Frequently Asked Questions

for Company Establishment

Which type of company should I choose? By what criteria?

Main criteria are the business activities that the company wishes to have, interest for funding, annual turnover etc.

Why should I choose IKE?

Private Equity Company (IKE) has comparative advantages over other types of companies. Some of them are the low cost of establishment, ease of management, securing of the personal property of the shareholders, creation of articles of association with a simple private document (the presence of a Notary is not needed) and finally the obligation that only the director should pay for social insurance contributions.

How much capital should I set aside? The law says €1

The law does define 1 euro, but it is mandatory for the company to pay all the expenses through the corporate bank account. So it is wise to have as capital an amount that will cover the expenses until the company generates income. We could assist you in budgeting the first expenses of the business so that there is no need to change the articles of association for a capital increase.

Why do I have to stay in Greece for 6 months if I do not hold a European Passport as Administrator?

Residence/work permit is given to the administrator in order to be able to stay in Greece and run his business. Basic condition is to stay in Greece for at least 6 months a year.

Can I make changes after the Incorporation, such as adding KAD, increasing the capital etc.?

Yes, at any time. Any change of the above can only be made by amending the Articles of Incorporation of the Company.

How many KAD can I choose?

There is no restriction on the quantity of selection of KADs.

What is the incorporation process? Can everything be done remotely?

The whole process does not require the physical presence of either the shareholders or the managers and is done remotely. The only necessity for the manager’s physical presence is when issuing the company’s bank account, where his signature in front of the bank officer, is necessary.

Is there a time limit of the company’s duration?

There is no time limit for duration. It could be from 1 year to termless.

What are the fixed costs of an IKE?

Permanent monthly expenses such as rent, accountant’s fee, electricity bill, etc. are counted as fixed expenses.

I am already paying public insurance contributions in another country. Can I be exluded of the contributions in Greece?

Yes, by presenting document A1.

Do I need accounting support from day 1?

From the moment your company is incorporated, it is mandatory to submit VAT declaration, even if there are no accounting transactions.

When legal entities participate in a formation, we issue them a VAT number. Where can this VAT number be used? Can the foreign legal entity have a commercial activity since it has a VAT number?

Issuing a VAT number to a foreign legal entity, as a shareholder in an IKE, does NOT give the right to carry out business activity.

When do I have to deposit the capital?

The capital must be deposited approximately within a month from the date of the company’ incorporation.

Is it necessary to open a bank account?

In order for the company to operate, the opening of a Bank Account in a systemic bank of Greece is mandatory. Through this the company conducts all its transactions.

Why can't I deposit or withdraw money from the company account when needed for personal expenses? How does the corporate "wallet" work?

The bank account belongs only to the company and covers only its needs.

What tax regime is each type of company subjected to?

In general, businesses as legal entities have a fixed tax status in contrast to Sole Proprietorships in which the status changes.

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