Tax Guide

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
3	Excess Funding	Yes	No	No	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	–	Unlimited
6	Representation and Management	Α. The General Assembly and Β.The Administrators	Α. The General Assembly and Β.The Administrators	Α. The General Assembly and Β.The Administrators	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
1	Corporate Tax	29%	29%	29%	29%	29%	29%	29%
2	Tax on Dividends	15%	15%	15%	0%	0%	0%	0%
3	Tax Prepayment	100%	100%	100%	100%	100%	100%	100%
4	Business tax	1.000€	1.000€	1.000€	1.000€	1.000€	–	650€

C	ADVANTAGES	P.C.C.	L.T.D	S.A.	G.P.	L.P.	N.P.Ο.	Individual company
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

D	DISADVANTAGES	P.C.C.	L.T.D	S.A.	G.P.	L.P.	N.P.Ο.	Individual business
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
6	Financing	Yes	Yes	Yes	No	No	No	No
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	–	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