ΣΥΧΝΕΣ ΕΡΩΤΗΣΕΙΣ

FAQ

Here we answer the most common questions about our services as well as market procedures.

You asked, we answer.

The answers you need, gathered in one place.

How can I reduce the tax burden for my business?

To reduce the tax burden, you can consider taking advantage of tax reliefs or incentives, such as participating in research and development programs or investing in technology and green energy, which offer tax exemptions. Additionally, proper management of your expenses, such as investments in capital and equipment, can reduce your profits for tax purposes.

How can I better manage VAT, given that I am often paid late by my clients?

One solution is to consider joining a VAT scheme where you will only pay VAT when you receive payment.

How can I reduce the cost of social security contributions without negatively impacting my staff?

You can consider participating in subsidized employment programs from OAED. Additionally, you can explore restructuring work schedules or implementing flexible forms of employment in a legal manner.

How are overtime hours affected by the digital work card?

The digital work card automatically records any overtime, as it will be visible from the discrepancy between the scheduled working hours and the actual hours worked by the employee. This means that overtime cannot be "hidden," and the company must report and pay it in accordance with the law.

I want to start a business with other partners. What legal form would be most suitable?

In this case, a General Partnership (O.E.) or a Limited Partnership (E.E.) could be suitable. In an O.E., all partners are equally responsible for the company's debts, while in an E.E., one or more partners (limited partners) have limited liability, confined only to their contribution to the company. If you want to avoid personal liability, it would be better to consider forming a Private Capital Company (I.K.E.) or a Limited Liability Company (E.P.E.).

I have a large business and plan to expand abroad. What legal form is best?

If your business is large or you're planning to expand internationally, a Public Limited Company (A.E.) is the most suitable form. The A.E. allows for easy entry of new shareholders, the issuance of shares, and the ability to raise capital from investors. It also provides prestige and credibility both in Greece and abroad. Additionally, it offers flexibility in management and limits the liability of shareholders to the amount of their contribution to the share capital.

What is the most cost-effective legal form to start my business?

The most cost-effective structure for starting a business is a sole proprietorship or a Private Capital Company (I.K.E.). A sole proprietorship does not require any minimum capital for its establishment, while an I.K.E. allows you to start the company with a minimum capital of just 1 euro. The choice depends on the level of personal responsibility you are willing to take on.

What are the tax differences between the various legal forms?

The sole proprietorship is taxed with the personal income tax rate, starting at 9% for the first €10,000 of profit and increasing progressively. Corporate forms, such as the I.K.E., E.P.E., and A.E., are taxed at a flat rate of 22% on their profits, but are also subject to a 5% dividend tax. If you want to keep your tax burden low, a sole proprietorship may be better if your profits are low. However, for higher profits, corporate forms are preferable due to the flexibility they provide.

Can I change the legal form of my business in the future if the needs change?

Yes, it is possible to change the legal form of your business in the future if your needs change. For example, you can convert a sole proprietorship into an I.K.E. or E.P.E. if your business grows and you wish to limit your personal liability or attract partners. However, the process may involve costs and bureaucracy, so it is important to think long-term from the beginning.