Nature of business
The decision depends on planned business activities.
The amount of available capital
When establishing legal entities of certain types, the founder of a legal entity must have certain amount of the authorised capital.
Taxes
The amount of taxes directly depends on the form of activities a person has chosen.
The degree of personal liability
If a person intends to limit his liability for business failures with his personal or family property, he or she should choose a legal entity of limited civil liability.
The number of founders
If there are several or more interested persons wishing to jointly conduct business activities, they should establish a legal entity for these business activities.
The degree of complexity of business activities
For example, conducting individual activities is easier than having a company, because there is no management structure or need to perform other formalities necessary for legal entities.
Types of companies available in Greece
An individual business is the oldest and simplest form of business. It is founded and managed by one person, its founder. Its main advantage is the great flexibility in terms of business decisions related to the type of activity, the choice of technical methods, and, to some extent, the size of production.
The management of the limited liability company belongs to its general partners, who exercise it as well as to the general partnership. the limited partner may not perform any management operations or work on the company’s affairs personal company with a legal personality that pursues a commercial purpose. At least one of them is responsible for its debts, against corporate lenders.
PrivateCompany (IKE) was established in 2012 with law 4072/2012 and is still the most popular corporate form. Based on the official statistics of G.E.M.H., in 2018 55.34% of the companies that were established were IKE, one in two companies that are established is IKE. The reason for this found in the low cost of registering the company and the limited bureaucracy required.
A Limited Liability Company (Ltd. in Greek Legislation) (Mainly Law 3190/1955, Presidential Decree 419/1986) has the characteristics of a consortium and a company. It is a suitable form of organization for both small and medium-sized businesses. The personal responsibility of the partners is limited to the amount of their contribution.
A public limited company is a commercial company with a full legal personality with mandatory capital, which is divided into equal shares, shares. Club formation. The consequence of this feature is that its existence does not depend on fate and will of each shareholder individually. The management of the public limited company does not belong to the shareholders. He belongs to the board of directors appointed abstractly in the articles of association and is elected by the general assembly.
A “non-governmental organization” (NGO) is a legally constituted organization created by natural or legal persons operating independently of each government, and a term commonly used by governments to refer to persons not controlled by the government. The term is usually used only for organizations that pursue certain broader social goals. Nowadays based on society needs there has been a need for organizations that are being active in the third sector.
| Limited Company | Private Company | Sole-Individual business | NGO | |
|---|---|---|---|---|
| Persons Required for incorporation | 1+ | 1+ | 1 | 20 (For Union_ |
| Non residents may incorporate | + | + | + | + |
| The incorporated people are liable with own property | - | - | + | - |
| Subject to personal Income tax and MSSIC | - | - | + | - |
| Profit distribution | A part is paid as dividends | A part is paid as dividends | On the registered income | A part is paid as dividends |
| Management | Members of the Board/ Stakeholders | Members of the Board/ Stakeholders | The owner individual | Members of the Board/ Stakeholders |
| Notary fee and state for registration | 290 euros for Government Gazette and 372 for Chamber of Commerce | 41 euros for Chamber and 100 euros for YEMI | 60 euros for Chamber and 45 euros for YEMI | - |
Good Business Tip #4: don’t guess, better test
Info that was useful to others:
In Greece, as in all European countries, there is a list of professions that are regulated and recognized by European directives. Some examples of these are:
- Translators
- Lawyers
- Kindergarten School Teachers
- Electrical technicians
Register your company and its name at the Centre of Registers.
Employment procedure must be done according to the labour code. You need to take into account:
- Types of employment contracts
- Documents required for employment
- Content of an employment contract
- Termination/expiry of employment contract
- Working time (balance between rest time and working time)
- Wage (at least minimum wage)
Other relevant points that you can find in the labour code.
1
Foreign workers are required to have the proper visas and work permits in Greece, as established by immigration laws. Work permits must be secured for employees and sponsored by a locally licensed and incorporated entity, which can be a problem for companies just entering the Greek market.
2
Non-EEA nationals must obtain a work permit prior to the start of their employment activity in Greece.
3
Residence/work permits for non-EEA nationals are, however, very difficult to obtain for those who are not of Greek origin or not married to a Greek. Once separate permits, the residence permit, and the work permit are now all-in-one, meaning residence permits can include the right to work. It is not possible for a non-EU national to obtain a stand-alone work permit; permission to work is included in the residence permit.
4
Work permits in Greece are employer-specific (although there can be exceptions), occupation-specific, and location-specific, and are normally valid for one year.
5
A worker from a non-EU country must first obtain a visa to enter Greece and then apply for the residence/work permit once in Greece.