealing with formalities relating to investment project
 •   exemption from real estate tax
 •   grants for employee training programmes
 •   grants for the creation of new jobs
                                                            Polish Information and Foreign Investment Agency
                      Presentation plan


I. Poland strengths

II. Labour market

III. Infrastructure

IV. Existing SSC and R&D (case study)

V. Setting up the buisness and state aid

VI. About PAIiIZ


                                   Polish Information and Foreign Investment Agency
Polish Information and Foreign Investment Agency
Who we are and services we offer

                                      PROMOTION OF POLAND



                                     Co-operation     Single point of
                                     with Polish      contact for
                                     Embassies        information and
                 PMs team
                                     abroad           advice                 • Investment     I
                 with sectoral
                 expertise                                                   climate          N
    S                                                                        • Incentives     F
    E                                                                        system           O
    R                                Governmental agency formed in                            R
                                                                             • Statistics
    V   Network of regional            June 2003 as a successor of                            M
    I   offices (Investors’           former investment promotion                             A
                                                                               • Sectoral
    C   Servicing Centres)                     agency PAIZ                                    T
                                                                               statistics
    E                                                                                         I
    S                                                                          • Potential    O
                 Co-opeartion with                                             partners       N
                 SEZs, central and
                 local authorities      Testimonial    After-care services
                                        visits with
                                        investors




                                                             Polish Information and Foreign Investment Agency
PL 00-585 Warsaw, 12 Bagatela Street, phone: (+48 22) 334 98 00, fax: (+48 22) 334 99 99; e-mail: post@paiz.gov.pl; www.paiz.gov.pl




                  We invite you to our website
                                    www.paiz.gov.pl




                                                                             Polish Information and Foreign Investment Agency

				
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