Best New Business Formation Lawyers in Kos

1. About New Business Formation Law in Kos, Greece

New business formation in Kos, Greece, operates under Greeces national corporate and commercial framework. Entrepreneurs must choose a legal form, register the business, and obtain sector specific licenses. The island follows the same rules as the rest of Greece, but local permits from the Kos Municipality and regional authorities may apply depending on the activity.

Common starting points include registering a sole proprietorship, a general partnership, a limited partnership, a corporation (AE) or a private company with limited liability (IKΕ). Opportunities on Kos often relate to tourism, hospitality, retail and fishing, each with distinct licensing needs. A local attorney can help tailor the setup to your business model and location on the island.

Businesses should be aware of the General Electronic Commercial Registry (GEMI) requirements for company formation and ongoing reporting. Local licensing for tourism activities frequently involves the Greek National Tourism Organization or the Ministry of Tourism, as well as health, safety and fire regulations. Digitalization efforts are reducing formation times, but precise steps remain jurisdiction specific.

Source: gov.gr and Enterprise Greece describe the core steps to start a business in Greece and the role of national registries and licensing bodies.

Sources: gov.gr, Enterprise Greece

2. Why You May Need a Lawyer

Example 1: You plan to open a guesthouse in Kos and must determine whether to operate as an IKÉ or AE. A lawyer helps draft the Articles of Association, confirms capital requirements, and ensures compliance with hotel licensing rules and local zoning. This saves time and reduces the risk of invalidation later.

Example 2: You want to form a family-run restaurant and need to secure a health and fire safety certificate. A legal counselor coordinates licensing with the local health department, prepares risk assessments, and ensures lease terms do not hamper compliance. This avoids delays in opening and consistent inspections.

Example 3: You are a foreign investor establishing a company in Kos for a tourism venture. A lawyer guides you through obtaining an AFM tax number, setting up a Greek bank account, and aligning corporate acts with Greek company law. This helps meet cross-border and local regulatory requirements.

Example 4: You intend to register a new business name for a retail shop in Kos. An attorney ensures name availability, registers the trade name with GEMI, and secures any necessary trademark considerations. This prevents conflicts with existing businesses and protects branding.

Example 5: You want to hire employees in Kos and need to handle social security registrations. A legal professional coordinates with the social insurance system and drafts compliant employment contracts. This reduces the risk of penalties for incorrect contracts or underpayment of contributions.

3. Local Laws Overview

Law 2190/1920 on sociétés anonymes and other corporate forms remains a foundational reference for company formation in Greece. It governs the creation, operation, and dissolution of commercial entities such as AE and LLC forms used by businesses in Kos. The law has undergone amendments to adapt to modern corporate needs and digital filing requirements.

The Kallikratis reform, Law 3852/2010, reorganized local government in Greece and established the current regional structure. Kos now operates under the South Aegean Region with a regional unit that handles planning, permitting and local licensing procedures common to hospitality and building projects. Local administrations rely on these structures for permits and inspections relevant to new businesses.

Income Tax Code provisions, notably Law 4172/2013, apply to businesses and individuals forming or operating commercial ventures in Kos. Tax registration, corporate taxation, and periodic filing obligations for companies and traders are guided by this framework. Investors should engage counsel to align corporate activities with Greek tax rules and reporting deadlines.

Recent digitalization efforts affecting Kos include expanded online filing and electronic submission for company formation and licensing. Official portals emphasize digital access to registries and permit applications, reducing in-person steps. Always verify current requirements with local authorities or a qualified attorney before initiating formation steps.

Source: gov.gr explains national company law and licensing pathways; Enterprise Greece and AADE provide practical guidance for investors and taxpayers.

Sources: gov.gr, Enterprise Greece, AADE

4. Frequently Asked Questions

What is the first step to form a company in Kos, Greece?

The first step is choosing a legal form (IKΕ, OE, EE, AE, or AE in Greek). Then you verify the name and prepare articles of association with a lawyer. Finally, you file the registration with the competent registry and obtain a tax number.

How long does it typically take to register a business in Kos?

Registration times vary by form and sector. With digital GEMI processes, basic registration can take a few days to a few weeks depending on licensing requirements. A local attorney can provide a precise timetable for your plan.

Do I need to hire a Greek lawyer to form a company in Kos?

While not legally required, a lawyer helps ensure compliance with Greek corporate law, assists with registrations, and coordinates sector licenses. This reduces the risk of errors and speeds up the process.

What is the difference between an IKΕ and an AE in Greece?

IKЕ is a private company with limited liability, designed for flexible ownership structures; AE is a public company with more formal governance. IKΕs may have simpler capital requirements, while AE requires a higher minimum share capital. A lawyer can advise based on your business and tax goals.

Do I need to register for VAT when starting in Kos?

Most commercial activities require VAT registration with AADE. You must collect VAT on taxable supplies and file periodic VAT returns. An accountant or lawyer helps ensure proper VAT treatment from the start.

Can a non-resident form a business in Kos?

Non-residents can form Greek companies, subject to residency or legal representation requirements. A local attorney can arrange for the necessary documents and appoint a legal representative if needed. You must meet tax and social security obligations as a foreign owner.

What licenses are typically required for a hospitality business in Kos?

Hospitality ventures usually need local business licenses, health and safety approvals, and fire safety certificates. Depending on the activity, you may also need GNTO or Ministry of Tourism approval. A professional can coordinate these permits with the Kos municipality.

What is the role of GEMI in starting a business in Kos?

GEMI is the General Electronic Commercial Registry used for company formation and reporting. It centralizes registration, changes in corporate data, and annual filings. Your lawyer can guide you through the electronic process.

Do I need a local address in Kos to form a company?

Yes, a local or registered office address is usually required for corporate registration and licensing. A lawyer can help arrange a compliant address and service of process arrangements. You may also need an authorized representative depending on the form chosen.

How long before I receive tax numbers after registration?

Once registration is completed, the Greek tax authority typically issues the AFM within days to weeks. Your accountant or lawyer can monitor the process and confirm when you can start filing taxes. Expect additional time for VAT and social security registrations.

What should I consider when choosing between a local partner and a wholly foreign-owned entity?

Consider capital requirements, control, taxation, and regulatory obligations. Local partnerships may ease market access but require clear governance. An attorney can help draft partnership or shareholder agreements to protect interests.

Is there a difference in formation steps for Kos tourism businesses vs general retail?

Tourism businesses often require extra licenses and inspections, such as GNTO approvals and local health-safety reviews. Retail may focus more on commercial permits and landlord agreements. Always verify sector-specific requirements with local authorities and counsel.

5. Additional Resources

• Enterprise Greece - Official government agency supporting investment and startup activity in Greece and in Kos. https://www.enterprisegreece.gov.gr
• Independent Authority for Public Revenue (AADE) - Greeces tax authority; guidance on VAT, corporate tax and registration. https://www.aade.gr
• Gov Gr - Official Greek government portal with information on starting a business, licensing, and regulatory steps. https://www.gov.gr

6. Next Steps

1. Define your business idea and decide on the legal form (IKΕ, OE, EE, AE) best suited for Kos.
2. Check name availability and prepare a basic draft of the articles of association with a local lawyer.
3. Engage a Kos-based attorney to coordinate GEMI registration and any sector licenses required for your business type.
4. Obtain a Greek tax number (AFM) and set up a Greek bank account if applicable; align with AADE and social security registrations.
5. Identify local licensing needs for your sector (hospitality, retail, fishing, etc.) and apply through the Kos municipality and relevant authorities.
6. Complete filings, receive approvals, and ensure ongoing compliance with annual accounts and tax reporting.
7. Plan for post-formation support with a local lawyer to monitor regulatory changes and renewal deadlines on Kos.