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Business Forms and Legal Options

Business Forms and Legal Options

Choosing the right business structure is crucial for your company's sustainable growth. Below are the basic legal options with the advantages, disadvantages, and tax treatment of each form.

1. Sole Proprietorship

The sole proprietorship is the simplest form of business in Greece.

Advantages

  • Simple and quick establishment.
  • Easy management and low operating costs.
  • Ideal for small businesses.

Disadvantages

  • Unlimited personal liability for business debts.
  • Limited financing options.

Taxation

  • Tax rate: 9%-44% (progressive).
  • Tax advance: 100%.

2. Limited Partnership (E.E.)

A Limited Partnership combines unlimited and limited liability.

Advantages

  • Possibility of partners with limited liability.
  • Simple management.

Disadvantages

  • Unlimited liability for general partners.
  • Limited financing potential.

Taxation

  • Tax rate: 22%.
  • Tax advance: 80%-100%.

3. General Partnership (O.E.)

A General Partnership consists of two or more partners with full personal liability.

Advantages

  • Ideal for small and medium businesses.
  • Simple to establish and operate.

Disadvantages

  • Unlimited liability for all partners.
  • Limited expansion potential.

Taxation

  • Tax rate: 22%.
  • Tax advance: 80%-100%.

4. Private Capital Company (I.K.E.)

The I.K.E. offers flexibility and limited liability for partners.

Advantages

  • Low establishment cost (from €1).
  • Limited partner liability.

Disadvantages

  • Limited credibility in large markets.
  • Increased accounting requirements.

Taxation

  • Tax rate: 22%.
  • Dividends: 5%.
  • Tax advance: 80%-100%.

5. Corporation (S.A.)

The Corporation is ideal for large companies and offers the ability to issue shares.

Advantages

  • Limited shareholder liability.
  • Possibility of stock exchange listing.

Disadvantages

  • High establishment and operating costs.
  • Time-consuming procedures.

Taxation

  • Tax rate: 22%.
  • Dividends: 5%.
  • Tax advance: 100%.

6. Limited Liability Company (E.P.E.)

The E.P.E. is a capital company with limited partner liability.

Advantages

  • Ideal for small and medium enterprises.
  • Easy management.

Disadvantages

  • Limited expansion potential.
  • Less recognition in high-capital markets.

Taxation

  • Tax rate: 22%.
  • Dividends: 5%.
  • Tax advance: 100%.

7. Joint Venture

A form of cooperation between natural or legal persons to achieve a specific project.

Advantages

  • Flexibility in establishment.
  • Limited liability for each member.

Disadvantages

  • Limited duration.
  • Complex management.

Taxation

  • Tax rate: 22%.
  • Dividends: Depend on partners' form.
  • Tax advance: 100%.