Doing Business in Greece

Greece, with its rich history, strategic location, and vibrant culture, offers a unique landscape for business opportunities. Whether you’re an entrepreneur looking to start a new venture or an established company aiming to expand, understanding the intricacies of doing business in Greece is crucial. This blog post will delve into the process of setting up a business, common business practices, sales contracting processes, and essential considerations for business owners.

Setting Up a Business in Greece

1. Legal Structure and Registration:

The first step in establishing a business in Greece is choosing the appropriate legal structure. The most common forms are:

• Sole Proprietorship (Ατομική Επιχείρηση): Suitable for small businesses, this structure is easy to set up but comes with unlimited liability.
• Limited Liability Company (Εταιρεία Περιορισμένης Ευθύνης – EPE): This offers limited liability to its owners and is suitable for medium-sized businesses.
• Private Company (Ιδιωτική Κεφαλαιουχική Εταιρεία – IKE): A flexible structure that can be established with a minimum capital of €1.
• Public Limited Company (Ανώνυμη Εταιρεία – AE): Suitable for larger businesses, this structure requires a minimum capital of €25,000.

Registration Process:

1. Name Approval: The business name must be approved by the General Commercial Registry (GEMI).
2. Tax Registration: Obtain a tax identification number (AFM) from the local tax office.
3. Social Security Registration: Register with the Social Insurance Institute (EFKA).
4. Chamber of Commerce Registration: Register with the local Chamber of Commerce.
5. Bank Account: Open a corporate bank account.

For detailed information, you can refer to the General Commercial Registry (GEMI) and the Hellenic Ministry of Finance.

2. Licensing and Permits:

Depending on the nature of your business, you may need specific licenses and permits. For example, businesses in the food and beverage industry require health and safety permits. The Hellenic Ministry of Development and Investments provides comprehensive guidelines on the necessary licenses.

Common Business Practices

1. Business Culture:

Greek business culture values personal relationships and trust. Networking and building strong relationships with local partners are essential. Business meetings often start with small talk, and it’s common to discuss personal matters before getting down to business.

2. Language:

While Greek is the official language, English is widely spoken in business settings, especially in larger cities and among younger professionals.

3. Business Hours:

Typical business hours are from 9:00 AM to 5:00 PM, Monday to Friday. However, many businesses, especially in the retail sector, may stay open later and operate on Saturdays.

4. Dress Code:

Business attire in Greece tends to be formal. Men typically wear suits and ties, while women wear business suits or dresses.

Sales Contracting Processes

1. Contract Law:

Greek contract law is governed by the Hellenic Civil Code. Contracts must be clear, detailed, and include all essential terms such as price, delivery, and payment terms. It’s advisable to have contracts reviewed by a legal professional to ensure compliance with local laws.

2. Payment Terms:

Standard payment terms in Greece range from 30 to 60 days. However, it’s essential to negotiate and clearly outline payment terms in the contract to avoid disputes.

3. Dispute Resolution:

In case of disputes, parties can resort to mediation, arbitration, or litigation. The Hellenic Chamber of Commerce and Industry offers mediation services, while arbitration can be conducted through the Hellenic Arbitration Centre.

Essential Considerations for Business Owners

1. Economic Environment:

Greece has undergone significant economic reforms in recent years. The economy is gradually recovering, with sectors like tourism, real estate, energy, and technology offering promising opportunities. According to the European Commission, Greece’s real GDP is expected to grow by 1.2% in 2023.

2. Taxation:

Understanding the tax system is crucial for business success. Corporate tax rates in Greece are currently set at 24%. Additionally, there is a Value Added Tax (VAT) of 24% on most goods and services. For detailed tax information, refer to the Hellenic Ministry of Finance.

3. Labor Market:

Greece has a well-educated workforce, but the labor market is regulated. Employers must comply with labor laws regarding minimum wage, working hours, and employee benefits. The Hellenic Ministry of Labor and Social Affairs provides comprehensive guidelines on labor regulations.

4. Infrastructure:

Greece has a well-developed infrastructure, with modern transportation networks, ports, and telecommunications. The country’s strategic location makes it a gateway to both European and Middle Eastern markets.

5. Government Incentives:

The Greek government offers various incentives to attract foreign investment, including tax breaks, grants, and subsidies. The Hellenic Investment and Foreign Trade Agency (Enterprise Greece) provides information on available incentives and support for investors.

6. Legal and Regulatory Environment:

Navigating the legal and regulatory environment can be challenging. It’s advisable to seek legal counsel to ensure compliance with local laws. The Hellenic Ministry of Justice provides resources on legal requirements and regulations.

7. Market Research:

Conducting thorough market research is essential to understand the local market dynamics, consumer behavior, and competition. The Hellenic Statistical Authority (ELSTAT) offers valuable data and statistics for market analysis.