IKE (Private company) is one of the most commonly established legal form of company with limited liability in Greece for the last years.
Through the recent years IKE had a huge success while it is considered as one of the most flexible capital companies in Greece.
A. GENERAL INFORMATION AND STRUCTURE OF IKE
IKE has no minimum share capital requirement. The members may participate in the company either by capital contributions, non- capital contributions or guarantee contributions. The company may be incorporated by several persons (“members” / “partners”) or by a single person. The members may be either natural or legal persons.
IKE is established for a specific duration of 12 years, unless otherwise determined by the Articles. The duration may be extended by resolution of the members.
The registered office of the company is determined in its Articles, and the effective management may be abroad. Furthermore, IKE may transfer its registered office to any other member state of the European Economic Area.
Finally, within a month from its incorporation, IKE must create a website, featuring some basic information prescribed by law.
B. CAPITAL, CONTRIBUTIONS AND SHARES OF IKE
There is no minimum requirement in relation to the share capital of the PC.
The contributions of the members may be of 3 kinds:
– Capital contributions, in cash or in kind or
– Non- capital contributions, being assets which are not subject to evaluation (such as the obligation to provide services, for example), and the value of which is defined in the Articles or
– Guarantee contributions, being the undertaking by a partner of a liability against third persons for the obligations of the company, up to an amount determined in the Articles.
The nominal value of each share is at least 1 euro, and must be the same for all corporate shares, regardless of the type of contribution. A share is a form of participation and not a security. The company may issue a document to each member for the share that the said person holds, but such documents are not securities.
Unless otherwise provided in the Articles, there is no restriction to the transfer of the shares, with the exception of a member holding shares which correspond to non- capital contributions or guarantee, which have not been fully paid, and thus is not allowed to transfer them unless such contribution is converted into capital contribution and then fully paid.
The Articles of IKE may however provide for restrictions in the transfer or encumbrance of shares, and may also provide for rights of pre-emption.
The transfer or encumbrance of shares during the life of a member must be in writing and must be notified to the company. The managers shall then register the transfer or encumbrance of the shares in the book of members, and as of that date it shall be opposable to third parties.
C. MANAGEMENT (DIRECTORS AND GENERAL MEETING) OF IKE
General Meeting may appoint one or more managers, including non-members.
The General meeting of IKE have the authority to resolve on any corporate matter, and further have the exclusive competence to resolve on certain subjects enumerated in the Law.
Meetings may be held at any place, either in Greece or abroad, as well as through a teleconference.
D. TAX AND SOCIAL SECURITY OBLIGATIONS (2023)
The tax regime of IKE is the following:
Corporate Income Tax rate: 22 %
Withholding Tax on Dividends: 5%
Managers of IKE must register with the social insurance organisation (EFKA), it is also compulsory for the sole member, in case the PC is single-membered.
However, persons who are already insured in a public insurance organisation of another EU member- state can obtain a relevant exemption (A1 form) from the social contribution payments in Greece.
E. LEGAL SUMMARY
– No minimum capital requirements.
– Quick establishment and very flexible corporate form
– Minimum expenses and simplified operation (directors’ and general meetings can be held through teleconference and abroad, notary is not required).
– Only the manager and the sole member (in case of a single- membered IKE) are subject to compulsory registration at the local social security organisation (EFKA)
Our legal team is fully qualified and able to advise you and assist you in connection with the registration of IKE and general establishment of your business in Greece.
For more information on the foregoing, please contact us
