Before establishing a company in Greece, the appropriate legal form for the business must be chosen, whereby the classic sole proprietorship is to be excluded with regard to international structures.
The following information on the usual company forms in Greece is primarily intended to serve as orientation and provide a global overview of the requirements for founding and operating a Greek company. The most important capital companies (corporations) and partnerships are presented below:
- Capital Companies
- Partnerships
Note 1: However, the following information cannot replace personal advice from a lawyer, taking into account the specifics and needs of the individual case.
Supplementary information on mandatory declarations and obligations towards the tax authorities is provided in the article Tax Number and Business Activity in Greece. All information is provided without claim to completeness and without guarantee.
Note 2: A separate article is dedicated to a particularly interesting mixed corporate form under relevant aspects: The LLC & Co LP in Greece.
Société Anonyme (SA / Greek: A.E.)
Following the modernization of Law 2190/20, a Société Anonyme can now be founded by only one shareholder who must contribute the entire share capital (Article 8 of Law K.N. 2190/20). However, the company is usually founded by two or more shareholders. There is no mandatory regulation regarding the ratio of participation.
The founders of the Société Anonyme can be natural or legal persons. Natural persons must have reached the age of 18 (Article 127, Civil Code, modified by Article 3 of Law N. 1329/83). The participation of minors in the founding of a SA is only permitted after court approval.
Since 12/12/2012, a minimum capital of €24,000 is generally required for the founding of an SA (Law P.N.P. – “Praksi Nomothetikou Periechomenou – of 12/12/2012). However, in certain cases, the law requires significantly higher capital. For example, SAs resulting from merger or restructuring in accordance with the provisions of Laws N.D. 1297/72 and N. 2166/93 must have a share capital of at least €300,000. The articles of association must be notarized to be effective. Furthermore, the articles of association must also be signed by a Greek lawyer.
Essential characteristics of the Société Anonyme in Greece:
- Relatively high capital required for founding
- Division of capital into equal shares representing the stock
- Strict requirements regarding publicity during founding and the entire existence of the company
- Long duration of existence (usually 50+ years)
- Limited liability of the participants / shareholders
- Majority decision-making
- Existence of two bodies (General Assembly, Board of Directors)
- The founding of the SA requires notarization (+ compulsory lawyer involvement) as well as case-specific administrative approvals
Supplementary information is provided in the article The Greek Société Anonyme (AE) (Download in PDF format).
Limited Liability Company (LLC / in Greece: E.P.E.)
According to Article 3 of Law N. 3190/1955, the Limited Liability Company (EPE) is a commercial company, even if its purpose is not a commercial enterprise. However, the exercise of certain activities is prohibited (banking, insurance, and finance, administration of securities deposits and investment funds, leasing, agencies for commercial claims, distribution/realization of investments in the field of high technology (only Venture Capital), activities in the sports sector, etc.).
Since 12/12/2012, a minimum capital of €2,400 is required for the founding of an LLC. The capital must have been fully paid in upon signing the articles of association (Article 4 § 1 of Law N. 3190/1955, replaced by § 3 of Article 11 of Law N. 2579/1998), with at least half of the capital to be contributed in cash. There is no restriction regarding the maximum amount of capital.
According to Article 43a of Law N. 3190/1955, modified by Article 2 of Presidential Decree P.D. 279/1993, a single person can also found an LLC or an already founded LLC can be converted into a single-member company. However, the single-member LLC is void if the founding partner (natural or legal person) is also the sole partner of another single-member LLC or if it was founded by another single-member LLC.
Essential characteristics of the Limited Liability Company in Greece:
- Moderate capital requirement for founding, inclusion of contributions in kind
- Division of capital into “participations,” consisting of shares with a value of at least or a multiple of €30 per share
- Specific requirements regarding publicity during founding and the entire existence of the company
- Predetermined duration of existence, although the omission of defining the duration does not constitute a reason for the nullity of the company
- Limited liability of the partners
- Decision-making by a majority exceeding 50% of the partners representing more than half of the total company capital
- Existence of two bodies (Partners’ Assembly, Manager)
- The founding of the LLC requires notarization (+ compulsory lawyer involvement)
The articles of association must be notarized to be effective. Furthermore, the articles of association must also be signed by a Greek lawyer.
Note: Supplementary information is provided in the article The Greek Limited Liability Company (EPE) (Download in PDF format).
The Greek LLC Law 3190/1955 including updates is available as a German online version at www.gesellschaftsrecht.gr.
Private Capital Company (PC) / IKE
This new corporate form was introduced by Law 4072/2012. This form was introduced with the purpose of enabling a simplified and flexible form while simultaneously offering limited liability for the partners.
In this corporate form, practically no minimum capital is required, meaning it can be founded with one (1) Euro as minimum capital (Art. 43 G. 4072/2012). According to Art. 49 Par. 1 G. 4072/2012, a single person can also found a PC. Furthermore, Art. 107 G. 4072/2012 provides that an already founded company of any form can be converted into a PC.
Essential characteristics of the Private Capital Company in Greece:
- Practically no capital requirement for founding, inclusion of contributions in kind or “non-capital contributions” (Aussenkapitaleinlagen).
- Specific requirements regarding publicity during founding and the entire existence of the company at the Commercial Register.
- Predetermined duration of existence. If the duration is omitted, the duration amounts to 12 years.
- Limited liability of the partners.
- Decision-making by a majority exceeding 50% of the partner shares.
- Existence of two bodies (Partners’ Assembly, Manager).
- The founding of the PC can be done through a private agreement.
Limited Partnership (LP / in Greece: E.E.)
To found a Limited Partnership (EE), at least two parties must join forces or commit jointly to pursuing a common purpose according to the wording of the law (Article 741, Civil Code and 270 G. 4072/2012).
The founding members of the Limited Partnership can be natural or legal persons. Natural persons must have reached the age of 18 (Article 127 Civil Code, modified by Article 3 of Law N. 1329/83). The participation of minors in the founding of a LP is only permitted after court approval.
Essential characteristics of the Limited Partnership in Greece:
- No legally prescribed (minimum) capital required.
- Differentiation between general partners (Komplementäre) and limited partners (Kommanditisten).
General partners are jointly and unlimitedly liable with their assets for the company’s liabilities; limited partners are only limitedly liable up to the amount of their contribution to the company. - The Limited Partnership can be founded based on a private agreement without notarization / compulsory lawyer involvement. The costs for a notary and lawyer are therefore eliminated with this corporate form.
Note: Supplementary information is provided in the article The Greek Partnerships LP (EE) and GP (OE) (Download in PDF format).
General Partnership (GP / in Greece: O.E.)
To found a General Partnership (OE), at least two parties must join forces or commit jointly to pursuing a common purpose according to the wording of the law (Article 741, Civil Code and 249 G. 4072/2012).
The founding members of the General Partnership can be natural or legal persons. Natural persons must have reached the age of 18 (Article 127 Civil Code, modified by Article 3 of Law N. 1329/83). The participation of minors in the founding of a General Partnership is only permitted after court approval.
Essential characteristics of the General Partnership in Greece:
- No legally prescribed (minimum) capital required.
- All partners of the General Partnership are jointly and unlimitedly liable with their entire assets for all obligations of the company.
- The liability of the partners for any existing obligations of the company does not expire with the dissolution of the company.
- The General Partnership can be founded based on a private agreement without notarization / compulsory lawyer involvement.
- The costs for a notary and lawyer are therefore eliminated with this corporate form.
Note: Supplementary information is provided in the article The Greek Partnerships LP (EE) and GP (OE) (Download in PDF format).
(Status: End of 2009. All information is provided without reservation or guarantee.)