Open Sole Proprietorship in Greece

It is possible to open a sole proprietorship in Greece only if you are a natural person. This entity can’t be incorporated by other companies, nor can it be formed by more associates. The sole proprietorship (also known as a sole trader), can be registered only by 1 individual, who carries a commercial activity in his/her own name.

The sole trader is the simplest structure that can be incorporated in Greece, therefore its registration benefits from simpler steps than in the case of those who opt to open a company in Greece as a limited liability company, for instance. Still, there are many procedures to abide by, and this is why we recommend you to get in touch with our specialists in company registration in Greece for support.

Legislation

The process of company registration in Greece for a sole trader is regulated under several rules of law, whose provisions must be carefully analyzed by any interested party (they regulate matters concerning incorporation, tax obligations are reporting, etc.). For this type of company, the following legislation applies:

1. the Joint Ministerial Decision 282 E 2023/2023 (Government Gazette 11/B);
2. Law 4919/2022 (Government Gazette 71/A) Article 16;
3. the Decision 1006/2013;
4. Law 4987/2022 (Government Gazette 206/A).

What are the prerequisites of opening a Greek sole trader?

In order to open a sole proprietorship in Greece, individuals must respect several requirements. According to the National Registry of Administrative Public Services, working under the Greek Government, the following conditions apply:

1. the applicant must start a commercial activity (the sole trader can’t be used for non-profit purposes, for instance);
2. it is also important not to have another sole trader at the moment when the application is made;
3. the procedure can be initiated by adults;
4. this type of entity can be registered by Greek and EU citizens (however, non-EU nationals may also start the process of company registration in Greece for this entity, following a more complex procedure);
5. the registration can be completed by a third party (such as our consultants in Greek company formation).

Basic requirements for non-EU citizens

As mentioned above, non-EU citizens have the right to open a sole proprietorship in Greece. For those non-EU citizens who live in Greece, it is mandatory to present a valid residency permit along with other documents necessary for the registration.

Please mind that the residency permit held by the non-EU citizen must grant the person the right of starting a business in Greece (for instance, those who arrive here from non-EU countries for other purposes than business or employment will not have the right to start the procedure). Our consultants can assist with more information concerning the rights of setting up a company in Greece.

Incorporation requirements

Although we have mentioned above that the sole trader has the simplest registration process, in practice, there are many matters to abide by, as the procedure is simpler just when comparing it with the requirements for other company types. The registration requirements impose businessmen with numerous steps to complete before the submission of the file, which must contain many documents.

This is why we highly recommend you to receive professional consultancy services from our team of consultants, who have an extensive experience in registering any Greek business form. It is possible to open a sole proprietorship in Greece by using the online platforms of the local institutions.

The process of company formation in Greece can be completed by our team as stated earlier, through the power of attorney (POA), but additional formalities must be met. For instance, if you grant our specialists the POA, they need to register with the National Communication Register.

Among the requirements for setting up a company in Greece as a sole trader, we mention the following:

1. the company must have its seat in Greece;
2. the seat must be confirmed by adequate property documentation (property ownership or lease contract);
3. it is necessary to present the property’s Real Estate Identification Number (ATAK) if the location is privately held, or the Electronic Lease Number, for rented properties;
4. the file must also contain the company’s Activity Code Number (KAD);
5. it is mandatory to include information on the accounting documents the sole trader will use, as per the Greek Accounting Standards.

How long does it take to open a sole proprietorship in Greece?

A part of the process necessary to open a Greek company, via the online procedure, can be completed in approximately 12 minutes, according to the National Registry of Administrative Public Services (it refers to the processing of the documentation only).

Of course, in order to do so it is mandatory to have all the documentation, and the provision of these documents can take a longer period of time. With the help of our team, you can rest assured that the necessary paperwork can be gathered in the shortest amount of time possible.

What is the data on sole traders in Greece?

The sole trader has become increasingly popular in all European countries, as many individuals consider that it is better for their carrier prospects to work as self-employed and to organize their working schedule based on their own needs, and not be limited by a traditional work schedule, as it can be the case of those employed in a company.

The same is true for Greece. In the list below, we present you with data characterizing this way of carrying out a business activity:

• in 2024, the total number of individuals registered as sole traders accounted for 600,000;
• the growth rate has been significant (15% in the 2 years leading to 2024);
• the largest category, representing freelancers, accounts for 250,000 persons (freelancers are associated with activities such as content creators, web specialists and designers, software developers);
• concerning the age structure, those of 25-34 years old are the largest group that prefers to open a Greek company as a sole trader (accounting for 40% of all sole traders, followed by the next age group, 35-44);
• a large part of the Greek sole traders has tertiary education (45% of them hold a bachelor’s degree).

We kindly advise you to address our specialists in company formation in Greece for further information on the registration process and the documentation that must be prepared. Applicants must also have a valid Greek tax number and our consultants can assist in this formality as well, so do not hesitate to contact us.