How To Start A Private Limited Company (IKE) In Greece: A Step-By-Step Guide

One of the most popular types of privately owned limited liability companies in Greece is the IKE – Idiotiki Kefalaiouxiki Etaireia. It requires a minimum of one euro in capital to start and is highly flexible, making it suitable for both small SMEs and larger businesses.

The main features of an IKE (Private Limited Company) in Greece are outlined below, highlighting why it is an attractive company structure businesses:

• Separate Legal Entity:
  An IKE company is a completely separate legal entity, distinct from its owners. This separation is critical from a legal and liability perspective, as it allows the company to incur debts and conduct business in its own name, offering significant protection to its members.
• Scope of Members:
  An IKE company can have one or more members. A single-member IKE company is known as an SMPC (Single-Member Private Company).
• Company Duration:
  The default duration of an IKE company is 12 years. However, this can be modified through amendments to the company’s articles. Members can also vote to extend the duration beyond 12 years.
• Capital Requirements:
  Only 1 euro is required to establish an IKE company, making it accessible. Contributions can be made in various forms, including non-cash assets.
• Limited Liability:
  Members have no financial risk beyond their contribution, except in very limited cases where administrators may be personally liable for tax or social security debts.

One thing to keep in mind with an IKE company is the cost of compliance and maintenance. In some cases, the process is more complex than for other company types, leading to higher monthly and yearly costs for tax and accounting services. It’s essential to have sufficient income or revenue to justify these expenses.

To create an IKE company, you need to draft a private document and register it through the General Commercial Registry (GEMI) “One-Stop Shop.” A notarial act is required only if a partner contributes real estate or in cases of specific legal requirements.

If all the documentation is correct, the process can be completed on the same day. Note that a website must be registered within one month of the company’s formation.

Any changes to the company’s regulations, address, purpose, or articles of incorporation are generally completed through the GEMI portal.

When establishing an IKE company, you must list its headquarters in the Statute. While the company can conduct business overseas, it can maintain an administrative office in Greece. The Statute, which is the foundational document of the company, outlines all the rules, regulations, and structures. A standard template is often used, but this can be amended to suit specific agreements or requirements when forming an IKE with other shareholders or personnel.

The GEMI (Geniko Emboriko Mitroo) is a 12-digit business number used for government record-keeping and streamlining business processes. It grants access to “One-Stop Shops,” making it easier to manage business registration and compliance.

There is no definitive answer to this question and we highly recommend considering other company types too. The suitability of an IKE depends on various factors, including the nature and structure of your business, expected turnover, liability concerns, and plans for listing or raising funds.

It’s essential to carefully evaluate these factors and consider the costs of maintaining the company and its accounts before making a decision. Of course, we’re here to help you and support you with whatever you need throughout the process - feel free to reach out to us with your questions!

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This content has been created in collaboration with our trusted partner Tsaks Consulting.