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Rise in administrative barriers to business in 2010


Last year brought a substantial increase in administrative and legal barriers to business in Poland, and the government’s pledge to cut red tape remained largely unfulfilled, the Polish Confederation of Private Employers (PKPP) Lewiatan concluded in its annual overview of the legal framework affecting the operation of business.

In 2010 nearly 40 Parliament acts impacting business were amended. However, the net effect was actually to increase markedly the number of legal and administrative impediments to business, whose updated lists currently includes 367 items, up from 279 a year ago (excluding barriers specific to particular sectors, the figure rose to 281 from 213).

The most important business-friendly change enacted in 2010, according to PKPP Lewiatan, was the one allowing companies to issue VAT invoices in electronic form; progress has also been made on e-administration. At the same time, however, the Sejm approved a new national holiday, for example, and most existing barriers in administrative, tax, or labour law remained, the Confederation said. Thus, companies in Poland still face very costly and time-consuming procedures in areas such as establishing a company (the government’s much-heralded one-stop-shop for starting a company has been a failure), corporate bankruptcy, fulfilling tax obligations, maintaining employee records, resolving disputes, settlement of accounts receivable, or obtaining building permits.

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