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.
Quote – epixeiro.gr
There are always opportunities to start a business, as long as one takes advantage of the economic situation that is plaguing the country The secret, judging from our experience, is extroversion combined with investment in the primary sector and the creation of technology products or services. Then, the choice of business scheme is related to the needs of each individual. We list the following schemes:
- Sole proprietorship -> One person
- Taxation from 22% – 45%
- Solidarity contribution from 2.2% – 10%
- Electronic National Social Security Institution 26,95%
- Tax advance 100% (Total charges: from 51% to 82%)
The entrepreneur individually is responsible for any debt of his individual business, with his personal property.
- Partnerships -> Two or more persons General or limited partnership
- Taxation 29%
- Solidarity contribution from 2.2% – 10% (to partners)
- Electronic National Social Security Agency 26.95% (to partners)
- 50% tax advance (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 joint-stock companies (single or multi-faceted) EPE – IKE – SA
- Taxation 29%
- 50% tax advance (for the first 3 years, then 100%)
- Dividend tax 15% if dividends are distributed
- Solidarity tax from 2.2% – 10% (on distributed dividends)
- Electronic National Social Security Institution26.95% (on distributed dividends) or approximately EUR 168.00 for anyone with an insurance obligation
Insurance obligation:
- in EIAs all members have
- in IKE only the administrator has
- 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 establishment
- for a single business about 150.00 euros
- for a partnership if the articles of association are drawn up by a lawyer (without being obligatory) about 400,00 euros – without a lawyer about 200,00 euros
- for limited liability company, about 700,00 euros, (formation obligatory through a notary)
- for IKE if the articles of association are drawn up by a lawyer (without being obligatory) about 500,00 euros – without a lawyer about 200,00 euros
- for SA approximately EUR 700,00 (establishment by notarial deed)
Note: the cost of raising capital when setting up companies has been abolished.
- if you need an operating licence, the cost goes up depending on the object.
- in the case of succession for establishments that need a licence, the procedure for transferring the licence is simple, with little cost, e.g. the transfer of a restaurant licence costs around €185.00
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.
Source: cdn.epixeiro.gr
