Brief practical description of main Greek company types
1. Partnership (O.E. )
– The most common form of company without need for a capital (only a nominal capital).
– Is copied by the French “Société en nom Collectif”.
– Simple accounting.
– Unlimited liability for members for the company debts.
– All members are considered as “traders” so they have an obligation to be registered for social security and pay relevant fees.
– Difficult to manage if there are disagreements between the partners.
– Little separation between management and ownership.
2. Limited Partnership (E.E.)
– Same as the O.E. with the difference that at least one of the members has limited liability;
– Is copied by the French “Société en Commandite Simple”.
– The limited partner is not allowed to participate in the management and to represent the company against third parties, but is merely a funder.
3. Limited liability company (EPE)
– Does not resemble to the English law limited liability company.
– Two-tier decision system where the decision making does not only depend on shares but also on persons voting (two-system majority)
– Copied from the French “Société a responsabilité limitée”
– Complicated to manage
– Complicated to resolve internal disputes.
4. Private Capital Company (I.K.E.)
– New company type that has not been seen in practice a lot but is popular for new incorporations;
– Cheap to incorporate and flexible in terms of the provisions of the Articles of Association;
– may be the best alternative to an S.A. for foreign national shareholders.
5. Société Anonyme (S.A.)
– The most important company type. Suitable for all kinds of investment from a corner shop to a listed company.
– The only company type that may be listed in the stock exchange
– Copied from the French “Société Anonyme”.
– Management is clearly distinguished from the ownership.
– Board of Directors of minimum 3 persons.
– Easy to transfer.
– Easy to manage disagreements – majority rules.
– The easiest company to be owned by foreign national shareholders.