Establishing a subsidiary company in Greece

In order to established a subsidiary business of any legal form in Greece, you need have an active Greek Tax Identification Number (TIN) and opening a local bank account. The decision reached by the foreign entity as such dealing specifically with the launching of a subsidiary corporate formation in Greece, by also defining seat, name, scope, capital share, duration, and valid identification details of the person -s who shall be responsible as its lawful representative.

What is a subsidiary?

When we talk about opening subsidiaries, or branches in Greece, we refer to those organizations that answer to another company. The company to which they answer to is usually called “parent”. In most cases, the parent company controls the majority of the shares of the subsidiary company, so it is practically the real decision-maker.

However, the subsidiary usually has a high level of independence. This is because it has no corporate links with the parent company. This occurs because the subsidiary has its own management and control bodies, in addition to its own capital.

The existence of a business operation based on the creation of subsidiaries and affiliates is important when it comes to understanding the existence of large international corporations or holding companies.

What are the legal forms available in Greece?

The available legal forms of a business that a person can set up in Greece are:

1. a public limited company (PLC) under Law 4548/2018 (Government Gazette, Series I, Issue 104);
2. a Limited Liability Company (LLC) under Law 3190/1955 (Government Gazette, Series I, Issue 91);
3. a Private Company (PC) under Law 4072/2012 (Government Gazette, Series I, Issue 86);
4. a General and Limited Partnership (ordinary or by shares) under Law 4072/2012 (Government Gazette, Series I, Issue 86);
5. a Civil-Law Cooperative under Law 1667/1986 (Government Gazette, Series I, Issue 196);
6. a Civil-Law Association pursuing economic objects under Article 784 of the Hellenic Civil Code and Article 270 of Law 4072/2012;
7. a European Economic Interest Grouping under Council Regulation (EEC) No 2137/1985 of 25 July 1985;
8. a European Company under Council Regulation (EC) No 2157/2001 of 8 October 2001,
9. a European Cooperative Society under Council Regulation (EC) No 1435/2003;
10. a Joint Venture under Article 293 of Law 4072/2012

on the Statute for a European company (SE) (L 294) with its registered office in Greece.

How to start a business in Greece?

Establishing a subsidiary company in Greece involves a multifaceted process that demands careful attention to legal requirements, market dynamics, and strategic planning. By following a comprehensive approach, you can ensure not only compliance with regulations but also set the stage for long-term success in the Greek market. In this guide, we’ll delve into each step in detail, incorporating SEO criteria to enhance online visibility and accessibility.Follow this comprehensive guide to navigate the process effectively:

1. Conduct Market Research: Start by researching the Greek market thoroughly to understand competition, consumer behavior, and legal requirements specific to your industry.
2. Select an Optimal Business Structure: Choose the most suitable legal structure, like a Limited Liability Company (LLC), considering factors such as liability protection and tax implications.
3. Secure a Distinctive Company Name: Verify the availability of your preferred company name through the Greek General Commercial Registry (GEMI) to ensure it aligns with naming regulations and resonates well in your industry.
4. Appoint Directors and Representatives: Nominate qualified directors and a legal representative, adhering to residency and nationality prerequisites, if any.
5. Draft Comprehensive Articles of Association: Prepare a detailed document outlining the company’s objectives, governance structure, and operational procedures, ensuring compliance with Greek corporate laws.
6. Meet Capital Requirements: Determine the minimum share capital required and deposit it into a Greek bank account, obtaining necessary documentation as proof.
7. Complete Company Registration: Submit all requisite documents, including Articles of Association and proof of capital deposit, to the Greek General Commercial Registry (GEMI) for company incorporation.
8. Register for Taxation: Obtain a Tax Identification Number (TIN) and register for VAT, if applicable, with Greek tax authorities to fulfill taxation obligations.
9. Employer Registration: If planning to hire employees, register as an employer with relevant authorities and secure a social security number for compliance with labor regulations.
10. Obtain Licenses and Permits: Identify and acquire any industry-specific licenses or permits necessary to operate legally in Greece, ensuring full compliance with regulatory requirements.
11. Ensure Ongoing Compliance: Stay abreast of Greek corporate laws and regulations, filing annual financial statements, conducting shareholder meetings, and meeting tax obligations consistently.
12. Seek Expert Guidance: Consider partnering with legal and financial advisors experienced in Greek company formation to navigate complexities effectively and ensure a seamless establishment process.

Please feel free to address your request to our tax team, at [email protected]