Greece, with its rich history, vibrant culture, and strategic location at the crossroads of Europe, Asia, and Africa, offers numerous opportunities for entrepreneurs looking to start a business. Whether you’re drawn to Greece’s tourism industry, tech startups, or traditional sectors like agriculture and food production, establishing a business here can be a rewarding venture. However, navigating the Greek bureaucratic system can be challenging for newcomers. This step-by-step guide will walk you through everything you need to know to successfully start a business in Greece.
1. Research and Plan Your Business
Before diving into the legalities, it’s crucial to conduct thorough research and create a solid business plan.
a. Identify Your Niche
- Consider Greece’s key industries: tourism, shipping, agriculture, technology, and renewable energy.
- Assess market demand, competition, and potential customers.
- Decide whether your business will cater to locals, tourists, or international markets.
b. Write a Business Plan
- Outline your business idea, target audience, marketing strategy, and financial projections.
- Include details on funding sources, operational costs, and expected revenue.
Pro Tip: If you’re unfamiliar with the Greek market, consider consulting with local experts or hiring a business advisor.
2. Choose a Legal Structure for Your Business
The type of business entity you choose will affect your taxes, liability, and administrative obligations. Common legal structures in Greece include:
a. Sole Proprietorship (Monosofistikí Etería)
- Ideal for small-scale businesses.
- Owner has full control but is personally liable for debts.
b. Partnership (Etairía Symmetochón)
- Suitable for businesses with multiple partners.
- Partners share profits, losses, and liabilities.
c. Limited Liability Company (Etería Periorisménis Efthínis – EPE)
- Most popular choice for small to medium-sized businesses.
- Owners have limited liability, protecting personal assets.
d. Société Anonyme (Anónymi Etería – AE)
- Best for larger businesses requiring significant capital.
- Requires a minimum share capital of €60,000.
e. Branch Office or Representative Office
- For foreign companies expanding into Greece.
- Must comply with Greek corporate laws.
3. Register Your Business Name
Once you’ve chosen a legal structure, the next step is to register your business name.
Steps:
- Ensure your desired name is unique by checking the General Commercial Registry (GEMI) .
- Submit an application to reserve your business name.
- Pay the registration fee (approximately €50).
Note: The name must not infringe on existing trademarks or businesses.
4. Obtain a Tax Identification Number (AFM)
Every business in Greece needs a Tax Identification Number (AFM). This number is essential for all financial transactions, including opening a bank account and filing taxes.
Steps:
- Visit a local tax office (DOY – Dimosia Oikonomiki Ypiresia).
- Provide proof of identity (passport or ID card) and residency.
- Complete the necessary forms.
5. Register with the Greek Chamber of Commerce (KEP)
To operate legally, your business must be registered with the Greek Chamber of Commerce or the relevant professional association.
Steps:
- Submit your business registration documents.
- Pay the applicable fees (varies depending on the type of business).
- Receive your registration certificate.
6. Open a Business Bank Account
Opening a business bank account is mandatory for managing finances and paying taxes.
Required Documents:
- Business registration certificate
- Tax Identification Number (AFM)
- Proof of address
- Articles of incorporation (if applicable)
Pro Tip: Compare banks to find one that offers services tailored to your business needs, such as online banking and international transfers.
7. Register for Social Security and Employee Contributions
If you plan to hire employees, you’ll need to register with the Social Insurance Institute (IKA) and contribute to social security.
Steps:
- Obtain an AMKA (social security number) for yourself and your employees.
- Register with IKA to handle payroll deductions and contributions.
Note: Self-employed individuals must also contribute to social security.
8. Apply for Necessary Licenses and Permits
Depending on your industry, you may need specific licenses or permits to operate legally.
Examples:
- Food and Beverage : Health and safety permits from local authorities.
- Construction : Building permits and environmental approvals.
- Tourism : Operating licenses for hotels, tour operators, etc.
Check with local municipalities or industry-specific regulators for requirements.
9. Comply with Tax Obligations
Greece has a complex tax system, so understanding your obligations is crucial.
Key Taxes:
- Corporate Income Tax : 24% for most businesses (reduced rates for startups in certain sectors).
- VAT : Standard rate is 24%, with reduced rates of 13% and 6% for specific goods/services.
- Payroll Taxes : Employers contribute approximately 25% of employee salaries to social security.
Filing Deadlines:
- Annual tax returns are due by June 30th.
- VAT filings are typically quarterly.
Consider hiring an accountant to ensure compliance and optimize your tax strategy.
10. Promote Your Business
Once your business is up and running, focus on marketing and building a customer base.
Marketing Strategies:
- Leverage social media platforms like Instagram and Facebook to reach local and international audiences.
- Partner with local influencers or organizations to increase visibility.
- Attend trade shows and networking events to connect with other entrepreneurs.
11. Stay Updated on Regulations
Greece’s regulatory environment can change frequently, especially regarding taxation and labor laws. Stay informed by subscribing to updates from government websites or joining local business associations.
12. Explore Incentives for Startups
Greece offers several incentives to attract foreign investment and support entrepreneurship:
- Startup Visa Program : Allows non-EU entrepreneurs to establish innovative startups in Greece.
- Tax Breaks : Reduced corporate tax rates for new businesses in specific regions or sectors.
- EU Funding : Access grants and subsidies from European Union programs.
