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Find out how to choose your New Company type from a handy comparative table with the minimum requirements, advantages and disadvantages of each form.
When setting up your company, beyond your capital and vision, you will also have to choose the type of your business (Personal, OE, EE, IKE, EPE, AE, MKO) that best suits your business’s needs. This choice is crucial as you will not want to start your business with the incorrect platform.
Unfortunately, in this challenging economic environment that the country has been experiencing during recent years, results from latest market surveys have shown that 50% of new businesses close in the first five years, while another 25-30% of them fail towards the end of the first decade. Virtually 75% -80% of new businesses “put a padlock” in the first decade since their establishment and only 20% manage to survive. Their survival is either accidental or due to some particular features that these unique businesses have in their DNA?
EFM Company however, which has already helped hundreds of businesses overcome this critical decade, has the experience and knowledge to help you set up and manage your business effortlessly.
As long as you have a business idea and you are envisioning the foundation of your business, you will be able to have a first glimpse of the types of businesses on the below comparison tables.
TABLES
|
Criteria |
IKE |
E.P.E |
A.E |
O.E. |
E.E. |
M.K.O |
Personal |
|
|
Type of business |
Capital |
Capital |
Capital |
Personal |
Personal |
Social Purposes |
Personal |
|
|
Α |
Establishment procedures by Business Type |
|
|
|
|
|
|
|
|
1 |
Founding Fund |
1 € |
2.400 € |
24.000 € |
0 € |
0 € |
0 € |
0 € |
|
2 |
Non financial contributions |
YES |
YES |
YES |
NO |
NO |
NO |
NO |
|
3 |
Ex-Founding Fund |
YES |
NO |
NO |
NO |
NO |
NO |
NO |
|
4 |
Minimum number of Partners |
>2 |
>2 |
>2 |
>2 |
>2 |
>2 |
1 |
|
5 |
Partner Responsibility |
IKE has the responsibility, not the Partners |
Limited up to the amount of their Contribution |
Limited up to the amount of their Contribution |
Unlimited |
A. 100% Unlimited for the O.E. partner. B. The EE partners have up to the amount of their Contribution |
– |
Unlimited |
|
6 |
Representation and Management |
A. The General Assembly and B. Its Managers |
A. The General Assembly and B. Its Managers |
A. The General Assembly and B. Its Managers |
It’s Partners |
It’s Partners |
It’s Partners |
It’s Partner |
|
7 |
Duration |
12 years |
Infinite |
> 50 years Usually |
Infinite |
Infinite |
Infinite |
Infinite |
|
8 |
Starting Point of founding a new business |
KEP or GEMI |
Certified Notary |
Certified Notary |
KEP or GEMI |
KEP or GEMI |
Ministry of Labour |
KEP or GEMI |
|
9 |
Indicative Cost of Establishment – at GEMI |
80 € |
80 € |
80 € |
60 € |
60 € |
200 € |
60 € |
|
10 |
Other Financial Charges, eg Notary |
44,02 plus 6 € per sheet plus Vat 24% |
44,02 plus 6 € per sheet plus Vat 24% |
500 € plus 6 € per sheet plus Vat 24% |
0 € |
0 € |
0 € |
0 € |
|
11 |
Other Financial Charges, Lawyer if required |
Not required, subject to agreement if necessary |
Not required, subject to agreement if necessary |
Not required, subject to agreement if necessary |
Not required, subject to agreement if necessary |
Not required, subject to agreement if necessary |
Not required, subject to agreement if necessary |
Not required |
|
12 |
Contributions towards the Legal Fund |
Not required |
Not required |
0,5% or 1% of the Company’s Capital |
0,5% or 1% of the Company’s Capital |
0,5% or 1% of the Company’s Capital |
Not required |
Not required |
|
13 |
Taxed fund capita |
1% |
1% |
1% |
0% |
0% |
0% |
0% |
|
14 |
Tax in favor of the Competition Commission on Capital |
0% |
0% |
1‰ |
0% |
0% |
0% |
0% |
| Β | Taxation by Company Type | I.K.E. | E.P.E. | A.E. | O.E. | E.E. | M.K.O. | Personal |
| 1 | Corporate Tax – 2019 | 24% | 24% | 24% | 24% | 24% | 24% | * |
| 2 | Corporate Tax – 2020 | 20% | 20% | 20% | 20% | 20% | 20% | * |
| 3 | Tax on Dividends | 5% | 5% | 5% | 0% | 0% | 0% | 0% |
| 4 | Tax Prepayment | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| 5 | Tax of Business | 1.000€ | 1.000€ | 1.000€ | 1.000€ | 1.000€ | – | 650€ |
| C | Advantages | Ι.Κ.Ε. | Ε.Π.Ε. | Α.Ε. | Ο.Ε. | Ε.Ε. | Μ.Κ.Ο. | Ατομική |
| 1 | Absence of Minimum Capital | YES | NO | NO | YES | YES | YES | YES |
| 2 | Simple and quick start through GEMI | YES | YES | NO | YES | YES | YES | YES |
| 3 | Ευελιξία στη λήψη αποφάσεων | YES | NO | NO | YES | YES | NO | YES |
| 4 | Χρηματοδότηση Μέσω του Χρηματιστηρίου | NO | NO | YES | NO | NO | NO | NO |
| 5 | Χαμηλό Κόστος Ίδρυσης | Low | Medium | High | Low | Low | Low | Low |
| D | Disadvantages | I.K.E. | E.P.E. | A.E. | O.E. | E.E. | M.K.O. | Personal |
| 1 | High functional cost | NO | YES | YES | NO | NO | NO | NO |
| 2 | Failure to raise Capital from the Stock Exchange | YES | YES | NO | YES | YES | YES | YES |
| 3 | Bookkeeping of cash and bank accounts | YES | YES | YES | NO | NO | NO | NO |
| 4 | Use of International Accounting Standards | YES | YES | YES | NO | NO | NO | NO |
| 5 | Difficulty in Transferring shares | NO | NO | NO | YES | YES | – | YES |
| 6 | Financing | YES | YES | YES | NO | NO | NO | NO |
| 7 | Mandatory Partner Insurance at EFKA (former OAEE) | Only the administrators | YES | The members of the Board of Directors where they’re at the same time shareholders with more than 3% | YES | YES | –
|
YES |
We would also like to inform you that depending on the activities of a new business establishment, there might be additional requirements and conditions like for example, the issuance of a health license.
The Business Consultants of EFM Accounting Company are here to bring you our high added valued knowledge perfectly tailored to your unique business, and not only in its first steps and throughout its course for domestic growth and distinction, but also through its recognition across international networks.
Contact us immediately for an assessment of your business proposal, so we can already prepare you with the best strategy to ease past the bureaucratic processes of the start.
We will hand to you the keys of your new business.
Company Recommendation Article
Stella TSiouli, Accountant – Tax Engineer
See Tax Calculation Example for IKE by clicking hereContact Person:
1. Maria Georgoulopoulou 210-6858543 Class A Tax Engineer
2.Vana Giannaki 210-6858459 Class A Tax Engineer[stm_post_bottom][stm_post_about_author][stm_post_comments]
