Greece Company Formation

Setting up a company in Greece provides foreign investors with efficient international scaling and tax planning opportunities for their business. Greece is a country in the Balkans, located in Southeastern Europe. The Hellenic Republic is classified as an advanced economy with a high Human Development Index ranking. It offers access to fast-growing and established regional markets, being a gateway to over 140 million consumers in the Eastern Mediterranean and Southeastern Europe.

Among the many countries that are part of the EU and the Schengen Agreement, Greece stands out for its wide opportunities for starting your own business and less strict control by inspection bodies.

In view of this, it is becoming more and more popular every year among businessmen and business people who choose business in Greece as their field of activity – over the past five years, the number of new companies and enterprises opened by foreigners has shown a steady growth, although with a slight slowdown after the end of the financial and economic crisis.

Business in Greece can be divided into four conditional types, which include:

• investments in the amount of 60 thousand euros, which is usually enough to buy a small local company or open your own;
• investments in the amount of 25 thousand euros plus an authorized capital of 4,500 euros to open a Russian analogue of an LLC;
• opening your own business if you have sufficient funds for registration and registration as an individual entrepreneur;
• investments of 300 thousand euros under the Golden Visa program in Greece, although in this case you can get by with buying real estate for 250 thousand euros or investing in shares and bonds from 400 thousand euros. However, this can no longer be considered a business in its pure form.

What are the main types of Greek companies?

 The Greek Company Law describes several ways to set up a business and provides for the following main types of legal entities that can be registered in this country:

• Limited Liability Corporation (EPE);
• A Joint Stock Company (AE);
• Partnerships (General (OE) and Limited (EE) Partnerships);
• Branch/Representative Office;
• Private Equity Company (IKE).

Each of these business forms has its own advantages and disadvantages. The scope of business activities, the requirements for registering a company in Greece for each type of legal entity and the minimum capital requirements also differ. In most cases, this will depend on the planned business activity.

Incorporating a Limited Liability Company in Greece

A Limited Liability Corporation or EPE is the most common corporate vehicle used by entrepreneurs setting up small and medium-sized businesses in the Hellenic Republic.

To register a limited liability company in Greece, a minimum of 1 shareholder and 1 director are required, who can be an individual or a legal entity of any nationality. The shareholder and director do not have to be residents of this country.

To complete the establishment of an EPE, a minimum initial capital of €4,500 is also required. At least half of this amount must be paid upon registration. An external auditor must be appointed for the EPE if two of the following requirements are met:

the company’s annual turnover exceeds €5 million;

the company’s total assets exceed €2.5 million;

the company has an average of 50 employees during the financial year.

A general meeting of shareholders must be held within 6 months of the end of the tax year to approve the financial statements.

Incorporation of a Joint Stock Company in Greece

Foreign investors who are interested in running a large business can register an AE in Greece. To do this, at least 1 shareholder and 3 directors must be appointed in the company’s structure, who can be either private or corporate persons. The shareholder and directors can be of any nationality and do not have to be residents of the Republic. This legal entity requires a minimum share capital of €60,000, which must be fully paid within 2 months of the opening of the business. An AE is also required by law to appoint an external auditor.

Greek Private Equity Company (IKE)

Like an EPE, an IKE can be registered with 1 shareholder and 1 director, both of whom can be non-residents. However, to register an IKE in Greece, a minimum capital of only €1 is required. Please note that an IKE can only be registered for a specific period, which can be specified in the M&AA. If no specific period is specified in the document, the duration of such a company is usually 12 years, after which the shareholders must apply for an extension.

Establishing a Partnership in Greece

General Partnership (OE). This partnership consists of at least two partners whose liability is unlimited. The biggest advantage of an OE is that no minimum capital is required. If agreed in the Articles of Association, the partners can decide who will be responsible for the management of the partnership and agree on how losses and profits will be divided. If the agreement does not contain this information, the partners will be equally responsible for the management decision and will share profits and losses.

Reasons to register your company in Greece

• Easy Access To The Markets. The country’s strategic location at the crossroads of Europe, Africa and Asia.
• Growing Industries In Greece
• Taxation Advantages
• Favorable Investment Incentives.

  The Greek government offers investment incentives to promote regional development, environmental protection and energy efficiency initiatives. The scale of the incentives varies by industry and location, but typically includes grants, interest subsidies or tax breaks.

• Extremely Qualified Workforce

• Excellent Banking Service.The Greek banking sector has expanded in recent years. Investors can choose from a range of private and public banking services, including venture capital and start-up financing.
• Low Labor Expense.Highly educated, skilled workforce. Labor costs in the country are relatively low.
• Greece offers quality logistics and communications infrastructure.
• The country is a member of the European Union (EU), so registering a Greek company allows you to enjoy the same trade benefits as companies incorporated in other EU countries.