Private Company (I.K.E.) – main characteristics
The Private Company (P.C or I.K.E.) also know as Private Capital Company, is a relatively new form of commercial company introduced in the Greek legal framework by virtue of Law 4072/2012.
We have collected its main characteristics in the following bullet point list:
- Separate legal personality: The Private Company enjoys a separate legal and commercial entity from its members (as they are not considered merchants per se), and can act separately from its members (e.g. can own property and incur debts)
- Establishment: The minimum requirement for the establishment of a Private Company is a private agreement providing the Articles of Association of the company (except for purposes that are specified by Law, in which a notary public is required). The establishment of the company is filed quickly electronically through the One-Stop Service of General Electronic Commercial Registry, without any other means of publicity to be required. Finally, within a month from its incorporation, the PC must create a website, featuring certain information prescribed by law.
- Number of members: A private company can be established with only one member, so it is considered as a Single Membered Private Company.
- Name of company: All private companies must include the words “Private Company” or “P.C” in their names or “Single-Membered Private Company” or “S.M.P.C.”.
- Duration: The company has a specific duration, which, unless otherwise determined by the Articles, is 12 years, and may be extended by resolution of its members.
- Capital: A mandatory minimum capital of one (1) euro is required for the establishment of the company. The nominal value of each share-part is at least 1 euro and must be the same for all corporate shares-parts, regardless of the type of contribution. The contributions of the members in order to participate in the company may be of 3 kinds: a) Capital contributions, in cash or in kind, b)Non-capital contributions, being assets which are not subject to evaluation (such as the obligation to provide services, for example), and the value of which is defined in the Articles, c) Guarantee contributions, being the undertaking by a partner of a liability against third persons for the obligations of the company, up to an amount determined in the Articles.
- Registered Offices: The seat of the company is in the municipality determined in its Articles.
- Limited Liability: The liability is up to the amount of the company’s capital. The P.C. is liable with its assets, for its corporate obligations, excluding the liability undertaken primarily by the partner, with guarantee contributions. However the administrator could be jointly and liable under certain conditions for tax or social security obligations (debts).
- Management: The PC is managed and represented by one or more administrators, which must necessarily be individuals (natural persons).
- Social Security: Only the administrator and the sole member (in case of a single- membered PC) are subject to compulsory registration at the local social security organization (EFKA)
* The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.