Company Law

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Comparative overview of S.A. and I.K.E.

Corporate Type S.A. I.K.E. Type of company Capital Capital Incorporation One-stop service of the Business Chamber or certified notary. One-stop service of the Business Chamber or certified notary. Commercial activity by law Yes, article 1 par. 2 of Law 4548/2018. Yes, article 43 par. 1 of Law 4072/2012. Participation in the company By shares, and other titles provided for in Article 33 of Law 4548/2018 (e.g. bonds, warrants). By company shares Possibility to pledge the shares/company shares Yes, article 54 of Law 4548/2018. Yes, article 75 par. 4 of Law 4072/2012. Minimum capital upon incorporation €25.000, article 15 par. 2 of Law 4548/2018. €1, article 43 par. 3 of Law 4072/2012. Ability to form the capital by contributions in kind Yes, article...

21 Jun 2024

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Types of shares that can be issued by an S.A. company

A company limited by shares (S.A. company) may issue the following types of shares: Common shares : They offer rights to profits and voting rights and constitute the most common class of shares. Preferential shares : They may be issued without voting rights (article 38, paragraph 4 of Law 4548/2018) and constitute an exception to the principle of equality of article 36. Their issuance is more appropriate to facilitate the coverage of the share capital in the event of an increase of the share capital, rather than as a reward to existing shareholders. The most common advantages offered by preference shares are: a. the withdrawal of...

17 Jun 2024

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Personal liability of managers and directors of limited liability companies

Liability of directors of commercial companies (E.P.E./I.K.E./S.A.) The management bodies of limited liability companies (limited liability companies, companies limited by shares, private limited companies) are responsible for the management of internal matters and the representation of the company vis-à-vis third parties, taking key decisions for the management of the company's assets and the achievement of the company's purpose. As representatives of the will of the legal entity, they take binding decisions on the company's course and, in this context, an attempt is made to approach the basic provisions of Greek legislation governing the issue of the liability of the directors of...

10 Nov 2023

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Available tools for research of the solvency of a company under Greek law

The purpose of a lawsuit before the courts is for the plaintiff to be able to eventually satisfy his claims, which mainly depends on whether the defendant appears with any kind of property. Therefore, a proactive check on the credibility, solvency and potential assets of the defendant is vital for the substantially successful outcome of a legal dispute. As a result, this preliminary check consists of the following steps: Check on the real estate property of the company Research via the electronic platform of the Hellenic Cadastral (for the areas where available) or research in person at Land Registries for...

15 Sep 2023

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Setting up a branch of a foreign company in Greece

Foreign direct investment has become a common practice and setting up a branch is a common way of doing business in Greece for foreign business entities. The establishment of branches of foreign companies in Greece is governed by the provisions of Greek Law 4919/2022 (articles 36-45). According to the above provisions, the types that can establish a branch in Greece (article 16 of L 4919/2022) are: A) foreign companies with registered offices in a member state of the European Union (EU) in the form of a company limited by shares S.A., a limited liability company and a limited partnership with limited...

15 Sep 2023

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The main differences between a subsidiary and a branch of a foreign company

A branch has no separate legal personality. Although it acquires a tax registration number and may also acquire a social security number for employing workforce, the lack of separate legal personality means that the legal entity which has the rights and obligations vis-à-vis third parties (debtors, creditors, employees, the state) will be the foreign company i.e. the head office in the home country. In the case of a subsidiary, the “parent” entity owns shares in a separate newly incorporated company which will be subject to rights and obligations in its own name. This means that the local business will be...

01 Dec 2022

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Provisions regarding personnel of security service providers

Law provisions, regarding the personnel engaged in legal entities providing security services, based on L. 2518/1997, as this law has been amended and is currently in force, provide the below: Article 3 of Greek Law 2518/1997, as amended and completed by Greek Law 3707/2008, provides a clear guide of the conditions to be met, and more specifically: 1. Security personnel shall be required to hold a category A or category B work permit depending on the activities they are to perform. 2. The personnel of private security service providers for the activities referred to in cases a', b', c', d', e', f', g'...

01 Dec 2022

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Legal framework for the licensing and operation of security service providers

The main legal framework regulating the terms and conditions for the operation of private security service provision businesses in Greece is Law 2518/1997, as amended and completed by L. 3707/2008. More specifically, according to article 1 of the law, a private business for the provision of security services is the private business, either run by an individual or by a company, that provide to third parties one or more of the following services: a) surveillance or guard of mobile or immobile assets and facilities, b) protection of individuals, c) secure transfer by special configured armored vehicles of money, antiquities, works of art and valuable...

29 Jul 2022

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Offices of Law 89/1967