Www.jbrhellas.com Exporting to Greece Dr. Aris Ikkos JBR Hellas February 2004.

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Exporting to Greece

Dr. Aris IkkosJBR Hellas

February 2004

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Content

• JBR Hellas - an introduction

• Entering the Greek market

• Exporting – Agents & Distributors

• Business Entities

• Practical Examples of Assisting Foreign Co.’s

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JBR Hellas - Introduction

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Core activities

• Strategic and business development

• Market research and analysis

• Valuations and Financial analysis

• Feasibility studies

• Franchise studies

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Partners

• JBR bv

– Located in Zeist, The Netherlands

– Management Consulting & Corporate Finance

• Horwath– Since Sep 2000

– Specialists in Tourism, Franchising and FOMB’s

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Entering the Greek Market

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A snapshot on the Greek economy• € economy

• Growth: 5% in 2003 - double EU for 5 years now

• Inflation: 3%

• GDP: ~70% of EU average

• Main Sectors and Changing Markets: tourism, construction, telecom, food, energy, education insurance, financial sector, public sector

• “Port” to the Balkans & and the Middle East

• English-speaking, University graduates

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Entering the Greek Market

• Determining the goals

• Market scan

• Partner search

• Meeting program

• Establishing the relationship

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Market Scan

• General information

• Attractiveness of the market

• Growth potential

• Distribution structure

• Key competitors

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Exporting

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Agents and distributors

• Approx. 80% of Greece’s imports are handled through agents or distributors

• Agents operate on a purchase basis without affecting imports for their own account

• Distributors usually operate on a wholesale basis and obtain exclusive sales rights for certain districts or for the entire country

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Agents

• A commercial agent mediates and negotiates contracts in the name of the principal or his own name

• Choice of law and choice of forum clauses are allowed. If not stipulated, Greek law prevails

• Agents of foreign nationality are required to obtain a licence from the Greek Chamber of Commerce

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Agents - continued

• Under Greek law the agent is obliged to adhere to a number of conditions including:– Adherence to principals instructions– systematic activity– protection of principal’s interest– obligation to secrecy– obligation to render accounts– etc.

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Import restrictions and Documentation

• In general no restrictions towards quality, quantity or foreign exchange because of EU

• In some cases licences are needed for pharmaceuticals, cosmetics or diet food

• Documentation: an original invoice, a certificate of origin (if requested by the Greek importer) and a Bill of Lading.

• Other documentation depends on type of commodity

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Business Entities

An Overview

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Business Entities

Entity Short Dutch eqv

Societe Anonyme AE (SA) NV

Limited Liability Company EPE (Ltd) BV

Unlimited Liability Company OE VOF

Limited Liability Partnership EE CV

Branch Ypok/ma Branch

Law 89 N. 89 (L.89) Off shore

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Establishing a branch in Greece

• Written permission from the Ministry of Commerce

• Appointment of corporation’s legal representative in Greece

• A Greek consular officer must authenticate the power of attorney

• A good lawyer and accountant

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Documents necessary for establishment

• Articles of Association• Records of the decision to establish a Branch• Certificate of the amount of Share Capital • Certificate of good commercial standing• Certificate stating the lawful representatives• A Power of Attorney appointing the legal

representative• All above documents authenticated with Apostil

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Joint Ventures• “Formal” JV’s are Tax-, not Legal-Entities

i.e. no approval or other formality is required, except filing a written agreement at the tax authorities and getting a VAT number

• Accounting books must be kept by the JV and tax returns should be filed annually together with balance sheet of JVImportant: JV partners are jointly and severally liable for tax obligations if you enter a formal JV, make sure you have a good accountant to protect you

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Practical Examples

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KvK Market Orientation Trip

• 15 participants from the North of The Netherlands

• Their operating fields included industrial equipment, food, consumer goods, environmental products etc.

• 13 companies made promising commercial contacts

Same for Georgia Export Promotion Agency with 10 companies

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Nedwind bv

• Explored market opportunities

• Identified suitable investors

• Financial analysis

• Project management for development of wind park

• 2.2 mln Euro grant

• Delivered developed project to energy company

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Cirsa Casinos (Spain)

• Corfu Casino

• Made match-making with Greek construction company

• Prepared documentation for bidding

• Currently one of 3 groups bidding for license

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Contact

• Dr. Aris IkkosJBR HellasVoukourestiou 31Athens 106 73Greece

• [email protected]• T: +30-210 3605002

F: +30-210 3606935