Company registration in Greece

Strategically positioned at the confluence of three continents - Europe, Asia, and Africa, Greece presents an exceptional locale for international business endeavors. Its strategic positioning at the nexus of vital maritime and aerial routes not only ensures convenient access to diverse markets but also renders it an optimal platform for enterprises seeking to expand their presence in the Middle East and Southeast Europe regions.

Greece provides economic stability and currency predictability as a member of the European Union and the Eurozone, which is a big plus for commercial operations.This article will delve into the detailed process of establishing a company in Greece, reviewing legal aspects, tax obligations, accounting services, and conducting an analysis of key factors influencing the choice of the enterprise's legal structure.

Overview of the economic situation and business environment of Greece

Over the past few years, Greece has managed to reaffirm its role as a significant economic hub in Europe, demonstrating resilient recovery and growth post-financial crisis. The country's economy exhibited a GDP expansion of 1.2% in 2023, marking a substantial achievement compared to other European states. The steady amelioration of the economic climate has contributed to enhancing Greece's appeal for business initiation.

According to the latest governmental reforms, the processes of company registration in Greece have been significantly streamlined through the transition to electronic document management. Such changes enable entrepreneurs to reduce temporal and financial expenditures on administrative procedures.

While Greece's tax legislation poses a complex framework, the country offers various tax incentives facilitating more advantageous business operations. Since 2021, the corporate tax rate has been reduced to 22%, enhancing Greece's competitiveness at the European level. Moreover, proposed incentives for investments in key economic sectors render the country attractive to foreign investors and entrepreneurs. Further, bolstering its allure are its stable political landscape and market liberalization policies, stimulating the influx of foreign investments.

Benefits of Greece's EU and European Monetary Union membership for business

Membership of Greece in the European Union (EU) and the European Monetary Union (EMU) provides companies with unique advantages that significantly impact the economic, trade, and legal conditions of conducting business. These advantages contribute to the creation of a stable and predictable business environment, which is particularly important for those considering registering an enterprise in Greece.

One of the key facets of Greece's membership in these organizations is the utilization of the common currency, the euro, thereby mitigating currency risks in cross-border operations within the eurozone. This facilitates financial planning and reduces costs associated with currency exchange, rendering transactions more straightforward and cost-effective. Additionally, Greece receives significant financial support through EU structural and recovery funds, enabling the financing of a wide array of projects aimed at infrastructure modernization and innovation stimulation.

In terms of legal and regulatory aspects, organizations operating in Greece are subject to the protection of unified EU legislation. This ensures transparency and predictability in business practice, as well as safeguarding investments through stringent norms and regulations aimed at protecting foreign investors. Membership in the EU and the EMU also guarantees access to an extensive labor market, enabling companies to easily source qualified professionals from various EU countries.

Legal framework and government regulation of business in Greece

The legal regime in Greece provides a robust and structured framework for those wishing to establish a company in the country. The Companies Law (Ο περί Εταιρειών Νόμος ‒ ΚΕΦ.113) serves as the primary legislative instrument governing the operations of enterprises within this jurisdiction. This law establishes the legal framework for corporate entities, including requirements for articles of incorporation, management, financial reporting, and dissolution.

Management of companies and their registration in the State Register

The management of companies and the General Commercial Registry (Γενικό Εμπορικό Μητρώο) in Greece occupies a central position in the procedure related to the registration and administration of business. Anyone planning to establish an enterprise in Greece must undergo all registration stages in the respective registry.

All information entered into the State Register is deemed public and accessible for viewing through the official registry website. This encompasses data pertaining to a company's legal address, its leadership, as well as any alterations to its founding documents or management structure. Public access to this information ensures transparency in corporate operations and fosters trust between businesses and society.

Companies are required to regularly update information in the registry, particularly in cases of amendments to founding documents, changes of directors, or address. Failure to comply with these requirements may result in penalties and other legal consequences.

Identification of promising sectors for starting a business in Greece

When considering the prospect of establishing a firm in Greece, it is prudent to select a sector that not only promises profitability but is also bolstered by governmental support and aligned with the economic landscape of the country. The following are key sectors presenting significant opportunities for firm establishment in this nation.

Agriculture and agribusiness

Despite the reduction in the share of agriculture in Greece's GDP to 3.8%, this sector remains pivotal to the economy. Greece is renowned for its high-quality agrarian products such as olive oil, tobacco, and cotton. Establishing a company in Greece within the agribusiness sphere could prove promising, given the significant expanses of agricultural land and the developed infrastructure for cultivation and processing. Additionally, coastal regions boast a well-developed aquaculture sector, offering opportunities for fisheries and marine cultivation activities.

Industry and manufacturing

The industrial sector holds a significant share in Greece's economy, offering opportunities in key areas such as electronics manufacturing, construction, and garment production. Establishing an enterprise in manufacturing within Greece's jurisdiction could prove advantageous, particularly given the availability of skilled labor and developed infrastructure. Furthermore, Greece boasts the world's largest merchant fleet, thereby creating additional prospects in shipbuilding and maritime vessel servicing.

Services sector

The service sector predominates in the economy of Greece, with tourism standing out as particularly noteworthy, making a substantial contribution to the country's GDP. Commencing a business in Greece within the tourism sector may prove particularly enticing, given the sustained growth in international visitors and high demand for tourism and hospitality services. This sector presents numerous niches, including hotels, restaurants, touristic excursions, transportation services, as well as the organization of cultural and historical tours.

Renewable energy

Greece is actively advancing its renewable energy sector, encompassing solar, wind, and hydroelectric power. The pursuit of sustainable development and reduction of dependency on fossil fuels present numerous investment opportunities in energy production, energy efficiency projects, and the development of new technologies.

Transport and logistic

Due to its strategic location, Greece has emerged as a pivotal transportation and logistical hub bridging Africa, Asia, and Europe. Investments in logistical infrastructure and transportation services, particularly maritime and aviation transport, represent significant potential for Greek enterprises.

IT developments and digitalization strategies

The sphere of IT technologies in Greece is experiencing vigorous growth, particularly in areas such as software, web development, and digital services. There is noted active development of the startup ecosystem, supported by both domestic and international investments.

Health system and pharmaceutical sector

The healthcare sector represents yet another pivotal area for investment, particularly in the context of Europe's aging population and increased demand for medical services. Greece boasts robust positions in pharmaceutical production and exports, as well as in the provision of healthcare services.

Education and training

The education sector also holds significant interest, particularly in light of the increasing number of international students and the necessity for continuous professional development. Establishing an organization in Greece offering educational courses, vocational training, or distance learning would be highly advantageous in the current educational climate.

Each of the mentioned sectors possesses unique characteristics necessitating in-depth scrutiny of market conditions and meticulous preparation prior to commencing the enterprise registration process in Greece. Analyzing these opportunities in conjunction with familiarity with local legislative acts and cultural nuances can significantly enhance the likelihood of success.

Review of the best Greek cities to start a business

Greece provides a wide array of opportunities for company owners aiming to register their organization. Different cities offer distinct benefits and specialize in specific sectors, making them ideal locations for business establishment and development.

Athens

The capital and largest city of Greece, Athens, serves as the focal point of the country's economic activity, boasting a rich infrastructure, access to skilled labor resources, and the largest consumer market in the nation.

• Sectors for investment: information technology, financial services, tourism, real estate and transport.
• Features: the presence of many research institutions and universities creates favorable conditions for innovative start-ups and research projects. Developed infrastructure and an international airport facilitate logistics and access to international markets.

Thessaloniki

The second in size city in Greece, Thessaloniki, renowned for its industrial activity, serves as a pivotal commercial port.

• Sectors for investment: manufacturing, exports, agribusiness, and transport services.
• Features: Thessaloniki's geographical location makes it a strategic hub for trade between Europe and Asia. The city is also actively developing the technology sector, attracting investment in innovative industrial parks.

Volos

Identified as a significant industrial and commercial hub, Volos situated at the heart of Greece.

• Sectors for investment: logistics, manufacturing and commerce.
• Main advantages: thanks to its convenient maritime location and developed transport infrastructure, Volos is an ideal place to register businesses engaged in foreign trade.

Heraklion

Heraklion in Crete stands as the foremost urban center and economic hub of the island, drawing visitors with its array of historical landmarks and picturesque vistas.

• Sectors for investment: tourism, agriculture, and food and beverage production.
• Features: Heraklion provides excellent prospects for tourism businesses, including hotel, restaurant and entertainment services. The city is also a hub for agri-tech thanks to the island's rich agricultural heritage.

Patras

Patras, situated on the Peloponnesian peninsula, are renowned for their port and industrial activities.

• Sectors for investment: manufacturing, energy, and high-tech industries.
• Features: the city has a well-developed industrial base and offers manufacturing opportunities, especially in the electronics and energy technology sectors.

The selection of a city for establishing a company in Greece should be based on a meticulous analysis of the target market, the availability of resources, and opportunities for trade. Each city presents unique opportunities and is capable of supporting diverse business directions, depending on sectoral specialization and commercial strategy.

Forms of legal entities in Greece

In Greece, several types of legal forms of organizations operate, each characterized by specific requirements for founding documents, management structure, and authorized capital. Let's examine each type in more detail.

Limited Liability Company (Εταιρεία με Περιορισμένη Ευθύνη, EPE)

Peculiarities	A limited liability company is suitable for running small and medium-sized businesses in Greece. This is a type of organization where the responsibility of the members is limited to their contributions.
Requirements	The minimum required authorized capital to create an LLC is 4,500 EUR. It is necessary to draw up a memorandum of association and articles of association, which must be certified by a notary.
Corporate structure	Management is carried out by one or more directors who are appointed by the meeting of participants.

Joint-Stock Company (Ανώνυμη Εταιρεία, AE)

Peculiarities	JSC is suitable for large enterprises in Greece and is often used for companies planning to issue securities.
Requirements	The minimum statutory capital for a JSC amounts to 25,000 EUR. The founding documents include the company's articles of association, which must be notarized and registered in the commercial register.
Corporate structure	Management is conducted by a board of directors elected by shareholders. The company must also engage an auditor to verify financial statements.

General partnership (Ομόρρυθμη Εταιρεία, OE)

Peculiarities	Suitable for small companies where participants (partners) have joint unlimited liability for the obligations of the company.
Requirements	The authorized capital is not required. A partnership agreement is necessary, which is registered in the local trade registry.
Corporate structure	All partners shall have the right to participate in the management of the company unless otherwise specified in the partnership agreement.

Limited partnership (Ετερόρρυθμη Εταιρεία, EE)

Peculiarities	Combines elements of both full and limited partnerships. One or more participants bear unlimited liability, while the remaining participants have limited liability.
Requirements	No authorized capital is required. It is necessary to conclude an agreement between the participants, which must be registered.
Corporate structure	Management is conducted by unlimited liability general partners, while limited partners do not participate in management.

Private company (Ιδιωτικής Εταιρείας, IKE)

Peculiarities	IKE is a relatively recent legal entity form in Greece, offering flexibility and minimal requirements for its share capital. It operates on a temporary basis, albeit with the possibility of extension.
Requirements	The statutory fund amounts to a mere 1 EUR. The founding documents, comprising the articles of association and the resolution of establishment, are to be registered in the commercial registry. The company is obligated to establish a website.
Corporate structure	Management can be carried out by one or more managers, who can be either participants or third parties.

Branches of foreign companies

Peculiarities	Branches enable foreign enterprises to operate within the territory of Greece without establishing a separate legal entity.
Requirements	You need to open a branch in Greece, providing documents on the establishment of the parent company and a decision to create a branch.
Corporate structure	The branch is managed by representatives appointed by the parent company.

The choice of legal entity model for establishing a company in Greece depends on a number of factors, including the size of the business, management plans, and financial goals. Understanding the requirements and characteristics of each form will help you make the right decision when launching a business in Greece.

Company registration process in Greece

The incorporation of a business in Greece entails a series of sequential phases, beginning with the selection of the appropriate legal structure and culminating in registration with the relevant government agencies. This comprehensive guide delineates each step within the process.

Step 1: Selection of organizational legal form

As a first step, it's crucial to identify the optimal business vehicle that aligns with your strategic objectives. Each structure possesses distinct features and benchmarks concerning the authorized capital amount, foundational documents, and governance framework. We've already outlined the available legal structures for operating a business in Greece within the preceding section.

Step 2: Selecting and reserving a business name

Prior to the incorporation of a company, the selection and verification of a unique business moniker is imperative in Greece. This process can be facilitated through the online portal of the Hellenic Chamber of Commerce and Industry, or alternatively, undertaken in person at their physical location. Following the successful confirmation of exclusivity, the designation should be secured to preclude third-party utilization.

Step 3: Preparation and certification of constituent documents

Depending on the type of legal entity, it is necessary to prepare the corresponding constituent documents (charter, memorandum of association), which must be notarized. For joint-stock companies, the documents must also include the company's bylaws.

Step 4: Opening a bank account and crediting authorized capital

Prior to commencing the establishment of an organization in Greece, it is imperative to inaugurate a bank account in the name of the prospective company and deposit therein the statutory capital, the magnitude of which is determined contingent upon the chosen legal form of the entity. Subsequent to capital infusion, the bank shall furnish a corroborative certificate requisite for ensuing registration.

Step 5: Registration in the State Register (GEMI)

The next stage involves the submission of all foundational documents and certificates regarding the contribution of the share capital to the Greek State Commercial Registry (GEMI). This process culminates in the acquisition of registration and tax identification numbers (AFM).

Upon completion of all specified steps and adherence to requisite procedures for obtaining relevant documents and licenses, the company may commence its operational activities in Greece.

The official registration of a company in Greece typically takes approximately four to six weeks, whereas IKE can be established in just one week. However, should special licenses or other complexities arise, the process may extend to several months.

List of documents for establishing a company in Greece

A number of paperwork must be prepared and submitted in order for a corporation to be established in Greece. These documents are specific to the legal structure that the firm has selected, however almost all company kinds must comply with the same standards.

Common documents for all types of companies:

• Application for registration: a standard form submitted to GEMI, containing basic information about the enterprise.
• Constituent documentation:
  • The charter of the enterprise (for JSC, LLC, IKE): a document embodying the fundamental provisions regarding the structure and operation of the company, encompassing the designation, address, scope of activities, information about executives, and shareholders.
  • Founding agreement (for partnerships): an accord between partners delineating their interrelations, duties, and entitlements.
• Certificate of contribution of authorized capital: a document from the bank confirming the payment of authorized capital to a bank account specially opened for this purpose.
• A document confirming the company's legal address in Greece. This could be a lease or ownership agreement.
• Copies of passports of founders: for foreign citizens, copies of passports of all founders and directors of the company are required.
• Certificate of no criminal record: required for foreign directors or founders to confirm their right to hold positions in the organization.

For branches of foreign enterprises, you will additionally need:

• Decision to establish a branch: the decision of the parent company to establish a branch in Greece.
• Legalized copies of the constituent documentation of the parent company: these documents must be translated into Greek and certified in accordance with the requirements of international legalization (apostille or consular legalization).

Licensing of companies in Greece: industry specifics and mandatory conditions

Obtaining a license constitutes a pivotal step in registering an enterprise in Greece, particularly within sectors subject to stringent regulations and conformity standards. Depending on the field of activity, the conditions for license issuance may significantly vary. Below are the primary aspects and criteria for licensing across various sectors of the Greek economy.

Catering and hospitality sector

The initiation of operations for a restaurant, café, or hotel in Greece necessitates the obligatory acquisition of a series of specific licenses and permits, encompassing:

• Sanitary-epidemiological certificate (Υγειονομική Άδεια): issued by local health authorities after checking the compliance of the premises with established sanitary standards.
• License for the sale of alcohol and tobacco: required for establishments that plan to sell alcoholic beverages and tobacco products.
• Operating permit from the fire service (Πυροσβεστική Άδεια): required to confirm compliance with fire safety measures.

Construction and real estate

Greek companies involved in construction or large infrastructure projects must obtain the following licenses:

• Construction license (Οικοδομική Άδεια): issued by local building authorities upon submission of design documentation and construction plans.
• Land use license: required to confirm the right to use a land plot for specific purposes.

Manufacturing and industry

Manufacturing facilities must meet strict environmental and technical standards, which requires:

• Environmental license (Περιβαλλοντική Άδεια): confirms that the activities of the enterprise will not have a negative impact on nature.
• Industrial equipment license: required to operate specific types of machinery and equipment that pose a safety risk.

Transport

Organizations in Greece providing transport services must have the following permits:

• License for transportation of passengers or cargo: it encompasses rights for both international and domestic transportation.
• License for operation of transport vehicles: required for conducting commercial activities utilizing transport vehicles and issued by the respective transportation authorities.

Healthcare and Pharmaceutical Industry

To start operating medical institutions or pharmaceutical enterprises in Greece, specific licenses are required:

• License for medical practice: for medical clinics and private practitioners, confirming the right to provide medical services.
• Pharmaceutical license: required for the production and sale of pharmaceutical products, issued based on verification of compliance of production processes and premises with established standards.

Energy

Businesses operating in the energy sector, especially in the field of renewable energy, must obtain a number of licenses:

• Energy production license: for companies engaged in the production of electricity from renewable sources.
• Energy distribution and supply license: required for transporting and selling electricity to end consumers.

Process of obtaining licenses

To obtain any of the mentioned licenses, it is necessary to provide relevant documents confirming the compliance of the company’s activities and premises with the requirements of state standards and regulations.

The process may include:

1. Submitting an application: to the relevant official institution with the necessary documents.
2. Inspections and Audits: certain activities require inspections and audits prior to the issuance of a license.
3. Payment of state fee: a state fee is charged for processing the application and issuing a license.
4. Obtaining a license: after successfully passing all checks and approval of the application, the company in Greece receives a license, which often requires regular renewal or confirmation of compliance.

The establishment of a business and acquisition of relevant permits in Greece necessitate meticulous examination and comprehension of the country's laws and regulations. For this reason, we strongly advise entrepreneurs to seek consultations from specialists at TK DEAL, a company providing comprehensive support at all stages of business development.

Accounting and tax responsibilities for organizations in Greece

For organizations officially registered in Greece, it is critically important to possess profound knowledge of tax and accounting procedures in order to comply with legislative requirements and effectively manage their finances.

Tax rates

• Corporate tax. Greece has a standard corporate tax rate of 22%, which applies to income earned by both local and foreign companies through operations carried out within the country.
• VAT. The basic VAT rate in Greece is 24%, but for some categories of goods and services, such as medical services and food, exemptions and reduced rates are available.
• Tax on dividends. Dividends are taxed when they are distributed among company shareholders. In Greece, the tax rate on dividends for individuals is 5%, for legal entities - 10%. In some situations, an exemption from this tax may be available, which may be beneficial for businesses.

Accounting and financial reporting obligations

When establishing a company in Greece, it is imperative to bear in mind the mandatory requirement for maintaining accounting records and submitting reports on the financial position of the enterprise. These procedures entail not only compliance with the country's accounting standards but also the provision of various financial statements regarding the company's operations.

The reporting must adhere to the requirements of the National Registry of Accounting and Auditing Profession, encompassing the preparation of balance sheet, profit and loss statement, as well as other requisite financial documents.Furthermore, companies are obligated to submit their financial statements to the Hellenic Statistical Authority (ΕΛΣΤΑΤ) and other entities responsible for taxation and statistics.

Banking services for corporate clients in Greece

Greece provides an extensive array of banking services aimed at meeting various corporate financial needs. In this section, we will overview the leading banks offering services to corporate clients and examine the process of establishing a business account in the country.

Main banks in Greece:

• National Bank of Greece (NBG). As the largest bank in the country, it provides a variety of business services, including lending, cash management, cash flow management and trading.
• Piraeus Bank. It is the second largest in the country and specializes in financial services for businesses, such as lending, asset management and trading.
• Alpha Bank. This large bank offers comprehensive financial services to corporate clients, including lending, investment opportunities and risk management.
• Eurobank. Focuses on providing business services such as loans, liquidity management, investments and international transactions.

Opening a business account:

1. Selecting a bank. Choose the bank that best suits your business needs and offers the services you need.
2. Preparation of documents. Prepare the necessary documents, such as company incorporation documents, identification of directors and beneficiaries, and documents confirming the address of the business.
3. Application. Contact your chosen bank and fill out an application to open a business account. This can usually be done online or in person at a bank branch.
4. Verification and approval. The bank will check the documents provided and, if everything is in order, will issue permission to open a business account.
5. Making an initial deposit. You may need to make an initial deposit into your business account as required by your chosen bank.

Setting up a business account in Greece is usually a fairly straightforward process and can be completed in no time, provided all the required paperwork is in place.

Main reasons for establishing a company in Greece

Greece presents a plethora of enticing prospects for founding a corporation within its territory. Below are the key facets rendering Greece attractive for entrepreneurship.

Reduced corporate taxation and fiscal encouragements

One of Greece's main draws for companies thinking about incorporating is its advantageous corporate tax environment. With the reduction of this rate to 22% as of 2021, Greece now has one of the most competitive tax obligations in the EU. These tax rate reductions help businesses increase their bottom line and speed up the process of reallocating cash for new company ventures.

Moreover, Greece boasts a comprehensive array of tax advantages and inducements designed to catalyze investment in targeted sectors and geographical areas. This encompasses diminished tax levies, investment tax credits, and allocations for R&D activities. These initiatives serve to further enhance the attractiveness of incorporating a business entity in Greece for foreign investors.

Top-notch logistics and communication infrastructure

Thanks to its positioning at the intersection of Europe, Asia, and Africa, Greece presents distinctive logistical advantages. The country boasts a well-developed infrastructure of seaports, including the Port of Piraeus, one of the largest in Europe, facilitating efficient cargo handling and streamlining international trade.

Additionally, Greece has allocated substantial funds towards the enhancement of its transportation infrastructure, encompassing roadways and railway lines, thereby augmenting internal mobility and accessibility. Advanced information and communication technology further buttresses business activity by furnishing reliable communication and data tools for enterprises.

Liberal regulatory environment and investment privileges

Greece is well known for its laissez-faire economic policies, which simplify business registration and reduce red tape. In an effort to improve the business environment, the government has instituted a number of measures, such as shortening the time needed to register a Greek firm and cutting back on administrative costs.

Investors opting for Greece as the base for their firm may also avail various investment privileges such as grants for startups, financial support for staff training, and compensations for investments in specific economic zones.

Further motivations for enrolling a business in Greece

Greece presents a burgeoning market with high consumption prospects, driven by both the local population and millions of annual tourists. These conditions are ideally suited for business development in the sectors of tourism, hospitality, retail, and service provision.

Additionally, Greece provides a high standard of living, boasts a rich cultural heritage, and picturesque natural landscapes, making it attractive not only for conducting business but also for residency. These aspects, combined with favorable tax policies and logistical advantages, make Greece an excellent choice for those seeking to expand their business on an international scale.

Conclusion

Establishing a business presence in Greece unlocks a gateway to substantial commercial opportunities within this strategically positioned region. Boasting a robust economy, conducive regulatory landscape, and seamless access to the European marketplace, Greece emerges as a compelling destination for enterprising ventures. Capitalizing on its advantageous geographical position and diversified economic sectors, Greece presents unique propositions for the cultivation of a multitude of business endeavors.