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Person Authorized in Branch to Represent Foreign Entrepreneur

An foreign entrepreneur may run business activity in Poland in many forms. One of them is a branch. In case of this form, Article 16 of the Act on Principles of Foreign Entrepreneurs Participation in Business in Poland, imposes an obligation to establish a person authorized in branch to represent a foreign entrepreneur.

There are different concepts on the character of such representative. However, irrespective of discrepancies, there should be no doubts that such person is entitled to represent the foreign entrepreneur in all cases connected with business activity, including execution of agreements. It has been accepted in jurisprudence. For instance, the Supreme Court in the judgment of November 30th, 2016, ruled that a person authorized in branch to represent a foreign entrepreneur, whose data are entered into the National Court Register, may gran a power of attorney to represent in court proceedings in cases resultant from claims arisen in connection with business activity of the branch (files no. III CSK 400/15).

If a foreign company conduct business activity in Poland via a branch, two models of representation are possible – according to the rule of the foreign entrepreneur’s representation or by the person entered into the National Court Register as the representative of the foreign entrepreneur. A proxy also may be appointed.

Tomasz Korolko
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