ΕλληνικάCompany Formation in Greece
In contemporary economic life, the establishment of companies constitutes a significant step towards realizing entrepreneurial ideas and fostering business activities.
A company is defined as ‘associations of persons established by legal act for the pursuit of a common purpose by all members of the association.’ As long as it is provided for by law, the establishment of a sole proprietorship is possible, with only one member.
The corporate interest, as determined by the corporate agreement, dictates that members direct their behavior according to the commitments arising from it.
We are future-oriented by setting strategic long-term goals; planning ahead is not just a necessity but an inherent characteristic of our corporate identity.
Our mind-set is global thus we enjoy working seamlessly across borders.
We strive for fairness by treating everyone with respect, not just courtesy.
We focus on delivering world-class legal services and advice, thus reaching for the highest standard possible means that excellence is the only threshold.
What is Corporate Law or Business Law?
Therefore, corporate law, or business law, encompasses the set of rules that regulate the relationships of partners within their association (internal relations) as well as with third parties (external relations).
The proper establishment of a company requires careful planning, legal expertise, and an understanding of the procedures required by the competent authorities. During the process of establishing a company, many factors must be taken into account, including the type of business, the law governing the business, and the needs of the founders. The choice of the appropriate type of company is crucial as it affects the legal structure, tax treatment, and liabilities of the owners.
Companies are classified as commercial, those with commercial status, and civil, which are the rest. Corporate types provided for by law can be classified as personal or capital companies.
Capital Companies
- Société Anonyme (SA)
Specifications for the establishment of a SA company:
- Its capital is divided into shares of equal value.
- Strict requirements for disclosure, establishment, and subsequent actions.
- Long lifespan of the company.
- Limited liability of partners/shareholders.
- Majority voting rights.
- Formation of three separate bodies (General Assembly, Board of Directors, Auditors).
- Establishing an A.E. requires notarial documents by qualified lawyers and various other administrative authorizations that are necessary.
- Limited Liability Company (LLC)
Specifications for the establishment of a LLC company:
- Minimum capital of €4,500 for the company’s establishment.
- Capital distribution in shares.
- Disclosure requirements for both establishment and other obligations.
- Specified duration of the Company, based on articles of association and provisions of Law 4072/2012.
- Limited liability of partners.
- Majority voting rights for individuals and shares.
- Establishment requires a notary and specialized lawyer.
- Private Capital Company (PC)
Specifications for the establishment of a PC company:
- Specific advantages over other corporate forms.
- Commercial purpose company with legal personality.
- Limited administrative and operational costs (lawyer, notary, and notifications).
- Minimum capital equivalent to one Euro.
- Shares are separate from capital.
- Recognition of each contribution (capital, labor, or guarantee liability).
- Simplified relations between partners and the operating company.
- Flexibility in choices and changes/modifications due to its dual identity as a capital and personal (private) company.
Personal Companies
- Limited Partnership (EE):
Specifications for the establishment of a Limited Partnership company:
- Non-requirement of minimum capital.
- Presence of both equal and unequal partners. In heterogeneous companies, partners are liable only up to the amount of their participation in the company.
- Established through a simple private agreement.
- General Partnership (OE)
Specifications for the establishment of a General Partnership company:
- No requirement for a minimum capital.
- All partners of the homogeneous company are jointly and severally liable with all their personal property for the company’s obligations.
- With the dissolution of the company, personal liability of partners for the company’s obligations continues for a specified period.
- The homogeneous company can also be established through a private agreement.
- Sole Proprietorship:
Specifications for the establishment of a sole proprietorship:
- Personal activity where the sole entrepreneur is responsible for all the obligations of the business with their personal property.
- Flexibility in controlling each sector and making quick decisions as the responsibility lies solely with one person.
- No requirement for a minimum capital for the establishment of the business.
- The time required for establishment is minimal.
At OIKONOMAKIS LAW, we understand the complexity and requirements involved in the company formation process. Depending on the needs of each case, we can ensure that the company is established in accordance with the laws and regulatory requirements, while simultaneously reducing the risk of legal issues in the future. With our experience in the field, we are ready and equipped to assist you at every step of your company’s journey, from formation to successful operation and growth