Doing Business in Greece
After a prolonged period of economic contraction, Greece has undergone significant reforms to set its economy on a steady and sustainable path of economic growth. In this context, Greece has emerged as an attractive destination for investments in a diverse economic landscape.
The political leadership in the post-crisis era has made significant efforts to simplify the procedures for establishing and, to a large extent, it has been successful in doing so. This, in fact, is reflected in World Bank – Ease of Doing Business Rankings, where Greece has increased its rank significantly in the past few years. Nevertheless, a substantial amount of work remains to be done and further improvements are expected in the near future.
Full Digitization of the Registration Process
One of the most important steps taken to improve the business landscape in Greece was the full digitization of the corporate registration procedure. In the vast majority of cases, the full registration process is completed online, by submitting the relevant information on the appropriate application of the Greek General Commercial Registry (GEMI).
As a result, the full spectrum of the process, ranging from the pre-aurhotization of the trade name to the issuance of a Tax Identification Number (TIN or AFM) for the newly formed entity can be completed online and generally in a short period of time, without the need to submit physical documents.
Exceptions may apply in cases where real assets are contributed to form the initial capital of the newly established corporate entity. If that is the case, the registration process may need to run through a public notary.
Despite the full digitization of the registration process, it is crucial to always receive accurate and up-to-date legal input prior to establishing the entity. Contact us if you wish to connect with highly skilled corporate lawyers in Greece, offering the most competitive fee quotes.
The Available Legal Types in Greece
- Societe Anonyme (S.A., Anonimi Eteria):
Societe Anonyme, as governed by Greek Law No. 4548/2018, is a limited liability company with at least one shareholder and a minimum share capital of EUR 25,000, which shall be paid in full upon the registration of the company. The day-to-day operation of a Societe Anonyme is handled by the company’s Board of Directors (BoD), which consists of at least three members. The shareholders vote for crucial decisions in the company’s general assembly, meeting at least once a year (regular general meeting).
This type legal entity is generally oriented towards larger corporations, planning to have an expanded business footprint in the country, or even abroad. It is worth noting that S.A. entities with a capital of at least EUR 3M are – in principle – eligible to being admitted to the Athens Stock Exchange for trading.
In establishing a Societe Anonyme, it is very crucial to properly draft its Articles of Association, by making sure all the necessary provisions and safeguards are included. Contact us to get a competitive, all-inclusive fee quote, for establishing an S.A. and preparing the appropriate Articles of Association.
- Private Company by Shares (IKE)
As with the above-described S.A., IKE is a limited liability company with the key difference being the substantially lower initial share capital. IKE corporate entities can be established with a share capital of as little as EUR 1, or even in certain cases with no initial capital at all!
In forming the IKE, partners can contribute three types of assets: (1) cash (2) specific forms of legal obligations (3) guarantee contributions. In the vast majority of cases, partners prefer to contribute cash which is usually at or near the minimum level.
IKEs shall have at least one administrator, who manages and represents the entity. The partners shall meet at least once a year.
- Limited Liability Company (Eteria Periorismenis Efthinis, EPE)
EPE is similar to IKE and the former was popular before the introduction of the latter. The shareholders are not liable for the obligations of the company. The minimum share capital to establish an EPE is EUR 4,500 and, as a result, investors have no real incentives to choose EPE over IKE.
- General Partnership (Omorithmi Eteria, OE)
OE entities have a distinct legal personality and are formed by at least two “unlimited partners”. Unlike limited partners, unlimited partners are personally liable (without limitations) against the company’s obligations. The most crucial preparatory step in establishing an OE is the drafting of partners’ agreement. Contact us and we will connect you with top-notch legal experts, offering the most competitive fees.
In view of the fact that the assets of the company are not distinguished by the assets of the partners, there is no minimum capital required to establish a general partnership.
- Limited Partnership (Eterorithmi Eteria, EE)
EE entities are very similar to OE entities, with the difference that EE entities are formed by at least one “unlimited partner” and at least one “limited partner”.
What is the Cost of Establishing a Legal Entity in Greece?
The administrative cost of establishing a legal entity in Greece is in the area of EUR 300. Said fee includes the pre-authorization of the trade name and the incorporation procedure. Additional fees may apply for Societe Anonyme.
Prior to the registration of the entity it is crucial to obtain legal advice relating to the prospective establishment of the legal entity, the legal relationship between the partners/shareholders and whether any of the envisaged activities is regulated by Greek Law. Examples of heavily regulated activities include banking, payments and investments. Contact us if you wish to get in touch with an experienced legal professional, who will provide cost-effective guidance on all relevant topics.