How to open a company in greece

How to open a company in Greece: A step-by-step guide for foreigners

Do you want to launch a business in Greece but need help proceeding as a foreigner? Greece has a thriving business environment with many opportunities, but navigating the registration process can take time, mainly if you are still familiar with the local laws. This extensive blog post will walk you through every step of starting a business in Greece as a foreigner. By the end of this blog post, you will clearly understand how to open a company successfully in Greece.

Important things to consider before establishing a business in Greece.

Complete a comprehensive market analysis and create a strong business plan before the Greek company registration process begins. Understanding the market dynamics, customer preferences, and competition will give you a solid foundation for your business. Moreover, having a clear business plan helps set realistic goals, secure financing, and make informed decisions.

Next, familiarise yourself with the legal and regulatory requirements in Greece. This includes understanding the types of business structures available and choosing the one that best suits your needs. The primary business structures in Greece are sole proprietorship, general partnership, limited partnership, limited liability company (LLC), public limited company (SA), and branch office of a foreign company. Each structure has advantages and legal implications, so selecting the right one is critical when you open a company in Greece.

Types of companies in Greece

Greece offers several business entities, each catering to different business needs and sizes. Here’s a brief overview of the main types to help you decide how to open a company in Greece:

Sole proprietorship

This is the simplest form of business entity, where a single individual owns and operates the business. It’s easy to set up and has minimal regulatory requirements. However, the owner is personally liable for all business debts.

General partnership

In this structure, two or more individuals share ownership and management responsibilities. Partners are jointly and severally liable for the business’s obligations. It’s suitable for small businesses and professional services.

Limited partnership

Similar to a general partnership, but with both general and limited partners. General partners manage the business and are liable for its debts, while limited partners contribute capital and share profits but have limited liability.

Limited liability company (LLC)

This is a popular choice for small to medium-sized businesses. An LLC provides limited liability protection to its owners while allowing flexible management structures. It requires a minimum capital contribution and compliance with certain regulations.

Public limited company (SA)

It is ideal for large businesses and those planning to raise capital through public offerings. An SA requires a higher minimum capital and is subject to more stringent regulatory requirements.

Branch office of a foreign company

You can set up a branch office if you already have an established company abroad and want to expand into Greece. The branch operates as an extension of the parent company and is subject to local regulations.

Legal requirements and documentation

To open a company in Greece, you must comply with several legal requirements and gather the necessary documentation. Here’s a detailed breakdown of what you’ll need:

Necessary permits and licenses

Depending on your business activity, you may need specific permits and licenses from local authorities. Research the requirements for your industry and ensure you have all the necessary approvals before starting operations.

Tax identification number (TIN)

Every business in Greece must obtain a TIN from the Greek tax authorities. This number is essential for tax reporting and compliance purposes.

Social security registration

Register your business with the Greek social security organisation (EFKA) to ensure compliance with social security obligations. This is crucial if you plan to hire employees.

Business registration with the General Commercial Registry (GEMI)

All businesses must register with GEMI, which maintains a public record of company information. This step involves submitting various documents, including the Articles of Association.

Articles of Association

This document outlines the company’s structure, purpose, and internal regulations. It must be drafted and notarised before submission to GEMI.

Steps to open a company in Greece as a foreigner

Opening a company in Greece involves several steps, each requiring careful attention to detail. Here’s a comprehensive guide to help you navigate the process and ensure you successfully open a company in Greece:

Step 1. Choose a business structure

Start by selecting the type of business entity that best suits your needs. Consider factors such as liability, management structure, and capital requirements.

Step 2. Select a unique business name

Your business name must be unique and not similar to existing company names in Greece. Check the availability of your chosen name through GEMI’s online portal.

Step 3. Draft and notarise the Articles of Association

The Articles of Association document outlines your company’s structure, objectives, and internal rules. It must be drafted in Greek and notarised by a public notary. This step ensures that your business complies with Greek legal standards.

Step 4. Register with GEMI

Submit the notarised Articles of Association and other required documents to GEMI for registration. This process can be completed online or in person at a GEMI office. Once registered, your company will be listed in the public registry.

Step 5. Obtain a tax identification number (TIN)

You can apply for a TIN from the Greek tax authorities. You must submit an application form along with your registration documents. The TIN is essential for all tax-related activities, including VAT registration.

Step 6. Register for social security

You must register your company with EFKA, the Greek social security organisation to hire employees. This ensures compliance with social security contributions and employee benefits regulations.

Step 7. Open a business bank account

Choose a Greek bank and open a business bank account. You’ll need your registration documents, TIN, and identification to complete this step. A business bank account is crucial for managing your company’s finances and transactions.

Time required to open a company in Greece

The table provides an overview of the estimated time required for each step to open a company in Greece. The actual time may vary depending on the efficiency of document preparation and the responsiveness of the relevant authorities.

Step	Estimated	Description
Business Name Registration	1-2 days	Registering a unique business name ensures another entity still needs to use it.
Drafting and Notarizing Articles of Association	3-7 days	Preparing and notarising the essential documents that outline the company’s structure and regulations.
Registration with GEMI	5-10 days	Submitting all required documents to the General Commercial Registry for official company registration
Obtaining a Tax Identification Number (TIN)	1-3 days	Applying for and receiving a TIN from the Greek tax authorities is necessary for tax-related activities.
Social Security Registration (EFKA)	3-5 days	Registering the business with the Greek social security organisation if you plan to hire employees.
Opening a Business Bank Account	1-3 days	Choosing a bank and completing the necessary steps to open a business bank account.

Special considerations for foreigners

As a foreigner, there are additional considerations to keep in mind when you plan to open a company in Greece:

Visa and residency requirements

Ensure you have the appropriate visa and residency permits to live and work in Greece. Non-EU citizens may need to apply for a long-term visa or a residence permit. Consult with your home country’s Greek consulate or embassy for specific requirements.

Navigating language barriers

While many Greeks speak English, official documents and legal proceedings are conducted in Greek. Consider hiring a local lawyer or consultant to assist with translation and ensure you understand all legal requirements.

Finding local partners and resources

Building a network of local contacts can be invaluable. Consider joining business associations, attending networking events, and seeking advice from local entrepreneurs. Local partners can help you navigate the regulatory landscape and provide insights into the Greek market.

Taxation and accounting

Understanding the Greek tax system is crucial for maintaining compliance and managing your company’s finances. Here’s an overview of the key tax and accounting requirements for those looking to open a company in Greece:

Corporate tax rates

Greek companies are subject to corporate income tax. The tax rate may vary depending on the size and type of business. Stay updated on the current tax rates and ensure timely filing of tax returns.

Value-added tax (VAT) requirements

Most businesses in Greece must register for VAT and charge it on their goods and services. The standard VAT rate is 24%, but reduced rates may apply to certain goods and services. Ensure accurate VAT accounting and reporting.

Accounting and bookkeeping obligations

Greek companies must maintain proper accounting records and prepare annual financial statements. Consider hiring a professional accountant to ensure compliance with Greek accounting standards and tax regulations.

Employment regulations

If you plan to hire employees in Greece, it’s essential to understand the local employment regulations and ensure compliance with labour laws when you open a company in Greece:

Hiring employees

Greek labour laws protect employee rights and outline the terms of employment, including working hours, wages, and conditions. Ensure you follow the legal requirements for hiring, such as drafting employment contracts and registering employees with EFKA.

Employee rights and benefits

Greek employees are entitled to various rights and benefits, including paid leave, social security, and severance pay. Familiarise yourself with these rights to ensure fair treatment of your employees and avoid legal issues.

Social security contributions

As an employer, you’re responsible for making social security contributions for your employees—these contributions fund benefits such as pensions, healthcare, and unemployment insurance. Ensure timely and accurate payment of social security contributions to EFKA.

Compliance and reporting

Maintaining compliance with Greek regulations and fulfilling your reporting obligations is essential for the smooth operation of your business once you open a company in Greece:

Ongoing compliance requirements

Stay updated on the latest regulations and ensure your company meets all legal requirements. This includes timely submitting tax returns, financial statements, and other necessary filings.

Annual financial statements

Greek companies must prepare and submit annual financial statements, including balance sheets and profit and loss statements. These statements must be accurately accounted for and submitted promptly to avoid penalties.

Regular reporting to authorities

In addition to annual financial statements, you may need to submit regular reports to various authorities, such as tax returns, social security contributions, and VAT filings. Stay organised and maintain accurate records to meet these reporting obligations. Adhering to these requirements ensures compliance and helps your business operate smoothly.

Cost breakdown for opening a company in Greece 2024

The table provides an estimated range of costs associated with the different steps required to open a company in Greece in 2024. The actual costs may vary depending on specific circumstances and the professional services hired.

Expense	Estimated Cost (€)
Business Name Registration	50
Notary Fees	100-300
Legal Fees	500-1500
General Commercial Registry (GEMI) Registration	30-100
Tax Identification Number (TIN) Application	10
Social Security Registration (EFKA)	50
Business License and Permits	200-500
Initial Capital Requirement (for LLC)	1000
Bank Account Opening Fees	20-50

Resources and assistance for businesses

When starting a business in Greece, having access to resources and business support can significantly increase your chances of success:

Government support programs

The Greek government offers various business support programs, including grants, subsidies, and incentives. Research these programs and determine if your business qualifies for financial assistance or tax benefits.

Business associations and networks

Join business associations and networks to connect with other entrepreneurs and professionals. These organisations provide valuable resources, networking opportunities, and advocacy for business interests. Community involvement can offer support, guidance, and potential collaborations.

Professional services

Engaging professional services such as lawyers, accountants, and consultants can provide expert advice and ensure compliance with legal and regulatory requirements. These professionals can assist with complex tasks such as tax planning, legal documentation, and financial management.

Common challenges and solutions

The challenges of starting a business in Greece are unique. The following are some typical problems you might run into and potential fixes for them:

Navigating bureaucracy

The Greek bureaucracy can be complex and time-consuming. To mitigate this, thoroughly research the requirements and procedures involved in opening a company. Consider hiring local professionals familiar with the process to guide you through the paperwork and regulatory steps.

Dealing with language barriers

While many Greeks speak English, official documents and legal proceedings are conducted in Greek. To overcome language barriers, hire a translator or a local consultant to assist with translations and ensure you understand all legal requirements.

Locating resources and partners locally

Making local contacts and building a network can be very beneficial. Join regional business associations, attend business events, and consult with other entrepreneurs operating in the Greek market. Local partners can guide local business practices and help you navigate the regulatory environment.

Following these comprehensive procedures and considerations, you can successfully establish a company in Greece as a foreigner. Even though the process might seem complicated, you can start and expand your company in this thriving European market if you prepare well, know the local laws, and have access to expert resources. Remember, each step you take brings you closer to turning your entrepreneurial vision into reality in Greece.

FAQs

Can a foreigner start a business in Greece?

Yes, a foreigner can start a business in Greece. The process involves obtaining the necessary permits, complying with Greek regulations, and registering the company with the appropriate authorities. It’s advisable to seek legal and professional advice to navigate the requirements effectively.

How much does it cost to open a company in Greece?

The cost varies depending on the type of business entity, legal fees, registration fees, and additional expenses such as notary fees and permits. On average, the total cost can range from €1,000 to €2,000 for basic setups, but it may be higher for more complex businesses.

How easy is it to open a business in Greece?

Opening a business in Greece can be challenging due to bureaucratic processes and regulatory requirements. However, with thorough preparation, understanding of the steps involved, and the help of local professionals, the process can be managed effectively.

How long does it take to open a company in Greece?

The time required to open a company in Greece depends on the type of business and the completeness of the necessary documentation. On average, completing all the required steps, including registration and obtaining permits can take one to three months.

Is Greece business-friendly?

Greece is increasingly becoming business-friendly, with government efforts to simplify procedures and support entrepreneurs. Despite some bureaucratic hurdles, the country’s strategic location, skilled workforce, and improving economic climate make it an attractive destination for business ventures.