- Posted by: Stella Tsiouli
- Category: Articles
Company Establishment, Comparative Chart – Advantages – Disadvantages of the Accounting Company E.F.M.
Learn how to choose your New Company type through a handy comparative Chart with the minimum requirements, advantages and disadvantages of each form.
When setting up your business, beyond your Capital and vision, you will be faced with choosing the right type (Individual business, Private Capital Company, L.T.D, S.A., General Partnership, Limited Partnership, Non-Profit Organization). Your choice is crucial because you would not want to start your own business effort by making your first mistake.
Unfortunately, in the financial environment in the past few years, the results of recent market surveys have shown that 50% of new business closes in the first five years, while another 25-30% of them fail until the end of the first decade. Essentially, 75% -80% of new businesses are closing in the first decade since their founding and only 20% manage to survive. Their survival is accidental or is it due to some particular features that these unique businesses have in their DNA?
Our Group has already helped hundreds of entities overcome the crucial decade, has the discretion and expertise to assist you in setting up your business endeavor, the foundation of your company and throughout the subsequent course of your business.
As long as you have a business idea and you are envisioning the foundation of your business you can for a first picture see the comparative Charts of your business types listed below.
COMPARATIVE COMPANY ESTABLISHMENT CHART (INDIVIDUAL BUSINESS, PRIVATE CAPITAL COMPANY, L.T.D, S.A., GENERAL PARTNERSHIP, LIMITED PARTNERSHIP, NON-PROFIT ORGANIZATION) WITH ADVANTAGES AND DISADVANTAGES
|Criteria||Private Capital Company||L.T.D||S.A.||General Partnership||Limited Partnership||Non-Profit Organization||Individual Business|
|Type of Business||Capital||Capital||Capital||Personal||Personal||Social Purpose||Personal|
|Α||Establishment procedures by Company Type|
|1||Founding Chapter||1 €||2.400 €||24.000 €||0 €||0 €||0 €||0 €|
|2||Contributions in kind||Yes||Yes||Yes||No||No||No||No|
|4||Minimum number of Partners||>2||>2||>2||>2||>2||>2||1|
|5||Responsibility of Partners||The responsibility of the PCC and not the Partners||Limited up to the amount of their Contribution||Limited up to the amount of their Contribution||Unlimited||a. General Partners 100% & Personal Assets|
b. Limited Partners up to the amount of their Contribution
|6||Representation and Management||Α. The General Assembly and|
|Α. The General Assembly and|
|Α. The General Assembly and|
|Its Partners||Its Partners||Its Partners||Its Partners|
|7||Duration||12 years||Infinite||> 50 years usually||Infinite||Infinite||Infinite||Infinite|
|8||Starting point – Recommendation point||Customer service center or General Commercial Registry||Certified Notary||Certified Notary||Customer service center or General Commercial Registry||Customer service center or General Commercial Registry||Ministry of Labour||Customer service center or General Commercial Registry|
|9||Indicative Cost of Establishment – in the General Commercial Registry||80 €||80 €||80 €||60 €||60 €||200 €||60 €|
|10||Other Economic Charges, eg Notary||44,02 plus 6 € per sheet plus 24%||44,02 plus 6 € per sheet plus 24%||500 € plus 6 € per sheet plus 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 to the Fund of Lawyers||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||Fund raising capital||1%||1%||1%||0%||0%||0%||0%|
|14||Finally, in favor of the Competition Commission on Capital||0%||0%||1‰||0%||0%||0%||0%|
|Β||Taxation by Company Type||P.C.C.||L.T.D||S.A.||G.P.||L.P.||N.P.Ο.||Individual business|
|2||Tax on Dividends||15%||15%||15%||0%||0%||0%||0%|
|1||Absence of Minimum Capital||Yes||No||No||Yes||Yes||Yes||Yes|
|2||Simple and quick start through the General Commercial Registry||Yes||Yes||No||Yes||Yes||Yes||Yes|
|3||Flexibility in decision making||Yes||No||No||Yes||Yes||No||Yes|
|4||Funding Through the Stock Exchange||No||No||Yes||No||No||No||No|
|5||Low Foundation Costs||Low||Moderate||High||Low||Low||Low||Low|
|1||High Operating 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||Maintenance of a fund||Yes||Yes||Yes||No||No||No||No|
|4||Keeping double-entry books||Yes||Yes||Yes||No||No||No||No|
|5||Difficult Share Transfer||No||No||No||Yes||Yes||–||Yes|
|7||Compulsory Partner Insurance in Single social security institution (former Freelance insurance agency)||Only the managers||Yes||The members of the Board of Directors Where they are at the same time shareholders with more than 3%||Yes||Yes|| –|
Furthermore, we would like to inform you that the establishment of a new Business depending on its activity is likely to require additional criteria and conditions, e.g. Issuance of a health license.
Closing, Business Consultants of EFM Accounting Company are here to bring you our high added value knowledge perfectly tailored to your unique business not only in its first steps but throughout its course not only for its domestic growth and distinction, but also its recognition in international networks.
Contact with us, to study your own business proposal, to suggest our business plan for your firm, and take on all the bureaucratic procedures of the start.
We will hand over your new business with the “Key in Hand”.
Article of Establishment of Company
Stella Tsiouli, Accountant – Tax Consultant