Foreign Investment Control in Poland

Approval Requirements For Foreign Corporate Investments in Poland

More and more countries are tightening regulations for foreign investors that intend to acquire stakes in companies. Tomasz Rysiak (Attorney and Partner at LegalKraft based in Warsaw) describes the legal situation in Poland and sheds light on the consequences for corporate investments there.

Regulations restricting foreign investments in sensitive sectors were introduced to Polish law as of 24 July 2020 as a part of so called 4th anti-crisis shield legislation. Restrictions apply to investments made by individuals and entities not based in one of EU, EEA or OECD country, provided that such an investment would result in achieving of at least 20% share in the share capital or profit of the target or increase of the share already had in the target resulting in achieving of domination relationship.

If any of the above occurs, the potential investor is obliged to notify its investment plans to the Polish anti-competition authority. The anti-competition authority may object the investment if the investment may at least potentially cause a threat to a public interest, security or health or if the investment may have a negative influence on the projects and programmes being in the interest of European Union.

The list of sensitive sectors is quite broad and includes all stock listed companies, owners of critic infrastructure, developers of software related the critic infrastructure, providers of cloud-computing services, distributors of energy, fuels, heat, producers of drugs and medical devices and food producers, provided that the turnover of the target exceeded EUR 10 million in any of 2 years preceding the notification.