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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