1. Public Limited Company (AE or SA), copied from the French type Société Anonyme (SA)
Ownership & Liability: Owned by shareholders who can freely transfer their shares. Shareholders’ liability is limited to their share capital.
Formation & Taxation: Requires a notarial deed, a minimum share capital of 25.000,00 Euro and registration with the General Commercial Registry (GEMI). It is the only type of legal entity that can be listed. Subject to corporate tax on profits.
2. Limited Liability Company ( EPE or Ltd)
Ownership & Liability: Can be formed by one or more individuals or legal entities. Shareholders’ liability is limited to their capital contributions.
Formation & Taxation: Requires a notarial deed unless the founding partners choose to use the “standard articles of association” provided for in article 9 of Law 4441/2016 and only if the exclusive content thereof as described in the relevant decision of the Minister of Economy and Development, is followed faithfully and without any deviation.
It also requires registration with the General Commercial Registry (GEMI). The company has no minimum capital requirements, and it is subject to corporate tax on profits.
3. Private Company (IKE or PC)
Ownership & Liability: Can be formed by one or more individuals or legal entities. Shareholders’ liability is limited to their capital contributions.
Formation & Taxation: Easy to establish, the company has no minimum capital requirements and requires a registration with the General Commercial Registry (GEMI). Subject to corporate tax on profits
4. Branch of a Foreign Company
Ownership & Liability: Established by a foreign company to conduct business in Greece. Foreign branches need a legal representative in Greece. The parent company is liable for the branch’s activities and liabilities for the representatives in Greece are the same with those of the members of a board of directors at an SA.
Formation & Taxation: Requires registration with GEMI and compliance with local rules. Subject to corporate tax on profits in Greece.
5. Sole Proprietorship
Ownership & Liability: Owned and managed by a single individual. The owner has unlimited liability, meaning that personal assets can be used to cover business debts.
Formation & Taxation: Simple to establish. Profits are taxed as personal income with a progressive tax rate scheme. It is used mainly by freelancers.
6. General Partnership (OE)
Ownership & Liability: Owned by two or more partners who manage the business jointly. The partners are jointly and unlimited liable for the business’s debts. It should be noted that all partners are considered as “traders” therefore they have an obligation to be social security registered.
Formation & Taxation: Requires a partnership agreement. Profits are distributed among the partners and are taxed as personal income.
7. Limited Partnership (EE)
Ownership & Liability: Consists of at least one general partner with unlimited liability and one or more limited partners with liability restricted to their capital contribution. General partners have unlimited liability; limited partners have liability only up to their investment. Limited liability partners are unable to be administrators.
Formation & Taxation: Requires a partnership agreement. Profits are distributed among the partners and are taxed as personal income.
For more information regarding the main type of legal entities or other special types of legal entities, please contact us, at cfo@privelpartners.gr
