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Which type of company should I choose?

25/01/2018

Choosing the right type of company (Sole proprietorship, General partnership, Limited Partnership, Single Member Private Company, Limited Liability Company, SA) is crucial to the success of a business venture, especially in the economic environment of modern Greece, which is characterized by various challenges.

Recent research has revealed that in Greece, about half of the newly established businesses go bankrupt in the first five years, and fewer than 25% manage to survive for more than a decade.

A company’s survival depends on many factors such as the original idea, capital, lending conditions, growth rates, export potential, bureaucracy, but also the type of business, which, depending on the case, can play an important role in the safe and successful navigation of the company even in the most adverse business, tax and economic conditions.

The experienced and expert team of AS network accountants, lawyers, tax advisors and consultants will lead you safely and in full compliance with Greek law to the best choice for setting up your business effort and the establishment of your company, covering most effectively every need in the present and providing for the challenges of the future!

Consult the table below for the type of business you are interested in establishing, so that you have an initial benchmark, and call us for further information.

Comparative Table of Company Types:

A. Advantages - Disadvantages

 

Company Type

Single Member P.C.

Ltd

SA

General Partnership

Limited Partnership

S.P.

 

CRITERIA

Corporation

Corporation

Corporation

Personal

Personal

Personal

 

 

1

Minimum capital

 

1€

 

0€

 

24.000€

 

0€

 

0€

 

0€

2

Contributions in kind

 

Yes

 

Yes

 

Yes

 

Yes

 

Yes

 

No

3

Non-capital contibutions

 

Yes

 

No

 

No

 

No

 

No

 

No

4

Minimum number of shareholders / partners

 

1

 

1

 

1

 

2

 

2

 

1

5

Responsibility of shareholders / partners

           No

No

No

Unlimited

a. General partners are responsible for their Personal Property

b. Limited partners are liable up to the amount of their contribution

Unlimited

6

Representation and management

a. The Partners' Meeting and

b. Its managers

a. The Partners' Meeting and

b. Its managers

a. The Partners' Meeting and

b. The management board

Its Partners

 

The General Partners Ομόρρυθμοι (Unless otherwise agreed)

 

 

7

 

Duration

 

Max. 12 years

Of a certain time

Of a certain time (>50 years usually)

 

Indefinitely

 

Indefinitely

 

Indefinitely

8

 

Starting / Establishment Points

General Electronic Commercial Registry

 

Through a Notary

 

Through a Notary

General Electronic Commercial Registry

General Electronic Commercial Registry

 

At the Tax Office

 

 

CRITERIA

Single Member P.C.

Ltd

SA

General Partnership

Limited Partnership

S.P.

9

Mandatory presence of lawyer if required

Not required

Not required

Not required

Not required

Not required

Not required

10

 

Capital Collecting Tax

 

No

 

 

No

 

 

No

 

 

No

 

 

No

 

 

No

 

11

Fee on the Capital in favor of the Hellenic Competition Commission

No

 

No

 

1 per mil

No

 

No

 

No

 

                 

 

 

 

B. Taxation by Company Type

 

 

Criteria

Single Member P.C.

Ltd

SA

General Partnership

Limited Partnership

N.G.O.

S.P.

1

Income tax of legal persons

 

29%

 

 

29%

 

 

29%

 

 

29%

 

 

29%

 

 

29%

 

According to scale

 

2

Dividend / Distributed Earnings tax

15%

15%

15%

0% / 15%

(if duplicate books are kept)

0% / 15%

(if duplicate books are kept)

0%

0%

3

Tax Prepayment

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

4

Trade tax

 

1.000€

 

1.000€

 

1.000€

 

1.000€

 

1.000€

 

 

650€

 

C. Advantages

 

Criteria

Single Member P.C.

Ltd

SA

G.P.

L.P.

S.P.

1

 

Absence of Minimum Capital

 

Yes

 

Yes

 

No

 

 

Yes

 

Yes

 

Yes

2

 

Simple and quick start through GECR

 

Yes

 

No

 

 

No

 

 

Yes

 

Yes

 

Yes

3

 

Flexibility in decision making

 

 

Yes

 

No

 

 

No

 

 

Yes

 

Yes

 

Yes

4

Funding through the Stock Exchange

 

No

 

 

No

 

 

Ναι

 

No

 

 

No

 

 

No

 

5

 

Establishment cost

 

 

Low

 

Average

 

Average

 

Low

 

Low

 

 Low

 

D. Disadvantages

 

 

Single Member P.C.

Ltd

SA

General Partnership

Limited Partnership

S.P.

1

 

High operation cost

 

No

 

 

Yes

 

Yes

 

No

 

 

No

 

 

No

 

2

 

Failure to raise Stock Exchange Capital

 

Yes

 

Yes

 

No

 

 

Yes

 

Yes

 

Yes

3

 

Fund retention

 

Yes

 

Yes

 

Yes

 

No

 

 

No

 

 

No

 

4

Keeping of duplicate books

 

Yes

 

Yes

 

Yes

 

No

 (unless the turnover is larger than 1,500,000€)

 

No

 (unless the turnover is larger than 1,500,000€)

 

No

 

5

 

Difficult transfer of share

 

No

 

 

No

 

 

No

 

 

Yes

 

Yes

 

-

6

 

Compulsory Partner Insurance on the Single Social Security Entity

 

Just the administrators and the only partner

 

 

Yes

 BoD members who also are shareholders with a share over 3%

 

 

Yes

 

 

Yes

 

 

Yes

 

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