Greece ranked 79th in the Ease of Doing Business index in 2020 regarding starting a business and protecting minor investors. This has attracted several investors to establish a business presence in the country. With the 51st largest economy in the world and an ever-expansive labor market, Greece has become a focal point for entrepreneurs worldwide.
Out of the different business models operational in Greece, one is a sole proprietorship, which refers to a business owned exclusively by an individual and has no separate existence. Setting up a sole proprietorship in Greece is easy when all local rules and regulations are followed. Read on to know more.
Who Can Be a Sole Proprietor in Greece?
Setting up a sole proprietorship in Greece is a relatively simple process requiring comparatively fewer documents. The criteria below must be fulfilled to be a sole proprietor in Greece:
- Greek citizenship or any other EU member state citizenship
- Must be 18 years of age
- Possessing active and valid Greek VAT number
- Not having any other sole proprietorship
In other cases, a third party can set up a sole proprietorship if the business owner authorizes them. In such situations, the third party should first be registered in the National Register of Communications (EMEP) so that their mobile numbers can be confirmed.
Benefits of Sole Proprietorship in Greece
A sole proprietorship in Greece has several benefits that make it lucrative for operating businesses. These advantages are discussed below:
- A sole proprietorship is straightforward to set up in Greece. The country has opened accessible avenues to ensure business owners can establish a business without hassle.
- In a sole proprietorship, the entrepreneur gets a lot of flexibility since they can make all the decisions on the company’s activities, the volume of production, the method of operation, and so on.
- There is no minimum capital required for establishing a sole proprietorship in Greece. This decreases the financial burden of starting a company.
- The tax rates in Greece are also lenient on sole proprietorship owners. This is because, in the first three years after a sole proprietorship becomes active and functional, the usual business tax rate of 9% is reduced to 4.5% if the enterprise’s annual turnover does not cross EUR 10,000.
Documents Required for Registering Your Business in Greece
Submit the documents listed below to register a sole proprietorship in Greece:
- Duly filled in form D211, which can be downloaded online from the Independent Authority Public Revenue’s website (http://www.aade.gr/).
- Identification of the location of the business head office and other business-related information such as the title of ownership, proof of submission of the office lease, and proof of submission of free concession of space
- In the case of facilities located abroad, a document stating the addresses of such facilities (provided by the respective foreign countries) should be translated into Greek and submitted.
- If the sole proprietorship uses a distinctive title, submit a certificate from General Commercial Register verifying the same.
- For businesses of health interest, documents related to pre-approval of the establishment must be submitted. This pre-approval is relevant for various business activities as per Greek law.
Other Criteria for Registering a Sole Proprietorship in Greece
Non-EU citizens living in Greece and looking to start a sole proprietorship must:
- Submit a residence permit. It should provide the rights to initiate a sole proprietorship in Greece as per the laws of the Ministry of Immigration and Asylum.
- Abide by the taxation in Greece
How to Register a Sole Proprietorship in Greece
The steps involved in registering digitally for a sole proprietorship in Greece are as follows:
The sole proprietorship registration can be done online by signing up on the National Communication Register (EMEP). You need to provide details such as:
- Your Taxisnet credentials
- Tax identification number in case of third-party application submissions
- Real estate identification number in case of privately owned offices
- Electronic lease number along with its year of submission in case of transferred or leased offices
- Company details, such as name, location, activity code number (KAD), VAT, and details of Greek Accounting Standards.
- Once this information is submitted using the gov.gr website, a unique application number is generated to start the sole proprietorship.
- The final step in starting a sole proprietorship in Greece is the generation of the Business Commencement Certificate, which comes with the security features of gov.gr website.
- After you have received your Business Commencement Certificate, you can opt for eEFKA insurance. If you skip this step, the registration for insurance will be done automatically by the appropriate insurance institution.
How Multiplier Can Help You
While it is relatively easy to establish a sole proprietorship in Greece, there are many nitty-gritty details about the local laws and regulations that one might miss out on. Hence, companies willing to establish themselves in Greece often reach out to EOR platforms to save time and resources while fully complying with Greek laws.
Multiplier is one such PEO-EOR platform that works globally in over 150 countries. Our robust SaaS-based infrastructure provides simplified means to oversee employee and payroll management. If you wish to start a sole proprietorship in Greece, you can count on Multiplier to process and manage your company’s payroll with just one click. This way, your time and resources are directed to core business activities, increasing productivity and efficiency.