Following the World Bank’s Ease of Doing Business Index, where Greece currently is the lowest-ranked EU member-state in the world, the Greek government recently launched a number of new business development initiatives aimed at streamlining business bureaucracy and kick-starting the country’s ailing economy.
Minister for Regional Development and Competitiveness Mihalis Chryssohoidis announced legislation changes earlier this month, that will cut the time required to start a business in Greece from up to 38 days, to just one day.
It will do this by establishing one-stop-shop service points in banks, at citizen information points (KEP), and specially established investor service offices.
“It is my belief that we are now taking a crucial turn for the great change. A change of rules, but mostly of mentality which will liberate the country’s creative forces to invest and particularly the new generation to spearhead a new growth miracle,” Chryssohoidis said.
The changes will also make starting a business in Greece cheaper, with costs slashed by up to 62 per cent.
Previously it cost 1345 euros to set up a small business whereas it will now cost 616 euros.
Similarly a Limited company that would previously have cost almost 2500 euros to establish, will now cost 909 euros.
The new-found efficiency stems from the establishment of one General Commercial Record that will consolidate 59 separate chamber records and various other regional and legal databases.
Five previously isolated ministerial information systems will also inter-operate for the first time.
The minister said he also hopes that the reforms will boost Greece’s ranking on the World Bank’s Ease of Doing Business Index, where it is currently the lowest-ranked EU member-state at number 109 of 183 in the world. Australia is ranked number 10.
Speaking to Neos Kosmos Nicholas Christodoulidis, the Greek Consul for Economic and Commercial Affairs in Australia, expressed his confidence that the plan will work to attract foreign investment.
“Anybody who has had an issue with the procedure that has been followed [in the past], I believe it was a question of time, and this new attempt focuses exactly on that,” he told Neos Kosmos.
“Over the years we have seen the problems that bureaucracy has created. The ministry is confident that the specific changes to the new law that fast-tracks projects…is investor-friendly. That’s what we’re trying to do, that’s the main element,” he said.
The law changes will be augmented by the introduction of the National Fund for Entrepreneurship and Development (ETEAN), which will provide financial support for small to medium size businesses.
The Greek government will inject 400 million euros into the fund, and will call for tenders from banks, which will be required to commit double the government’s investment.
The program will lead to favorable lending rates for small and medium sized businesses, as well as incentives including tax breaks and subsidies.
Those interested in applying for the scheme should submit their applications electronically by 31 May, the minister said.
For more information visit: www.investingreece.gov.gr