Procedure and documentation required for the commencement of a sole-trader business/freelancer activity
The procedure for the commencement of a sole-trader business or a freelancer activity entails the following steps, at the different competent authorities, accompanied by the required documentation:
- Pre-registration with the Single Social Security Entity (the Social Security Institution called “EFKA”);
- Pre-registration with the competent Chamber
- Registration with the competent Tax Office
- Completion of the Registration with the Social Security Institution
- Completion of the Registration with the Chamber
An outline is given below of the documents required for each step:
- Pre-Registration with the Social Security Institution (“EFKA”)
The pre-registration is made with the competent Social Security Office for Νon-Εmployees (i.e. sole-trader businesses/freelancers) located in the jurisdiction of the registered seat of the business (business address). This can be made electronically (through email) and no registration fees are required.
The documents required are the following:
- Copy of passport
- Certificate of issuance of Tax Identification Number (TIN)
- Certificate of issuance of AMKA number (the Greek Social Security Number)
AMKA number is the personal social security number that is required for all employment and insurance related dealings of every working person/pensioner and their dependent family members in Greece (nationals and non-nationals). To obtain an AMKA number, the concerned person must first visit the KEP offices (i.e. the Central Services for Citizens) or submit an electronic issuance application form through the relevant website (https://www.idika.gr/aitisi_amka/home_en.html). For the issuance of AMKA, apart from the copy of passport and the certificate of issuance of TIN (also mentioned above), the following documents are required:
- Certificate of birth duly translated (translation and certification of the document by a lawyer is accepted)
- European Citizen’s permanent residence card (issued by the immigration department of the police office)
- Documentation evidencing the registered seat of the business, which includes the following, depending on the case:
- Property declaration form (E9 form), including the title of ownership of the property; or
- Lease agreement, which should be uploaded in the relevant electronic system of the tax authorities (taxisnet)
- Declaration regarding free concession of the property, which should be uploaded in the relevant electronic system of the tax authorities (taxisnet), including the E9 of the person that is grating the free concession;
- Solemn Declarations for the person insured for the first time, certified before a KEP office (the content of the solemn declaration is indicated by the Social Security Office)
- Registration Form (to be filled-in), which is provided by the Social Security Office; taking into account that the registration form to be completed requests the declaration of the Nace activity codes (“KAD”) of the business activity to be commenced, the concerned person (i.e. the sole-trader/freelancer) should have decided the applicable Nace activity codes in advance.
Upon finalization of this step, a certificate of pre-registration is issued by the Social Security Institution, which must be kept and submitted at the tax office (upon step 3 below).
It is noted that the official registration with the Social Security Institution begins as of the date of registration with the competent Tax Office and the social security contributions are calculated/paid as of said date.
Moreover, in the beginning of every calendar year, the insured person must choose the insurance category (class) in which they wish to be placed and according to which the social security contributions are calculated. In case no choice is made, the insured person is automatically placed in the 1st insurance category, namely the lowest one.
- Pre-registration with the competent Chamber
The pre-registration with the competent Chamber can be made electronically and can be completed within a day, unless a pre-approval of the business’ name is required.
The documents required are:
- Registration form provided by the Chamber
- Copy of passport
- Proof of registered seat (as described in 1.d. above).
Part of the process for the pre-registration with the chamber includes the declaration of the Nace activity codes and the profile of the business, which should correspond as much as possible to the actual facts. A main Nace code must necessarily be declared, while a secondary Nace code may also be declared if chosen to.
Finally, the payment of the registration fee must be made.
Upon finalization of this step, a certificate of pre-registration is issued by the competent Chamber, which must be kept and submitted at the tax office (upon step 3 below).
- Registration with the competent Tax Office
The registration with the competent tax office signifies the declaration of the commencement of the business activity. The procedure may also be made electronically (due to COVID-19 measures). The documents required for the registration are the following:
- Copy of passport
- Proof of registered seat (as described in 1.d. above)
- Certificate of pre-registration with the Social Security Institution (this is issued upon finalization of step 1 above)
- Certificate of pre-registration with the competent Chamber (this is issued upon finalization of step 2 above)
- Registration form (to be filled-in) provided by the Tax Office; this form includes all the main information of the new business/freelancing activity such as the nace activity codes, the name and registered seat, the VAT status, the carrying out of any intra-community supplies etc.
- Academic degree-professional license/qualification, if applicable
- A solemn declaration, certified before a KEP office, for application under the special VAT exemption regime for small businesses, if applicable
- In some cases, the tax authority may conduct a physical inspection of the declared registered seat, so as to confirm its existence/adequacy etc. This used to be more common in the past but is nowadays (also due to COVID-19 measures) usually limited to specific cases e.g. of present risk factors. In such case, this is performed soon after the submission of the documentation at the tax office and is attached upon completion to the declaration of the commencement of the business activity.
- Completion of the registration with the Social Security Institution
For the completion of the registration with the Social Security Institution only the submission of the certificate of commencement issued by the Tax Office is required.
- Completion of registration with the Chamber
Similarly, for the completion of the registration with the Chamber only the submission of the certificate of commencement issued by the Tax Office is required.
As a last comment, it is noted that the insured person can also insure their spouse after the completion of 3 months of insurance for themselves and provided that the spouse has also obtained an AMKA number.
The documents required for the issuance of AMKA for the spouse are the same as those mentioned above under point (1), and in addition, a duly translated certificate of marriage or certificate of marital status is required.
* The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.