Register a branch of a foreign company in Greece
Establishing a Branch of a Foreign Company in Greece
A branch is not a separate company. It’s an extension of the parent – operating in Greece under the foreign company’s name, with the parent retaining full legal responsibility for everything the branch does.
For some businesses, that’s exactly what’s needed. For others, it’s a risk that makes a Greek subsidiary the better choice. Understanding the difference is where the decision starts.
WHY A BRANCH
The branch structure makes sense when a foreign company wants a physical presence in Greece – for client relationships, project work, regulatory purposes, or market testing – without the cost and formality of incorporating a separate entity.
No minimum capital. Unlike a Greek SA (€25,000 minimum) or even an IKE (where nominal capital is required), a branch has no capital requirement at all.
No dividend withholding. This is the key tax advantage. Profits earned by a Greek subsidiary are subject to a 5% withholding tax when distributed as dividends to the parent company. A branch avoids this entirely – profits attributable to the branch can be transferred to the parent without withholding. For companies moving significant profits back to their home jurisdiction, this is a material difference.
Simpler setup. Registration is typically completed within three to five business days once documentation is prepared. There are no articles of association to draft, no share capital to structure, no board to appoint.
Head office cost allocation. Expenses incurred by the parent that relate to the branch’s operations may be deductible for Greek tax purposes, subject to proper documentation and arm’s length principles.
WHAT A BRANCH CANNOT DO
Because a branch has no separate legal personality, it cannot own property in its own name, cannot independently enter into contracts, and all legal acts are attributed to the parent company. This also means the parent bears unlimited liability for the branch’s activities – there is no corporate veil protecting the wider group.
For businesses planning substantial long-term operations in Greece, taking on significant local debt, or entering into major contracts with Greek counterparties, a subsidiary (IKE or SA) typically offers better liability protection and greater operational independence.
REGISTRATION
The branch must be registered with the General Commercial Registry (GEMI). The main requirements include certified copies of the parent company’s articles of association, a recent certificate of good standing or commercial register extract from the home country (issued within the last three months), a board resolution authorising the establishment of the branch, and the appointment of at least one representative in Greece authorised to act on behalf of the branch.
All foreign documents must be translated into Greek by a certified translator. Non-EU documents require apostille certification or, for countries not party to the Hague Convention, full consular legalisation. EU companies benefit from a streamlined process under EU Directive 2017/1132.
The branch must have a physical registered address in Greece. The registration fee is €100, with additional costs for translations, certifications, and professional fees.
TAX AND COMPLIANCE
Corporate tax: The branch is taxed at 22% on profits attributable to its Greek operations — the same rate as any Greek company. Annual tax returns and advance tax payments are required.
VAT: Registration is mandatory if the branch engages in taxable transactions. Standard rate is 24%.
Accounting: The branch must maintain separate books reflecting its Greek operations under Greek Accounting Standards. Annual financial statements must be filed with GEMI, accompanied by the parent company’s audited financials.
Transfer pricing: If there are transactions between the branch and the parent or related entities, transfer pricing documentation may be required — particularly for non-EU parent companies or where transaction volumes are significant.
Employment: Any staff hired by the branch in Greece are subject to Greek labour law and social security obligations in full. Registration with e-EFKA is required before employees commence work.
GEMI updates: Any changes to the parent company’s structure, representatives, or registered details must be reported to GEMI within 30 days.
HOW WE HELP
We advise foreign companies on whether a branch is the right entry point for their Greek operations – or whether a subsidiary would serve them better. Where a branch is the right choice, we handle the full registration process: preparing and certifying documentation, coordinating translations, appointing the Greek representative, and managing the GEMI filing. We also advise on the ongoing compliance obligations and coordinate with accountants and tax advisors to ensure the branch operates smoothly from day one.
Contact us to discuss your plans. We’ll help you determine the right structure and get you operational in Greece as efficiently as possible.
Frequently Asked Questions
What is the difference between a branch and a subsidiary in Greece?
A branch is not a separate legal entity but rather an extension of the parent company operating in Greece. The parent company retains full liability for the branch’s activities. A subsidiary, on the other hand, is an independent Greek legal entity (typically an S.A. or I.K.E.) with its own legal personality and limited liability, owned wholly or partially by the foreign company.
Can any foreign company establish a branch in Greece?
Yes, companies incorporated in any country can establish a branch in Greece. However, companies from EU/EEA member states benefit from simplified procedures under EU freedom of establishment principles, while non-EU companies may face additional documentation requirements.
What are the main advantages of establishing a branch rather than a subsidiary?
The main advantages include simpler setup procedures, lower initial capital requirements (no minimum capital required for a branch), consolidated taxation with the parent company in certain cases, and streamlined accounting when the branch’s activities are limited.
What are the disadvantages of a branch compared to a subsidiary?
The primary disadvantage is that the parent company bears unlimited liability for all obligations of the Greek branch. Additionally, branches may face certain restrictions on business activities, less favorable tax treatment in some cases, and potentially less credibility with Greek business partners who may prefer dealing with local legal entities.
What are the basic requirements to register a branch in Greece?
The main requirements include: registration with the General Commercial Registry (G.E.MI.), appointment of at least one legal representative authorized to represent the branch in Greece, registration with the local tax office (DOY), obtaining a Greek tax identification number (AFM), and complying with any sector-specific licensing requirements.
Who can serve as the legal representative of a branch in Greece?
The legal representative must be an individual (not a legal entity) with full legal capacity. While Greek law does not explicitly require the representative to be a Greek resident or EU citizen, having a representative with a Greek tax number and address in Greece significantly facilitates administrative procedures. Many foreign companies appoint their Greek legal counsel or a local manager for this role.
What documents are required from the parent company?
Typically required documents include: the parent company’s articles of association or incorporation documents, certificate of good standing or equivalent proving the company’s valid existence, board resolution authorizing the establishment of the branch and appointing representatives, and beneficial ownership information. All foreign documents must be officially translated into Greek and may require apostille certification or consular legalization depending on the country of origin.
How long does the registration process take?
For EU companies with properly prepared documentation, the registration with G.E.MI. can be completed within a few business days. For non-EU companies, the process typically takes 2-4 weeks, depending on the time needed to prepare, authenticate, and translate the required documents. Sector-specific licenses may extend this timeline.
Does a branch need a physical office in Greece?
Yes, the branch must have a registered office address in Greece. This can be a dedicated office space, a shared office arrangement, or in some cases, the address of the legal representative. The address must be a valid physical location where official communications can be received.
Is minimum capital required to establish a branch?
No, Greek law does not require minimum capital for registering a branch. However, the parent company must ensure the branch has adequate resources to conduct its intended business activities and meet its obligations.
How is a branch taxed in Greece?
A branch is subject to Greek corporate income tax on profits generated from its activities in Greece at the standard corporate tax rate (currently 22%). The branch must file annual tax returns and may be required to make advance tax payments. Unlike subsidiaries, dividend distributions from branches to the parent company are not subject to withholding tax since the branch is not a separate legal entity.
What accounting obligations does a branch have?
Branches must maintain separate books and records for their Greek operations in accordance with Greek accounting standards and the Greek General Chart of Accounts. Annual financial statements must be prepared and submitted to the tax authorities. The branch must also keep its books in Greek or provide certified translations when required.
Does a branch need to register for VAT?
If the branch conducts taxable activities in Greece, it must register for VAT (ΦΠΑ) with the tax authorities and obtain a Greek VAT number. The VAT registration threshold and obligations depend on the nature and volume of the branch’s activities. EU companies may benefit from simplified VAT procedures under certain circumstances.
What are the social security obligations for branch employees?
If the branch employs staff in Greece, it must register with the Greek social security system (e-EFKA) as an employer, withhold employee contributions, pay employer contributions, and comply with Greek labor law. Posted workers from the parent company may be subject to different rules depending on the duration of their assignment and applicable EU regulations or bilateral agreements.
Can a branch conduct any type of business activity in Greece?
Generally, a branch can conduct any activities that the parent company is authorized to perform. However, certain regulated activities (such as banking, insurance, investment services, or professional services) may require specific licenses or may be restricted to Greek legal entities. It’s essential to verify whether your intended activities require special authorization.
Can a branch own real estate in Greece?
Yes, a branch can acquire and own real estate in Greece in the name of the foreign parent company. The property acquisition must comply with Greek property law, including notarial deed requirements, land registry registration, and payment of transfer taxes.
How are contracts signed by the branch?
Contracts are signed by the authorized legal representative(s) on behalf of the parent company. The parent company remains the contracting party and bears full contractual liability.
What happens to the branch if the parent company is dissolved?
If the parent company ceases to exist, the branch must also be terminated. The liquidators or successors of the parent company are responsible for winding up the branch’s affairs in Greece and ensuring all obligations are met before deregistration.
Can the process be completed remotely?
Much of the process can be handled remotely through your legal representative and lawyer. However, certain documents may require notarization or authentication in the parent company’s jurisdiction before being submitted in Greece. With proper powers of attorney, the legal representative and lawyer can complete the Greek registration procedures without the foreign company’s directors traveling to Greece.
Contact us to schedule your complimentary introductory consultation.
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