Start A Business In Greece | Types Of Companies

Starting a company in Greece is a straight forward process. Before getting started, it is important to decide on the most appropriate company structure for your business and proposed operations. This article is a short guide to the various business entity options.

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Sole Proprietorship (Atomiki Epihirisi)
This is a very simple business entity where there is no separation between the owner and the business. It is easy and quick to establish and there is no liability protection. Sole decision making is one feature and the owner has control over business decisions as there is no separate legal entity. 

Private Limited Liability Company (IKE – Etaireia Periorismenis Efthinis)
Many investors and business people chose to establish a private company (IKE) as it is a simple and flexible company structure. An IKE is established by one or more persons who owns shares. Liability is limited. The minimum capital requirement is €1 and there is an administrator (no board of directors). There are statutory audit requirements which are undertaken in line with EU directives. The legal representatives have liability and the time required for incorporation is approximately five days. This company structure is suited for small and middle sized companies who require flexibility to operate.

General Partnership (OE – Omorrythmi Etaireia)
This is a business structure where two or more people are jointly liable for losses, management responsibilities and of course profits. Each partner is personally liable for the debts and financial obligations of the business. Any creditors are able to go after the partners in their personal capacity. There is generally a written partnership agreement which dictates profit sharing, management responsibilities and other issues. Generally speaking, all of the profits (and losses) are shared equally, unless something different is specified in the agreement. There is pass-through taxation, meaning that the profits pass through to the partners personal income tax returns and aren’t allocated to the company. There are risks of personal liability for general partnerships which need to be considered.

Limited Partnership (EE – Eterorythmi Etaireia)
The Limited Partnership (EE) company is a very popular option because there is only unlimited liability for one partner. The other partners have their liability limited to their individual contributions. It provides a combination of both a partnership and corporation in terms of characteristics. The benefit from a liability perspective is that the limited partners have their liability limited. This is similar to a corporation and protects the personal assets of the limited liability partners. Most of the time, the general partners are highly active in the day to day activities and management of the company. In addition, there are same tax incentives since there is pass through taxation and the flat rate is generally chargeable for each partner. This is a useful structure for the ‘silent partner’ structure which popular in many western countries. There is no minimum capital share requirement for this entity and EEs are governed by the Greek Civil Code. 

Public Limited Liability Company (AE – Anonymi Etairia)
This company type is generally suitable for larger businesses or enterprises who are looking to raise capital from the public. There is a minimum share capital amount of 24,000 euros. Given the public nature of these companies, the regulations, reporting requirements and oversight of the companies is much more extensive than for IKE companies. In addition, the shares issued in AE companies can be traded on the stock exchange. This helps enable quick access to large amounts of capital as well as increase in liquidity. 

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