[ESTABLISHING A BUSINESS ENTITY IN GREECE] 222
Both types of partnerships are used mainly for small or medium-sized undertakings. Apart from the different position of the limited partners in Limited Partnerships, the law provisions are the same in both the above types of partnerships. 1.1.5 The Branch Foreign companies may establish in Greece branches. The branches do not have a legal personality; however, they acquire a Greek tax number. A branch of a foreign company has to register at the General Commercial Registry inter alia its articles of association and their amendments, its address, its name, its purpose, data about the company and the legal representatives. 1.1.6 Branches/offices of foreign shipping companies of art. 25 of law 27/1975 A widely used business entity in Greece in shipping business is the branch/office of art. 25 of law 27/1975, mainly due to the many tax exemptions that it enjoys. The exclusive purpose of the branch/office must be the management, operation, charter, insurance, average adjusting, shipbroking and agency of ship owning companies or bareboat charterers or ship lessees and any similar services to the above. Moreover, a permit may be granted to maritime/ ship owning/management companies of salvors or tugs. Some additional prerequisites are also mentioned in the law. The branch/office is established after a permit granted by ministerial decision, following the submission of an application accompanied by the required documentation to the competent Ministry. The permit lasts for 5 years, although it is automatically renewable. The decision
mentions the type of services of the branch and the terms of its operations. The branches/offices enjoy the tax exemptions provided that they spend in Greece for their operations and their payments foreign exchange of at least USD 50,000 (or equivalent in Euros). 1.1.7 Branches and companies of law 89/1967 Foreign companies may also be established in Greece (either as companies or branches) according to the law 89/1967 with the exclusive purpose to provide at their central offices or to affiliated with them foreign companies specific services (consulting; accounting; production quality control; drafting of researches, plans and contracts; advertising and marketing; research and development; software development, computer programming and computer systems support; storage and management of files and information; management of suppliers, customers and supply chain not including transportation by their own means; human resources management and training; call center and computer-based call center information activities). These companies are established by a Ministerial Decision, which defines their exclusive purpose. Thus, they are not allowed to any other operation that is not included in the Ministerial Decision for their establishment. They must have at least 4 employees in Greece and to have as expenses for their operation in Greece at least 100.000 Euros annually. The companies of law 89/1967 are taxed in Greece only for the income that they receive in Greece. Their net taxable income is calculated after the deduction of their expenses and of a minimum percentage of profit that is defined in
ILN Corporate Group – Establishing a Business Entity Series
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