How to Set Up the “I.K.E.” Private Company in Greece
The development of entrepreneurship, the existence and operation of healthy businesses and the creation of new jobs and employment opportunities are a matter of concern for the development of the national economy and the well-being in general of every society. To achieve this goal, in recent years, the concerted effort of the Greek State to impel aspiring entrepreneurs to set up new businesses has been recorded. Special incentives are already in place to encourage new capital investments, so that to introduce new forms of companies with reduced formalities, providing financial relief, and simplifying the working procedures, that are foreseen for the legal establishment and operation of businesses. The purpose of the state is to create a simple, attractive and secure environment, in which the stakeholders will be able to set up and operate their businesses quickly, with no fuss and excessive financial burdens.
The Law Office of Svetlana Kasatkina-Kouskou, being fully informed about the benefits and risks of business, is at the side of those seeking solutions for their business plans. With our specialized knowledge and constant monitoring of the current legislation and market needs we are ready to help you to find the most suitable type of company that serves your business purpose, minimizes costs and ensures the greatest profit potential.
In the recent years, there has been a great development of Private Companies (Ιδιωτική Κεφαλαιουχική Εταιρεία «ΙΚΕ»). This form of private company is considered to be perfect for those entrepreneurs, who wish to follow the immediate and simple procedure to establish their business. So, due to the minimum cost required for their establishment and simplified operation, they are designed to meet needs of SMEs by establishing a more flexible and simple corporate type of company.
The main features of the IKE company that make it a popular choice for those who wish to establish a company in Greece are the following:
Α. IKE companies can be established with a private document by one or more persons through the “One-Stop Shop” of the General Electronic Commercial Registry (GEMI). IKE’s administrator can only be a natural person who does not necessarily have to be a partner of the company. The company name of the IKE could be either an objective one, which means it can be formed according to the purpose of the business, or a subjective one, based on the name of one or more of the partners, or a combination of the above. Regardless of the company name, the mention that it is a “Private Company” is obligatory, mainly for informing those transacting with the company.
In case if one of the partners or the only founder of the company is a foreigner, a legal residence permit is required, which allows actually to act on the economically independent basis (such as for the spouse of Greek citizen or a long-term residence permit fro 5 or for 10 years).
Β. One of the main advantages of the IKE during these times of financial crisis and inability to locate sources of funding, is that the only capital needed for the establishment of the company is the sum amount of one (1) euro. In this way, the party wishing to participate in a business initiative could seek other ways to contribute to it, besides the means of capital payment.
C. The IKE company is only liable with its assets for its corporate obligations, with the exclusion of the case where liability has been undertaken by the partner with guarantee contributions. Due to this limited liability, the advantages of the IKE company are apparent as compared to other corporate forms. More specifically, it presents a flexibility compared with other Greek company partnerships (OE-EE), where there is a partner responsible in an unlimited way (even with his own property) for the debts of the company.
Our office, having studied the numerous benefits and having already seen that they are implemented and delivered in practice, proposes the above corporate type of company and undertakes from the beginning till the end the whole process of setting up the company and in particular as follows: