Business Forms and Independent Professional Statuses in Greece
Greece offers a diverse range of business structures and independent professional statuses, each tailored to specific business needs and objectives. Understanding the legal and operational frameworks governing these entities is crucial for entrepreneurs and professionals seeking to establish their presence in Greece.
Business Forms
1. Private Limited Liability Company (EPE)
An EPE is a popular choice for small and medium-sized businesses. It offers limited liability to its shareholders, meaning their personal assets are protected from business debts. An EPE requires a minimum of one shareholder and one director, who can be the same person.
2. Public Limited Liability Company (AE)
An AE is similar to an EPE but with shares that can be publicly traded. This structure is suitable for larger businesses seeking access to capital markets. AEs have stricter regulatory requirements and higher compliance costs compared to EPEs.
3. Partnership
A partnership is a business structure involving two or more individuals who share ownership and management responsibilities. Partners have unlimited liability, meaning they are personally responsible for business debts. Partnerships are often used by professionals such as lawyers and accountants.
4. Sole Proprietorship
A sole proprietorship is a business owned and operated by a single individual. The owner has unlimited liability and is personally responsible for all business debts. This structure is simple to establish but offers no liability protection.
Independent Professional Statuses
1. Freelancer
Freelancers are self-employed individuals who provide services to clients on a contractual basis. They are not employees of any specific company and have the flexibility to choose their clients and projects. Freelancers are responsible for managing their own business operations, including marketing, invoicing, and tax compliance.
2. Independent Contractor
Independent contractors are similar to freelancers but typically work on a more long-term basis with a specific client. They have more control over their work than employees but are not entitled to employee benefits such as paid time off or health insurance.
Registration Process and Costs
The registration process and costs for business forms and independent professional statuses vary depending on the entity type.
1. Private Limited Liability Company (EPE)
To register an EPE, you must submit incorporation documents to the General Commercial Registry (GEMI). The registration fee is approximately €245, with additional fees for name reservation and other optional services. The incorporation process typically takes 1-2 weeks.
2. Freelancer
Freelancers must register with the tax authorities (AADE) for tax purposes. There is no registration fee, but freelancers may incur costs for professional advice or accounting services. Registration is immediate, but ongoing compliance requirements apply.
Legal Framework
The establishment and operation of business forms and independent professional statuses in Greece are governed by various laws and regulations, including:
1. Commercial Code
The Commercial Code provides the legal framework for the formation, registration, and operation of companies in Greece.
2. Income Tax Code
The Income Tax Code establishes tax regulations and obligations for businesses and self-employed individuals.
3. Social Security Code
The Social Security Code governs social security contributions and benefits for employees and self-employed individuals.
Navigating the complexities of business formation and independent professional statuses in Greece can be daunting. If you're seeking expert guidance, Heavnn is here to help. Our team of tax and legal professionals can simplify your journey and ensure compliance with all applicable laws and regulations.
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