Greece is one of the most corporate-friendly nations that attracts a lot of entrepreneurs from all over the world. Due to its affordable labor rates, advanced infrastructure, favorable taxation policies, and simple accessibility to markets, the country is a beautiful location for business incorporation. However, while incorporating a business, an entrepreneur must consider the cost of starting a business in Greece. The entrepreneur must have the required amount of capital to start a business in Greece.
The cost of starting a business in Greece as a foreigner depends on a variety of other variables, including the fees of the location of the registered office, filing tax returns, the requirement for a business bank account, etc.
In this article, the cost of starting a business in Greece will be briefly addressed.
Variables that influence the cost to start a business in Greece
There are many variables that influence how much it will cost to start a business in Greece as a foreigner, some of which are listed below:
- Fees for incorporating the business– The registration of a Private Company through the General Commercial Registry (GEMI) costs EUR 60 and through the online portal costs EUR 18.
- The expense for filing documentation– The fee for filing documents with the General Commercial Registry is €10
- Acquiring the registered office address– The fee for acquiring a registered office address is EUR 1,100 annually.
- Opening a business bank account– It is essential to open a business bank account for the firm where the minimum share capital can be deposited.
- Applying for business licenses– In order to conduct commercial operations in the country, various business license has to be acquired.
- Annual charge to keep the business account active– A yearly charge is required to keep the business account operational. The fee is €100 which is due within three months of the firm’s establishment.
Incorporation cost for starting a business in Greece as a foreigner
Any business in Greece must be registered with the General Commercial Registry (GEMI). However, for incorporating a company, the cost for starting a business in Greece as a foreigner must be paid.
Private companies must pay a fixed price of €60 to be incorporated for up to 10 stockholders. This amount is reduced by 70% to €18 if the business is incorporated digital platform. Along with that, the charge for submitting documents to the General Commercial Registry is €10.
There are various other costs for starting a business in Greece as a foreigner that must be considered such as the following:
- The Athens Chamber of Commerce charges a membership cost of €100 per year.
- Authentication of the trade name and distinguishing title at the national level costs €30.
- €100 each year, due within three months of the company’s formation, is the yearly charge to keep the business registration operational with the General Commercial Registry.
Tax authority registration cost to start a business in Greece
After forming a company in Greece, the business owner must register with the appropriate tax authority to get a Tax Identification Number and a VAT number. Starting a business in Greece also requires obtaining a Tax Identification Number (TIN).
Along with that, after incorporation, the business owner must enroll with the Social Security Organization (EFKA) in Greece. Normal EFKA costs are charged every month and begin at a minimum of 167 euros. A further EUR 111.10 is charged to enroll each extra Private Company (IKE) member.
The following is a list of taxes that businesspeople in Greece are required to pay.
- Corporate Income Tax: Except for financial companies, the corporate income tax rate for business organizations has been lowered to 22%.
- Value-added tax: In Greece, the normal VAT rate is 24%.
- Stamp taxes: Non-residential leases are subject to a 3.6% stamp duty, while loans and interest may be subject to a 2.4% stamp duty.
- Social Security contributions- Workers’ contributions are deducted at a rate of 13.87%, and employers pay at a rate of 22.29%.
Company seal cost to start a business in Greece
All corporate documents and records should be sealed prior to certification. The tax registration number and the name of the responsible tax department must also be included on the corporate seal. The expense of acquiring a corporate seal may cost approximately EUR 40.
Required share capital for businesses in Greece
In order to deposit the necessary capital to establish the various business formations, an entrepreneur must create a business bank account in Greece. The bank will additionally impose a specific amount of charges in order to keep the business bank account active.
Limited Liability Company- A Limited Liability Company (EPE) must be registered with at least EUR 4,500 in share capital.
Public Limited Company- A public limited corporation can be established with a minimum required capital of EUR 60,000.
Private Company- A private company requires a share capital of € 1.
Cost to start a business in Greece for various company types
When an entrepreneur decides to set up a company in Greece, the entrepreneur has to decide the business structure that he intends to establish and the cost associated with the business structure.
Private Company (IKE)
A private company’s formation typically costs €150, which covers the charges of business registration, fees for submitting documentation to GEMI, registering IKE with the Chamber of Commerce, and payment for the first year of membership with the Athens Chamber of Commerce.
Limited Liability Company (“EPE”)
A limited liability company (“EPE”) can be incorporated for about 70 euros, which comprises the business registration charges, and the chamber enrollment price which is based on the relevant Chamber.
Societe Anonyme (AE)
A Societe Anonyme (AE) can be established for about 70 euros. If there are greater than 3 founders, the price is raised by € 5 for each new founder. The expenses consist of a registration charge, a chamber enrollment charge based on the specific Chamber, and other necessary payments.
In addition to that the yearly VAT Return report, periodic VAT accounts, and yearly accounting records are all required to be filed by all organizations. Certain commercial organizations are obligated to conduct an annual statutory audit.
Conclusion
Greece is a good option for a business owner who wants to incorporate their firm in a new location. Greece is a nation in Southeast Europe that provides business owners with advantageous investment incentives, tax breaks, highly skilled labor, etc. However, before starting a business, the entrepreneur must consider the cost for starting a business in Greece as a foreigner.
This article discusses the overall cost to start a business in Greece. If you have any queries regarding the given topic, consult our professionals at Odint Consultancy. Our professionals will respond to any questions you may have.
