Optimal Legal Status For Your Business In Greece

Published on September 30, 2025 and written by Cyril Jarnias

Greece, with its recovering economy and strategic location at the crossroads of Europe, Africa, and the Middle East, is increasingly attracting foreign entrepreneurs. However, to succeed in this promising market, choosing the right legal status for your business is crucial. This choice will significantly impact your tax obligations, personal liability, and growth opportunities. In this article, we will explore the main options available to you and guide you through this critical decision.

Greek Legal Structures: A Range of Possibilities

The Greek legal system offers several company forms tailored to different entrepreneurs’ needs. Here are the main options to consider:

1. Public Limited Company (Ανώνυμη Εταιρεία – AE)

This is the Greek equivalent of the French SA. It is particularly suitable for large companies and projects requiring significant investments. Its main characteristics are:

• Minimum share capital: €25,000
• Limited liability for shareholders
• Formal management structure with a board of directors
• Ability to issue shares and bonds

2. Limited Liability Company (Εταιρεία Περιορισμένης Ευθύνης – EPE)

Similar to the French SARL, this legal form is suitable for small and medium-sized enterprises. Its particularities are:

• No minimum share capital required
• Partners’ liability limited to their contributions
• More flexible management than AE
• Number of partners limited to 50

3. Private Capital Company (Ιδιωτική Κεφαλαιουχική Εταιρεία – IKE)

Introduced in 2012 to stimulate entrepreneurship, the IKE is a flexible and modern legal form, comparable to the French SAS. Its advantages are:

• Symbolic minimum share capital of €1
• Great statutory freedom
• Possibility of contributions in kind
• Simplified creation procedures

Sole Proprietorship or Company: What to Choose in Greece?

The decision between a sole proprietorship and a company depends on several factors. Let’s examine the advantages and disadvantages of each option:

Sole Proprietorship (Ατομική Επιχείρηση)

• Simplicity of creation and management
• Reduced startup costs
• Flexibility in decision-making

• Unlimited liability for the entrepreneur
• Difficulty in raising funds
• Less professional image with partners

Company (AE, EPE, or IKE)

• Limited liability for partners
• Increased credibility with partners and clients
• Ease in raising funds and attracting investors

• More complex creation formalities
• Higher operating costs
• Stricter accounting and tax obligations

Generally, if you plan long-term activity in Greece with significant growth potential, creating a company is recommended. It will offer better legal protection and facilitate your future development.

Specifics of the Greek Market: What You Need to Know

Before choosing your legal status in Greece, it is essential to understand certain local market particularities:

1. The Importance of Business Relationships

In Greece, personal relationships play a crucial role in business. A legal structure that allows you to be present on the ground and develop your network is a major asset.

2. Bureaucracy

Despite simplification efforts, bureaucracy remains significant in Greece. Choosing a legal form with streamlined administrative procedures can save you valuable time.

3. Economic Context

Although the Greek economy is recovering, it remains fragile. A legal structure offering some flexibility can help you adapt to market fluctuations.

4. Tax Incentives

The Greek government has implemented various tax incentives to attract foreign investors. Some legal forms may allow you to better benefit from them.

Selection Criteria: How to Make the Right Decision?

To choose the most suitable legal status for your project in Greece, consider the following criteria:

1. The Nature of Your Activity

Certain business sectors may require a specific legal form. For example, regulated activities like banking or insurance typically require the creation of an AE.

2. Your Growth Objectives

If you plan rapid growth and potential fundraising, a structure like AE or IKE will be more appropriate than a sole proprietorship.

3. Your Initial Budget

The capital you have available will influence your choice. The IKE, with its symbolic minimum capital, is particularly attractive for entrepreneurs with limited resources.

4. Your Risk Tolerance

If you wish to limit your personal liability, opt for a structure offering limited liability like AE, EPE, or IKE.

5. The Management Complexity You Can Handle

If you prefer simple management, the sole proprietorship or IKE will be more suitable than the AE, which requires a more formal governance structure.

Key Steps to Create Your Business in Greece

Once you have chosen your legal status, here are the main steps to follow to create your business in Greece:

1. Obtaining a Tax Number (AFM)

Every foreign entrepreneur must obtain a Greek tax identification number (AFM) from the local tax authorities.

2. Drafting the Articles of Association

The articles of association of your company must be drafted in Greek and notarized (except for the IKE where notarization is optional).

3. Deposit of Share Capital

For AE and EPE, the share capital must be deposited in a Greek bank account before registration.

4. Registration with GEMI

All companies must be registered with the General Commercial Register (GEMI).

5. Obtaining Necessary Licenses

Depending on your activity, you may need to obtain specific licenses from the competent authorities.

6. Social Security Registration

You must register with the Greek social security organization (EFKA) for yourself and your employees.

Conclusion: Making the Right Choice to Succeed in Greece

Choosing the right legal status for your business in Greece is a crucial decision that will influence your success in this promising market. The IKE stands out as a particularly attractive option for foreign entrepreneurs, thanks to its flexibility and low creation costs. However, for larger projects or in certain regulated sectors, the AE or EPE may be more appropriate.

Whatever your decision, it is essential to thoroughly inform yourself about the specifics of the Greek market and surround yourself with competent professionals to guide you through the process. With a suitable legal structure and a good understanding of the local business environment, you will be well-positioned to seize the opportunities that Greece offers to dynamic entrepreneurs.