Where to start?

One of the basic issues is checking the truthfulness and correctness of the customer’s data with whom we intend to conclude a contract. Research in this area allows for a proper assessment of not only the credibility, but most of all the possible solvency of the future contractor. The National Court Register (KRS) and the Central Register and Information on Economic Activity (CEIDG) also operate in Poland, where you can check data such as:

– name of the entity,
– details of the partners of the company,
– data of persons representing a given entity,
– data on submitted financial statements,
– information on property separation,
– information on ongoing bankruptcy proceedings.

However, it should be remembered that the data appearing in the registers is not always up-to-date or true. Often Internet search engines offer much more accurate (i.e., more up to date) information in this regard, so it is worth “googling” the future contractor. This applies both to the data itself, as well as to opinions about a given entity.

What to do and what to remember to sign a fruitful contract with a Polish entrepreneur? How to successfully enter the Polish market? Here are some important tips that will be sure to come in handy when establishing your first business relationships, negotiating contracts or signing cooperation agreements.

Contracts on recommendation

Word-of-mouth recommendations are very important in Poland, and the selection of a given contractor is often determined by the fact that it has been recommended by a business friend. It is good to have a reference letter and to successively gain market trust through mutual recommendation.

Cooperation with a large entity – do not be discouraged!

Cooperation with large companies usually begins with a meeting with a lower-ranking employee, and only after some time may a meeting be held, for example, with the Management Board of a given company. This is a common tactic in Western corporations that also operates in Poland. Meeting with a lower rank person is also very important, because thanks to his or her recommendation, it is possible to continue working with a given company.

A face-to-face meeting is the key to trust in Polish business.

Despite the enormous technological progress, also in the business environment, direct contact with a potential business partner is still invaluable in Poland.

How to prepare for a business meeting with a potential business partner from Poland? Here are some of the most key facts to keep in mind as you prepare for your first meeting that could lead to a fruitful contract.

Poles very rarely do business with people they do not know personally. That is why it is so important to have a face-to-face meeting. Natural details and the next steps for cooperation can be determined by e-mail or by phone. In the business culture in Poland, there is a strong need to create a kind of trust between business partners, which cannot be achieved only through virtual contact. If you propose a new joint venture, most likely you will be invited to Poland. Remember that in Poland first impressions are very important; it is very likely that if the first meeting takes place in a relaxed atmosphere, a contract will be signed.

Punctuality
Punctuality at meetings is highly valued in Poland. It is worth arriving at the meeting at the agreed time. Lateness is very frowned upon, although there may be occasions where we may have to wait our turn due to some delays. On our side, however, is to make a good first impression and thus eliminate the possibility of being late.

A handshake and a smile are enough.

The meeting usually starts with a strong handshake with a polite smile; this is typical behavior for both men and women. There are times when the ladies may just nod their heads politely. It is important to remember that kissing female hands is not used now, and even ridiculed. A similar principle of non-kissing applies to the so-called male kisses, still popular in some parts of Eastern Europe. Hence the golden rule no. 1 – no kisses, but a firm handshake and a smile.

How to address during the meeting? – title of people.

Attachment to proper titling is still quite common in Poland. Please use appropriate polite forms. Often at the very beginning of the meeting, the host introduces the guest to his colleagues. Even if he doesn’t use titles, remember to never call people by name unless you are invited to do so. During formal relations, Poles use the surname with “Mr.” or “Mrs.” (Mr. Kowalski, Mrs. Kowalska). Unfortunately, some people demand that they be called their professional or academic titles. Therefore, it is best to remember that we apply appropriate titles to academic professors, doctors, other people occupying important positions in education, most officials (especially diplomats), doctors and clergy.

Gifts
Keep in mind that while gifts are welcome, they should only be symbolic and should not be overstated. Too sophisticated and expensive gifts may be associated with corruption that Poland has struggled with over the years and to which it is now overly sensitive.

What to pay attention to when talking?

Another important tip is to pay attention to small talk. At the very beginning of the meeting, right after the greeting, it is customary to get acquainted briefly, which is to be the beginning of building mutual trust and sympathy between future business partners. So, it is important that the small talk lasts as long as the host needs it, he is the moderator of this meeting. However, it is good to be vigilant and properly prepared to smoothly switch to more detailed topics related to future cooperation.

It is worth remembering that showing high self-protection or over-self-confidence is perceived negatively in Poland. Honesty, integrity, knowledge and experience are valued, and the results of actions should provide evidence of value and skills.

Don’t brag, but it’s a good idea to prepare a few sentences or words in Polish; it’s a great way to break the first ice and arouse sympathy. As part of small talk, there are also questions about the family or the last vacation. However, these are official questions, have nothing to do with meddling, and are a standard example of routine questions. According to a recent poll, family life is by far the most important value for Poles with good health, integrity, a successful career, and peace of mind.

It is imperative to remember the golden rule not to mention political, religious or social topics. These are overly sensitive topics and may alienate a potential business partner.

Poles conduct business talks in an open and straightforward manner, although it is argued that at the beginning of their relationship they resorted to diplomatic tools.

Business is treated seriously in Poland, so you should not overdo it with excess of jokes and cheerfulness, but rather focus on details and professionalism. The atmosphere of the conversation should, of course, be friendly, but not full of cheerful communication. The transition to a more relaxed atmosphere usually takes longer than it is, for example, in business relations in southern Europe.

In addition to a few phrases in Polish, for a good start, it is worth arming yourself with hard data and statistical data during the official part. Poles love facts and very rarely make business decisions based on emotions. In order to convince Polish partners to the submitted offer, it is absolutely necessary to support it with numbers, research or a well-justified forecast.

Trust in numbers, and not in emotions, is also related to the fact that Poles do not like risk, also in business. During the negotiations, it is better to emphasize that failure to cooperate may bring some losses and carry a risk, than to promise benefits in the distant future.

Polish businessmen are soft to medium-hard negotiators. Deferring your contract to the limit or playing, take it or leave it, on you is not their style. Poles believe that if you spend your time, it is worth signing a contract. The old British saying “Gentlemen don’t talk about money” is extremely popular in Poland and can make it difficult to talk directly about money and negotiate. Standstill, but be patient and don’t threaten to give up your contract.

After the first meeting

It is worth creating a summary of what was agreed or discussed during the talks immediately after the meeting. Such a written summary should preferably be sent by e-mail to the participants of the meeting. Everything that has been agreed during the negotiation process should be written down and presented to both parties in this form before the next steps of cooperation are taken. Only oral contracts are rare and rarely replace written contracts and can give rise to numerous misunderstandings and breakdowns of cooperation.It’s best to negotiate and sign a contract in two meetings. The first should be treated as an introductory and introductory presentation of the assumptions of cooperation. Set aside time for an analysis of the needs and the way in which the provisions of the agreement are implemented by both parties. Successively carry out the meeting during which the final contract will be signed. Of course, in the meantime, it is possible to present draft drafts of the contract, its scope, via e-mails or telephone calls.

End of the meeting – farewell

If the end of the meeting is going with a nice and friendly atmosphere, it probably means that the finalization of the contract is at your fingertips. It is worth remembering that at the end or at the beginning of the conversation, business cards are exchanged; it is important to take them with you to the meeting.The most important elements of a contract

The contract must specify precisely what it concerns (the so-called subject of the contract), the amount of remuneration, and the date of performance specified in the contract. In other words, the contract must clearly answer the questions

• “Who?”,
• “What?”,
• “When?”
• and “For how much?”.

It is extremely important to remember that the parties to the contract define the so-called judicial jurisdiction. This means that the parties agree on the law which will apply to the concluded contract. Unfortunately, most entrepreneurs mistakenly believe that they have no influence on the choice of law or are not aware of the existence of such a possibility at all. At the same time, it should be remembered that this is one of the key issues of any contract concluded by entrepreneurs from two different countries. It should be remembered that a possible trial will take place, for example, in Poland, which means that it will be conducted in Polish and based on the Polish legal system. This, in turn, is often associated with the need to hire a Polish lawyer and additional costs. One should not forget to determine the competent court before which a possible trial will take place.

Of course, an important issue in the contract with a foreign entrepreneur is also the currency in which the services provided, or goods sold abroad will be settled. Two aspects are important here – the very selection of the currency as such (settlement in PLN, euro, dollars, or other currency) and the method of converting this currency.

Another issue is determining the language in which the contract will be drawn up and concluded. It is safest when the contract is concluded in one of the international languages (most often English, but also Spanish or French). Another helpful solution is to conclude the contract in the languages of the entrepreneurs’ countries of origin (e.g., Polish and German). In such a case, however, it should be indicated which language version is decisive in the case of discrepancies in the translation of individual contractual provisions.

It is also worth considering including a confidentiality clause in the contract. It is advisable when cooperation between entrepreneurs involves the disclosure of information constituting a business secret. Such a secret may be, for example, a technological process, legal solutions applied, or prices offered for individual services or goods. The confidentiality is secured by entering a contractual penalty for its breach.

Record of the so-called contractual penalties are intended to cover the damage caused in the event of failure by one of the parties to perform a provision specifically indicated in the contract. The damage is covered by the payment of a fixed amount of money. Importantly, in the event of stipulating a contractual penalty in the contract, the party that demands payment of the penalty from its contractor is not obliged to prove the extent of the damage suffered. The only condition for the demand is the breach by the other party of the provision (or provisions) contained in the contract.

The incoterms clause is used in international trade. It refers to the liability of the parties to a given contract and the bearing of the risk. The notation of incoterms specifies, among others, the way and place of delivery of the goods, its insurance or issues related to its transport.

Sometimes it is also a good solution to use a non-re-export clause. This clause prohibits the recipient from exporting the goods to other markets without the consent of the supplier. This clause is most often used in cases related to the existence of large price differences on individual sales markets.

A good security in uncertain times is the use of the hardship clause, which allows for the renegotiation of contract terms in cases where, because of an unforeseen event, further performance of contractual obligations becomes unprofitable for both entrepreneurs.

In the interest of securing your invested funds in cooperation, you can also think about establishing the so-called escrow account. This is a special type of bank account used for cash settlements. This account can secure funds in transactions between entrepreneurs who have just started cooperation. The funds paid into this type of account are disbursed only upon fulfillment of the obligations specified in the contract.

References

https://www.biznesowerewolucje.com/roznice-kulturowe-biznes/

https://businessculture.org/eastern-europe/poland/business-etiquette/

https://culturalatlas.sbs.com.au/polish-culture/polish-culture-business-culture

https://www.protocolww.com/8-culture-tips-for-doing-business-with-poland/

https://culture.pl/en/article/how-to-survive-a-business-meeting-with-poles