KAD (Kodikos Arithmos Drastiriotitas)
The Greek business activity classification code that categorizes the specific type of economic activity your business conducts.
Definition
The KAD, or Kodikos Arithmos Drastiriotitas (Κωδικός Αριθμός Δραστηριότητας), is a classification code assigned to all Greek businesses to identify and categorize their primary economic activity. This hierarchical coding system enables Greek authorities to track economic sectors, collect statistical data, and enforce sector-specific regulations. Every registered business must be assigned at least one KAD code, which appears alongside the AFM in official registrations. The system is based on the European Classification of Economic Activities (NACE Rev. 2), ensuring consistency across EU member states.
The KAD system uses a hierarchical structure: the first two digits represent the broad economic sector (e.g., 01 for agriculture, 46 for wholesale trade), followed by additional digits specifying more detailed classifications. Businesses may register multiple KAD codes if they operate in different sectors. However, one code must be designated as the primary activity. The KAD determines which regulatory bodies oversee your business, what permits or licenses may be required, and which professional associations you must join.
Selecting the correct KAD is crucial because it influences your business regulatory environment and compliance obligations. For example, a freelance consultant might use a different KAD than a registered software development company, even though both provide similar services. The distinction affects licensing requirements, chamber membership, tax treatment, and social security contributions. Incorrect KAD assignment can lead to compliance issues and disputes with authorities.
The GEMI system (General Commercial Registry) integrates KAD assignment with business registration. When you register your business, you must declare all relevant KAD codes. The system validates your selections and may require supporting documentation, professional qualifications, or proof of sector-specific training. Professional regulated activities (law, medicine, accounting) have specific KAD codes and additional requirements beyond standard business registration.
Expatriates should note that some professional services have restrictions based on EU qualifications recognition and mutual recognition directives. If your profession is regulated in your home country, the Greek authorities must evaluate whether your qualifications meet Greek standards. The appropriate KAD code will be assigned only after this evaluation. Consulting with a Greek business advisor can help ensure you select the most advantageous KAD code for your specific business structure.
Key Facts
- KAD codes classify economic activities using a hierarchical system aligned with EU's NACE Rev. 2 classification
- Every registered Greek business must have at least one KAD code, with one designated as primary
- The KAD determines regulatory oversight, licensing requirements, and professional association obligations
- Multiple KAD codes can be registered if a business operates across different economic sectors
- Businesses can request KAD amendments when operations change, but changes must be properly documented
Common Mistake
Many new business owners select an overly broad KAD code to appear more versatile, but this can trigger unexpected regulatory requirements or licensing obligations. Another mistake is failing to update the KAD when business operations evolve. For example, a digital marketing agency that adds accounting consulting services should register an additional KAD, as accounting services have regulatory requirements.
Expert Tip
Review the complete list of KAD codes before finalizing your business registration. The Greek Ministry of Development maintains a searchable database of all codes. If your business spans multiple activities, strategically selecting which one is "primary" can optimize your regulatory and tax treatment. Consider consulting a Greek business accountant during this process to align KAD selection with your overall business strategy.
Frequently Asked Questions
Can I change my KAD code after registration?
Yes, you can amend your KAD codes through GEMI after registration. However, changes may trigger new regulatory requirements or licensing obligations. You'll need to file an amendment with supporting documentation explaining the change in business operations.
What if my business operates in multiple sectors?
You can register multiple KAD codes to accurately reflect all business activities. Designate one as your primary activity. Each code may carry different regulatory obligations, so ensure you understand the compliance requirements for all assigned codes.
Do I need special permissions for certain KAD codes?
Yes. Some economic activities—particularly regulated professions like law, accounting, and healthcare—require additional qualifications, professional licenses, or membership in professional bodies. These requirements are tied to specific KAD codes and must be fulfilled before registration.
Related Terms
AFM (Tax Registration Number), GEMI (General Commercial Registry), Professional Qualifications in Greece