Forms of Company in Greece

With international business structures in mind, the classic sole proprietorship is generally not an option. The information below on the forms of company commonly used in Greece is intended for initial orientation and provides an overview of the requirements for setting up and operating a Greek company. The most important types of capital company and partnership are presented below:

• Capital companies: the stock corporation, AG/AE (Anonymi Etairia); the limited liability company, GmbH/EPE (Etairia Periorismenis Efthynis); the private capital company, IKE (Idiotiki Kefalaiouchiki Etairia)
• Partnerships: the general partnership, OHG/OE (Omorrythmi Etairia); the limited partnership, KG/EE (Eterorrythmi Etairia); the GmbH & Co. KG / EPE & SIA EE

Note: The following information cannot replace individual legal advice that takes the particular circumstances of the case into account. Further information on obligations towards the tax authorities is provided in the article “Business Activity and Tax Number in Greece”. A separate article, “The GmbH & Co. KG in Greece”, is devoted to a hybrid form of particular practical interest. All information is provided without any claim to completeness and without guarantee.

Stock corporation (AG / Greek: AE)

The Greek stock corporation is today governed by Law 4548/2018, which fundamentally reformed the earlier Stock Corporation Act 2190/1920 and has been in force since 1 January 2019. An AE can already be formed by a single shareholder who subscribes the entire share capital; however, formation by two or more shareholders remains the usual case. The law does not prescribe any particular ratio of shareholdings.

Founders may be natural or legal persons. Natural persons must have reached the age of majority; the participation of minors requires court approval.

Since 1 January 2019, the minimum share capital has been uniformly set at EUR 25,000 and must be paid up in full (Article 15(2) of Law 4548/2018). In certain cases — for example, for companies arising from a merger or restructuring — different, sometimes higher, capital requirements may apply. Cash and in-kind contributions are permitted; in-kind contributions must be valued by independent experts or an auditing firm. The nominal value of a share must be at least EUR 0.04 and may not exceed EUR 100 (Article 35(1) of Law 4548/2018).

The articles of association generally require notarial execution; where they conform 100% to the official model articles, notarial execution is not required. Formation itself is now, as a rule, carried out digitally via the electronic one-stop shop e-ΥΜΣ (see further the article “Setting up a Company”).

Key features:
• Comparatively high founding capital (EUR 25,000)
• Capital divided into shares
• Strict disclosure obligations during formation and throughout the life of the company
• Generally unlimited duration is possible, and companies are in practice often established on a long-term basis
• Limited liability of shareholders to the amount of their contribution
• Decisions taken by majority vote
• Two governing bodies: the board of directors and the general meeting; a duty to appoint auditors exists depending on the size of the company

Limited liability company (GmbH / in Greece: EPE)

The legal basis for the Greek GmbH remains Law 3190/1955, which was most recently comprehensively modernised by Law 4541/2018. The EPE is always a commercial company, even where its purpose is not a commercial undertaking; certain activities, however, remain closed to it — including banking, insurance, and financial services, the administration of securities portfolios and investment funds, leasing business, and certain factoring and venture-capital investment activities.

Since the 2018 reform, no minimum capital is prescribed for the formation of an EPE — the shareholders are free to determine the amount of the share capital (Article 4(1) of Law 3190/1955, as amended); this replaced the former statutory minimum of EUR 2,400. The capital must be paid up in full upon signing of the articles of association; cash and in-kind contributions are both possible.

A single-member EPE is permitted; however, its sole shareholder may not simultaneously be the sole shareholder of another single-member EPE (Article 43a of Law 3190/1955).

Key features:
• No statutory minimum capital
• Capital divided into membership interests, the nominal value of which the shareholders determine freely
• Disclosure obligations during formation and throughout the life of the company
• Limited liability of the shareholders
• Decisions generally taken by a majority of the capital represented
• Two governing bodies: the general meeting of shareholders and the management
• Formation by notarial deed or, where the statutory model articles are used, without any particular form via the e-ΥΜΣ platform

Private capital company (IKE)

The IKE was introduced by Law 4072/2012 as a modern, flexible form of capital company with limited liability, and has since become the most commonly chosen form of company in Greece.
A minimum capital is, in practice, not required; formation is possible with as little as one (1) euro (Article 43 of Law 4072/2012). A single-member IKE is also permitted (Article 49(1) of Law 4072/2012), and an existing company of any other legal form may be converted into an IKE (Article 107 of Law 4072/2012).

Key features:
• Practically no capital requirement; besides cash and in-kind contributions, so-called guarantee contributions are also possible
• Disclosure obligations vis-à-vis the Commercial Registry (GEMI)
• A specified duration; where none is provided for, a duration of 12 years applies
• Limited liability of the shareholders
• Decisions generally taken by a simple majority of the membership interests
• Two governing bodies: the general meeting of shareholders and the management
• Formation is generally possible without any particular form; in practice today, almost exclusively via the electronic e-ΥΜΣ platform using the statutory model articles, or by notarial deed where the articles are individually drafted or immovable property is contributed in kind

Limited partnership (KG / in Greece: EE)

To form a limited partnership, at least two persons must join together to pursue a common purpose (Article 741 of the Civil Code in conjunction with Article 270 of Law 4072/2012). Founders may be natural or legal persons; court approval is required for minor founders.

Key features:
• No statutory minimum capital
• A distinction between general partners (unlimited, joint and several liability) and limited partners (liability limited to their contribution)
• Formation without any particular form, by private written agreement; no notarial deed is required

General partnership (OHG / in Greece: OE)

Here too, at least two persons must join together to pursue a common purpose (Article 741 of the Civil Code in conjunction with Article 249 of Law 4072/2012).

Key features:
• No statutory minimum capital
• All partners are jointly and severally liable without limitation with their entire assets; this liability continues even after the company’s dissolution for obligations already in existence
• Formation without any particular form, by private written agreement; no notarial deed is required