March 26, 2025
Incorporating an LLC in Greece: A Comprehensive Overview
Starting a business in Greece is an exciting opportunity for entrepreneurs looking to tap into the vibrant economy of Southern Europe. One of the most popular business structures for both local and international entrepreneurs is the Limited Liability Company (LLC). This structure offers several advantages, including limited liability, operational flexibility, and access to the broader European market. If you’re considering setting up an LLC in Greece, here’s a detailed breakdown of the process, benefits, and key factors to keep in mind.
What Is an LLC?
A Limited Liability Company (LLC) is a legal business structure that combines the advantages of a corporation and a partnership. The key benefit of forming an LLC is that the owners (or members) are not personally responsible for the company’s debts or liabilities. Instead, their liability is limited to the amount of capital they have invested in the company.
In Greece, the LLC structure is known as an “Eteria Periorismenis Efthynis” (EPE), which translates to Limited Liability Company. This structure is ideal for small to medium-sized businesses, providing flexibility in terms of management while offering limited liability protection for the shareholders.
Advantages of Incorporating an LLC in Greece
- Limited Liability Protection
One of the primary benefits of incorporating an LLC in Greece is the protection it offers to shareholders. The personal assets of the company’s members are shielded from the company’s debts or any legal actions, making this structure an attractive option for entrepreneurs seeking to minimize their personal risk. - Flexibility in Management
An LLC in Greece can be managed by its members or by appointed managers, depending on the needs of the business. This flexibility allows for streamlined decision-making and greater operational efficiency. - Access to the EU Market
Greece is a member of the European Union, which provides LLCs with access to a market of over 500 million consumers. Incorporating in Greece allows businesses to benefit from EU trade agreements, regulations, and free movement of goods, services, and capital. - Tax Benefits
LLCs in Greece benefit from competitive tax rates. Greece has a relatively favorable corporate tax regime, with lower rates for small businesses and specific incentives for foreign investors, especially in sectors like technology, tourism, and renewable energy. - Credibility
Forming a legally recognized LLC enhances the credibility of your business in the eyes of potential clients, investors, and partners. It can also make it easier to secure financing or partnerships with other businesses.
Steps to Incorporate an LLC in Greece
- Choose a Company Name
The first step in forming an LLC is choosing a unique name for your business. The name must be distinguishable from other registered entities, and it should be checked for availability through the Greek business registry. Additionally, the name should comply with local regulations. - Draft the Articles of Association
The Articles of Association (AoA) are essential documents that outline the rules governing the company’s operations. They must include details such as the company’s business activities, the shareholding structure, and the roles and responsibilities of the members and managers. These documents must be drafted in accordance with Greek law and signed by all members. - Register with the Greek Business Registry
To legally establish your LLC, you must register it with the Greek Business Registry (General Commercial Registry or GCR). This process involves submitting your company’s Articles of Association, proof of identity for the members, and other relevant documentation. Once approved, you will receive an official registration certificate. - Obtain a Tax Identification Number (TIN)
Every business in Greece must obtain a Tax Identification Number (TIN) from the Greek tax authorities. This number is used for tax filings, invoicing, and any official business dealings. It is also necessary for opening a business bank account. - Open a Corporate Bank Account
To manage your company’s finances, you will need to open a corporate bank account. The bank will require the incorporation documents, the company’s TIN, and identification information for the LLC members and managers. - Register for VAT (if applicable)
If your LLC will be involved in selling goods or services, it must register for VAT (Value Added Tax) with the Greek tax authorities. This allows you to charge VAT on your sales and to reclaim VAT on business-related expenses. VAT registration is compulsory if your turnover exceeds a specific threshold. - Obtain Necessary Licenses and Permits
Depending on the nature of your business, you may need to apply for specific licenses or permits. For example, businesses in industries like food, healthcare, or construction may require additional approvals from regulatory bodies. It’s important to ensure that all necessary licenses are obtained before you start operations. - Fulfill Ongoing Compliance Requirements
After incorporation, your LLC must comply with several ongoing legal and financial obligations. These include filing annual financial statements, submitting tax returns, and updating the business registry if there are any changes to the company’s management, shareholding structure, or activities.
Taxation of LLCs in Greece
LLCs in Greece are subject to corporate income tax on their profits. The standard corporate tax rate is 22%, but small businesses may benefit from lower rates or tax exemptions in certain cases. For example, if your LLC qualifies as a small business with a turnover below a certain threshold, you may be eligible for a reduced tax rate.
In addition to corporate tax, LLCs are subject to VAT, which is levied on most goods and services in Greece. The standard VAT rate is 24%, but certain products and services may qualify for reduced rates (13% or 6%).
Greek tax law also offers various incentives for businesses involved in research and development (R&D), investment in renewable energy, or other activities that contribute to economic growth.
Key Considerations Before Incorporating an LLC in Greece
- Legal and Regulatory Compliance
Understanding Greek business laws and regulations is essential before starting an LLC. Compliance with employment laws, tax regulations, and commercial contracts is critical for avoiding fines and penalties. - Employment Regulations
If your LLC plans to hire employees, be aware of Greece’s labor laws, which govern employee rights, minimum wage requirements, social security contributions, and working conditions. It’s important to comply with these laws to maintain a good relationship with your workforce. - Market Research
Conducting thorough market research is essential before launching your business. Understanding local consumer preferences, competitors, and industry trends will help you tailor your offerings to the needs of the Greek market and ensure the success of your LLC. - Financial Management
Proper accounting and financial management are key to maintaining compliance and optimizing your LLC’s performance. You may want to hire an accountant or financial advisor familiar with Greek tax laws and business practices to ensure everything runs smoothly. - Funding and Investment
Greece offers various funding options, including EU grants, loans, and incentives for foreign investment. Depending on the nature of your business, there may be financial support available to help you grow and expand.
Conclusion
Incorporating an LLC in Greece presents a great opportunity for entrepreneurs looking to take advantage of the country’s strategic location, favorable tax regime, and access to the European Union market. By following the necessary steps to establish your company, staying informed about the legal and financial landscape, and planning for long-term growth, you can successfully launch and operate your LLC in Greece.
With its combination of legal protections, business-friendly regulations, and potential for market expansion, Greece remains an attractive destination for businesses seeking a gateway to the European market.
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Key Contact
Surendra Singh Chandrawat
Managing Partner
