Types of Business Entities Available in Greece: Choosing the Right Structure

Introduction

Greece has become an increasingly attractive jurisdiction for company formation in recent years. Its strategic location at the crossroads of Europe, the Middle East and North Africa, EU membership, improving business infrastructure and a competitive corporate tax environment make it a compelling choice for investors and entrepreneurs. This guide explains the main types of business entities available in Greece, practical requirements for business registration, typical costs and timelines, and how to choose the right corporate structure for your activities.

Why choose Greece for company formation

Greece offers several advantages for new businesses and foreign investors:

• EU membership, access to the single market and EU legal protections.
• Strategic logistics hubs and ports, plus strong transport links to neighboring markets.
• Competitive operating costs relative to many Western European countries.
• A growing pool of skilled professionals, especially in tech, shipping and tourism.
• Government incentives and targeted programs to encourage investment and innovation.

The standard corporate tax rate varies depending on tax developments and incentives; as a practical reference the commonly applied statutory rate in recent years has been around 22% for most companies, though effective tax burdens can differ due to deductions, regional incentives and sector-specific relief. Typical setup time for a properly prepared incorporation in Greece is approximately 4–6 weeks, though faster registration is possible if all documentation is in order and local advisors are used.

Overview of company types in Greece

Choosing the right corporate structure depends on your risk profile, capital availability, governance preferences and tax planning. The main legal forms used in Greece are:

Sole trader (Individual enterprise / Sole proprietorship)

• Best for: small, single-owner businesses or freelancers.
• Liability: unlimited personal liability.
• Capital: no minimum capital requirement.
• Governance: operated by the individual; simpler accounting and tax reporting.
• Registration: tax authority (AFM), social security registration (EFKA) and local municipal licenses where applicable.
• Costs/timeline: minimal formation costs; can be registered quickly, often within days if documents are already available.

General Partnership (Omorrythmi Etaireia – OE)

• Best for: small businesses with active partners who accept joint liability.
• Liability: partners have unlimited and joint liability for company obligations.
• Capital: no statutory minimum.
• Governance: managed by partners under partnership agreement.
• Registration: registration with the General Commercial Registry (GEMI) and tax authorities.

Limited Partnership (Eterorythmi Etaireia – ETE)

• Best for: businesses seeking a mix of active partners (with unlimited liability) and limited partners (liability limited to capital contribution).
• Liability: at least one general partner with unlimited liability and one limited partner.
• Capital: no statutory minimum.
• Registration: GEMI and tax authority registration.

Private Company (Idiotiki Kefalaiouchiki Etaireia – IKE)

• Best for: SMEs and startups; the most popular form for new businesses due to flexibility.
• Liability: shareholders’ liability is limited to their contributions.
• Capital: no minimum capital required (can be formed with €1 share capital), though practical initial capital should cover operations and bank requirements.
• Governance: flexible shareholder agreement options; simple board requirements.
• Advantages: streamlined incorporation processes, modern corporate governance rules and capital contribution flexibility (cash or in kind).
• Registration: incorporation agreement (articles), registration with GEMI, tax registration and social security set-up.
• Costs/timeline: relatively low notary and registration fees; typical formation costs (legal/accounting) vary—see the practical costs section.

Limited Liability Company (Eteria Periorismenis Efthynis – EPE)

• Best for: small to medium businesses preferring a classical LLC model.
• Liability: limited to company assets.
• Capital: historically a minimum share capital requirement applies (commonly referenced around €4,500), but the IKE has largely superseded the EPE for new incorporations due to its flexibility.
• Governance: articles of association and statutory management rules.
• Registration: notarial deed and GEMI registration.

Société Anonyme (Anonymi Etaireia – AE)

• Best for: larger businesses, public or private companies that may seek external investors or listing.
• Liability: shareholders are liable only to the extent of their contribution.
• Capital: minimum share capital typically €25,000.
• Governance: more formal governance with board of directors, mandatory audits and shareholder meetings.
• Registration: formation requires a notarial deed, filing with GEMI and publication requirements (company details are published in the Government Gazette for AEs).
• Costs/timeline: higher formation and ongoing compliance costs; allow 4–6 weeks or longer for full set-up.

Branch of a foreign company and Representative office

• Branch: a branch of a foreign legal entity can conduct commercial activity in Greece but is not a separate legal entity. It requires registration with GEMI and submission of parent company documents (apostilled and translated) and appointment of a local representative.
• Representative office: limited to liaison, marketing and non-commercial activities; cannot enter into commercial transactions on behalf of the foreign parent.

Practical requirements and documents for company formation

Typical documents and steps for most company types include:

• Identification documents: passports or national IDs for all shareholders, directors and beneficial owners.
• Proof of address for each individual (utility bills, bank statement).
• Articles of association / incorporation agreement (company bylaws).
• Shareholder resolutions and appointment of directors/managers.
• Tax registration (AFM) for the company and for non-resident shareholders (tax representative required for non-EU residents in some cases).
• Bank certificate proving deposit of required share capital (for companies with minimum capital requirements such as AEs).
• Lease or title deed for the registered office address.
• For branches: certified and apostilled copies of parent company’s constitutional documents and board resolutions, translated into Greek.
• Power of attorney for local agents (if founders are not present in Greece).

All foreign documents typically need to be translated into Greek and legalized (apostille or consular legalization depending on origin). A local lawyer or incorporation service can handle these formalities and submission to the General Commercial Registry (GEMI).

Costs and timeline

Costs vary by company type and the level of professional assistance required. Typical cost elements:

• State and registration fees: relatively modest for IKE/sole trader registrations; higher for AE due to publication and notarial requirements.
• Notary fees: required for AE and often for EPE; IKE may be formed electronically or with simplified notarial processes.
• Legal and accounting fees: engagement of a local attorney and accountant is strongly recommended—fees typically range from a few hundred to several thousand euros depending on complexity.
• Bank fees: corporate bank account opening and capital deposit certification may incur charges.
• Translation and legalization costs: for foreign documents.

Indicative cost ranges (for budgeting only):

• IKE formation (basic): €500–€2,000 (including professional fees).
• EPE/branch formation: €1,000–€3,000.
• AE formation: €2,500–€8,000+ depending on complexity and notary fees.

Timeline:

• Typical company formation timeline is approximately 4–6 weeks from preparation to full registration and bank account opening. If documentation is complete and a one-stop-shop procedure is used, elements of the process (tax registration, GEMI entry) can be expedited, potentially shortening the timeline to 2–3 weeks. Banking KYC and foreign document legalization are common causes of delay.

Compliance and ongoing obligations

After registration, companies must:

• Register for VAT if carrying out taxable transactions (VAT registration is mandatory for most businesses).
• Register employees with the national social security system (EFKA).
• Maintain proper accounting records, file annual financial statements and corporate tax returns.
• For certain activities (professional services, food, tourism, transport), obtain sector-specific licenses and permits.
• Comply with anti-money laundering (AML) and beneficial ownership disclosure requirements.

Annual accounting and audit requirements depend on the company type and size. AEs generally face stricter audit requirements; smaller IKEs may have simplified accounts unless meeting thresholds that trigger an audit.

How to choose the right corporate structure

Consider the following factors when choosing a structure:

• Liability: If limiting personal exposure is a priority, choose a limited liability form (IKE, EPE, AE).
• Capital needs: If low initial capital is needed, IKE allows formation with minimal capital.
• Governance and investors: For external investors or eventual public listing, AE is the traditional vehicle.
• Administrative burden and cost: Sole proprietorships and IKEs are generally less costly and simpler to run.
• Tax and incentives: Depending on your sector and location, certain incentives may be available—consult local advisors for tax planning and access to grants.

Engage a local lawyer and accountant early to model the tax, compliance and operational implications for your business case. They will also assist in preparing documentation, opening bank accounts and ensuring a timely 4–6 week setup where practical.

Conclusion

Registering a company in Greece offers access to the EU market, a strategic geographic position and a business environment that balances regulatory oversight with modern, flexible company forms—particularly the widely used IKE for startups and SMEs. Typical incorporation takes about 4–6 weeks, with costs dependent on the chosen form and professional services engaged. Because corporate tax rates and incentives can vary depending on circumstances, consult Greek tax and legal advisors to align your corporate structure with your commercial and tax objectives. Proper planning at the outset will streamline business registration, reduce surprises and position your enterprise for growth in Greece’s dynamic market.