Thinking of establishing a company in Greece?
There are three main types of company structures in Greece:
- Private Companies (IKE);
- Limited Liability Companies (EPE); and
- Company Limited by Shares / Societe Anonyme (AE).
PRIVATE COMPANY – IKE
An IKE (‘Ιδιωτική Κεφαλαιουχική Εταιρεία’) is a private capital company with its own legal personality. The IKE is incorporated by its “Members”, who’s liability is proportionate to their respective capital contribution.
An IKE is established by one or more natural or legal persons by a private agreement. There is no requirement for the Company Statues to be signed in the presence of a Notary Public. For certain activities i.e., service providers a virtual registered office is sufficient.However,for other activities such as trading or manufacturing, a fixed premises must be rented.
An IKE has a minimum capital requirement of at least one euro (€1). Members may participate with capital, non-capital or with guarantee contributions. The capital must be paid out in full when establishing the company.
Management is carried out by one or two “Manager/s” appointed by the Members. Managers must be natural persons and attend to the day-to-day business of the company. Managers have a fiduciary duty toward the company and may be held liable for breach of the Law, the company statues, mismanagement of the company etc.
Highlights
- Low minimum capital requirements.
- Simplified procedure with minimum expenses (Notary is not required).
- Modern and flexible corporate form (meetings can be held through teleconference and abroad, any amendments and changes are made by a private agreement).
- Corporate documentation may be drafted in any official EU language.
- Both EU and non-EU legal and natural persons may establish an IKE
LIMITED LIABILITY COMPANY (E.P.E.)
An E.P.E. (“Εταιρία Περιορισμένης Ευθύνης”) is a limited liability company that assumes its own legal identity. There is a separation between the corporate assets and the Partner’s personal assets. The company may own assets and assume obligations in its own name. A Partner’s liability is proportionate to the capital invested.
The E.P.E. is incorporated by at least one Partner (natural or legal person) by signature of the company statues before a Notary Public. The company is required to have a statutory seat located in Greece.
There is no minimum capital requirement for the Partners to establish an E.P.E The capital is determined by Partners in the company statutes without restriction.
Major corporate decisions are resolved at a Partner’s Meetings (e.g. amendments to the company statutes, the appointment or removal of Administrators, the distribution of profits, the dissolution of the company etc.). Management activities are carried out by an Administrator (who may or may not be a Partner), who are either appointed in the company statutes or by the adoption of a resolution at the Partners Meeting.
Highlights
- Partners are liable only to the extent of their contributed capital (Limited Liability Company).
- Company statutes to be signed in presence of Notary in Greece.
COMPANY LIMITED BY SHARES – “Ανώνυμους Εταιρεία” (A.E) or Société Anonyme (SA) .
An AE (“Ανώνυμους Εταιρεία”) or SA (“Société Anonyme”) is a company limited by shares, meaning that the company’s capital is divided into shares which are owned by the Shareholders. The AE/SA has its own legal personality with a separation between the corporate assets and the Shareholders’ personal assets. Shareholders are therefore liable to the extent of capital contributed.
An AE/SA may be incorporated by one or more natural or legal person (called Shareholders) by signature and adoption of the company statutes in the presence of a Notary in Greece. The company is required to have a statutory seat located in Greece.
The minimum initial capital of €25.000 is required for the formation of an AE/SE. Shareholders contributions may be in cash or in kind.
The organisation of an AE/SA includes the General Assembly of Shareholders, the Board of Directors and the Auditors.
The General Meeting of the Shareholders is the company’s ultimate governing body, with the authority to decide on major matters concerning the company, such as amendments to the company statutes, election of Directors, dissolution of the company etc. General Meetings may be held at the registered office of the company, or anywhere in Greece or abroad or via teleconference.
The Board of Directors must consist of at least three directors, who carry out the management and day-to-day business of the company. A Director/s need not be a shareholder and is elected by the General Meeting of the Shareholders. The Board of Directors may also convene via teleconference.
Highlights
- Minimum share capital: €25.000;
- Flexibile share transfers and Shareholder mobility;
- The Board of Directors must consist of at least three members. There is no maximum number of Directors.
- Board of Directors can be individuals or legal entities.
For any further information or clarifications please do not hesitate to contact us.