How do I start a business?

How do I open a business in Greece, amidst the crisis and the constant bleeding of corporate and citizen income? There are always opportunities to set up a business, as long as one takes advantage of the economic situation that is plaguing the country properly, and be careful with his choice. For example, young people in the field have a lot of ‘fresh’ ideas and create opportunities for ourselves and our place, unlike some older entrepreneurs who strive to create ‘burn in’ with no effect. The times have changed and the fact that one has the opportunity to open a shop (eg in focus) does not in itself mean that he will earn a good income.

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There are always opportunities to set up a business, as long as one takes advantage of the economic situation that plagues the country properly The secret, judging from our experience, is extroversion combined with investing in the primary sector and creating technology products or services.

Then, choosing a business shape is related to each person’s needs. The following figures are listed:

  • Individual business -> One person
  1. Taxation from 22% – 45%
  2. Solidarity levy from 2.2% – 10%
  3. EFKA 26.95%
  4. 100% tax deposit (Total charges: from 51% to 82%)

The entrepreneur individually is responsible for any debt of his individual business, with his personal property.

  • Private Companies -> Two People or More Partnerships or Partnerships
  1. 29% taxation
  2. Solidarity levy of 2.2% – 10% (to partners)
  3. EFKA 26.95% (to partners)
  4. 50% tax deposit (for the first 3 years, then 100%)

The Partner is responsible for the debts of the Company with its personal property, indefinitely and wholly. The limited liability is liable up to the amount of his contribution.

  • Capital and equity companies (Single or Multiply) Ltd – IKE – SA
  1. 29% taxation
  2. 50% tax deposit (for the first 3 years, then 100%)
  3. 15% dividend tax if profits are distributed
  4. Solidarity levy of 2.2% – 10% (on dividends distributed)
  5. EFKA 26.95% (in distributed dividends) or approximately EUR 168.00, for which insurance is required

Insurance obligation:

  1. EIAs have all members
  2. in IKE only the administrator has
  3. in SA only shareholders over 3% participating in the BoD

In EIA and IKE, the manager has no personal liability for the company’s debts to third parties other than the State. Similarly to SA, shareholders ‘/ partners’ liability is up to the capital level, the responsibility is with the company, with its assets, and not with the partners. In the case of catering – food – hotel – hotel – garage – training companies, etc., they are also required for their establishment and operating licenses by local regions.

The choice of legal framework is also judged by the following factors:

  • The cost of setting up
  1. for a single business about 150.00 euros
  2. for a personal company if the statute is drafted by a lawyer (not mandatory) around 400.00 euros – without a lawyer around 200.00 euros
  3. for EIA, approximately EUR 700.00, (mandatory notarization)
  4. for IKE if the statute is drafted by a lawyer (not mandatory) around € 500.00 – without a lawyer around € 200.00
  5. for SA around EUR 700.00 (recommendation by notarial deed)

Note: the cost of raising capital when setting up companies has been abolished.

  • if a license is needed, the cost goes up depending on the item.
  • in the event of a succession of stores requiring authorization, the process of transferring the authorization is simple, at low cost, e.g. transferring a restaurant license costs about 185.00 euros

In our opinion, the best option at this time, for corporate, is IKE, as it has the lowest tax cost of 29% and only the administrator has insurance liability, 26.95% on the dividends distributed (for other members the insurance is optional, and their dividends are not subject to EFSA). In the case of non-distribution of dividends, then the manager pays only about € 168.00 per month.


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