business establishment & outsourcing management consultants

New vs existing entities in Greece

TIMEWISE

New Entity:

It takes approximately 20 working days to incorporate plus another 2 to 3 days for the registration of books and records with the Tax Authorities. Invoice books may sometimes take more time to be certified, depending on the tax authority where the company is subject to and on the object of the company. It is a prerequisite that the new entity has a permanent office address. This may be a problem when investors choose to incorporate the company first and then lease/buy spaces for it. For quicker set ups, our company may host new entities temporarily under the legal condition that they are service providing businesses. Usually another ten working days are required in order to open a corporate bank account, due to the approval required by each Bank's Legal Department.

Existing Entity:

The transfer of an existing entity usually takes approximately 20 working days including the certification of books with the Tax Authority and certification of invoice books. Prerequisite is again a permanent address. If the existing entity has as an object the provision of services, we can provide a temporary address otherwise offices as registered seat have to be located. Bank Accounts of the company can most of the times be reactivated with the new owners and administrator's personal details. Otherwise it takes three to four working days depending on the bank.

FLEXIBILITY

New Entity:

the newly formed companies do not file for tax return until closing the first fiscal year. The new entities can opt for an "over 12 moths first fiscal year" so this means that a company incorporated in September 2006 may file its first tax return in 2008, comprising 15 months of operation.

Existing Entity:

the entities we provide to customers already dispose of a VAT No thing that makes it easier to claim VAT returns from the very first month of operation. The companies are usually non profitable so at the end of the fiscal year these companies enjoy great reductions in taxation (if any). This fact leads to a higher cash flow provided that the 65% down payment for the following fiscal year will be very low or non applicable enhancing the company's cash flow. Taking into account that the tax has been reduced to 25% in 2007 for all existing entities, this renders the taxation of the first fiscal year even lower.