GREECE SETTING UP IN BUSINESS

Introduction

Greece has never been a particularly fashionable destination for foreign investors. The headline rate of corporation tax is relatively high, although it has fallen in recent years and is set to drop below 30% from 2006 onwards. However there are plenty of tax-efficient business opportunities if you know your way around. We know exactly where to look – so contact us to discuss our range of greek company formation services.

Why is this a good time to open a company in Greece?

	massive investment in infrastructure projects, largely financed by the EU
	economy strongly boosted by Olympic Games in 2004
	Greek consumer spending is higher per capita than any other EU member

What are the main types of Greek company?

There are four main forms of Greek business entity, and they are as follows:

	limited liability corporation (EPE)
	stock corporation (AE)
	partnerships
	branches

What are the main features of an EPE company?

	the minimum share capital for an EPE company is €18,000
	must be paid up at formation, at least half of it in cash
	the minimum number of shareholders is usually two
	popular format because of limited liability
	statutory financial reporting requirement

What are the main features of an AE company?

	the minimum share capital for an AE is €60,000
	the standard format for major public companies
	widely adopted by sole proprietors because of flexibility
	board of directors and auditors required

What are the main features of a partnership?

	available either as a general (OE) or limited (EE) partnership
	foreign investors tend to prefer limited-liability EE partnerships
	minimum of two partners, no minimum share capital required, but usually €1000
	much lower level of regulatory intervention

What are the main features of a branch?

	foreign parent must meet Greek share capital requirements
	foreign parent responsible for legal and tax affairs of branch
	branch required to register with Greek authorities
	minimum of one director; no formal accounting requirements
	must appoint a local representative who is jointly and severally liable for payment of taxation
	bank guarantee may also be required

How easy is it to recruit staff in Greece?

Greece has significant unemployment and labour costs are among the lowest in the EU. The workforce is well educated however and recruitment is straightforward. It is advisable to use a local recruitment agency so contact us for help with this.

What is the regulatory environment like?

The business environment in Greece is surprisingly liberal given the country’s reputation for bureaucracy. Regulatory standards are in line with other EU member states. There are no import restrictions or tariff barriers and capital and earnings can be freely repatriated. Greece has double taxation treaties with a number of other countries. Nonetheless it is important to note that Greek tax regulations are detailed, complex and change frequently, and it is therefore strongly advisable to consult a local specialist for tax planning.

Are there financial incentives available?

The Greek government continues to offer investment incentives to promote regional development, environmental protection and energy-efficient initiatives. The scale of the incentive depends on the industry and the location, but will typically involve grants, interest subsidies or tax allowances. There are special incentives for certain projects relating to mining and tourism.

And what about banking facilities?

The Greek banking sector has changed beyond recognition in recent years. It has expanded rapidly as a result of deregulation and merger activity. Investors can choose from a range of private and state banking facilities including venture capital and finance for new companies. Private banks may offer more flexibility than their state-owned counterparts. You will need to open a bank account in Greece, and we can advise you on this.

How can I get more information?

Our greek company formation service makes it easy for you to open a Greek company, so please contact us and we will be happy to help you.