Open a Recruitment Company in Greece

It is possible to open a recruitment company in Greece by following the standard incorporation requirements applicable to all legal entities. Firstly, investors should decide on a legal entity under which they will carry out their recruitment operations. Here, a common option is the limited liability company, which is a business form designed to fit the needs of most small and medium-sized companies.

An advantage of completing the steps for company formation in Greece for a limited liability company is that the investors have limited liability against corporate debts (the legal entity and the investors are considered, from a legal point of view, 2 separate entities). Of course, other business entities can be suitable for Greek recruitment companies, and our consultants may advise on these options.

How to incorporate a legal entity in Greece

Whether investors want to open a recruitment company in Greece or enter another type of activity or sector, the registration process is the same. One of the basic matters, after deciding on a legal entity, is to find a suitable trading name (unique at a national level). Along with these, investors must secure a tax identification number (TIN), according to the Greek Governmental Portal.

A Greek legal entity must apply for various business permits and licenses and have a registered address in Greece. When hiring employees, they need to be registered for social security. It is also mandatory to have a corporate bank account in Greece (set up at any commercial bank). For foreign businessmen, the process of company registration in Greece implies having suitable visas for business/investment purposes.

Of course, this is mandatory only for non-EU investors, as EU businessmen can establish a company here following the same procedures available for Greek citizens. Our specialists in Greek company formation can provide immigration services as well, to those who need to comply with visa requirements. We can also help you set up a company in Holland or any other country, through our local partners. Time frame for incorporation in the Netherlands is 3-4 weeks compared to 2-3 weeks in Greece.

Please know that recruitment companies need to be authorized by the Ministry of Labor and Social Security. Companies registered as private employment agencies have certain reporting obligations, in the sense that they must submit employment contract lists for each financial year (the procedure is complete twice a year, in January and July).

Taxation of a recruitment company in Greece

One of the most important aspects of carrying a business, regardless of its type and the country where it activates, refers to the taxation system applicable to the said business. It must be noted that investors who want to open a Greek company as a staffing agency are liable to standard taxation, given that the purpose of the business is a commercial one.

Considering this, we mention that a Greek staffing agency must pay the corporate income tax, currently charged at the standard rate of 22%. Local businesses must also pay the value added tax (VAT) for the provision of services and goods on the local market.

Another important tax investors must take into consideration is the one arising from employment obligations. In Greece, income from employment is taxed following a progressive system (the higher the income, the higher the tax rate). The current personal income tax rates are:

1. 9%, for income below EUR 10,000;
2. 20% – for income of minimum EUR 10,000 to maximum EUR 20,000;
3. 26% – charged to income of at least EUR 20,000 and maximum EUR 30,000;
4. 34% – applied to income of EUR 30,000 to EUR 40,000;
5. 39% – applied to income of EUR 40,000 to EUR 60,000; 44% – any income above EUR 60,000.

There are other tax obligations that can appear when running a business in Greece. Our consultants in company formation in Greece can further detail this subject. You must also know that our team provides that minimization services, which refer to specific methods regulated by the tax law that can reduce the overall tax burden of a company – you can also rely on us for this service.

Can investors open a Greek company online?

Yes, both local and foreign investors can complete the incorporation process on the online platforms of the Greek institutions, involved in the registration of a legal entity. The process is initiated through the One-Stop Electronic Service, where investors can incorporate most of the legal entities available in Greece.

Businessmen who will open a recruitment company in Greece by using this online service can incorporate through it the majority of the companies available here. Concerning this, our team mentions the following:

• there are 10 different types of companies that can be incorporated in Greece;
• the online registration service is available for 8 out of the 10 legal entities (such as for the limited liability company, the public limited company, the general partnership);
• the online incorporation can take just several minutes, if the investors have all the supporting papers, while the in-person submission of papers can take up to 60 minutes and our team can assist in both procedures;
• digital incorporation costs EUR 18-24, while the in-person incorporation can cost EUR 60-80.

What are the responsibilities of a Greek recruitment company?

It is advisable to open a company in Greece as a recruitment business (or agency) when the investor has a certain expertise or education in the employment market. This company type engages into all the matters related to the selection of the most suitable candidate available for a job opening. This process takes into account any of the following:

1. reviewing the candidates that have applied for a job;
2. selecting the most suitable applicants for an interview;
3. interviewing the best candidates;
4. establishing which candidate should be employed, based on the experience, education, salary demands, job description and the requirements of the company that will employ the person.

These companies can also engage into headhunting services (a service limited only to highly skilled work).

Headhunting services in Greece

Businessmen who plan to open a recruitment company in Greece can specialize their business in offering headhunting services. They are similar to basic recruitment services, but are characterized by the fact that they only aim at hiring international talent on the Greek or overseas markets.

Typically, through this service employers seek future employees that have a high level of education and of expertise, as they are required have to relevant experience in the field and job function in which they will be hired.

Considering these, recruitment agencies will use specific methods to find the most suitable candidates. It must also be mentioned that these types of employees are usually hired by large corporations that are well-reputed at a local or international level, and which benefit from a strong branding on the market.

Setting up a company in Greece as a recruitment business can also be achieved through a branch office, provided that an international staffing company wants to establish its business presence here.

Our team of consultants can intermediate this process and offer legal representation through the power of attorney, in all the stages of the incorporation process, so please contact us for assistance.